On December 18, 2015, Arrayit Corporation, TeleChem International, Inc., Arrayit Scientific Solutions Inc. and TCA Global Credit Master Fund, LP, closed the transactions contemplated by a Senior Secured Revolving Credit Facility Agreement, effective December 18, 2015. Pursuant to the Credit Agreement, TCA agreed to loan the company up to $5 million for working capital, to pay down prior debt and other purposes, pursuant to the terms and conditions of the Credit Agreement. A total of $750,000 was funded by TCA as an initial line of credit in connection with the Closing.

The amounts borrowed pursuant to the Credit Agreement are evidenced by a Revolving Note (the initial Revolving Note evidencing the $750,000 loan, is referred to herein as the Revolving Note") the repayment of which is secured by a Security Agreement provided to TCA from the company pursuant to which it provided TCA a security interest over substantially all of its properties and assets, and guaranteed by TeleChem and Arrayit Scientific pursuant to a Guaranty Agreement. The Revolving Note in the amount of $750,000 is due and payable along with interest thereon the earlier of six months from the Effective Date or upon prepayment provided however that if the company prepays more than eighty (80%) of the amount of the Revolving Loan Commitment within ninety (90) days following the Effective Date, the company shall pay to TCA as liquidated damages and compensation for the costs of being prepared to make funds available, an amount equal to 2.5% of the Revolving Loan Commitment. Interest on the Revolving Note is a fixed rate of interest equal to Eleven (11%) per annum.

The company also agreed to pay TCA various fees at the Closing and during the term of the Credit Agreement, including $250,000 for advisory services (the Advisory Fee"), a transaction advisory fee in the amount of 4% of the initial Revolving Note ($30,000, which was paid at Closing) and a transaction advisory fee in the amount of 2% of any additional Revolving Note (due upon issuance of any additional Revolving Note), $6,000 in due diligence fees, $17,500 in document review and legal fees, certain other UCC search, documentation tax fees and other search fees, and other fees that may be requested by TCA from time to time pursuant to terms of the Credit Agreement.