Document:

Amended and Restated Loan and Security Agreement - Oxford Finance Corp

  
 Exhibit 10.17

 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of September 27, 2010
between OXFORD FINANCE CORPORATION (“Lender”), and TITAN PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), amends and restates the terms of that certain Loan and Security Agreement by and among
Lender and Borrower, dated as of December 18, 2009 (as amended from time to time, the “Original Agreement”), and provides the terms on which Lender shall lend to Borrower and Borrower shall repay Lender. 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 Lender the outstanding principal amount of the Credit Extension and accrued and unpaid interest thereon and any other amounts due
hereunder as and when due in accordance with this Agreement. 
 2.1.1 Growth Capital Loan Facility. 

(a) Growth Capital Loan A. 
 (i) Availability. On or about the date of the Original Agreement, Lender made an advance to Borrower in the amount of Three Million Dollars ($3,000,000) (the “Growth Capital Loan A”).

 (ii) Repayment. Subject to the terms and conditions of this Agreement. Borrower shall continue to make
monthly payments of principal and interest on the Growth Capital Loan A in accordance with the terms and conditions of the Promissory Note dated as of December 23, 2009, issued in connection with the Growth Capital Loan A, and the amortization
schedule attached hereto as Annex A. Without limiting the foregoing, all unpaid principal and accrued and unpaid interest and all other amounts due on account of the Growth Capital Loan A are due and payable in full on the Growth Capital Loan A
Maturity Date. The Growth Capital Loan A may only be prepaid in accordance with Sections 2.1.1(d) and/or 2.1.1(e). 
 (b) Growth Capital Loan B. 
 (i) Availability.
Subject to the terms and conditions of this Agreement, on the Closing Date Lender shall make one (1) advance to Borrower in the amount of Five Million Dollars ($5,000,000) (the “Growth Capital Loan B”). 

(ii) Repayment. Borrower shall make monthly payments of interest only, in arrears, commencing on the first day of
the month following the month in which the Funding Date occurs and continuing thereafter on the first day of each successive calendar month during the Interest Only Period. Commencing on the Growth Capital Loan B Amortization Date, Borrower shall
make thirty (30) equal monthly payments of principal and interest, in arrears, which would fully amortize the outstanding amount of the Growth Capital Loan B, in accordance with the amortization schedule attached hereto as Annex B. All unpaid
principal and accrued and unpaid interest and all other amounts due on account of the Growth Capital Loan B are due and payable in full on the Growth Capital Loan B Maturity Date. The Growth Capital Loan B may only be prepaid in accordance with
Sections 2.1.l(d) and/or 2.1.l(e). 

  
 (c)
Final Payments. 
 (i) On the Growth Capital Loan A Maturity Date, Borrower shall pay, in addition to the
unpaid principal and accrued interest and all other amounts due on such date with respect to the Growth Capital Loan A, an amount equal to the Growth Capital Loan A Final Payment. 

(ii) On the Growth Capital Loan B Maturity Date, Borrower shall pay, in addition to the unpaid principal and accrued
interest and all other amounts due on such date with respect to the Growth Capital Loan B, an amount equal to the Growth Capital Loan B Final Payment. 
 (d) Permitted Prepayment. Borrower shall have the option to prepay all, but not less than all, of the Growth Capital Advances made by Lender under this Agreement, provided Borrower,
(i) provides written notice to Lender of its election to prepay the Growth Capital Advances at least fifteen (15) days prior to such prepayment, and (ii) pays, on the date of such prepayment (A) all outstanding principal plus
accrued interest on the Growth Capital Advances, (B) the Final Payments, plus (C) all other sums that have become due and payable, including Lender Expenses, if any, and interest at the Default Rate with respect to any past due amounts.

 (e) Mandatory Prepayment Upon an Acceleration. If the Growth Capital Advances are accelerated following
the occurrence of an Event of Default, Borrower shall immediately pay to Lender an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid interest on the Growth Capital Advances, (ii) the Final Payments, plus
(iii) all other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due amounts. 
 2.2 Payment of Interest on the Credit Extensions. 
 (a)
Interest Rate. Subject to Section 2.2(b), the principal amount outstanding under the Growth Capital Advances shall accrue interest, which interest shall be payable in arrears, at a fixed per annum rate equal to the greater of
(i) 13.00% or (ii) the LIBOR Rate, as of the Funding Date, plus the LIBOR Margin, which interest shall be payable monthly, in arrears, in accordance with Section 2.2(e) below. 

(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 above the rate that is otherwise applicable thereto (the “Default Rate”). Payment or acceptance of the increased interest rate provided in this
Section 2.2(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 Lender. 

(c) 360-Day Year. Interest shall be computed on the basis of a 360-day year consisting of twelve (12) months
of thirty (30) days. 
 (d) Debit of Accounts. In the event not received by Lender when due, or as
Lender and Borrower may otherwise agree in writing, Lender may debit any of Borrower’s deposit accounts, including the Designated Deposit Account, through automatic debit of such accounts, Automated Clearinghouse (“ACH”) or other
transfers, for principal, interest and other Obligations owing by Borrower to Lender when due. These debits shall not constitute a set-off. 
 (e) Payments. Unless otherwise provided, interest is payable monthly, in arrears, on the first calendar day of each month. 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 is due the next Business Day and additional fees or interest, as applicable, shall continue to
accrue. 
 2.3 Fees. Borrower shall pay to Lender: 

(a) Facility Fee. A fully earned, non-refundable loan fee, on account of the Growth Capital Loan B, of One Hundred
Twenty Five Thousand Dollars ($125,000) (the “Facility Fee”), receipt of Twenty Five Thousand Dollars ($25,000) of which hereby is acknowledged by Lender; 

  
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 (b)
Final Payments. The Final Payments when due on the Growth Capital Loan A Maturity Date or the Growth Capital Loan B Maturity Date, respectively, or pursuant to the terms of Sections 2.1.1(d) or 2.1.1(e);and 

(c) Lender Expenses. All Lender Expenses (including reasonable attorneys’ fees and expenses, plus reasonable
expenses for documentation and negotiation of this Agreement) incurred through and after the Closing Date, when due. 
  

	 	3	CONDITIONS OF LOANS 

3.1 Conditions Precedent to Credit Extension. Lender’s obligation to make the Credit Extension is subject to the condition
precedent that Borrower shall consent to or have delivered, in form and substance satisfactory to Lender, such documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate, including, without limitation:

 (a) duly executed original signatures to the Loan Documents to which it is a party; 

(b) duly executed original signatures to the Control Agreement(s); 

(c) duly executed original signatures to the Warrant; 

(d) its Operating Documents and good standing certificates (or equivalents) of Borrower certified by the Secretary of
State of the States of Delaware and California (and such other states and/or jurisdictions in which Borrower is qualified to do and or doing business) as of a date no earlier than thirty (30) days prior to the Closing Date; 

(e) a duly executed original Secretary’s Certificate certifying the adoption and ratification of, and completed
Borrowing Resolutions for, Borrower; 
 (f) a landlord’s consent executed in favor of Lender with respect to
each of Borrower’s leased locations (other than Borrower’s New Jersey location); 
 (g) certified
copies, dated as of a recent date, of financing statement searches, as Lender shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute
Permitted Liens or have been or, in connection with the Credit Extension, will be terminated or released; 
 (h)
the Perfection Certificate executed by Borrower; 
 (i) evidence satisfactory to Lender that the insurance
policies 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 Lender; and 

(j) payment of the fees and Lender Expenses then due as specified in Section 2.3 hereof. 

3.2 Conditions Precedent to the Credit Extension. Lender’s obligation to make the Credit Extension is subject to the
following: 
 (a) Borrower shall have duly executed and delivered to Lender the Growth Capital Loan B Promissory
Note in the amount of the Growth Capital Loan B, and the Disbursement Letter; 
 (b) the representations and
warranties in Section 5 shall be true in all material respects on the Funding Date of the Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no
Event of Default shall have occurred and be continuing or result from the Credit Extension. The Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 remain true in all
material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 

  
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 (c) in
Lender’s sole discretion, there has not been a Material Adverse Change. 
 3.3 Covenant to Deliver. Borrower agrees
to deliver to Lender each item required to be delivered to Lender under this Agreement as a condition to the Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Lender of any such item shall not
constitute a waiver by Lender of Borrower’s obligation to deliver such item, and the Credit Extension in the absence of a required item shall be made in Lender’s sole discretion. 

 

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Borrower hereby grants Lender, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Lender, the
Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be
a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Lender’s Lien pursuant to the terms of this Agreement). If Borrower shall acquire a commercial tort claim (as
defined in the Code), Borrower shall promptly notify Lender in a writing signed by Borrower of the general details thereof (and further details as may be required by Lender in the exercise of its reasonable discretion) and grant to Lender 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 Lender. 

If this Agreement is terminated. Lender’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), Lender shall, at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein
shall revert to Borrower. 
 4.2 Authorization to File Financing Statements. Borrower hereby authorizes Lender to file
financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Lender’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 Lender 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 Lender’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 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
Lender a completed certificate signed by Borrower, entitled “Perfection Certificate”. Borrower represents and warrants to Lender 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, Borrower’s chief executive office as well as Borrower’s
mailing address (if different than its chief executive office); (e) Borrower (and none 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 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 Closing 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 Lender of such occurrence and provide Lender with Borrower’s organizational identification number. 

  
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 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 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
(v) constitute an event of default under 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 have a material adverse effect
on Borrower’s business. 
 5.2 Collateral. Borrower has good title to, has rights in, and the power to grant a Lien
to Lender in each item of the Collateral upon which it purports to grant a Lien under the Loan Documents to which it is a party, free and clear of any and all Liens except Permitted Liens. Borrower does not have any deposit accounts other than the
deposit accounts with Silicon Valley Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Lender in connection herewith, or of which Borrower has given Lender notice and taken such actions as are necessary to give
Lender a perfected security interest therein. 
 The Collateral is not in the possession of any third party bailee (such as a
warehouse) except as otherwise provided in the Perfection Certificate; and the book value of any such Collateral does not exceed $250,000. 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. In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral (having an aggregate book value in excess of $250,000) to a
bailee, then Borrower will first receive the written consent of Lender and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Lender in its sole discretion. None of the Collateral (other than office
equipment and furniture having an aggregate book value not in excess of $10,000) is now, or will at any time during the term hereof, be located at or in Borrower’s leased premises in New Jersey. 

Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) (i) non-exclusive
licenses of Intellectual Property granted to third parties in the ordinary course of business, and (ii) licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in
respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States, (b) over-the-counter software that is commercially available to the public, and (c) Intellectual
Property licensed to Borrower and, to the extent constituting material Intellectual Property, as noted on the Perfection Certificate. Each Patent which it 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.
Except as set forth in the Perfection Certificate, there are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries involving more than $100,000.

  
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 5.4 No
Material Deviation in Financial Statements. All consolidated financial statements for Borrower and its Subsidiaries delivered to Lender fairly present in all material respects the Borrower’s and such Subsidiaries’ consolidated
financial condition and consolidated results of operations. There has not been any material deterioration in the Borrower’s and its Subsidiaries’ consolidated financial condition since the date of the most recent financial statements
submitted to Lender. 
 5.5 Solvency. The fair salable value of Borrower’s assets (including goodwill minus
disposition costs) exceeds the fair value of its 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 has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, 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 Governmental Authorities that are necessary to continue their respective businesses as currently conducted. 
 5.7 Subsidiaries; Investments. Borrower does not own any stock, partnership 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 has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the
taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Lender in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required
to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. 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. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, as
applicable, 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, as applicable. 
 5.9 Use of Proceeds. Borrower shall use the proceeds of the Credit Extension 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 Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Lender, contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized by Lender 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). 

  
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	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all of the following: 
 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 Change. Borrower shall comply, and have each Subsidiary comply, with all laws,
ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business. 
 (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 Lender in
all of its property. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Lender. 
 6.2
Financial Statements, Reports, Certificates. Deliver to Lender: 
 (a) Quarterly Financial Statements.
As soon as available, but no later than forty-five (45) days after the last day of each of the first three quarters of Borrower’s fiscal year, a company prepared consolidated financial statements prepared under GAAP, consistently applied,
certified by a Responsible Officer and in a form reasonably acceptable to Lender; 
 (b) Annual Audited
Financial Statements. As soon as available, but no later than one hundred twenty (120) 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 acceptable to Lender in its reasonable discretion; 
 (c) Compliance Certificates. Concurrently with the delivery of any financial statements pursuant to clauses (a), (b) and (c), a duly completed Compliance Certificate signed by a Responsible
Officer, certifying that as of the end of such period, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth such other information as Lender shall reasonably request; 

(d) Other Statements. Within five (5) days of delivery, unless earlier posted on Borrower’s website,
copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; 
 (e) SEC Filings. Within five (5) 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. Notwithstanding the foregoing, documents required to be delivered pursuant to the terms hereof (to
the extent any such documents are included in materials otherwise filed with the SEC) shall be deemed to have been delivered to Lender 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; 
 As to any information contained in the materials furnished pursuant to this
clause (f), Borrower shall not be required separately to furnish such information under clauses (b), (c) and (e), but the foregoing shall not be in derogation of the obligation of Borrower to furnish the information and materials described in
such clauses (b), (c) and (e) at the times specified therein; provided, that Borrower shall provide paper copies to Lender of the Compliance Certificates required by Section 6.2(d). 

(f) Annual Financial Projections. Within 45 days after the end of each fiscal year, commencing with the fiscal year
ending 2010, annual financial projections for the following fiscal year (on a quarterly basis) as approved by Borrower’s board of directors, together with any related business forecasts used in the preparation of such annual financial
projections; 

  
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 (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 reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of,
individually or in the aggregate, $250,000 or more; 
 (h) Intellectual Property Notice. Prompt written
notice of (i) any material change in the composition of the Intellectual Property, (ii) the registration of any copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark not shown in the IP
Agreement, and (iii) Borrower’s knowledge of an event that could reasonably be expected to materially and adversely affect the value of the Intellectual Property; and 

(i) Other Financial Information. Budgets, sales projections, operating plans and other financial information
reasonably requested by Lender, including but not limited to account statements with respect to each bank, investment or similar account maintained by Borrower, within ten (10) days after the end of each month or other receipt thereof.

 6.3 Inventory; Returns. Keep all Inventory (other than clinical 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 Closing Date. Borrower must promptly notify Lender of all returns, recoveries, disputes and
claims that involve more than $100,000. 
 6.4 Taxes; Pensions. Timely file, and require each Subsidiary to
timely file, all required tax returns and reports and timely pay, and require each Subsidiary to timely file, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower, except for deferred payment of any
taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Lender, 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. 
 6.5 Insurance. Keep its, and cause each Subsidiary to keep its
respective business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and locations and as Lender may reasonably request; provided that Borrower’s Subsidiaries may be covered by
Borrower’s insurance policies. Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as lender
loss payee and waive subrogation against Lender, and all liability policies shall show, or have endorsements showing, Lender as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the
insurer shall give Lender at least twenty (20) days notice before canceling (other than cancellation based on non-payment of premium, with respect to which the insurer shall provide at least ten (10) days notice before canceling) or
declining to renew its policy. At Lender’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments. If Borrower or any Subsidiary 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 Lender, Lender 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 Lender deems
prudent. 
 6.6 Operating Accounts. 

(a) Maintain all of its and all of its domestic Subsidiaries’ operating and other deposit accounts and securities
accounts with Silicon Valley Bank, in each case subject to Control Agreements in favor of and in form and substance reasonably acceptable to Lender. 
 (b) Provide Lender five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Silicon Valley Bank. For each Collateral
Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution 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 Lender’s Lien in such Collateral Account in accordance with the terms hereunder. 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 employees and identified to Lender by Borrower as such. 

  
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 6.7 Intentionally
Omitted. 
 6.8 Protection and Registration of Intellectual Property Rights. 

(a) (i) Protect, defend and maintain the validity and enforceability of its Intellectual Property; (ii) promptly
advise Lender in writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Lender’s
written consent. 
 (b) If Borrower (i) obtains any Patent, registered Trademark, registered Copyright,
registered mask work, or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies for any Patent or the registration of any Trademark, then Borrower shall immediately provide written notice
thereof to Lender and shall execute such intellectual property security agreements and other documents and take such other actions as Lender shall request in its good faith business judgment to perfect and maintain a first priority perfected
security interest in favor of Lender in such property. If Borrower decides to register any Copyrights or mask works in the United States Copyright Office, Borrower shall: (x) provide Lender with at least fifteen (15) days prior written
notice of Borrower’s intent to register such Copyrights or mask works together with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); and (y) execute an intellectual property
security agreement and such other documents and take such other actions as Lender may reasonably request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Lender in the Copyrights or
mask works intended to be registered with the United States Copyright Office, and hereby authorizes Lender to record such intellectual property security agreement with the United States Copyright Office contemporaneously with filing the Copyright or
mask work application(s) with the United States Copyright Office. Borrower shall promptly provide to Lender copies of all applications that it files for Patents or for the registration of Trademarks, Copyrights or mask works, together with evidence
of the recording of the intellectual property security agreement necessary for Lender to perfect and maintain a first priority perfected security interest in such property. 

(c) Provide written notice to Lender within ten (10) days of entering or becoming bound by any Restricted License
(other than over-the-counter software that is commercially available to the public). Borrower shall take such steps as Lender requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any
Restricted License to be deemed “Collateral” and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in
the future, and (ii) Lender to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Lender’s rights and remedies under this Agreement and the other Loan Documents. 

6.9 Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to
Lender at reasonable times, without expense to Lender, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Lender may deem them reasonably necessary to prosecute or defend any third-party suit or
proceeding instituted by or against Lender with respect to any Collateral or relating to Borrower. 
 6.10 Notices of
Litigation and Default. Borrower will give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened (in writing) against Borrower which would reasonably be expected to have a material adverse effect
with respect to Borrower. Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower (or any officer thereof) becoming aware of the existence
of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Lender of such occurrence, which such notice shall include a reasonably
detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default. 
 6.11 Formation or Acquisition of Subsidiaries. At the time that Borrower or any Subsidiary forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing
Date, Borrower and such Subsidiary shall (a) cause such new Subsidiary to provide to Lender a joinder to this 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 Lender (including being sufficient to grant Lender a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b) provide
to Lender 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 Lender, and (c) provide to Lender all other
documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory to Lender, 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. 

  
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 6.12 Dissolution of
Ingenex. Borrower shall cause Ingenex to be dissolved, and shall provide evidence of the same to Lender, in form and content reasonably acceptable to Lender, by no later than December 31, 2010. 

6.13 Further Assurances. Execute any further instruments and take further action as Lender reasonably requests to perfect or
continue Lender’s Lien in the Collateral or to effect the purposes of this Agreement and the other Loan Documents. Deliver to Lender, 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 or that could reasonably be expected to have a material effect on any of the Governmental Approvals
or otherwise on the operations of Borrower. 
  

	 	7	NEGATIVE COVENANTS 

Borrower shall not do any of the following without Lender’s prior written consent, which consent may be granted or withheld in
Lender’s sole discretion exercised in good faith in a commercially reasonable manner: 
 7.1 Dispositions. Convey,
sell, lease, transfer or otherwise dispose of (collectively, “Transfer”), or permit any Subsidiary to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of
business; (b) of worn-out or obsolete Equipment; and (c) in connection with Permitted Liens and Permitted Investments; and (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries (other than Ingenex)
in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet
geographical areas outside of the United States. Without limiting the foregoing, Borrower shall not Transfer any property or asset to Ingenex. 
 7.2 Changes in Business, Management, Control, or Business Locations. (a) Engage in or permit any Subsidiary to engage in any business other than the businesses currently engaged in by Borrower
or such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) have a change in any Key Person, unless replaced by a Person reasonably acceptable to Lender within thirty (30) days of such
change, or (ii) permit or suffer any Change in Control. Borrower shall not, without at least fifteen (15) days prior written notice to Lender: (1) add any new offices or business locations, including warehouses (unless such new
offices or business locations contain less than Ten Thousand Dollars ($10,000) in Borrower’s assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal
name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. 
 7.3 Mergers or
Acquisitions. Merge or consolidate, or permit any Subsidiary to merge or consolidate, with any other Person, or acquire, or permit any Subsidiary to acquire, all or substantially all of the capital stock or property of another Person. A
Subsidiary may merge or consolidate into Borrower or another Subsidiary. 
 7.4 Indebtedness. Create, incur, assume, or
be liable for any Indebtedness, or permit Borrower to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance.
Create, incur, allow, or suffer any Lien on any of the Collateral, 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 Lender) 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. 

  
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 7.6 Maintenance of
Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6 hereof. 
 7.7
Distributions; Investments. (a) Pay any dividends or make any distribution or payment in respect of any of its capital stock, or redeem, retire or purchase any of its capital stock other than in connection with Permitted Distributions; or
(b) directly or indirectly acquire or own any Person, or make any Investment in any Person, 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 (a) transactions that are in the
ordinary course of Borrower’s business, upon fair and reasonable terms (when viewed in the context of any series of transactions of which it may be a part, if applicable) that are no less favorable to Borrower than would be obtained in an
arm’s length transaction with a non-affiliated Person; or (b) transactions among Borrower and its Subsidiaries and among Borrower’s Subsidiaries so long as no Event of Default exists or could result therefrom. 

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 or adversely affect the subordination
thereof to Obligations owed to Lender. 
 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 the Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail
to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so;
withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which
could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

7.11 Indebtedness Payments. (i) Prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled
repayment thereof any Indebtedness for borrowed money (other than amounts due under this Agreement or due any Lender) or lease obligations, (ii) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease
obligations so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers, directors or shareholders; provided that Borrower may pay compensation to employees, deferred as of the Closing Date, not to exceed $250,000
in the aggregate. 
  

	 	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 the Credit Extension on its due date,
or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) day grace period shall not apply to payments due on the Growth Capital Loan A Maturity Date or the Growth
Capital Loan B Maturity Date, as applicable). During the cure period, the failure to cure the payment default is not an Event of Default; 

  
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 8.2 Covenant
Default. 
 (a) Borrower fails or neglects to perform any obligation in Section 6.2, 6.4, 6.5, 6.6, 6.8,
6.11 or 6.12, 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 Document to which it is a party, and as to any default (other than those specified in this Section 8) under such other term,
provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day
period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed
thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default. Grace periods provided under this section shall not apply, among other things, to
financial covenants or any other covenants set forth in subsection (a) above; 
 8.3 Material Adverse Change. A
Material Adverse Change occurs; 
 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 control of Borrower (including a Subsidiary) on deposit or otherwise maintained with Silicon Valley Bank, or (ii) a notice of lien, levy, or
assessment is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through
the posting of a bond or otherwise); 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 any part of its business; 
 8.5 Insolvency. (a) Borrower is unable to pay its debts
(including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days;

 8.6 Other Agreements. There is a default in any agreement to which Borrower is a party with a third party or parties
resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of $100,000 or that could reasonably be expected to have a Material Adverse Change; 

8.7 Judgments. One or more final judgments, orders, or decrees for the payment of money in an amount, individually or in the
aggregate, of at least $100,000 (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower and shall remain unsatisfied, unvacated, or unstayed for a period
often (10) days after the entry thereof; 
 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 Lender or to induce Lender 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. A default or breach occurs under any
agreement between Borrower and any creditor of Borrower that signed a subordination, intercreditor, or other similar agreement with Lender, or any creditor that has signed such an agreement with Lender breaches any material terms of such agreement;

 8.10 Governmental Approvals. Any Governmental Approval 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 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) has, or could reasonably be
expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower 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 to hold any Governmental Approval in any other jurisdiction. 

  
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	 	9	LENDER’S RIGHTS AND REMEDIES 

 9.1 Rights and Remedies. While an Event of Default occurs and continues Lender may, without notice or demand, do any or all of the following: 

(a) declare in writing 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 Lender); 
 (b)
stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Lender; 
 (c) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Lender considers advisable in the exercise of its commercially reasonable discretion,
notify any Person owing Borrower money of Lender’s security interest in such funds, and verify the amount of such account; 
 (d) 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 Lender
requests and make it available as Lender reasonably designates. Lender 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 Lender a license to enter and occupy any of its premises, without charge, to exercise any of Lender’s rights or remedies; 

(e) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by
Lender owing to or for the credit or the account of Borrower; 
 (f) ship, reclaim, recover, store, finish,
maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Lender 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, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in
connection with Lender’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Lender’s benefit as collateral assignee; 

(g) place a “hold” on any account maintained with Lender 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; 
 (h) demand and receive possession of Borrower’s Books; and 

(i) exercise all rights and remedies available to Lender under the Loan Documents or at law or equity, including all
remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2 Power of
Attorney. Borrower hereby irrevocably appoints Lender 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 Lender 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 Lender or a third party as the Code permits. Borrower hereby appoints Lender as its
lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Lender’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations
have been satisfied in full. Lender’s foregoing appointment as Borrower’s attorney in fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed.

  
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 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, Lender
may obtain such insurance or make such payment, and all amounts so paid by Lender are Lender Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral. Lender will make reasonable efforts to
provide Borrower with notice of Lender obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s waiver of any
Event of Default. 
 9.4 Application of Payments and Proceeds. Borrower shall not have any right to specify the
order or the accounts to which Lender shall allocate or apply any payments required to be made by Borrower to Lender or otherwise received by Lender under this Agreement when any such allocation or application is not specified elsewhere in this
Agreement. If an Event of Default has occurred and is continuing, Lender may apply 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 in such order as Lender shall determine in its sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Lender for any
deficiency. If Lender, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Lender 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 Lender of cash therefor. 

9.5 Lender’s Liability for Collateral. So long as Lender complies with reasonable practices regarding the safekeeping of the
Collateral in the possession or under the control of Lender, Lender 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. The Credit Parties bear all risk of loss, damage or destruction of the Collateral. 

9.6 No Waiver; Remedies Cumulative. Lender’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 Lender thereafter to demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by
Lender and then is only effective for the specific instance and purpose for which it is given. Lender’s rights and remedies under this Agreement and the other Loan Documents are cumulative. Lender has all rights and remedies provided under the
Code, by law, or in equity. Lender’s exercise of one right or remedy is not an election, and shall not preclude Lender from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Lender’s waiver
of any Event of Default is not a continuing waiver. Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence. 
 9.7 Demand Waiver. Borrower, for itself an on behalf of each Subsidiary, 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 Lender 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. Lender 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. 

  
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	If to Borrower:	  	 TITAN PHARMACEUTICALS, INC.

400 Oyster Point Blvd., Suite 505
 South San
Francisco, CA 94080
 Attn: Chief Financial Officer
 Fax: (650)244-4956
 Email: Sbhonsle@titanpharm.com

		
	If to Lender:	  	 OXFORD FINANCE CORPORATION

133 N. Fairfax Street
 Alexandria, VA
22314
 Attn: Tim A. Lex, Chief Operating Officer
 Fax: (703)519-5225
 Email: tlex@oxfordfinance.com

 

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

 California law governs the Lo an Documents without regard to principles of conflicts of law. Borrower and Lender each submit to the exclusive jurisdiction of the State and Federal courts in San Diego
County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Lender 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 Lender. 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 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. 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND LENDER 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 San Diego 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 San Diego 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 San Diego 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 order 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 the 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. 

  
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	 	12	GENERAL PROVISIONS 

12.1 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 Lender’s prior written consent (which may be granted or withheld in Lender’s discretion). Lender has the right, without the consent of or notice to
Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents. 

12.2 Indemnification. Borrower agrees to indemnify, defend and hold Lender and its directors, officers, employees, agents,
attorneys, or any other Person affiliated with or representing Lender (each, an “Indemnified Person”) harmless against: (a) 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 (b) all losses or expenses (including Lender 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 Lender 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. 
 12.3 Time of Essence. Time is of the essence for the performance of all
Obligations in this Agreement. 
 12.4 Severability of Provisions. Each provision of this Agreement is severable from
every other provision in determining the enforceability of any provision. 
 12.5 Correction of Loan Documents.
Upon prior written notice to Borrower, Lender may correct patent errors and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties. 

12.6 Amendments in Writing; Integration. All amendments to this Agreement must be in writing and signed by both Lender and
Borrower. This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the
parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 
 12.7 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, are an original, and
all taken together, constitute one Agreement. 
 12.8 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 (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this
Agreement) have been satisfied. The obligation of Borrower in Section 12.2 to indemnify Lender shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

  
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 12.9
Confidentiality. In handling any confidential information, Lender shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Lender’s Subsidiaries or
Affiliates; (b) to prospective transferees or purchasers of any interest in the Credit Extension (provided, however, Lender shall use commercially reasonable efforts to obtain such 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 Lender’s regulators or as otherwise required in connection with Lender’s examination or audit; (e) as Lender considers
appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Lender so long as such service providers have executed a confidentiality agreement with Lender with terms no less restrictive than those
contained herein. Confidential information does not include information that either: (i) is in the public domain or in Lender’s possession when disclosed to Lender, or becomes part of the public domain after disclosure to Lender; or
(ii) is disclosed to Lender by a third party, if Lender does not know that the third party is prohibited from disclosing the information. 
 Lender may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as Lender does not
disclose Borrower’s identity or the identity of any person associated with Borrower unless otherwise expressly permitted by this Agreement. The provisions of the immediately preceding sentence shall survive the termination of this Agreement.

 12.10 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Lender 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. 
 12.16 Effect of Amendment and Restatement. Except as otherwise set forth herein, this Agreement is intended to and does completely amend and restate, without novation, the Original Agreement. All
security interests granted under the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under 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 meaning: 
 “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. 

  
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 “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.  

“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 adopted by such Person’s Board of Directors and delivered by such Person to Lender approving the Loan
Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary on behalf of such Person certifying that (a) such Person has the authority to execute, deliver, and
perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the resolutions then in full force and effect authorizing and ratifying
the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents on behalf of such Person, together with a sample of the true
signature(s) of such Person(s), and (d) that Lender may conclusively rely on such certificate unless and until such Person shall have delivered to Lender a further certificate canceling or amending such prior certificate. 

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

“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) Lender’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. 
 “Change in Control” is a transaction in which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange
Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of greater than 49% of the shares of all classes of stock then
outstanding of Borrower ordinarily entitled to vote in the election of directors. 
 “Closing Date” is the date
on which all of the conditions of Section 3 of this Agreement have been satisfied or waived by Lender. 

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

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a
Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Lender pursuant to which Lender obtains control (within the meaning of the Code) over
such Deposit Account, Securities Account, or Commodity Account; provided that, Lender shall not exercise control under any such Control Agreement unless an Event of Default occurs. 

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

“Default Rate” is defined in Section 2.2(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 any of Borrower’s deposit accounts, including
account numbers 3300680880 and 3300680895, maintained with Silicon Valley Bank. 
 “Disbursement Letter” is
that certain form attached hereto as Exhibit D.  
 “Dollars,” “dollars” and
“$” each mean lawful money of the United States. 
 “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. 

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

“Event of Default” is defined in Section 8. 

“Final Payments” means, collectively, the Growth Capital Loan A Final Payment and the Growth Capital Loan B Final
Payment. 
 “Funding Date” is the date on which the Growth Capital Loan B is made to or on account of Borrower.

 “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. 

“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. 
 “Growth Capital Advance” or “Growth Capital Advances” means,
individually or collectively, as the context dictates, the Growth Capital Loan A and or the Growth Capital Loan B. 

“Growth Capital Loan A” is defined in Section 2.1.1(a). 

“Growth Capital Loan A Final Payment” means a fee (in addition to and not a substitution for any other payment due
hereunder) in the amount of One Hundred Eighty Thousand Dollars ($180,000). 
 “Growth Capital Loan A Maturity
Date” is January 1, 2013, or such earlier date as the Growth Capital Loan A or any portion of the Obligations is accelerated, whether by prepayment or otherwise. 
 “Growth Capital Loan B” is defined in Section 2.1.1(b). 

“Growth Capital Loan B Amortization Date” means August 1, 2011. 

“Growth Capital Loan B Final Payment” means a fee (in addition to and not a substitution for any other payment due
hereunder) in the amount of Three Hundred Thousand Dollars ($300,000); provided that, if the Obligations are repaid prior to the first anniversary of the Closing Date solely as a result of a Royalty Monetization Deal, the “Growth Capital Loan B
Final Payment” shall be reduced to One Hundred Seventy Five Thousand Dollars ($175,000); provided further that, if a Royalty Monetization Deal (and prepayment as a result thereof) does not occur within the first anniversary of the Closing Date,
the “Growth Capital Loan B Final Payment” shall revert to Three Hundred Thousand Dollars ($300,000). 

  
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 “Growth
Capital Loan B Maturity Date” is January 1, 2014, or such earlier date as the Growth Capital Loan B or any portion of the Obligations is accelerated, whether by prepayment or otherwise. 

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

“Indemnified Person” is defined in Section 12.2. 

“Ingenex” is Ingenex, Inc., a majority-owned Subsidiary of Borrower. 

“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 all of Borrower’s right, title, and interest in and to the following: 

(a) its Copyrights, Trademarks and Patents; 

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

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

(e) any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the
right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and 
 (f) all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 
 “Interest Only Period” means the period of time commencing on the Funding Date through the day before the Growth Capital Loan B Amortization Date. 

“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.

 “IP Agreement” is that certain Amended and Restated Intellectual Property Security Agreement executed and
delivered by Borrower to Lender dated as of the Closing Date. 
 “Key Person” is any of the President or
Executive Chairman of the Board of Borrower.  
 “Lender” is defined in the preamble hereof. 

“Lender Expenses” are all audit fees (provided that Borrower shall not be responsible to reimburse Lender for audit fees
incurred by Lender for more than one (1) audit per fiscal year unless such additional audit is conducted following the occurrence of an Event of Default) and reasonable 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 in connection with the transactions contemplated hereby. 

  
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 “LIBOR
Rate” means, an interest rate per annum (rounded upward, if necessary, to the nearest l/l0,000th of one percent (0.0001%)) equal to LIBOR on the applicable Funding Date. 

“LIBOR Margin” is, with respect to the Growth Capital Loan A, 12.72%; and, with respect to the Growth Capital Loan B,
12.71%. 
 “LIBOR” means the rate of interest per annum determined by Lender to be the per annum rate of
interest at which deposits in United States Dollars are offered to Lender in the London interbank market (rounded upward, if necessary, to the nearest l/10,000th of one percent (0.0001%)) in which Lender customarily participates at 11:00 a.m. (local
time in such interbank market) for a 3-month period and published in The Wall Street Journal two (2) Business Days prior to the making of any Growth Capital Advance and in an amount approximately equal to the amount of such Growth Capital
Advance. 
 “Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other
encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Loan Documents” are, collectively, this Agreement, the IP Agreement, the Perfection Certificate, the Promissory Notes,
the Disbursement Letter, any other note, or notes or guaranties executed by Borrower or any Subsidiary, and any other present or future agreement between Borrower and/or any Subsidiary and/or for the benefit of Lender in connection with this
Agreement, all as amended, restated, or otherwise modified. 
 “Material Adverse Change” is (a) a material
impairment in the perfection or priority of Lender’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a
material impairment of the prospect of repayment of any portion of the Obligations. 
 “Obligations” are
Borrower’s obligation to pay when due any debts, principal, interest, Lender Expenses and other amounts Borrower owes Lender now or later, whether under this Agreement, the Loan Documents, 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 Lender, and the performance of Borrower’s duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no
earlier than 30 days prior to the Closing 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. 
 “Perfection Certificate” is defined in Section 5.1. 

“Permitted Distributions” means: 

(a) purchases of capital stock from former employees, consultants and directors pursuant to repurchase agreements or other
similar agreements in an aggregate amount not to exceed $100,000 in any fiscal year, provided that at the time of such purchase no Event of Default has occurred and is continuing; 

  
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 (b)
distributions or dividends consisting solely of Borrower’s capital stock; 
 (c) purchases for value of any
rights distributed in connection with any stockholder rights plan; 
 (d) purchases of capital stock or options
to acquire such capital stock with the proceeds received from a substantially concurrent issuance of capital stock or convertible securities; 
 (e) purchases of capital stock pledged as collateral for loans to employees; and 
 (f) purchases of capital stock in connection with the exercise of stock options or stock appreciation rights by way of cashless exercise or in connection with the satisfaction of withholding tax
obligations. 
 “Permitted Indebtedness” is: 

(a) Borrower’s Indebtedness to Lender under this Agreement and any other Loan Document; 

(b) (i) any Indebtedness that does not exceed $100,000 in principal amount existing on the Closing Date, and (ii) any
Indebtedness in excess of $100,000 in principal amount existing on the Closing Date and shown on the Perfection Certificate; 
 (c) Subordinated Debt; 
 (d) unsecured Indebtedness to trade
creditors incurred in the ordinary course of business; 
 (e) capitalized leases and purchase money Indebtedness
not to exceed $100,000 in the aggregate in any fiscal year secured by Permitted Liens; 
 (f) Indebtedness for
deferred compensation in accordance with, and subject to the terms and conditions of, Section 7.1 l(iii); and 
 (g) refinanced Permitted Indebtedness, provided that the amount of such Indebtedness is not increased except by an amount equal to a reasonable premium or other reasonable amount paid in connection with
such refinancing and by an amount equal to any existing, but unutilized, commitment thereunder. 
 “Permitted
Investments” are: 
 (a) Investments shown on the Perfection Certificate and existing on the Closing
Date; 
 (b) Investments permitted by Borrower’s investment policy, as amended from time to time, provided
that such investment policy (and any amendment thereto) has been approved by Lender; 
 (c) Investments
(i) by Borrower in Subsidiaries not to exceed $100,000 in the aggregate in any fiscal year and (ii) by Subsidiaries in other Subsidiaries not to exceed $100,000 in the aggregate in any fiscal year or in Borrower; provided that neither
Borrower nor any Subsidiary shall make any investment in Ingenex, provided that Borrower may make investments in or for the benefit of Ingenex not to exceed $60,000 per year on account of the license arrangement between Ingenex and Pfizer;

 (d) Investments consisting of Collateral Accounts in the name of Borrower or any Subsidiary so long as Lender
has a first priority, perfected security interest in such Collateral Accounts; 
 (e) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

  
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 (f)
Investments permitted by Section 7.3; and 
 (g) joint ventures or strategic alliances in the ordinary
course of Borrower’s business consisting of (A) (i) non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business, and (ii) licenses of Intellectual Property that could not result in
a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; (B) the development of such
Intellectual Property; or (C) the providing of technical support; provided that any cash investments by Borrower do not exceed $100,000 in the aggregate in any fiscal year; provided further that that the foregoing dollar limitation shall not be
applicable in connection with any joint venture or strategic alliance entered into for the development of Probuphine, provided that (x) Borrower at all times maintains all ownership and title to the Probuphine product line and the underlying
Intellectual Property related thereto, and (y) Borrower does not transfer any cash or other Collateral to any joint venture counterparty or strategic alliance counterparty in connection with any such joint venture or strategic alliance.

 Notwithstanding the foregoing, Permitted Investments shall not include, and Borrower and each Subsidiary is prohibited from
purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt instrument, including, without limitation, any
corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an “auction rate security.” 

“Permitted Liens” are: 
 (a) (i) Liens securing Permitted Indebtedness described under clause (b) of the definition of “Permitted Indebtedness” or (ii) Liens arising under this Agreement or other Loan
Documents; 
 (b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent
or being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations adopted thereunder, if such Lien would be superior to any of Lender’s Liens securing the Obligations; 
 (c) Liens (including with respect to capital leases) (i) on property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof)
acquired or held by Borrower or its Subsidiaries (other than Ingenex) incurred for financing such property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) other than
Accounts, or (ii) existing on property (and accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) when acquired other than Accounts, if the Lien is confined to such property
(including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof); 
 (d) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the
property encumbered by the existing Lien and the principal amount of the indebtedness it secures may not increase; 
 (e) leases or subleases of real property granted in the ordinary course of Borrower’s business, and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than
Intellectual Property) granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do not prohibit granting Lender a security interest therein; 

(f) (i) non-exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business, and
(ii) licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical
areas outside of the United States; 

  
 - 24 -

  
 (g)
leases or subleases granted in the ordinary course of Borrower’s business, including in connection with Borrower’s leased premises or leased property; 
 (h) Liens in favor of other financial institutions arising in connection with Borrower’s deposit or securities accounts held at such institutions; 

(i) Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary
course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed $100,000 and which are not delinquent or remain payable without penalty or which are being contested in good faith and by
appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto; 
 (j) Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens
imposed by ERISA); and 
 (k) Liens other than those described above which do not at any time exceed $25,000 in
the aggregate. 
 “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. 

“Promissory Note” or “Promissory Notes” means the Secured Promissory Note issued under the Original
Agreement in connection with the Growth Capital Loan A or, as the context dictates, the Growth Capital Loan B Secured Promissory Note in substantially the form attached hereto as Exhibit C. 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such
term as may hereafter be made 
 “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 Executive Chairman,
President, Chief Financial Officer and Controller of Borrower. 
 “Restricted License” is any material license
or other material agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or
(b) for which a default under or termination of could interfere with the Lender’s right to sell any Collateral. 

“Royalty Monetization Deal” means an arm’s-length, bona fide transaction involving the sale, licensing or other
transfer of all or a substantial portion of the Borrower’s rights in Fanapt (iloperidone) together with the related intellectual property, which transaction may be structured as a loan provided such loan is repayable only from royalties from
Fanapt, is non-recourse to the Borrower and the proceeds of such transaction are utilized to repay in full the Obligations. 

“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 (a) Indebtedness incurred by Borrower subordinated to
Borrower’s Indebtedness owed to Lender and which is reflected in a written agreement in a manner and form reasonably acceptable to Lender and approved by Lender in writing, and (b) to the extent the terms of subordination do not change
adversely to Lender, refinancings, refundings, renewals, amendments or extensions of any of the foregoing. 

  
 - 25 -

  

“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. 
 “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 Stock dated as of the Closing Date executed by Borrower in favor of
Lender. 
 [Balance of Page Intentionally Left Blank] 

  
 - 26 -

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

			
	BORROWER:
	
	TITAN PHARMACEUTICALS, INC.
		
	By	 	/s/ Sunil Bhonsle
		
	Name:	 	Sunil Bhonsle
		
	Title:	 	President

  

			
	LENDER:
	
	OXFORD FINANCE CORPORATION
		
	By	 	/s/ T.A. Lex
		
	Name:	 	T.A. Lex
		
	Title:	 	COO

[Signature Page to Amended and Restated 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 (including but not limited to any royalty or similar rights to payment arising under or related to that certain Sublicense Agreement among Borrower and Novartis Pharma A.G. (and is successors and assigns, “Novartis”) dated as of
November 20, 1997 and that certain Sublicense Agreement among Novartis and Vanda Pharmaceuticals, Inc. (and its successors and assigns) dated as of June 4, 2004; each as amended from time to time), leases, license agreements, franchise
agreements, General Intangibles, 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. 

  
 EXHIBIT B –
COMPLIANCE CERTIFICATE 
  

			
	 TO: OXFORD FINANCE CORPORATION

FROM: TITAN PHARMACEUTICALS, INC.
	  	Date:                    

The undersigned authorized officer of TITAN PHARMACEUTICALS, INC. (“Borrower”) certifies that under the terms and conditions of
the Amended and Restated Loan and Security Agreement between Borrower and Oxford Finance Corporation (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 5.8 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 Lender. 
 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 Covenant
	  	 Required
	  	Complies	 
	Quarterly financial statements with Compliance Certificate	  	Quarterly within 45 days	  	 	Yes    No	  
			
	Annual financial statement (CPA Audited) + CC	  	FYE within 120 days	  	 	Yes    No	  
			
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC*	  	 	Yes    No	  
			
	Account statements (bank, investment, etc.)	  	Monthly (and/or upon receipt) within 10 days	  	 	Yes    No	  

  

	*	deemed delivered when posted on Borrower’s website 

 The following Intellectual Property was registered (or a registration application submitted) after the Closing Date (if no registrations, state “None”) 

 

													
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies	 
	 None
	  				  				  			

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

 
   

 
   

 
  

									
	TITAN PHARMACEUTICALS, INC.	 		 	LENDER USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
					
	Name:	 	 	 		 		 	AUTHORIZED SIGNER
					
	Title:	 	 	 		 		 	
					
		 		 		 	Date:	 	 
					
		 		 		 	Verified:	 	 
					
		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	
				
		 		 		 	Compliance Status:        Yes    No

  
 EXHIBIT C

  
 GROWTH CAPITAL LOAN
B 
 SECURED PROMISSORY NOTE 
  

			
	$5,000,000	 	Dated: September 27, 2010

FOR VALUE RECEIVED, the undersigned, TITAN PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), HEREBY PROMISES TO PAY
to the order of OXFORD FINANCE CORPORATION (“Lender”) the principal amount of Five Million Dollars ($5,000,000) or such lesser amount as shall equal the outstanding principal balance of the Growth Capital Loan B made to Borrower by Lender
pursuant to the Loan Agreement (defined below), and to pay all other amounts due with respect to the Growth Capital Loan B on the dates and in the amounts set forth in the Loan Agreement. Capitalized terms, unless defined in this Growth Capital Loan
B Secured Promissory Note (this “Note”), shall have the meaning given such capitalized term in the Loan Agreement. 

Interest on the principal amount of this Note from the date of this Note shall accrue at 13% per annum based on a 360-day year of
twelve 30-day months or, if applicable, the Default Rate. Commencing on August 1, 2011, and continuing on the first day of each successive calendar month thereafter, Borrower shall make to Lender thirty (30) equal payments of principal and
accrued interest on the then outstanding principal amount. Any and all remaining principal and interest shall be due and payable on the Growth Capital Loan B Maturity Date. In addition to the foregoing payments, on the Growth Capital Loan B Maturity
Date (or upon earlier repayment, whether as a result of acceleration or otherwise) the Growth Capital Loan B Final Payment (as defined in and subject to the terms and conditions of the Loan Agreement) shall be due and payable by Borrower to Lender.

 Principal, interest and all other amounts due with respect to the Growth Capital Loan B, are payable in lawful money of the
United States of America to Lender as set forth in the Loan Agreement. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer
hereof, endorsed on the grid attached hereto which is part of this Note. 
 This Note is the Note referred to in, and is
entitled to the benefits of, the Amended and Restated Loan and Security Agreement, dated as of the Closing Date (as defined therein), to which Borrower and Lender are parties (as amended from time to time, the “Loan Agreement”). The Loan
Agreement, among other things, (a) provides for the making of this secured Growth Capital Loan B to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 

This Note may not be prepaid except as provided in the Loan Agreement. This Note and the obligation of Borrower to repay the unpaid
principal amount of the Growth Capital Loan B, interest on the Growth Capital Loan B and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement. 

Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution,
delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall pay all reasonable fees and expenses,
including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This Note shall be governed by, and construed
and interpreted in accordance with, the laws of the State of California. 
 [Balance of Page Intentionally Left
Blank] 

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

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 
		
	Name:	 	 
		
	Title	 	 

 [Signature Page
to Growth Capital Loan B Secured Promissory Note] 

  
 LOAN INTEREST
RATE AND PAYMENTS OF PRINCIPAL 
  

																	
	 Date
	  	Principal
Amount	 	  	Interest Rate	 	  	Scheduled
Payment Amount	 	  	Notation By	 
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			
		  				  				  				  			

  
 EXHIBIT D

  
 DISBURSEMENT LETTER

 The undersigned, being the duly elected and acting President of TITAN PHARMACEUTICALS, INC., a Delaware corporation
(“Borrower”), does hereby certify to OXFORD FINANCE CORPORATION (“Lender”), in connection with that certain Amended and Restated Loan and Security Agreement dated as of September 27, 2010 by and between
Borrower and Lender (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that: 
  

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

 

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

 

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

 

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

  

	 	5.	No Material Adverse Change has occurred. 

  

	 	6.	The proceeds of the Growth Capital Loan B shall be disbursed as follows: 

  

					
	 Disbursement from Lender:
	  			
	 Growth Capital Loan B Amount
	  	$	5,000,000.00	  
	 Plus:
	  			
	 Deposit
	  	$	25,000.00	  
	 Less:
	  			
	 Legal Fees and costs
	  	 	($ [TBD])	  
		  	 	 	 
	 Facility Fee
	  	 	($125,000.00	) 
		  	 	 	 
	 Less:
	  			
	 Legal Fees and costs
	  	$	 [TBD	] 
	 Balance of Facility Fee
	  	$	100,000.00	  
		  	 	 	 
	 Net proceeds due from Lender to Borrower:
	  	$	 	  
		  	 	 	 

 [Balance of Page Intentionally Left Blank] 

  

	 	7.	The aggregate proceeds shall be wired to the Borrower as follows: 

  

			
	Account Name:	  	Titan Pharmaceuticals, Inc.
	Bank Name:	  	Silicon Valley Bank
	Bank Address:	  	3003 Tasman Drive
		  	Santa Clara, CA 95054
	Account Number:	  	3300680880
	ABA Number:	  	121140399

 Dated as of the date first set forth above.

  

			
	BORROWER:
	
	TITAN PHARMACEUTICALS, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 

  

			
	LENDER:
	
	OXFORD FINANCE CORPORATION
		
	By	 	 
	Name:	 	 
	Title:	 	 

 [Signature Page to
Disbursement Letter] 

  
 ANNEX A

 (Amortization Schedule – Growth Capital Loan A) 

[hardcopy to be attached] 

  
 ANNEX B

 (Amortization Schedule – Growth Capital Loan B) 

[hardcopy to be attached]Amended and Restated 1996 Stock Option Plan

  
 Exhibit 10.6

 VAXGEN, INC. 
 AMENDED AND RESTATED 
 1996 STOCK OPTION PLAN 

Amended and Restated Effective May 29, 2002 
 Amended by the Board of Directors December 16, 2002 
 Amended and
Restated Effective August 5, 2008 
 Amended and Restated Effective July 29, 2010 

This Amended and Restated 1996 Stock Option Plan (the “Plan”) provides for the grant of options to acquire
shares of common stock, $0.01 par value (the “Common Stock”), of VaxGen, Inc., a Delaware corporation (the “Company”). Stock options granted under this Plan that qualify as incentive stock options under Section 422 of the
Internal Revenue Code of 1986, as amended (the “Code”), are referred to in this Plan as “Incentive Stock Options.” Incentive Stock Options and stock options that do not qualify as such under Section 422 of the Code
(“Non-Qualified Stock Options”) granted under this Plan are referred to as “Options.” 
 The
Plan was initially adopted on October 29, 1996 and was subsequently amended and restated on May 29, 2002, subsequently amended on December 16, 2002 and subsequently amended and restated as of August 5, 2008. The Plan is hereby
amended and restated as of July 29, 2010. 
  

	 	 1.
	 PURPOSES. 

 The purposes of this Plan are to retain the services of non-employee directors, valued key employees and consultants of the Company, to encourage such persons to acquire a greater proprietary interest in
the Company, thereby strengthening their incentive to achieve the objectives of the stockholders of the Company, and to serve as an aid and inducement in the hiring of new employees and to provide an equity incentive to directors, consultants and
other persons selected by the Board of Directors in accordance with Section 3 below. 
  

	 	 2.
	 ADMINISTRATION. 

 This Plan shall be administered by the full Board of Directors of the Company (the “Board”) or if the Board so desires, by committee designated by the Board and composed of two (2) or more
“Non-Employee Directors” (as defined below). The term “Non-Employee Directors” shall have the meaning assigned to it under Rule 16b-3 (as amended from time to time) under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). In the event that the Company is or becomes subject to the provisions of Section 16 of the Exchange Act, the Board shall attempt to provide for administration of the Plan, insofar as it relates to the participation of
officers, directors or stockholders of the Company who at the time in question are subject to the reporting and liability provisions of Section 16 of the Exchange Act (the “Insiders”), in a manner which shall qualify the grant,
exercise, expiration or surrender of options under this Plan for the treatment afforded by Rule 16b-3 under the Exchange Act, as amended from time to time, or any successor rule or regulatory requirement. The term “Board” when used in any
provision of this Plan other than Section 5(n) shall be deemed to refer to the Board or any committee thereof appointed to administer this Plan. 

  

Subject to the provisions of this Plan, and with a view to effecting its purpose, the Board shall have sole authority, in
its absolute discretion to (a) construe and interpret this Plan; (b) define the terms used in this Plan; (c) prescribe, amend and rescind rules and regulations relating to this Plan; (d) correct any defect, supply any omission or
reconcile any inconsistency in this Plan; (e) grant Options under this Plan; (f) determine the individuals to whom Options shall be granted under this Plan and whether the Option is an Incentive Stock Option or a Non-Qualified Stock
Option; (g) determine the time or times at which Options shall be granted under this Plan; (h) determine the number of shares of Common Stock subject to each Option, the exercise price of each Option, the duration of each Option and the
times at which each Option shall become exercisable; (i) to effect, at any time and from time to time, with the consent of any adversely affected Optionee, (1) the reduction of the exercise price of any outstanding Option under the Plan,
(2) the cancellation of any outstanding Option under the Plan and the grant in substitution therefor (A) a new Option under the Plan covering the same or a different number of shares of Common Stock, (B) a stock bonus under an equity
incentive plan of the Company other than the Plan, (C) the right to acquire restricted stock under an equity incentive plan of the Company other than the Plan, and/or (D) cash, or (3) any other action that is treated as a repricing
under generally accepted accounting principles; (j) determine all other terms and conditions of Options; and (k) make all other determinations necessary or advisable for the administration of this Plan. All decisions, determinations and
interpretations made by the Board shall be binding and conclusive on all participants in this Plan and on their legal representatives, heirs and beneficiaries. 
  

	 	 3.
	 ELIGIBILITY. 

 Incentive Stock Options may be granted to any individual who, at the time the Option is granted, is an employee of the Company or any Related Corporation (as defined below), including employees who are
directors of the Company (“Employees”). Non-Qualified Stock Options may be granted to Employees, Non-Employee Directors and consultants. Options may be granted in substitution for outstanding options of another corporation in connection
with the merger, consolidation, acquisition of property or stock or other reorganization between such other corporation and the Company or any subsidiary of the Company. Options also may be granted in exchange for outstanding Options. Any person to
whom an Option is granted under this Plan is referred to as an “Optionee.” Any person who is the owner of an Option is referred to as a “Holder.” 

As used in this Plan, the term “Related Corporation,” shall mean any corporation that is a “Parent
Corporation” of the Company or “Subsidiary Corporation” of the Company, as those terms are defined in Sections 424 and 424(f), respectively, of the Code (or any successor provisions), and the regulations thereunder (as amended from
time to time). 
  

	 	 4.
	 STOCK. 

 The Board is authorized to grant Options to acquire up to a total of 8,673,970 shares of the Company’s Common Stock, which number shall consist of the Company’s authorized but unissued, or
reacquired, Common Stock. In no event shall more than 4,750,000 shares of Stock be cumulatively available for issuance pursuant to the exercise of Incentive Stock Options. The number of shares with respect to which Options may be granted hereunder
is subject to adjustment as set forth in Section 5(n) hereof. In the event that any outstanding Option expires or is terminated for any reason, the shares of Common Stock allocable to the unexercised portion of such Option may again be subject
to an Option to the same Optionee (subject to the next sentence) or to a different person eligible under Section 3 of this Plan. Any canceled Options will be counted against the maximum number of shares with respect to which Options may be
granted to the person previously holding the canceled Options. 

  
 2 

  

	 	 5.
	 TERMS AND CONDITIONS OF OPTIONS. 

 Each Option granted under this Plan shall be evidenced by a written agreement approved by the Board (the “Agreement”). Agreements may contain such provisions, not inconsistent with this Plan, as
the Board in its discretion may deem advisable. All Options also shall comply with the following requirements: 

(a) Number of Shares and Type of Option. Each Agreement shall state the number of shares of Common Stock to
which it pertains and whether the Option is intended to be an Incentive Stock Option or a Non-Qualified Stock Option. In the absence of action to the contrary by the Board in connection with the grant of an Option, all Options shall be Non-Qualified
Stock Options. The aggregate fair market value (determined at the Date of Grant, as defined below) of the stock with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (granted under
this Plan and all other Incentive Stock Option plans of the Company, a Related Corporation or a predecessor corporation) shall not exceed $100,000, or such other limit as may be prescribed by the Code as it may be amended from time to time. Any
portion of an Option which exceeds the annual limit shall not be void but rather shall be a Non-Qualified Stock Option. 
 (b) Date of Grant. Each Agreement shall state the date the Board has deemed to be the effective date of the Option for purposes of this Plan (the “Date of Grant”). 

(c) Exercise Price. Each Agreement shall state the price per share of Common Stock at which it is
exercisable. Options granted in substitution for outstanding options of another corporation in connection with the merger, consolidation, acquisition of property or stock or other reorganization involving such other corporation and the Company or
any subsidiary of the Company may be granted with an exercise price equal to the exercise price for the substituted option of the other corporation, subject to any adjustment consistent with the terms of the transaction pursuant to which the
substitution is to occur. 
 (i) The per share exercise price for an Incentive Stock Option shall not be
less than the fair market value per share of the Common Stock at the Date of Grant as determined by the Board in good faith. With respect to Incentive Stock Options granted to greater-than-ten percent ( (greater than) 10%) stockholders of the
Company (as determined with reference to Section 424(d) of the Code), the exercise price per share shall not be less than one hundred ten percent (110%) of the fair market value per share of the Common Stock at the Date of Grant as
determined by the Board in good faith. 

  
 3 

  

(ii) The per share exercise price for a Non-Qualified Stock Option shall not be less than eighty-five percent
(85%) of the fair market value per share of the Common Stock at the Date of Grant as determined by the Board in good faith. 
 (d) Duration of Options. At the time of the grant of the Option, the Board shall designate, subject to paragraph 5(g) below, the expiration date of the Option. The expiration date of any
Incentive Stock Option granted to a greater-than-ten percent ((greater than) 10%) stockholder of the Company (as determined with reference to Section 424(d) of the Code) shall not be later than five years from the Date of Grant. The expiration
date of any other Incentive Stock Option shall not be later than ten (10) years from the Date of Grant. With respect to all other Options, in the absence of action to the contrary by the Board in connection with the grant of a particular
Option, all Options granted under this Section 5 shall expire ten (10) years from the Date of Grant. 

(e) Vesting Schedule. No Option shall be exercisable until it has vested. The vesting schedule for each
Option may be specified by the Board at the time of grant of the Option prior to the provision of services with respect to which such Option is granted. If no vesting schedule is specified at the time of grant, the number of vested shares subject to
the Option shall be determined by multiplying the total number of shares subject to the Option by the “Vested Ratio” as determined according to the following schedule: 

 

					
	 	  	VESTED
RATIO	 
	 On the first anniversary of the Date of Grant
	  	 	1/4	  
	 Plus:
	  			
	 For each full month of the Optionee’s continuous service from the first anniversary of the Date of Grant
until the Vested Ratio is 1/1, an additional
	  	 	1/48	  

 The Board may specify
a vesting schedule for all or any portion of an Option based on the achievement of performance objectives established in advance of the commencement by the Optionee of services related to the achievement of the performance objectives. Performance
objectives may be expressed in terms of one or more of the following: return on equity, return on assets, share price, market share, sales, earnings per share, costs, net earnings, net worth, inventories, cash and cash equivalents, gross margin, the
Company’s performance relative to its internal business plan or such other basis as determined by the Board. Performance objectives may be in respect of the performance of the Company as a whole (whether on a consolidated or unconsolidated
basis), a Related Corporation, or a subdivision, operating unit, product or such other basis. Performance objectives may be absolute or relative and may be expressed in terms of a progression or a range. An Option which is exercisable (in whole or
in part) upon the achievement of one or more performance objectives may be exercised only following written notice to the Optionee from the Board that the performance objective has been achieved. 

(f) Acceleration of Vesting. The vesting of one or more outstanding options may be accelerated by the Board
at such times and in such amounts as it shall determine in its sole discretion. The vesting of Options also shall be accelerated under the circumstances described in Sections 5(n) and 5(o) below. 

  
 4 

  
 (g)
Term of Option. Vested Options shall terminate, to the extent not previously exercised, upon the first to occur of the following events: (i) the expiration of the Option; (ii) the date of an Optionee’s termination of
employment (or service as a director or consultant with the Company or any Related Corporation for cause (as determined in the sole discretion of the Board); (iii) the expiration of ninety (90) days from the date of an Optionee’s
termination of employment or service as a director or consultant with the Company or any Related Corporation for any reason whatsoever other than cause, death or Disability (as defined below) unless, the exercise period is extended by the Board
until a date not later than the expiration date of the Option; or (iv) the expiration of one year from (A) the date of death of the Optionee or (B) cessation of an Optionee’s employment or contractual relationship by reason of
Disability (as defined below) unless, the exercise period is extended by the Board until a date not later than the expiration date of the Option. If an Optionee’s employment or contractual relationship is terminated by death, any Option held by
the Optionee shall be exercisable only by the person or persons to whom such Optionee’s rights under such Option shall pass by the Optionee’s will or by the laws of descent and distribution of the state or county of the Optionee’s
domicile at the time of death. For purposes of the Plan, unless otherwise defined in the Agreement, “Disability” shall mean any physical, mental or other health condition which substantially impairs the Optionee’s ability to perform
his or her assigned duties for one hundred twenty (120) days or more in any two hundred forty (240) day period or that can be expected to result in death. The Board shall determine whether an Optionee has incurred a Disability on the basis
of medical evidence acceptable to the Board. Upon making a determination of Disability, the Board shall, for purposes of the Plan, determine the date of an Optionee’s termination of employment or contractual relationship. 

Unless accelerated in accordance with Section 5(f) above, unvested Options shall terminate immediately upon
termination of employment of the Optionee by the Company for any reason whatsoever, including death or Disability. For purposes of this Plan, transfer of employment between or among the Company and any Related Corporation, or among Related
Corporations shall not be deemed to constitute a termination of employment with the Company or any Related Corporation. For purposes of this subsection with respect to Incentive Stock Options, employment shall be deemed to continue while the
Optionee is on military leave, sick leave or other bona fide leave of absence (as determined by the Board). The foregoing notwithstanding, employment shall not be deemed to continue beyond the first ninety (90) days of such leave, unless the
Optionee’s re-employment rights are guaranteed by statute or by contract. 
 (h) Exercise of
Options. Options shall be exercisable, either all or in part, at any time after vesting, until termination. If less than all of the shares included in the vested portion of any Option are purchased, the remainder may be purchased at any
subsequent time prior to the expiration of the Option term. If the vested portion of any Option is less than one hundred (100) shares, it may be exercised with respect to all shares for which it is vested. In all other cases, no portion of any
Option for less than one hundred (100) shares (as adjusted pursuant to Section 5(m) below) may be exercised. Only whole shares may be issued pursuant to an Option, and to the extent that an Option covers less than one (1) share, it is
unexercisable. 
 Options or portions thereof may be exercised by giving written notice to the Company, which
notice shall specify the number of shares to be purchased, and be accompanied by payment in the amount of the aggregate exercise price for the Common Stock so purchased, which payment shall be in the form specified in Section 5(i) below. The
Company shall not be obligated to issue, transfer or deliver a certificate of Common Stock to the Holder of any Option, until provision has been made by the Holder, to the satisfaction of the Company, for the payment of the aggregate exercise price
for all shares for which the Option shall have been exercised and for any satisfaction of any tax withholding obligations associated with such exercise. During the lifetime of an Optionee, Options are exercisable only by the Optionee or a transferee
who takes title to the Option in the manner permitted by Section 5(1) hereof. 

  
 5 

  
 (i)
Payment upon Exercise of Option. Upon the exercise of any Option, the aggregate exercise price shall be paid to the Company in cash or by certified or cashier’s check. In addition, the Holder, at its or the Company’s option, may
pay for all or any portion of the aggregate exercise price by complying with one or more of the following alternatives: 
 (1) by delivering to the Company shares of Common Stock previously held by such Holder which shares of Common Stock received shall have a fair market value at the date of exercise (as determined by
the Board) equal to the aggregate exercise price to be paid by the Optionee upon such exercise; 
 (2)
by delivering a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds to pay the exercise price; 

(3) by delivering a full recourse promissory note for all or part of the aggregate exercise price, payable on
such terms and bearing such interest rate as determined by the Board (but in no event less than the minimum interest rate specified under the Code at which no additional interest would be imputed and in no event more than the maximum interest rate
allowed under applicable usury laws), which promissory note may be either secured or unsecured in such manner as the Board shall approve (including, without limitation, by a security interest in the shares of the Company); 

(4) by delivering a combination of (1), (2) and (3) above. 

(j) Net Issue Exercise. Notwithstanding the provisions of Paragraph (i), above, if, at the date of making
the calculation set forth below, the fair market value of one share of Common Stock is greater than the exercise price of the Option, then in lieu of exercising the Option for cash, the Holder may elect to convert the Option and receive Common Stock
equal to the value (as determined below) of the Option (or the portion thereof being exercised) by surrender of the Option together with a notice of the Holder’s election to proceed pursuant to this Paragraph (j). In such an event, the Company
shall issue to the Holder that number of shares of Common Stock derived utilizing the following formula: 
  

							
	 X =
	  	 Y (A – B)
	  		  	
		  	A	  		  	

  

							
	 Where
	  	 X
	 	 =
	  	 the number of shares of Common Stock to be issued to the Holder pursuant to election under this Section 5(j)

  
 6 

  

			
	 Y =
	  	 the number of shares of Common Stock purchasable under the Option or, if only a portion of the Option is being exercised, the portion of the Option being
converted and canceled (at the date of such calculation)

		
	 A =
	  	 the fair market value of one share of Common Stock (at the date of such calculation)

		
	 B =
	  	 the exercise price (as adjusted to the date of such calculation).

 For purposes of the above calculation, “fair market value” shall mean, as of any given date, the value of a share of Common Stock determined as follows: 

(i) If the Common Stock is listed on any established stock exchange (such as the New York Stock Exchange, the
NASDAQ Global Market and the NASDAQ Global Select Market) or national market system, its fair market value shall be the closing sales price for a share of Common Stock as quoted on such exchange or system for such date or, if there is no closing
sales price for a share of Common Stock on the date in question, the closing sales price for a share of Common Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as
the Board or such other duly authorized administrator of the Plan (the “Administrator”) deems reliable; 
 (ii) If the Common Stock is not listed on an established stock exchange or national market system, but the Common Stock is regularly quoted by a recognized securities dealer, its fair market value
shall be the closing trading price for such date or, if there is no closing trading price for a share of Common Stock on such date, the closing trading price for a share of Common Stock on the last preceding date for which such information exists,
as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

(iii) If the Common Stock is neither listed on an established stock exchange or a national market system nor
regularly quoted by a recognized securities dealer, its fair market value shall be established by the Administrator in good faith. 
 (k) Rights as a Stockholder. A Holder shall have no rights as a stockholder with respect to any shares covered by an Option until such Holder becomes a record holder of such shares,
irrespective of whether such Holder has given notice of exercise. Subject to the provisions of Sections 5(n) and 5(o) hereof, no rights shall accrue to a Holder and no adjustments shall be made on account of dividends (ordinary or extraordinary,
whether in cash, securities or other property) or distributions or other rights declared on, or created in, the Common Stock for which the record date is prior to the date the Holder becomes a record holder of the shares of Common Stock covered by
the Option, irrespective of whether such Holder has given notice of exercise. 
 (l) Transfer of
Option. No Option granted under this Plan shall be assignable or otherwise transferable by the optionee except by will or by the laws of descent and distribution. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of
any Option or of any right or privilege conferred by this Plan contrary to the provisions hereof, or upon the sale, levy or any attachment or similar process upon the rights and privileges conferred by this Plan, such Option shall thereupon
terminate and become null and void. During the life of the optionee, an Option shall be exercisable only by the optionee. 

  
 7 

  
 (m)
Securities Regulation and Tax Withholding. 
 (1) Shares shall not be issued with respect to
an Option unless the exercise of such Option and the issuance and delivery of such shares shall comply with all relevant provisions of law, including, without limitation, any applicable state securities laws, the Securities Act of 1933, as amended,
the Exchange Act, the rules and regulations hereunder and the requirements of any stock exchange upon which such shares may then be listed, and such issuance shall be further subject to the approval of counsel for the Company with respect to such
compliance, including the availability of an exemption from registration for the issuance and sale of such shares. 
 The inability of the Company to obtain from any regulatory body the authority deemed by the Company to be necessary for the lawful issuance and sale of any shares under this Plan, or the unavailability of
an exemption from registration for the issuance and sale of any shares under this Plan, shall relieve the Company of any liability with respect to the non-issuance or sale of such shares. 

As a condition to the exercise of an Option, the Board may require the Holder to represent and warrant in writing at the
time of such exercise that the shares are being purchased only for investment and without any then-present intention to sell or distribute such shares. At the option of the Board, a stop-transfer order against such shares may be placed on the stock
books and records of the Company, and a legend indicating that the stock may not be pledged, sold or otherwise transferred unless an opinion of counsel is provided stating that such transfer is not in violation of any applicable law or regulation,
may be stamped on the certificates representing such shares in order to assure an exemption from registration. The Board also may require such other documentation as may from time to time be necessary to comply with federal and state securities
laws. THE COMPANY HAS NO OBLIGATION TO UNDERTAKE REGISTRATION OF OPTIONS OR THE SHARES OF STOCK ISSUABLE UPON THE EXERCISE OF OPTIONS. 
 (2) The Holder shall pay to the Company by certified or cashier’s check, promptly upon exercise of an Option or, if later, the date that the amount of such obligations becomes determinable,
all applicable federal, state, local and foreign withholding taxes that the Board, in its discretion, determines to result upon exercise of an Option or from a transfer or other disposition of shares of Common Stock acquired upon exercise of an
Option or otherwise related to an Option or shares of Common Stock acquired in connection with an Option. Upon approval of the Board, a Holder may satisfy such obligation by complying with one or more of the following alternatives selected by the
Board: 
 (A) by delivering to the Company shares of Common Stock previously held by such Holder or by
the Company withholding shares of Common Stock otherwise deliverable pursuant to the exercise of the Option, which shares of Common Stock received or withheld shall have a fair market value at the date of exercise (as determined by the Board) equal
to the tax obligation to be paid by the Optionee upon such exercise; provided that if the Holder is an Insider or if beneficial ownership of the shares issuable upon exercise of the Option is attributable to an Insider pursuant to the regulations
under Section 16 of the Exchange Act, the grant of such Option to such Holder was specifically approved (or, in the case of clause (b), ratified) (i) by the entire Board or a committee of the Board composed solely of two or more
Non-Employee Directors (as defined in Rule 16b-3(b)(3)(i) of the Exchange Act) or (ii) in compliance with Section 14 of the Exchange Act by the holders of a majority of the securities of the Company present, or represented, and entitled to
vote at a meeting duly held in accordance with the laws of the state of incorporation of the Company, or the written consent of the holders of a majority of the securities of the Company entitled to vote, so long as such ratification occurred no
later than the date of the next annual meeting of stockholders; or 

  
 8 

  

(B) by executing appropriate loan documents approved by the Board by which the Holder borrows funds from the
Company to pay the withholding taxes due under this Paragraph 2, with such repayment terms as the Board shall select. 
 (3) The issuance, transfer or delivery of certificates of Common Stock pursuant to the exercise of Options may be delayed, at the discretion of the Board, until the Board is satisfied that the
applicable requirements of the federal and state securities laws and the withholding provisions of the Code have been met. 
 (n) Stock Dividend, Reorganization or Liquidation. 

(1) If (i) the Company shall at any time be involved in a transaction described in Section 424(a) of
the Code (or any successor provision) or any “corporate transaction” described in the regulations thereunder; (ii) the Company shall declare a dividend payable in, or shall subdivide or combine, its Common Stock or (iii) any
other event with substantially the same effect shall occur, the Board shall, with respect to each outstanding Option, proportionately adjust the number of shares of Common Stock subject to such Option, the exercise price per share or both so as to
preserve the rights of the Holder substantially proportionate to the rights of the Holder prior to such event, and to the extent that such action shall an increase or decrease in the number of shares of Common Stock subject to outstanding Options,
the number of shares available under Section 4 of this Plan shall automatically be increased or decreased, as the case may be, proportionately, without further action on the part of the Board, the Company, the Company’s stockholders, or
any Holder. 
 (2) If the Company shall at any time declare an extraordinary dividend with respect to
the Common Stock, whether payable in cash or other property, the Board may, in the exercise of its sole discretion and with respect to each outstanding Option, proportionately adjust the number of shares of Common Stock subject to such Option, the
exercise price per share or both so as to preserve the rights of the Holder substantially proportionate to the rights of the Holder prior to such event, and to the extent that such action shall include an increase or decrease in the number of shares
of Common Stock subject to outstanding Options, the number of shares available under Section 4 of this Plan shall automatically be increased or decreased, as the case may be, proportionately, without further action on the part of the the
Company, the Company’s stockholders, or any Holder. 
 (3) If the Company is liquidated or
dissolved, the Board may allow the Holders of any outstanding Options to exercise all or any part of the unvested portion of the Options held by them, provided they do so prior to the effective date of such liquidation or dissolution. If the Holders
do not exercise their Options prior to such effective date, each outstanding Option shall terminate as of the effective date of the liquidation or dissolution. 

  
 9 

  

(4) The foregoing adjustments in the shares subject to Options shall be made by the Board, or by any successor
administrator of this Plan, or by the applicable terms of any assumption or substitution document. 
 (5)
The grant of an Option shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge, consolidate or dissolve, to liquidate or to
sell or transfer all or any part of its business or assets. 
 (o) Change in Control. 

(1) Any and all Options that are outstanding under the Plan at the time of occurrence of any of the events
described in Subparagraphs (A), (B), (C) and (D) below (an “Eligible Option”) shall become immediately vested and fully exercisable for the periods indicated (each such exercise period referred to as an “Acceleration
Window”): 
 (A) For a period of forty-five (45) days beginning on the day on which any Person
together with all Affiliates and Associates (as such terms are defined below) of such Person shall become the Beneficial Owner (as defined below) of fifty percent (50%) or more of the shares of Common Stock then outstanding, but shall not
include the Company, any subsidiary of the Company, any employee benefit plan of the Company or of any subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such
employee benefit plan; 
 (B) Beginning on the date that a tender or exchange offer for Common Stock by
any Person (other than the Company, any subsidiary of the Company, any employee benefit plan of the Company or of any subsidiary of the Company, or any Person or entity organized, appointed or established by the Company for or pursuant to the terms
of any such employee benefit plan) is first published or sent or given within the meaning of Rule 14d-2 under the Exchange Act and continuing so long as such offer remains open (including any extensions or renewals of such offer), unless by the
terms of such offer the offeror, upon consummation thereof, would be the Beneficial Owner of less than fifty percent (50%) of the shares of Common Stock then outstanding; 

(C) For a period of twenty (20) days beginning on the day on which the stockholders of the Company (or, if
later, approval by the stockholders of any Person) duly approve any merger, consolidation, reorganization or other transaction providing for the conversion or exchange of more than fifty percent (50%) of the outstanding shares of Common Stock
into securities of any Person, or cash, or property, or a combination of any of the foregoing, unless the holders of the voting stock of the Company immediately prior to such transaction hold not less than fifty percent (50%) of the voting
rights in the surviving entity; or 

  
 10 

  

(D) For a period of twenty (20) days beginning on the day on which, at any meeting of the stockholders of the
Company involving a contest for the election of directors, individuals constituting a majority of the Board who were not the Board’s nominees for election immediately prior to the meeting are elected; provided, however, that with respect to the
events specified in Subparagraphs (A), (B) and (C) above, such accelerated vesting shall not occur if the event that would otherwise trigger the accelerated vesting of Eligible Options has received the prior approval of a majority of all
of the directors of the Company, excluding for such purposes the votes of directors who are directors or officers of, or have a material financial interest in any Person (other than the Company) who is a party to the event specified in Subparagraph
(A), (B) or (C) above which otherwise would trigger acceleration of vesting and provided, further, that no Option which is to be converted into an option to purchase shares of Exchange Stock as stated at item (3) below shall be
accelerated pursuant to this Section 5(n). 
 (2) The exercisability of any Eligible Option which
remains unexercised following expiration of an Acceleration Window shall be governed by the vesting schedule and other terms of the Agreement ting such Option. 

(3) If the stockholders of the Company receive shares of capital stock of another Person (“Exchange
Stock”) in exchange for or in place of shares of Common Stock in any transaction involving any merger, consolidation, reorganization or other transaction providing for the conversion or exchange of all or substantially all outstanding shares of
Common Stock into Exchange Stock, then at the closing of such transaction all Options granted hereunder shall be converted into options to purchase shares of Exchange Stock unless the Company (by the affirmative vote of a majority of all of the
directors of the Company, excluding for such purposes the votes of directors who are directors or officers of, or have a material financial interest in the Person issuing the Exchange Stock and any Affiliate of such Person), in its sole discretion,
determines that any or all such Options granted hereunder shall not be so converted but instead shall terminate. The amount and price of converted Options shall be determined by adjusting the amount and price of the Options granted hereunder in the
same proportion as used for determining the shares of Exchange Stock the holders of the Common Stock received in such merger, consolidation, reorganization or other transaction. Unless altered by the Board, the vesting schedule set forth in the
Agreement shall continue to apply to the Options granted for Exchange Stock. For the purposes of this Section 5(n): (i) “Person” shall include any individual, firm, corporation, partnership or other entity;
(ii) “Affiliate” and “Associate” shall have the meanings assigned to them in Rule 12b-2 under the Exchange Act; and (iii) “Beneficial Owner” shall have the meaning assigned to it in Rule 16a-1 under the
Exchange Act. 
  

	 	 6.
	 EFFECTIVE DATE; TERM. 

 This Plan shall be effective as of September 1, 1996. Incentive Stock Options and Non-Qualified Stock Options may be granted by the Board from time to time thereafter until the tenth anniversary of
the May 29, 2002 amendment and restatement of the Plan. Termination of this Plan shall not terminate any Option granted prior to such termination. Any Options granted by the Board prior to the approval of this Plan by the stockholders of the
Company shall be granted subject to ratification of this Plan by the stockholders of the Company within twelve (12) months after this Plan is adopted by the Board. The Board may require any stockholder approval that it considers necessary for
the Company to comply with or to avail the Company and/or the Optionees of the benefits of any securities, tax, market listing or other administrative or regulatory requirement. If such stockholder ratification is sought within twelve
(12) months after this Plan is adopted by the Board and such stockholder ratification is not obtained, each and every Option granted under this Plan shall be null and void and shall convey no rights to the Holder thereof. 

  
 11 

  

	 	 7.
	 NO OBLIGATIONS TO EXERCISE OPTION. 

 The grant of an Option shall impose no obligation upon the Optionee to exercise such Option. 
  

	 	 8.
	 NO RIGHT TO OPTIONS OR TO EMPLOYMENT. 

Whether or not any Options are to be granted under this Plan shall be exclusively within the discretion of the Board, and
nothing contained in this Plan shall be construed as giving any person any right to participate under this Plan. The grant of an Option shall in no way constitute any form of agreement or understanding binding on any Related Corporation, express or
implied, that the Company or any Related Corporation will act with an Optionee for any length of time, nor shall it interfere in any way with the Company’s or, where applicable, a Related Corporation’s right to terminate Optionee’s
employment at any time, which right is hereby reserved. 
  

	 	 9.
	 APPLICATION OF FUNDS. 

 The proceeds received by the Company from the sale of Common Stock issued upon the exercise of Options shall be used for general corporate purposes, unless otherwise directed by the Board. 

 

	 	 10.
	 INDEMNIFICATION OF THE BOARD. 

 In addition to all other rights of indemnification they may have as members of the Board, directors shall be indemnified by the Company for all reasonable expenses and liabilities of any type or nature,
including attorneys’ fees, incurred in connection with any action, suit or proceeding to which they or any of them are a party by reason of, or in connection with, this Plan or any Option granted under this Plan, and against all amounts paid by
them in settlement thereof (provided that such settlement is approved by independent legal counsel selected by the Company), except to the extent that such expenses relate to matters for which it is adjudged that such director is liable for willful
misconduct; provided, that within fifteen (15) days after the institution of any such action, suit or proceeding, the director involved therein shall, in writing, notify the Company of such action, suit or proceeding, so that the Company may
have the opportunity to make appropriate o prosecute or defend the same. 

  
 12 

  

	 	 11.
	 AMENDMENT OF PLAN 

 The Board may, at any time, modify, amend or terminate this Plan or modify or amend Options granted under this Plan, including, without limitation, such modifications or amendments as are necessary to
maintain compliance with applicable statutes, rules or regulations; provided, however, no amendment with respect to an outstanding Option which has the effect of reducing the benefits afforded to the Holder thereof shall be made over the objection
of such Holder; provided further, that the events triggering acceleration of vesting of outstanding Options may be modified, expanded or eliminated without the consent of Holders. The Board may condition the effectiveness of any such amendment on
the receipt of stockholder approval at such time and in such manner as the Board may consider necessary for the Company to comply with or to avail the Company, the Optionees or both of the benefits of any securities, tax, market listing or other
administrative or regulatory requirement which the Board determines to be desirable. Without limiting the generality of the foregoing, the Board may modify grants to persons who are eligible to receive Options under this Plan who are foreign
nationals or employed outside the United States to recognize differences in local law, tax policy or custom. 

  
 13

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