On January 9, 2024 Eloxx Pharmaceuticals, Inc. entered into the Fifth Amendment to the Loan and Security Agreement (the ?Fifth Amendment?) by and among (i) Hercules Capital, Inc., a Maryland corporation (?Hercules?), in its capacity as administrative agent, and collateral agent, (ii) Hercules Capital IV, L.P., (collectively referred to as the ?Lenders?), as a lender, (iii) the Company, as a borrower, (iv) Zikani Therapeutics, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, as a borrower (together with the Company, the ?Borrower?), and (v) Eloxx Pharmaceuticals Ltd., an Israeli company and wholly-owned subsidiary of the Company (together with the Lenders and the Borrower, the ?Parties?), which amended certain terms of the Loan and Security Agreement, originally dated September 30, 2021, by and among the Parties (as amended prior to the Fifth Amendment, the ?Loan Agreement? and, as amended by the Fifth Amendment, the Amended Loan Agreement?). The Amended Loan Agreement bifurcates the remaining outstanding principal of the Tranche 1 Advance under the Loan Agreement into a ?Tranche 1A Advance?

and a ?Tranche 1B Advance.? On the Closing Date, the Tranche 1B Advance was assigned to SD MF 4 LLC, a Delaware limited liability company (the ?Assignee? and such assignment, the ?Assignment Transaction?).

The Amended Loan Agreement provides that, following the Assignment Transaction, the Borrower will not be required to comply with the financial covenant to maintain a minimum qualified cash balance under either the Tranche A1 Advance or the Tranche 1B Advance.