Document:

Agreement, dated as of November 14, 2011, by and among the Company

 Exhibit 10.6 
 AGREEMENT (this “Agreement”), dated as of November 14, 2011, by and among Titan Pharmaceuticals, Inc., a Delaware corporation (“Titan”), Deerfield Private Design
Fund II, L.P., a Delaware limited partnership (“DPDF”), Deerfield Private Design International II, L.P., a limited partnership organized under the laws of the British Virgin Islands (“DPDI”), Deerfield Special
Situations Fund, L.P., a Delaware limited partnership (“DSS Del.”) and Deerfield Special Situations Fund International Limited, a company organized under the laws of the British Virgin Islands (“DSS BVI” and
together with DPDF, DPDI and DSS Del., individually, a “Noteholder” and together, the “Noteholders” and, together with Titan, the “Parties”). 

WHEREAS, the Parties are party to a Facility Agreement dated as March 15, 2011 pursuant to which, among other things, Titan issued
to the Noteholders the Notes (as defined in the Facility Agreement), each dated April 5, 2011, in the aggregate original principal amount of $20,000,000. Such Notes, the allocation of the outstanding principal balances thereunder among the
Noteholders and the reduced principal balances thereunder after giving effect to the debt forgiveness contemplated hereby are more specifically set forth on Exhibit A hereto (the “Promissory Notes”); 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration,
the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: 
 1. (a) Section 2.2(a) of the
Facility Agreement is hereby amended to read as follows: 
 “Section 2.2. Repayment.
(a) Subject to the provisions of Section 2.2(b), the Borrower shall prepay the Notes in four (4) equal installments on each of the second, third, fourth and fifth anniversaries of their issue date, each such installment to be in an
aggregate amount for all Notes equal to Two Million Five Hundred Thousand Dollars ($2,500,000),” 
 (b) The Noteholders
hereby forgive an aggregate of $10,000,000 of indebtedness owing by Titan to the Noteholders under the Promissory Notes. Accordingly, as of the date hereof, the outstanding principal balances owing by Titan to the Noteholders under the Promissory
Notes have been reduced to the amounts set forth on Exhibit A. 
 (c) Except as otherwise amended by this Section 1 and
Section 2 below, the Facility Agreement shall remain in full force and effect in accordance with its terms. 
 2. If Titan
shall at any time receive any Excess Royalty Amounts, then Titan shall make a prepayment of the outstanding principal amount of the Promissory Notes in an amount equal to fifty percent (50%) of such Excess Royalty Amounts actually received,
pro rata. For the purposes of this Section 2, the Excess Royalty Amounts shall mean the amount, if any, of the Titan Entitlement (as defined in Section 5(c) of the New Purchase Agreement defined below) distributed to Titan in
accordance with the Paying Agent Agreement (as defined below) if any. 

 3. (a) The definition of Obligations set forth in Section 9 of the Security Agreement
(as defined in the Facility Agreement) is hereby amended to read as follows: 
 “Obligations”
means: 
 (1) the full and prompt payment by Obligor when due of all obligations and liabilities to Secured
Party, whether now existing or hereafter arising, under the Financing Documents and the due performance and compliance by Obligor with the terms thereof; 
 (2) any and all sums advanced in accordance with the terms of the Financing Documents or applicable law by Secured Party in order to preserve the Collateral or to preserve the Secured Party’s
security interest in the Collateral; and 
 (3) in the event of any proceeding for the collection or enforcement
of any obligations or liabilities of Obligor referred to in the immediately preceding clauses (1) and (2), the reasonable expenses of re-taking, holding, preparing for sale, selling or otherwise disposing of or realizing on the Collateral, or
of any other exercise by Secured Party of its rights hereunder, together with reasonable and documented attorneys’ fees and court costs (items 1, 2, and 3, the “Note Obligation”); and 

(4) the obligations of Titan under the Amended and Restated Royalty Agreement dated November 14, 2011 by and among
Deerfield Private Design Fund II, L.P., Deerfield Special Situations Fund, L.P., Horizon Santé TTNP SARL (collectively, the “Deerfield Parties”) and Obligor and the Royalty Purchase Agreement dated November 14, 2011 by
and among the Deerfield Parties and Obligor (as each may be amended, modified and supplemented from time to time). 
 provided,
however, that after the Note Obligations have been fulfilled, “Obligations” shall mean only the obligations set forth in Item 4.” 
 (b) The term “Collateral” provided for in Section (a) of the Security Agreement is hereby amended to add thereto the following: 

“; provided, however, that (i) after the Note Obligations have been fulfilled, the Collateral shall mean and extend only to
Obligor’s right to receive royalty payments from Novartis Pharma A.G (“Novartis”) pursuant to the Sublicense Agreement between Obligor and Novartis having an effective date of November 20, 1997 (as amended, modified and
supplemented from time to time) but excluding that portion of such royalties which are allocated to royalty payments to be made by Obligor to Sanofi (“Sanofi”) pursuant to the Worldwide License Agreement between Obligor and Sanofi
having an effective date of December 31, 1996 (as amended, modified and supplemented from time to time) (the “Excluded Collateral”) and (ii) at no time (whether prior to or after payment in full of the Note Obligations shall the
term “Collateral” include the Excluded Collateral”). 
 4. Deerfield shall not exercise the rights granted to it
pursuant to Section 6.03(g) of the Paying Agent Agreement (as defined below) unless an Exercise Event has occurred. For the purpose of this Section 4, an Exercise Event shall occur if each of the following events shall

  
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exist: (A) a court of competent jurisdiction shall have determined in a non-appealable order that the true sale contemplated by the New Purchase Agreement should not be characterized as a
sale but instead as a transfer of a security interest and (B) (i) Titan commences a proceeding to be adjudicated bankrupt or insolvent, or the consent by it to the commencement of bankruptcy or insolvency proceedings against it, or files a
petition or answer or consent seeking reorganization, intervention or other similar relief under any applicable law, or (ii) Titan consents to the filing of any such petition or to the appointment of an intervenor, receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of all or substantially all of its assets; or (iii) there is commenced against Titan a proceeding in any court of competent jurisdiction under any bankruptcy or other applicable law
(as now or hereafter in effect) seeking its liquidation, winding up, dissolution, reorganization, arrangement, adjustment, or the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar official), and
any such proceeding shall continue undismissed, or any order, judgment or decree approving or ordering any of the foregoing shall continue unstayed or otherwise in effect, for a period of ninety (90) days. 

5. The Equity Option Agreement, dated March 15, 2011 made by and between Deerfield TTNP Corporation, DPDI, DSS BVI and Titan is
hereby terminated. 
 6. Titan has delivered to DPDF, DSS Del. and Horizon a Royalty Purchase Agreement, dated the date hereof,
in the form attached as Exhibit B (as amended, modified and supplemented from time to time, the “New Purchase Agreement”) providing for, among other things, the sale by Titan of the Royalties (as defined therein) to such entities.

 7. Titan has delivered to DPDF, DSS Del. and Horizon an Amended and Restated Royalty Agreement dated the date hereof in the
form attached as Exhibit C providing for, among other things, the sale by Titan of the Royalties (as defined therein) to such entities. 
 8. The Parties have entered into a Cash Management Agreement in the form attached hereto as Exhibit D . 
 9. The Parties have entered into a Paying Agent Agreement in the form attached hereto as Exhibit E (the “Paying Agent Agreement”). 

10. The provisions of Section 5.1 through 5.8 and Sections 5.10 and 5.13 of the Facility Agreement are hereby incorporated herein by
reference, mutatis mutandis. 

  
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 IN WITNESS WHEREOF, the Parties, acting through their duly authorized representatives, have
caused this Agreement to be signed in their respective names as of the date first above written. 
  

			
	TITAN PHARMACEUTICALS, INC.
		
	By:	 	 /s/ Sunil Bhonsle

	Name: Sunil Bhonsle
	Title: President
	
	DEERFIELD PRIVATE DESIGN FUND II, L.P.
	
	By: Deerfield Capital, L.P., General Partner
	By: J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ James E. Flynn

	Name: James E. Flynn
	Title: President
	
	DEERFIELD PRIVATE DESIGN INTERNATIONAL II, L.P.
	
	By: Deerfield Capital, L.P., General Partner
	By: J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ James E. Flynn

	Name: James E. Flynn
	Title: President
	
	DEERFIELD SPECIAL SITUATIONS FUND, L.P.
	
	By: Deerfield Capital, L.P., General Partner
	By: J. E. Flynn Capital LLC, General Partner
		
	By:	 	 /s/ James E. Flynn

	Name: James E. Flynn
	Title: President
	
	DEERFIELD SPECIAL SITUATIONS FUND INTERNATIONAL LIMITED
		
	By:	 	 /s/ James E. Flynn

	Name: James E. Flynn
	Title: Director

  

			
	Agreed as to Section 6
	
	DEERFIELD TTNP CORPORATION
		
	By:	 	 /s/ Jeffrey Kaplan

	Name: Jeffrey Kaplan
	Title: Treasurer

  
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 EXHIBIT A 

 

									
	 Noteholders
	  	Initial/Outstanding
Principal
Amount	 	  	Reduced Principal Amount	 
	 Deerfield Private Design Fund II, L.P.
	  	$	7,456,000	  	  	$	3,728,000	  
	 Deerfield Private Design International II, L.P.
	  	$	8,544,000	  	  	$	4,272,000	  
	 Deerfield Special Situations Fund, L.P.
	  	$	1,560,000	  	  	$	780,000	  
	 Deerfield Special Situations Fund International Limited
	  	$	2,440,000	  	  	$	1,220,000	  
	 Total
	  	$	20,000,000	  	  	$	10,000,000SigmaTron International, Inc. 2012 Employee Bonus Plan

 EXHIBIT 10.1 
 SIGMATRON INTERNATIONAL, INC. 
 2012 EMPLOYEE BONUS PLAN 

 

	1.	PURPOSE. The purpose of the 2012 Employee Bonus Plan of SigmaTron International, Inc., a Delaware Corporation (the “Company”) is to align stockholder and
employee objectives, motivate employees, and increase stockholder value. 

  

	2.	DEFINITIONS. Capitalized terms shall have the meanings ascribed in this Section 2 or as otherwise defined in this Plan: 

 

	 	a.	“Award Year” shall mean the Company’s fiscal year to which bonuses under this Plan relate. 

 

	 	b.	“Board” shall mean the Board of Directors of the Company. 

  

	 	c.	“CEO” shall mean the Chief Executive Officer of the Company. 

  

	 	d.	“CFO” shall mean the Chief Financial Officer of the Company. 

  

	 	e.	“Committee” shall mean the Compensation Committee of the Company. 

 

	 	f.	“Executive Officer” shall mean any employee designated by the Company as an executive officer pursuant to the Securities Exchange Act of 1934 and the rules
and regulations promulgated thereunder. 

  

	 	g.	“GAAP” shall mean U.S. Generally Accepted Accounting Principles. 

 

	 	h.	“Pre-Tax Income” shall mean income, as determined by GAAP, prior to deduction of the Bonus Pool (as hereinafter defined) and income taxes, and if applicable,
after the deduction of the $170,000 bonus pool awarded under the 2012 Officer Bonus Plan (or any bonus pool of a future officer bonus plan adopted by the Company relating to an applicable Award Year) and adjustments approved by the Board as
described herein. 

  

	 	i.	“Officer” shall mean any full-time Company employee with a corporate ranking of Vice-President or higher who is not designated as an Executive Officer.

  

	 	j.	“Participant” shall mean any U.S. payroll employee, Officer, or Executive Officer, except for employees under a collective bargaining agreement, who are not
covered by this Plan. 

  

	 	k.	“Plan” shall mean this 2012 Employee Bonus Plan. 

  

	3.	ADMINISTRATION. The Board shall have the power to adopt, modify and revoke such rules for the administration, interpretation and application of the Plan as are
consistent therewith. Except as otherwise directed herein, the Board shall administer and interpret the Plan in accordance with its provisions. 

  

	4.	TIMING AND ELIGIBILITY REQUIREMENTS FOR BONUS PAYOUTS. 

  

	 	a.	Bonuses pursuant to this Plan shall be determined at the end of the Award Year and paid as soon as practicable after the Bonus Pool is calculated and awards under the
Plan are approved. 

	 	b.	To be eligible for a bonus pursuant to this Plan, each Participant must be on the Company’s payroll on the last day of the Award Year, absent special circumstances
approved by the Board. 

  

	5.	BONUS POOL; DETERMINATION AND CALCULATION OF BONUS AWARDS. 

  

	 	a.	The aggregate bonus pool fund from which bonuses shall be awarded under this Plan (“Bonus Pool”) shall be calculated as a percentage of Pre-Tax Income
pursuant to a graduated scale as further stated in Exhibit A attached hereto and incorporated herein. 

  

	 	b.	The Committee, in its sole discretion, may recommend to the Board for its approval adjustments to the calculation of Pre-Tax Income. 

 

	 	c.	As soon as reasonably practicable after approval of the Plan, and during the first quarter of each fiscal year thereafter, the CEO shall identify and submit to the
Committee for its recommendation to the Board Award Year target objectives for each Executive Officer (“Target Objectives”). The CEO’s Target Objectives shall be identified by mutual agreement of the Committee and CEO which the
Committee shall then recommend to the Board for approval. The bonus amount awarded to an Executive Officer shall be based, in part and at the sole discretion of the Board, after receiving the recommendation of the Committee, on such Executive
Officer achieving its Target Objectives during the Award Year. 

  

	 	d.	During any Award Year, the CEO may recommend to the Committee, the Committee may recommend to the Board and the Board may approve changes to the Target Objectives.

  

	 	e.	As soon as reasonably practicable after the Bonus Pool is calculated, the CEO shall recommend and submit to the Committee for its recommendation to the Board a
percentage or dollar allocation of the Bonus Pool for: (1) each Executive Officer and Officer, individually; and (2) all other Participants, in the aggregate. 

 

	 	f.	Awards shall be granted and paid to the Participants only upon satisfaction of the following condition: 

 

	 	i.	At the end of the Award Year, the Company is in compliance with all covenants under its primary credit facility (currently with Wells Fargo Bank, N.A.), or has obtained
a waiver of covenant compliance from the bank. 

  

	6.	RESTATEMENT OF FINANCIAL STATEMENTS FOR A FISCAL YEAR TO WHICH A BONUS RELATES. 

 

	 	a.	CLAWBACK RESULTING FROM INTENTIONAL MISCONDUCT. If the Board learns of any intentional misconduct of an Officer or Executive Officer, whether by an action or omission,
which requires the Company to restate all or a portion of its financial statements (“Restated Financial Statements”) for a fiscal year to which bonuses were previously awarded (“Awarded FY”), and the amount of the Bonus Pool for
the Awarded FY (“Awarded Bonus Pool”) would have been lower had the financial results been properly reported, the Board may, to the fullest extent permitted by governing law and in its sole discretion, require 

  
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reimbursement in an aggregate amount equal to the difference between the amount of the bonus pool calculated according to the Restated Financial Statements and Awarded Bonus Pool
(“Difference”) from the following persons, in the following order: (i) Each Officer and/or Executive Officer who engaged in the intentional misconduct causing or partially causing the Restated Financial Statements, up to 100% of such
Officer or Executive Officer’s bonus from the Awarded Bonus Pool; and (ii) if amounts demanded by the preceding subparagraph 6(a)(i) is insufficient for the Company to fully recoup the Difference, from the CEO and CFO, in equal proportions
and in such amount as to enable the Company to fully recoup the Difference, up to 100% of the CEO/CFO’s bonus from the Awarded Bonus Pool. 

  

	 	b.	CLAWBACK IN ALL OTHER INSTANCES. In all other instances not provided for by paragraph 6(a) above, if the Company has to restate all or a portion of its financial
statements for an Awarded FY, and the amount of the Awarded Bonus Pool would have been lower had the financial results been properly reported, the Board may, to the fullest extent permitted by governing law and in its sole discretion, require
reimbursement, in the aggregate amount of the Difference, from CEO and CFO, in equal proportions and in such amount as to enable the Company to fully recoup the Difference, up to 100% of the CEO/CFO’s bonus from the Awarded Bonus Pool.

  

	 	c.	CLAWBACK LIMITATIONS. The clawback provisions of paragraphs 6(a) and 6(b) of this Plan shall be limited to 3 years from the date a bonus was paid from an Awarded Bonus
Pool. 

  

	 	d.	CLAWBACK NOTICE. In the event of any such required reimbursement, the Company shall give written notice thereof to each Officer and Executive Officer stating the amount
of the required reimbursement and the reasons therefor. Each Officer and Executive Officer shall make such reimbursement within 45 days from the date notice is delivered. 

 

	 	e.	RESTATED FINANCIAL STATEMENTS RESULTING IN HIGHER BONUS POOL. If the Company restates all or a portion of its financial statements for an Awarded FY, and the amount of
the Awarded Bonus Pool would have been greater had the financial results been properly reported, the Board may add the Difference to the Bonus Pool for the fiscal year in which the Restated Financial Statements are completed. Bonus awards pursuant
to this subparagraph 6(e) shall be awarded pursuant to paragraph 5 of this Plan. 

  

	7.	EMPLOYMENT AND PLAN RIGHTS. This Plan shall neither be deemed to give any Participant the right to be employed by the Company, nor impair the Company’s right to
discharge any Participant at any time, subject to the terms of an employment agreement between a Participant and the Company, if any. 

  

	8.	AMENDMENT, SUSPENSION OR TERMINATION. This Plan may be amended, suspended, or terminated, at any time or from time to time, by the Board of Directors.

  
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