| [X]  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|--------------------------------------------------------------------------------------|

|   | For the fiscal year ended December 31, 2010 |
|--------|---------------------------------------------|

| [   ]   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|------------------------|------------------------------------------------------------------------------------------|

|   | For the transition period from _____ to _____ |
|--------|-----------------------------------------------|

|  Tengion, Inc.(Exact name of registrant as specified in its charter)                                                                                                            |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Delaware(State or other jurisdiction of incorporation or organization)                                                                                                                    | 20-0214813(I.R.S. Employer Identification No.)  |
| 2900 Potshop Lane, Suite 100East Norriton, PA 19403(Address of principal executive offices) (610) 292-8364(Registrant’s telephone number, including area code)(zip code)  |

| Title of each class:                     |   | Name of exchange on which registered: |
|------------------------------------------|--------|---------------------------------------|
| Common Stock, par value $0.001 per share |   | NASDAQ Global Market                  |
|                                     |   |                                  |

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| Large accelerated filer  [   ]                                 | Accelerated filer  [   ]          |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| Non-accelerated filer (do not check if a smaller reporting company) [X]  | Smaller reporting company  [   ]  |

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| Item 10.       | Directors, Executive Officers and Corporate Governance                          | 1      |
|----------------|---------------------------------------------------------------------------------|--------|
| Item 11.       | Executive Compensation                                                          | 7      |
| Item 12.       | Security Ownership of Certain Beneficial Owners and Management and Related      |   |
|           | Stockholder Matters                                                             | 24     |
| Item 13.       | Certain Relationships and Related Party Transactions, and Director Independence | 29     |
| Item 14.       | Principal Accounting Fees and Services                                          | 32     |
|           |                                                                            |   |
| Part IV        |
|           |                                                                            |   |
| Item 15.       | Exhibits, Financial Statement Schedules                                         | 33     |
|           |                                                                            |   |
| Signature Page | 34                                                                              |

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ITEM 

|                             |   |         |                                                                          |
|----------------------------------|--------|--------------|-------------------------------------------------------------------------------|
|  Name                       | Age    |    | Position(s)                                                                   |
|                             |   |         |                                                                          |
| Executive Officers               |   |    |                                                                          |
| Steven Nichtberger, MD           | 49     |    | President and Chief Executive Officer, Director                               |
| Timothy Bertram, DVM, PhD        | 55     |    | Chief Scientific Officer and Executive Vice President, Science and Technology |
| A. Brian Davis                   | 44     |    | Chief Financial Officer and Vice President, Finance  |
| Sunita Sheth, MD                 | 51     |         | Chief Medical Officer and Vice President, Clinical and Regulatory Affairs     |
| Mark Stejbach                    | 47     |    | Chief Commercial Officer and Vice President                                   |
|                             |   |         |
| Key Employees                    |   |    |                                                                          |
| Andrew S.C. Constable            | 58     |    | Senior Director, IT and Engineering Systems                                   |
| Deepak Jain, PhD                 | 57     |    | Senior Vice President, Bioprocess Research and Development                    |
| Jason Krentz                     | 38     |    | Executive Director, Technical Operations                                      |
| Joseph W. La Barge, Esq.         | 39     |    | General Counsel, Vice President and Secretary                                 |
| Drew Sansone, MS                 | 40     |    | Executive Director, Regulatory Affairs                                        |
|                             |   |         |
| Non-Employee Directors           |   |    |                                                                          |
| David I. Scheer(2)(3)            | 58     |    | Chairman of the Board of Directors                                            |
| Carl-Johan Dalsgaard, MD, PhD(2) | 54     |    | Director                                                                      |
| Brenda D. Gavin, DVM(2)          | 62     |    | Director                                                                      |
| Richard E. Kuntz, MD, MSc(1)     | 54     |         | Director                                                                      |
| Gary J. Kurtzman, MD(1)(3)       | 56     |    | Director                                                                      |
| Lorin J. Randall(1)(3)           | 67     |    | Director                                                                      |

| (1) | Member of the Compensation Committee. |
|-----|---------------------------------------|

| (2) | Member of the Governance and Nominating Committee. |
|-----|----------------------------------------------------|

| (3) | Member of the Audit Committee. |
|-----|--------------------------------|

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----

----

----

----

----

ITEM 

|   | · | attract and retain individuals of superior ability and managerial talent; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | ensure executive officer compensation is aligned with our corporate strategies, our business objectives and the long-term interests of our stockholders; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increase the incentive to achieve key strategic and financial performance measures by linking incentive award opportunities to the achievement of performance goals in these areas and by providing a portion of total compensation opportunities for executive officers in the form of direct ownership in our company. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | clinical trial progress; |
|--------|--------|--------------------------|

|   | · | preclinical product candidate development; |
|--------|--------|--------------------------------------------|

|   | · | establishment of quality assurance and manufacturing infrastructure; |
|--------|--------|----------------------------------------------------------------------|

|   | · | continued intellectual property development; and |
|--------|--------|--------------------------------------------------|

|   | · | implementation of appropriate financing and business development strategies. |
|--------|--------|------------------------------------------------------------------------------|

----

----

|   | · | Achillion Pharmaceuticals, Inc. |
|--------|--------|---------------------------------|

|   | · | Anadys Pharmaceuticals |
|--------|--------|------------------------|

|   | · | ArQule |
|--------|--------|--------|

|   | · | Arrowhead Research Corporation |
|--------|--------|--------------------------------|

|   | · | Athersys, Inc. |
|--------|--------|----------------|

|   | · | AVI BioPharma |
|--------|--------|---------------|

|   | · | Capstone Therapeutics |
|--------|--------|-----------------------|

|   | · | Celldex Therapeutics |
|--------|--------|----------------------|

|   | · | Cytokinetics |
|--------|--------|--------------|

|   | · | CytRx Corp. |
|--------|--------|-------------|

|   | · | EntreMed |
|--------|--------|----------|

|   | · | Icagen |
|--------|--------|--------|

|   | · | Insmed |
|--------|--------|--------|

|   | · | Keryx |
|--------|--------|-------|

|   | · | Molecular Insight Pharmaceuticals |
|--------|--------|-----------------------------------|

|   | · | Neurocrine Biosciences |
|--------|--------|------------------------|

|   | · | Oncogenex Pharmaceuticals |
|--------|--------|---------------------------|

|   | · | Peregrine Pharmaceuticals |
|--------|--------|---------------------------|

|   | · | SuperGen |
|--------|--------|----------|

| Named Executive Officer   |   | 2010 ActualBase Salary |    |   | 2011 Approved Base Salary(1) |   |    | 2011 Percentage Increase |   |
|---------------------------|--------|------------------------|---------|--------|------------------------------|--------|---------|--------------------------|--------|
|                      |   |                   |    |   |                         |   |    |                     |   |
| Steven Nichtberger, MD    |   | $                      | 403,650 |   |                         | $      | 419,796 |                     |   |   | 4.0 | % |
| A. Brian Davis            |   | $                      | 285,000 |   |                         | $      | 293,550 |                     |   |   | 3.0 | % |
| Timothy Bertram, PhD, DVM |   | $                      | 304,974 |   |                         | $      | 317,173 |                     |   |   | 4.0 | % |
| Sunita Sheth, MD          |   | $                      | 300,000 |   |                         | $      | 309,000 |                     |   |   | 3.0 | % |
| Mark Stejbach             |   | $                      | 283,250 |   |                         | $      | 293,164 |                     |   |   | 3.5 | % |

|   | (1) | We set our annual salary increases effective as of February 1 of each year. |
|--------|-----|-----------------------------------------------------------------------------|

----

| Name and Title                                                                             |   | 2010 Targeted Bonus % of Base Salary |   | 2011 Targeted Bonus % of Base Salary |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------------------------------------|
| Steven Nichtberger, M.D., President and CEO                                                |   | 50%                                  |   | 50%                                  |
| A. Brian Davis, Chief Financial Officer and Vice President, Finance                        |   | 35%                                  |   | 35%                                  |
| Tim Bertram, Chief Scientific Officer and Executive Vice President, Science and Technology |   | 35%                                  |   | 35%                                  |
| Sunita Sheth, Chief Medical Officer and Vice President, Clinical and Regulatory Affairs    |   | 35%                                  |   | 35%                                  |
| Mark Stejbach, Chief Commercial Officer and Vice President                                 |   | 35%                                  |   | 35%                                  |

|   | · | assess interim data of our Neo-Urinary Conduit on initial patients enrolled in our Phase I trial; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | continued assessment of Neo-Bladder Augment development strategy; |
|--------|--------|-------------------------------------------------------------------|

|   | · | further clarify lead Neo-Kidney Augment product candidate in preclinical studies; |
|--------|--------|-----------------------------------------------------------------------------------|

----

|   | · | complete the initial preclinical study of Neo-GI product candidate; and |
|--------|--------|-------------------------------------------------------------------------|

|   | · | achieve the foregoing objectives within company approved budget. |
|--------|--------|------------------------------------------------------------------|

----

| Name and Title                                                                                         |   | Individual Performance Objectives                                                                                                                                                                                                                                                                                    |   | Target (% of Base Salary) |   | % of Company Target Achieved |   | % of Individual Target Achieved |   | Payout ($)        |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|------------------------------|--------|---------------------------------|--------|-------------------|
|  Steven Nichtberger, MDPresident and Chief Executive Officer                                      |   |  Aside from leading the management team, Dr. Nichtberger’s objectives were identical to the Company objectives.                                                                                                                                                                                           |   |  50%                 |   |  90%                    |   |  __                        |   |  $201,825(1) |
|                                                                                                   |   |                                                                                                                                                                                                                                                                                                                 |   |                      |   |                         |   |                            |   |              |
| A. Brian DavisChief Financial Officer and Vice President, Finance                                      |   | Lead equity financing strategies in 2010; explore non-dilutive financing alternatives; managing company’s resources and budget; lead effort to further develop financial controls and disclosure controls and procedures.                                                                                      |   | 35%                       |   | 90%                          |   | 90%                             |   | $37,406(2)        |
|                                                                                                   |   |                                                                                                                                                                                                                                                                                                                 |   |                      |   |                         |   |                            |   |              |
| Timothy Bertram, DVM, PhDChief Scientific Officer and Executive Vice President, Science and Technology |   | Support Neo-Urinary Conduit clinical trial; support Neo-Bladder Augment development strategy; complete certain Neo-Kidney Augment initial preclinical studies; evaluate technology platform for Neo-GI Augment; lead scientific publication strategy.                                                                |   | 35%                       |   | 90%                          |   | 125%                            |   | $105,407          |
|                                                                                                   |   |                                                                                                                                                                                                                                                                                                                 |   |                      |   |                         |   |                            |   |              |
| Sunita Sheth, MDChief Medical Officer and Vice President, Clinical and Regulatory Affairs              |   | Implement Neo-Urinary Conduit clinical trial; support regulatory interaction regarding Neo-Urinary Conduit; develop preliminary clinical development plan for Neo-Kidney Augment; develop Neo-Bladder Augment communication plan.                                                                                    |   | 35%                       |   | 90%                          |   | 90%                             |   | $47,250(3)        |
|                                                                                                   |   |                                                                                                                                                                                                                                                                                                                 |   |                      |   |                         |   |                            |   |              |
| Mark StejbachChief Commercial Officer and Vice President                                               |   | Lead business development and seek to partner our development programs; lead commercial evaluation of product opportunities and markets; lead external communications across stakeholders; lead and support human resource processes and infrastructure; manage information technology processes and infrastructure. |   | 35%                       |   | 90%                          |   | 125%                            |   | $97,898           |

|   | (1) | Dr. Nichtberger annual performance bonus reflects a 90% bonus pool rating and the payment of an additional $20,182.50 at the discretion of the compensation committee for achievement of the additional objectives discussed above, which additional objectives were deemed to have added value to the company but which were outside of the identified 2010 performance objectives. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Mr. Davis’s annual performance bonus was prorated to reflect a partial year of service from his commencement of employment on August 1, 2010. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Dr. Sheth’s annual performance bonus was prorated to reflect a partial year of service from her commencement of employment on July 6, 2010. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | achieve initial interim clinical follow-up on five patients in Neo-Urinary Conduit clinical trial; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | clarify path to clinical trials for Neo-Kidney Augment development program; |
|--------|--------|-----------------------------------------------------------------------------|

----

|   | · | evaluate alternative regulatory pathways for Neo-Kidney Augment development program; and |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | achieve the foregoing objectives within company approved budget. |
|--------|--------|------------------------------------------------------------------|

| Name and Title                                                                                              |   | Individual Performance Objectives                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Steven Nichtberger, MDPresident and Chief Executive Officer                                           |   |  Lead management team; all other individual objectives are identical to the company objectives.                                                                                                                                                                                                                                                      |
| A. Brian DavisChief Financial Officer and Vice President, Finance                                           |   | Lead financing strategies in 2011; collaborate with business development to explore non-dilutive financing alternatives; manage company’s resources and budget; lead effort to further develop financial controls and disclosure controls and procedures.                                                                                           |
| Timothy Bertram, DVM, PhDChief Scientific Officer and Executive Vice President, Science and Technology      |   | Lead scientific exploration of regenerative technology platform; lead Neo-Urinary Conduit clinical trial product production; lead scientific effort to clarify MOA for Neo-Kidney Augment; lead scientific publication strategy; support clinical trials for Neo-Kidney Augment and exploration of clinical trial pathways for Neo-Kidney Augment.   |
| Sunita Sheth, MD   Chief Medical Officer and Vice President, Clinical and Regulatory Affairs |   | Obtain initial interim assessment on five patients in Neo-Urinary Conduit clinical trial; lead clinical/regulatory aspects of clarifying path to clinical trials for Neo-Kidney Augment and support exploration of clinical trials for Neo-Kidney Augment.                                                                                                |
| Mark StejbachChief Commercial Officer and Vice President                                                    |   | Lead business development and seek to partner our development programs; lead commercial evaluation of product opportunities and markets; lead external communications across stakeholders; lead and support human resource processes and infrastructure; manage information technology processes and infrastructure.                                           |

|   | · | Stock options and the vesting period of stock options attract and retain executives. |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | Stock options are inherently performance based. Because all the value received by the recipient of a stock option is based on the growth of the stock price, stock options enhance the executives’ incentive to increase our stock price and maximize stockholder value. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock options help to provide a balance to the overall executive compensation program as base salary and our annual performance bonus program focus on short-term compensation, while stock options reward executives for increases in stockholder value over the longer term. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name and Principal Position                                                               |   | FiscalYear |   | Salary |    | Bonus  |    | OptionAwards(2)                                                                          |   |   | Non-Equity Incentive Plan Compensation (1) |   |   | All OtherCompensation |    |   | Total  |   |
|-------------------------------------------------------------------------------------------|--------|------------|--------|--------|---------|--------|---------|------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|-----------------------|---------|--------|--------|--------|
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| Steven Nichtberger, MD                                                                    |   | 2010       |   | $      | 401,375 |   | $  | —                                                                                  |   | $      | 276,000                                    |   |   | $                     | 201,825 |   |   | $      | 12,620 | (3) |   | $ | 891,820 |   |
| President and Chief Executive Officer                                                     |   | 2009       |   | $      | 390,000 |   | $  | —                                                                                  |   | $      | 13,099                                     |   |   | $                     | 81,900  |   |   | $      | 13,613 | (3) |   | $ | 498,612 |   |
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| A. Brian DavisChief Financial Officer and Vice President, Finance                         |   | 2010       |   | $      | 118,750 |   | $  | —                                                                                  |   | $      | 153,120                                    |   |   | $                     | 37,406  |   |   | $      | 10 | (4) |   | $ | 309,286 |   |
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| Linda B. Hearne(5)                                                                        |   | 2010       |   | $      | 142,710 |   | $  | —                                                                                  |   | $      | —                                    |   |   | $                     | — |   |   | $      | 16 | (4) |   | $ | 142,726 |   |
| Former Vice President, Finance and Principal Financial Officer                            |   | 2009       |   | $      | 192,519 |   | $  | —                                                                                  |   | $      | 15,426                                     |   |   | $                     | 29,400  |   |   | $      | 13 | (4) |   | $ | 237,358 |   |
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| Timothy Bertram, DVM, PhD                                                                 |   | 2010       |   | $      | 303,019 |   | $  | —                                                                                  |   | $      | 264,371                                    |   |   | $                     | 105,407 |   |   | $      | 107 | (4) |   | $ | 672,904 |   |
| Chief Scientific Officer and Executive Vice President, Science and Technology             |   | 2009       |   | $      | 293,244 |   | $  | —                                                                                  |   | $      | 12,744                                     |   |   | $                     | 46,919  |   |   | $      | 45 | (4) |   | $ | 352,952 |   |
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| Sunita Sheth, MDChief Medical Officer and Vice President, Clinical and Regulatory Affairs |   | 2010       |   | $      | 111,932 |   | $  | —                                                                                  |   | $      | 170,280                                    |   |   | $                     | 47,250  |   |   | $      | 24 | (4) |   | $ | 329,486 |   |
|                                                                                      |   |       |   |   |    |   |    |                                                                                     |   |   |                                       |   |   |                  |    |   |   |   |   |   |   |   |   |
| Mark Stejbach                                                                             |   | 2010       |   | $      | 280,500 |   | $  | —                                                                                  |   | $      | 46,000                                     |   |   | $                     | 97,898  |   |   | $      | 35 | (4) |   | $ | 424,433 |   |
| Chief Commercial Officer and Vice President                                               |   | 2009       |   | $      | 263,974 |   | $  |               25,000(6) |   | $      | 11,414                                     |   |   | $                     | 38,500  |   |   | $      | 27 | (4) |   | $ | 338,915 |   |

|   | _______________________________ |
|--------|---------------------------------|

| (1) | Amounts shown in “Non-Equity Incentive Compensation” column reflect the annual incentive award granted and earned during fiscal 2009 and 2010, which were paid in fiscal year 2010 and 2011, respectively. These annual awards are described in further detail under “Compensation Discussion and Analysis for Named Executive Officers – Annual Cash Incentive Compensation”. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Calculated in accordance with current accounting standards for stock-based compensation without consideration of forfeitures. Valuation assumptions used to determine the fair value of the stock awards are described in Note 10 to our audited financial statements for fiscal 2010, included in our 2010 Form 10-K. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Dr. Nichtberger’s other compensation includes life and disability insurance of $9,014 and tax reimbursements of $3,606 for fiscal 2010 and disability insurance of $9,013 and tax reimbursements of $4,599 for fiscal 2009. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | All other compensation consists of tax reimbursements. |
|-----|--------------------------------------------------------|

| (5) | Ms. Hearne left our company in August 2010. |
|-----|---------------------------------------------|

| (6) | Bonus paid to Mr. Stejbach includes $25,000, which consists of $12,500 payable at six month anniversary of employment and $12,500 payable at twelve month anniversary of employment, as stipulated in Mr. Stejbach’s offer letter. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   Name and Principal Position                                                        |      | Approval Date |          | Grant Date |            | Estimated Future Payouts Under Non-Equity Incentive Plan Awards(1) |          | All Other OptionAwards:Number ofSecuritiesUnderlyingOptions(2) |   |   | ExerciseorBasePrice ofOptionAwards |   |   | Grant DateFair Valueof OptionAwards (3) |          |
|-------------------------------------------------------------------------------------------|-----------|---------------|---------------|------------|-----------------|--------------------------------------------------------------------|---------------|----------------------------------------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------------|---------------|
|                                                                                      |      |          |          |       | Threshold($)    |  Target($)                                                    | Maximum($)    |                                                           |   |   |                               |   |   |                                    |          |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| Steven Nichtberger, MDPresident and Chief Executive Officer                               |      |          | 10/18/2010    |       | $ —       | $                                                             | 209,898       | $ —                                                      |   |   | 150,000                            |   |   | $                                       | 2.94          |   |   | $ | 276,000 |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| A. Brian DavisChief Financial Officer and Vice President, Finance                         |      |          | 8/2/2010      |       | $ —       | $                                                             | 102,743       | $ —                                                      |   |   | 66,000                             |   |   | $                                       | 3.67          |   |   | $ | 153,120 |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| Linda B. HearneFormer Vice President, Finance and Principal Financial Officer             |      |          | —  |       | $ —  | $                                                             | —  | $ —                                                      |   |   |  —                      |   |   | $                                  | —  |   |   | $  | — |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| Timothy Bertram, DVM,                                                                     |      |          | 10/18/2010    |       | $ —       | $                                                             | 111,011       | $ —                                                      |   |   | 30,000                             |   |   | $                                  | 2.94          |   |   | $  |   55,329 |   |
| PhDChief Scientific Officer and Executive Vice President, Science and Technology          | 2/17/2010 |          | 4/9/2010      |       | $ —       | $                                                             | —       | $ —                                                      |   |   | 65,000                             |   |   | $                                       | 5.00          |   |   | $ | 209,042 |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| Sunita Sheth, MDChief Medical Officer and Vice President, Clinical and Regulatory Affairs | 7/1/2010  |          | 7/15/2010     |       | $ —       | $                                                             | 108,150       | $ —                                                      |   |   | 66,000                             |   |   | $                                       | 4.07          |   |   | $ | 170,280 |   |
|                                                                                      |      |          |          |       |            |                                                               |          |                                                           |   |   |                               |   |   |                                    |          |   |   |   |   |   |
| Mark StejbachChief Commercial Officer and Vice President                                  |      |          | 10/18/2010    |       | $ —       | $                                                             | 102,607       | $ —                                                      |   |   | 25,000                             |   |   | $                                       | 2.94          |   |   | $ | 46,000 |   |

|   | _______________________________ |
|--------|---------------------------------|

| (1)    | Reflects target 2011 annual performance bonuses, which amounts, if any, will be paid in the first quarter of 2012.  Target 2011 annual performance bonuses are calculated based upon a percentage of the named executive officer’s 2011 base salary.                                                                                                                                                  |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (2)    | The options have a term of ten years and vest in accordance with the following schedule: 25% of the total number of shares vest on the first anniversary of the grant date and 1/16th of the total number of shares vest on the first day of each quarter following the grant date.                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (3)    | The amounts reported in this column represent the entire grant date fair value for the aggregate number of options granted to each Named Executive Officer.  There can be no assurance that these amounts will ever be realized.  The assumptions we used to calculate these amounts are included in Note 10 to our audited financial statements for fiscal 2010, included in our 2010 Form 10-K. |

----

| Name and Principal Position                                                               | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Exercisable |                                                                                        | Number ofSecuritiesUnderlyingUnexercisedOptions (#)Unexercisable                            |   | OptionExercisePrice ($)(1) |       | OptionExpirationDate(2) |
|-------------------------------------------------------------------------------------------|----------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|----------------------------|------------|-------------------------|
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| Steven Nichtberger, MD                                                                    | 3,879                                                          |                                                                                        | —                                                                                     |   | 0.44                       |       | 2/15/2015               |
| President and Chief Executive Officer                                                     | 13,794                                                         |                                                                                        |               — |   | 0.44                       |       | 2/27/2016               |
| 15,326                                                                                    |                                                           |               — |                                                                                        | 0.44   |                       | 6/23/2016  |
| 28,765                                                                                    |                                                           |              —       |                                                                                        | 0.44   |                       | 6/23/2016  |
| 9,374                                                                                     |                                                           | 625                                                                                         |                                                                                        | 0.44   |                       | 2/27/2017  |
| 3,558                                                                                     |                                                           | 237                                                                                         |                                                                                        | 0.44   |                       | 2/27/2017  |
| 25,054                                                                                    |                                                           | 11,388                                                                                      |                                                                                        | 0.44   |                       | 12/19/2007 |
|                                                                                      | 3,159                                                          |                                                                                        | 1,435                                                                                       |   | 0.44                       |       | 12/19/2007              |
|                                                                                      | 8,891                                                          |                                                                                        | 4,041                                                                                       |   | 0.44                       |       | 2/7/2018                |
|                                                                                      | 593                                                            |                                                                                        | 270                                                                                         |   | 0.44                       |       | 2/7/2018                |
|                                                                                      | 12,142                                                         |                                                                                        | 36,426                                                                                      |   | 0.44                       |       | 9/28/2019               |
|                                                                                      | —                                                        |                                                                                        | 130,807                                                                                     |   | 2.94                       |       | 10/18/2020              |
|                                                                                      | —                                                        |                                                                                        | 19,193                                                                                      |   | 2.94                       |       | 10/18/2020              |
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| A. Brian DavisChief Financial Officer and Vice President, Finance                         | —                                                        |                                                                                        | 66,000                                                                                      |   | 3.67                       |       | 08/02/2020              |
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| Linda B. HearneFormer Vice President, Finance and Principal Financial Officer             | —                                                        |                                                                                        | —                                                                                     |   | —                    |       | —                 |
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| Timothy Bertram, DVM, PhD                                                                 | 646                                                            |                                                                                        | —                                                                                     |   | 0.44                       |       | 2/15/2015               |
| Chief Scientific Officer and Executive Vice President, Science and Technology             | 2,715                                                          |                                                                                        | —                                                                                     |   | 0.44                       |       | 2/27/2016               |
| 3,319                                                                                     |                                                           | —                                                                                     |                                                                                        | 0.44   |                       | 6/23/2016  |
| 1,035                                                                                     |                                                           | —                                                                                     |                                                                                        | 0.44   |                       | 11/1/2016  |
| 5,173                                                                                     |                                                           | 345                                                                                         |                                                                                        | 0.44   |                       | 2/27/2017  |
| 518                                                                                       |                                                           | 172                                                                                         |                                                                                        | 0.44   |                       | 10/25/2017 |
|                                                                                      | 2,653                                                          |                                                                                        | 1,205                                                                                       |   | 0.44                       |       | 12/19/2017              |
|                                                                                      | 8,727                                                          |                                                                                        | 3,967                                                                                       |   | 0.44                       |       | 12/19/2017              |
|                                                                                      | 3,388                                                          |                                                                                        | 1,540                                                                                       |   | 0.44                       |       | 2/7/2018                |
|                                                                                      | 644                                                            |                                                                                        | 292                                                                                         |   | 0.44                       |       | 2/7/2018                |
|                                                                                      | 11,814                                                         |                                                                                        | 35,441                                                                                      |   | 0.44                       |       | 9/28/2019               |
|                                                                                      | —                                                        |                                                                                        | 59,240                                                                                      |   | 5.00                       |       | 4/9/2020                |
|                                                                                      | —                                                        |                                                                                        | 5,760                                                                                       |   | 5.00                       |       | 4/9/2020                |
|                                                                                      | —                                                        |                                                                                        | 17,151                                                                                      |   | 2.94                       |       | 10/18/2020              |
|                                                                                      | —                                                        |                                                                                        | 12,849                                                                                      |   | 2.94                       |       | 10/18/2020              |
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| Sunita Sheth, MDChief Medical Officer and Vice President, Clinical and Regulatory Affairs | —                                                        |                                                                                        | 66,000                                                                                      |   | 4.07                       |       | 7/15/2020               |
|                                                                                      |                                                           |                                                                                        |                                                                                        |   |                       |       |                    |
| Mark Stejbach                                                                             | 6,294                                                          |                                                                                        | 4,895                                                                                       |   | 0.44                       |       | 8/1/2018                |
| Chief Commercial Officer and Vice President                                               | 11,164                                                         |                                                                                        | 8,683                                                                                       |   | 0.44                       |       | 8/1/2018                |
| 10,580                                                                                    |                                                           | 31,740                                                                                      |                                                                                        | 0.44   |                       | 9/28/2019  |
| —                                                                                   |                                                           | 25,000                                                                                      |                                                                                        | 2.94   |                       | 10/18/2020 |

|   | _______________________________ |
|--------|---------------------------------|

| (1) | Options awards made prior to August 26, 2009, were modified to an exercise price of $0.44 per share on August 26, 2009, when our compensation committee approved the repricing of all then outstanding options for active employees at such time. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | These options vest as to 25% on the first anniversary of the date of grant and as to an additional 6.25% at the end of each three-month period thereafter for the following three years. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name and Principal Position                                                                            | NumberofSharesAcquiredonExercise | ValueRealizedOnExercise(1) |
|--------------------------------------------------------------------------------------------------------|----------------------------------|----------------------------|
|                                                                                                   |                             |                       |
| Steven Nichtberger, MDPresident and Chief Executive Officer                                            | —                          | —                    |
|                                                                                                   |                             |                       |
| A. Brian DavisChief Financial Officer and Vice President, Finance                                      | —                          | —                    |
|                                                                                                   |                             |                       |
| Linda B. HearneFormer Vice President, Finance and Principal Financial Officer                          | 18,170                           | $35,795                    |
|                                                                                                   |                             |                       |
| Timothy Bertram, DVM, PhDChief Scientific Officer and Executive Vice President, Science and Technology | —                          | —                    |
|                                                                                                   |                             |                       |
| Sunita Sheth, MDChief Medical Officer and Vice President, Clinical and Regulatory Affairs              | —                          | —                    |
|                                                                                                   |                             |                       |
| Mark StejbachChief Commercial Officer and Vice President                                               | —                          | —                    |

| (1) | Calculated by multiplying the number of shares acquired on exercise by the difference between the closing price per share of our common stock on the date of exercise and the stock option exercise price per share. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Name                             |   | Termination Without Cause (or With Good Reason)($) |    |   | Termination WithoutCause (or With GoodReason) in Connectionwith a Changein Control($) |   |
|----------------------------------|--------|----------------------------------------------------|---------|--------|---------------------------------------------------------------------------------------|--------|
| Steven Nichtberger, MD           |   |                                               |    |   |                                                                                  |   |
| Cash Severance                   |   |                                               | 403,650 |   |                                                                                  |   | 403,650 |   |
| Continued Health Benefits        |   |                                               | 460     |   |                                                                                  |   | 460 |   |
| Pro-Rata Bonus                   |   |                                               | 201,825 |   |                                                                                  |   | 201,825 |   |
| Acceleration of Restricted Stock |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Stock Options    |   |                                               | — |   |                                                                                  |   | — |   |
| Total:                           |   |                                               | 605,935 |   |                                                                                  |   | 605,935 |   |
|                             |   |                                               |    |   |                                                                                  |   |   |   |
| A. Brian Davis                   |   |                                               |    |   |                                                                                  |   |   |   |
| Cash Severance                   |   |                                               | 213,750 |   |                                                                                  |   | 213,750 |   |
| Continued Health Benefits        |   |                                               | 11,633  |   |                                                                                  |   | 11,633 |   |
| Pro-Rata Bonus                   |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Restricted Stock |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Stock Options    |   |                                               | — |   |                                                                                  |   | — |   |
| Total:                           |   |                                               | 225,383 |   |                                                                                  |   | 225,383 |   |
|                             |   |                                               |    |   |                                                                                  |   |   |   |
| Timothy Bertram, DVM, PhD        |   |                                               |    |   |                                                                                  |   |   |   |
| Cash Severance                   |   |                                               | 152,487 |   |                                                                                  |   | 152,487 |   |
| Continued Health Benefits        |   |                                               | 8,812   |   |                                                                                  |   | 8,812 |   |
| Pro-Rata Bonus                   |   |                                               | 106,741 |   |                                                                                  |   | 106,741 |   |
| Acceleration of Restricted Stock |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Stock Options    |   |                                               | — |   |                                                                                  |   | 175,547 | (1) |
| Total:                           |   |                                               | 268,040 |   |                                                                                  |   | 443,587 |   |
|                             |   |                                               |    |   |                                                                                  |   |   |   |
| Sunita Sheth, MD                 |   |                                               |    |   |                                                                                  |   |   |   |
| Cash Severance                   |   |                                               | 225,000 |   |                                                                                  |   | 225,000 |   |
| Continued Health Benefits        |   |                                               | 569     |   |                                                                                  |   | 569 |   |
| Pro-Rata Bonus                   |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Restricted Stock |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Stock Options    |   |                                               | — |   |                                                                                  |   | — |   |
| Total:                           |   |                                               | 225,569 |   |                                                                                  |   | 225,569 |   |
|                             |   |                                               |    |   |                                                                                  |   |   |   |
| Mark Stejbach                    |   |                                               |    |   |                                                                                  |   |   |   |
| Cash Severance                   |   |                                               | 212,438 |   |                                                                                  |   | 212,438 |   |
| Continued Health Benefits        |   |                                               | 11,632  |   |                                                                                  |   | 11,632 |   |
| Pro-Rata Bonus                   |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Restricted Stock |   |                                               | — |   |                                                                                  |   | — |   |
| Acceleration of Stock Options    |   |                                               | — |   |                                                                                  |   | 154,048 | (1) |
| Total:                           |   |                                               | 224,070 |   |                                                                                  |   | 378,118 |   |
|                             |   |                                               |    |   |                                                                                  |   |   |   |

| (1)  | Calculated based upon a price per share of our common stock of $2.54, which was the closing price of our common stock on December 31, 2010. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                          |   | Fees Earned or Paid in Cash ($) |   |   | Stock Awards ($) |   |    | Option Awards ($)(1) |   |   | Non-EquityIncentive PlanCompensation ($) |   |   | Change inPension ValueandNonqualifiedDeferredCompensationEarnings($) |    |   | AllOtherCompensation ($) |   |    | Total ($) |   |
|-------------------------------|--------|---------------------------------|--------|--------|------------------|--------|---------|----------------------|--------|--------|------------------------------------------|--------|--------|----------------------------------------------------------------------|---------|--------|--------------------------|--------|---------|-----------|--------|
| David I. Scheer               |   | $                               | 62,250 |   |             |   | — |                 |   | $      | 14,625                                   | (2)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 76,875 |   |
| Carl-Johan Dalsgaard, MD, PhD |   | $                               | 28,500 |   |             |   | — |                 |   | $      | 14,625                                   | (2)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 43,125 |   |
| Brenda D. Gavin, DVM(3)  |   | $                               | 30,750 |   |             |   | — |                 |   | $      | 14,625                                   | (2)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 45,375 |   |
| Gary J. Kurtzman, MD(4)  |   | $                               | 39,735 |   |             |   | — |                 |   | $      | 14,625                                   | (2)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 54,360 |   |
| Richard Kuntz, MD             |   | $                               | 7,738  |   |             |   | — |                 |   | $      | 12,609                                   | (5)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 20,347 |   |
| Lorin J. Randall              |   | $                               | 51,875 |   |             |   | — |                 |   | $      | 50,423                                   | (6)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 102,298 |   |
| James Nahirny(7)         |   | $                               | 9,918  |   |             |   | — |                 |   | $      | 14,625                                   | (2)    |   |                                                                 | — |   |                     |   | — |      |   |   | — |   |   | $ | 24,543 |   |

|   | (1) | The assumptions we used in valuing options are described in Note 10, “Stock-based Compensation,” to our audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2010. This column reflects the aggregate grant date fair value as calculated in accordance with ASC 718 in connection with options we granted in the indicated year. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Options were granted at fair market value on April 9, 2010 at $5.00 per share.  Options vest quarterly over a two-year period. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Pursuant to an agreement between Ms. Gavin and Quaker BioVentures, these director fees are paid directly to QuakerBioVentures. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Pursuant to an agreement between Dr. Kurtzman and Safeguard Delaware, Inc., these director fees are paid directly to Safeguard Delaware, Inc. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Options were granted at fair market value on October 19, 2010 at $2.98 per share.  Options vest quarterly over a two-year period. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Options were granted at fair market value on April 9, 2010 at $5.00 per share.  Options to purchase 4,700 shares of common stock vest quarterly over a two-year period; options to purchase 11,700 shares of common stock vest quarterly over a one-year period. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Mr. Nahirny resigned from our Board of Directors on June 23, 2010. |
|--------|-----|--------------------------------------------------------------------|

----

ITEM 

| Name of Beneficial Owner                                                                         | Number of Shares of Common Stock BeneficiallyOwned(1)  |   | Percent ofSharesOutstanding  |
|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|--------|-----------------------------------|
| HealthCap Venture Capital (2)                                                                         | 6,725,493                                                   |   | 25.9%                             |
| Medtronic, Inc. (3)                                                                                   | 4,328,625                                                   |   | 17.1%                             |
| Oak Investment Partners XI, Limited Partnership (4)                                                   | 2,043,779                                                   |   | 8.7%                              |
| Deerfield Management Co. (5)                                                                          | 2,120,140                                                   |   | 8.6%                              |
| RA Capital Healthcare Fund LP (6)                                                                     | 2,120,140                                                   |   | 8.6%                              |
| Great Point Partners, LLC (7)                                                                         | 2,000,000                                                   |   | 8.2%                              |
| Empery Asset Management, LP (8)                                                                       | 1,766,790                                                   |   | 7.3%                              |
| Johnson & Johnson Development Corporation (9)                                                     | 1,194,654                                                   |   | 5.1%                              |
|                                                                                                  |                                                        |   |                              |
| Directors and Named Executive Officers                                                                |                                                        |   |                              |
| Carl-Johan Dalsgaard (10)                                                                             | 6,727,843                                                   |   | 25.9%                             |
| Richard Kuntz (11)                                                                                    | 4,330,375                                                   |   | 17.1%                             |
| Brenda D. Gavin (12)                                                                                  | 921,404                                                     |   | 3.9%                              |
| Gary J. Kurtzman (13)                                                                                 | 591,548                                                     |   | 2.5%                              |
| Steven Nichtberger (14)                                                                               | 280,914                                                     |   | 1.2%                              |
| David I. Scheer (15)                                                                                  | 190,739                                                     |   | *                                 |
| Timothy Bertram (16)                                                                                  | 97,441                                                      |   | *                                 |
| Mark Stejbach (17)                                                                                    | 39,203                                                      |   | *                                 |
| Lorin J. Randall (17)                                                                                 | 20,598                                                      |   | *                                 |
| A. Brian Davis                                                                                        | —                                                     |   | *                                 |
| Sunita Sheth                                                                                          | —                                                     |   | *                                 |
| Linda B. Hearne                                                                                       | —                                                     |   | *                                 |
| All current directors and executive officers as a group (11 persons) (10)(11)(12)(13)(14)(15)(16)(17) | 13,200,065                                                  |   | 47.0%                             |

----

|   | (1) | This table and the information included in the notes below are based upon information supplied by Named Executive Officers, directors and principal stockholders, including, reports and any amendments thereto filed on Schedule 13D, Schedule 13G, Form 3, and Form 4 with the SEC. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | According to a Schedule 13D filed March 14, 2011, includes 4,251,993 shares and warrants to purchase 2,473,500 shares, of which 2,232,567 shares and warrants to purchase 1,356,916 shares are held directly by HealthCap IV, L.P., a Delaware limited partnership ("HCLP"); 170,183 shares and warrants to purchase 99,002 shares are held directly by HealthCap IV, K.B., a Swedish limited partnership ("HCKB"); 1,685,465 shares and warrants to purchase 980,480 shares are held directly by HealthCap IV BIS, L.P., a Delaware limited partnership ("HCBIS"); and 63,778 shares and warrants to purchase 37,102 shares are held directly by OFCO Club IV, a Swedish non-registered partnership ("OFCO").  Unless and until we have obtained the approval of a majority of the holders of our common stock present and entitled to vote at a meeting of our stockholders (the “Stockholder Approval”), neither HCLP nor any of its affiliates are entitled to exercise their warrants (i) if and to the extent we have received written advice from NASDAQ that such exercise would result in a change of control within the meaning of NASDAQ Marketplace Rule 5635(b), as amended from time to time, or (ii) if and to the extent that such exercise would result in the issuance of more than 19.99% of our common stock outstanding.  Solely for purposes of this table, these limitations are disregarded, and the numbers of shares of common stock beneficially owned do not reflect these limitations. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | According to a Form 13D filed on April 14, 2011, comprised of  2,473,500 shares of common stock and warrants to purchase 1,855,125 shares of common stock.  The address of Medtronic 710 Medtronic Parkway, LC 270, Minneapolis, MN 55432-5604. Under the terms of the warrants issued in the private placement (other than the warrants issued to HCLP and its Affilaites, the number of shares of our common stock that may be acquired by such holder upon any exercise of the warrants is generally limited to the extent necessary to ensure that, following such exercise, the total number of shares of our common stock then beneficially owned by a selling stockholder, together with its affiliates and any other persons or entities whose beneficial ownership, as calculated pursuant to Section 13(d) of the Securities Exchange Act and the applicable regulations of the SEC, would not exceed 4.99% of the total number of shares of our common stock then issued and outstanding.  This limitation may be increased to 9.99% of the total number of shares of our common stock then issued and outstanding upon 60 days written notice from the selling stockholder to the Company. Solely for purposes of this table, these limitations are disregarded, and the numbers of shares of common stock beneficially owned do not reflect these limitations. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | According to a Form 13G filed on February 14, 2011, comprised of 2,043,779 shares held by Oak Investment Partners XI, Limited Partnership (“Oak Investment Partners XI”), One Gorham Island, Westport, CT 06880.  Oak Associates XI, LLC is the general partner of Oak Investment Partners XI.  Oak Management Corporation is the manager of Oak Investment Partners XI.  Bandel L. Carano, Gerald R. Gallagher, Edward F. Glassmeyer, Fredric W. Harman and Ann H. Lamont are the managing members of Oak Investment Partners XI and, as such, may be deemed to possess shared beneficial ownership of any shares of common stock held by such entities |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (5) | According to a Schedule 13G filed March 11, 2011, comprised of 1,060,070 shares of common stock and 1,060,070 shares of common stock underlying warrants held by Deerfield Special Situations Fund, L.P. (“DSSF”) and Deerfield Special Situations Fund International Limited (“DSSFIL”).  Deerfield Capital, L.P. has shared voting power and shared investment power over 413,427 shares of common stock and 413,427 shares of common stock underlying warrants held by DSSF.  Deerfield Management Company, L.P. has shared voting power and shared investment power over 646,643 shares of common stock and 646,643 shares of common stock underlying warrants held by DSSFIL.  James E. Flynn has shared voting power and shared investment power over 1,060,070 shares of common stock and 1,060,070 shares of common stock underlying warrants held by DSSF and DSSFIL.  DSSF has shared voting power and shared investment power over 413,427 shares of common stock and 413,427 shares of common stock underlying warrants.  DSSFIL has shared voting power and shared investment power over 646,643 shares of common stock and 646,643 shares of common stock underlying warrants.  The address of DSSF is 780 Third Avenue, 37th Floor, New York, NY 10017, and the address of DSSFIL is c/o Citi Hedge Fund Services (B.V.I.) Ltd., Bison Court, Columbus Centre, P.O. Box 3460, Road Town, Tortola, D8, British Virgin Islands. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Pursuant to Securities Purchase Agreement dated March 1, 2011, RA Capital Healthcare Fund LP and Blackwell Partners, LLC acquired 1,060,070 shares of common stock and warrants to purchase 1,060,070 shares of common stock.  The address of both entities is 20 Park Plaza, Suite 905, Boston, MA 02116. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | According to a Schedule 13G filed March 18, 2011, consists of 1,000,000 shares and warrants to purchase 1,000,000 shares of which 369,961 shares and warrants to purchase 369,961 shares are owned by Biomedical Value Fund, LP (“BVF”); 293,901 shares and warrants to purchase 293,901 shares are owned by Biomedical Offshore Value Fund, Ltd. (“BVOF”); 128,051 shares and warrants to purchase 128,051 shares are owned by Biomedical Institutional Value Fund, LP (“BIVF”); 93,173 shares and warrants to purchase 93,173 shares are owned by Lyrical Multi-Manager Fund, LP (“Lyrical”); 93,173 shares and warrants to purchase 93,173 shares are owned by Class D Series of GEF-PS (“GEF-PS”), LP; 3,106 shares and warrants to purchase 3,106 shares are owned by David J. Morrison (“Morrison”); and 18,635 shares and warrants to purchase 18,635 shares are owned by WS Investments III, LLC (“WS”).  Great Point Partners, LLC (“Great Point”) is the investment manager of BVF, BVOF, BIVF, Lyrical, GEF-PS, Morrison and WS (collectively the “Entities”), and by virtue of such status may be deemed to be the beneficial owner of the shares of the Entitles.  Each of Dr. Jeffrey R. Jay, M.D. (“Dr. Jay”), as senior managing member of Great Point, and Mr. David Kroin (“Mr. Kroin”), as special managing member of Great Point, has shared voting power and shared investment power with respect to the shares of the Entitles, and therefore may be deemed to be the beneficial owner of the shares of the Entities.  Notwithstanding the above, Great Point, Dr. Jay and Mr. Kroin disclaim beneficial ownership of the BVF Shares, the BOVF Shares, the BIVF Shares, the Lyrical Shares, the GEF-PS Shares, the Morrison Shares and the WS Shares, except to the extent of their respective pecuniary interests.  The address of the Entities affiliated with Great Point is 165 Mason Street, 3rd Floor, Greenwich, CT 06830. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Pursuant to Securities Purchase Agreement dated March 1, 2011, Empery Asset Master, LTD and Hartz Capital Investments, LLC acquired 883,395 shares of common stock and warrants to purchase 883,395 shares of common stock.  The address of both entities is c/o Empery Asset Management, LP, 120 Broadway, Suite 1019, New York, NY 10271. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (9) | According to a Form 13G filed on February 15, 2011, comprised of 1,194,654 shares held by Johnson & Johnson Development Corporation (“JJDC”), a wholly-owned subsidiary of Johnson & Johnson (“J&J”).  J&J may be deemed to indirectly beneficially own the securities that are directly beneficially owned by JJDC.   J&J and JJDC have shared voting power and shared investment power over the 1,194,654 shares.  The address for J&J and JJDC is One Johnson & Johnson Plaza, New Brunswick, NJ 08933. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Includes 2,350 shares issuable to Dr. Dalsgaard under stock options that are exercisable within 60 days of April 11, 2011.  Also includes shares owned by HealthCap Venture Capital (see footnote 2).  Dr. Dalsgaard is a member of HCSA, which is the sole general partner of HCLP as well as HCBIS, and has shared voting power and shared investment power with HCLP and HCBIS.  Dr. Dalsgaard is also a member of HCAB, which is the sole general partner of HCKB and has shared voting power and shares investment power with HCKB.  Dr. Dalsgaard has disclaimed beneficial ownership of the shares listed in footnote 2 except to the extent of his pecuniary interest therein.  The address for Dr. Dalsgaard is Strandvägen 5B, SE-114 51 Stockholm, Sweden and 18 Avenue d'Ouchy, CH-1006 Lausanne, Switzerland. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Includes 1,750 shares issuable to Dr. Kuntz under stock options that are exercisable within 60 days of April 11, 2011. Also includes shares owned by Medtronic, Inc. (see footnote 3) of which Dr. Kuntz is employed as Senior Vice President and Chief Scientific, Clinical and Regulatory Officer.  Dr. Kuntz disclaims beneficial ownership of the shares held by Medtronic, Inc. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | According to a Schedule 13G filed February 14, 2011, includes 919,054 shares, for which there is shared voting power and shared investment power, of which 520,504 shares are deemed to be beneficially owned by owned by Quaker BioVentures, L.P.; 123,951 shares are deemed to be beneficially owned by BioAdvance Ventures LP; and 274,599 shares are deemed to be beneficially owned by Quaker BioVentures Tobacco Fund, L.P.  Also includes 2,350 shares issuable to Dr. Gavin under stock options that are exercisable within 60 days of April 11, 2011.  Dr. Gavin also holds stock options to acquire 1,762.5 shares of common stock of which she has sole voting power and sole investment power.  Quaker BioVentures Capital, LLC may be deemed to beneficially own the options held by Dr. Gavin. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Dr. Gavin is a Partner at Quaker BioVentures, the managing partner of Quaker BioVentures, L.P., BioAdvance Ventures, LP and Quaker BioVentures Tobacco Fund, L.P.  Quaker BioVentures Capital, L.P. is the general partner of each of Quaker BioVentures, L.P. and Quaker BioVentures Tobacco Fund, L.P.  Quaker BioVentures Capital, LLC is the general partner of Quaker BioVentures Capital, L.P.  BioAdvance GP I, L.P. is the general partner of BioAdvance Ventures, L.P.  BioAdvance GP II, Inc. is the general partner of BioAdvance GP I, L.P.  Quaker BioVentures Capital, LLC may be deemed to beneficially own the options held by Dr. Gavin. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The address of the entities affiliated with Quaker BioVentures, L.P. is 2929 Arch Street, Cira Centre, Philadelphia, PA 19104-2868. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | According to a Form 4 filed on April 15, 2010, includes 589,198 shares held indirectly by Safeguard Delaware, Inc., a wholly owned subsidiary of Safeguard Scientifics Inc. (“Safeguard”).  Dr. Kurtzman is employed by Safeguard as Vice President and Managing Director, Life Sciences. Also includes 2,350 shares issuable to Dr. Kurtzman under stock options that are exercisable within 60 days of April 11, 2011.  Pursuant to Safeguard's employment practices and a written agreement between Dr. Kurtzman and Safeguard, Safeguard may be deemed the beneficial owner of stock options granted to Dr. Kurtzman by virtue of the fact that Dr. Kurtzman serves on the board of directors of Tengion in connection with his employment duties to Safeguard.  The address of the entities affiliated with Safeguard is 435 Devon Park Drive, Building 800, Wayne, PA 19087-1945. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (14) | According to a Form 4 filed on April 15, 2010, includes 68,965 shares held indirectly by the Steven A. Nichtberger 2010 Trust and 6,897 shares held indirectly by the SAN Trust. Also includes 138,321 shares issuable to Dr. Nichtberger under stock options that are exercisable within 60 days of April 11, 2011. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | According to a Form 4 filed on April 15, 2010 and a Form 3 filed on April 9, 2010, includes 188,389 shares held indirectly by Scheer Investment Holdings V, LLC.  Also includes 2,350 shares issuable to Mr. Scheer under stock options that are exercisable within 60 days of April 11, 2011.  Mr. Scheer is the managing member of Scheer Investment Holdings V, LLC and may be deemed to have sole or shared voting and investment power with respect to such shares.  Mr. Scheer disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (16) | According to a Form 4 filed on April 15, 2010, includes 28,259 shares held directly by Dr. Bertram and 3,160 shares held indirectly by Dr. Bertram’s children.  Also includes 66,022 shares issuable to Dr. Bertram under stock options that are exercisable within 60 days of April 11, 2011. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | Includes the following shares of common stock issuable under stock options that are deemed exercisable within 60 days after April 11, 2011: Stejbach – 37,207 shares; Randall – 16,809 shares; and all current directors and executive officers as a group – 269,509 shares. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Plan Category                                    |   | (a)Number of Securities tobe Issued Upon Exerciseof Outstanding Options,and Warrants |      |   | (b)Weighted AverageExercise Price ofOutstanding Options,and Warrants |   |   | (c)Number of SecuritiesRemaining Availablefor Future Issuance(Excludes SecuritiesReflected in Column (a)) |   |
|--------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|-----------|--------|--------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|
| Equity compensation plans approved by stockholders     |   |                                                                                                               | 1,492,052 |   |                                                                           | $      | 4.13   |                                                                                                                               |   |   | 950,706 | (1) |
| Equity compensation plans not approved by stockholders |   |                                                                                                               | —   |   |                                                                           |   |   |                                                                                                                               |   |   | — |   |
|                                                   |   |                                                                                                               |      |   |                                                                           |   |   |                                                                                                                               |   |   |   |   |
| Total                                                  |   |                                                                                                               | 1,492,052 |   |                                                                           | $      | 4.13   |                                                                                                                               |   |   | 950,706 |   |

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| (1) | Consists of shares available for grant by us under our 2010 Plan. |
|-----|-------------------------------------------------------------------|

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ITEM 

| Name                          |   | Aggregate Consideration Paid |      |   | Shares of Common Stock Issued |   |      | Shares of Common Stock Underlying Outstanding Warrants |   |
|-------------------------------|--------|------------------------------|-----------|--------|-------------------------------|--------|-----------|--------------------------------------------------------|--------|
|                          |   |                         |      |   |                          |   |      |                                                   |   |
| HealthCap Venture Capital     |   | $                            | 7,000,005 |   |                          |   | 2,473,500 |                                                   |   |   | 2,473,500 |   |
| Medtronic, Inc.               |   | $                            | 7,000,005 |   |                          |   | 2,473,500 |                                                   |   |   | 1,855,125 |   |
| Deerfield Management Co. (5)  |   | $                            | 2,999,998 |   |                          |   | 1,060,070 |                                                   |   |   | 1,060,070 |   |
| RA Capital Healthcare Fund LP |   | $                            | 2,999,998 |   |                          |   | 1,060,070 |                                                   |   |   | 1,060,070 |   |
| Great Point Partners, LLC     |   | $                            | 2,830,000 |   |                          |   | 1,000,000 |                                                   |   |   | 1,000,000 |   |
| Empery Asset Management, LP   |   | $                            | 2,500,008 |   |                          |   | 883,395   |                                                   |   |   | 883,395 |   |

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|   | · | any breach of the director’s duty of loyalty to us or our stockholders; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | any act or omission not in good faith or that involves intentional misconduct or a knowing violation of law; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | any unlawful payments related to dividends or unlawful stock repurchases, redemptions or other distributions; or |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | any transaction from which the director derived an improper personal benefit. |
|--------|--------|-------------------------------------------------------------------------------|

----

----

ITEM 

| Fee Category       |   | Fiscal2010 |    |   | Fiscal2009 |   |
|--------------------|--------|------------|---------|--------|------------|--------|
| Audit Fees         |   | $          | 472,500 |   |       | $      | 200,000 |   |
| Audit-Related Fees |   |       | 5,000   |   |       |   | — |   |
| Tax Fees           |   |       | 20,000  |   |       |   | 39,000 |   |
| All Other Fees     |   |       | — |   |       |   | — |   |
| Total Fees         |   | $          | 497,500 |   |       | $      | 239,000 |   |

----

ITEM 

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SIGNATURES

|   | TENGION, INC. |
|--------|---------------|
|   |          |   |
|   | By:           |  /s/ Steven Nichtberger |
|   |          | Steven Nichtberger, MD |
|   |          | President and Chief Executive Officer |

| Signature                                                                                                                                                                                                                              |                                      | Title                                                            |   | Date           |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|------------------------------------------------------------------|--------|----------------|
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
| /s/    Steven Nichtberger                                                                                                                                                                                     |                                      | President and Chief Executive Officer, Director (Principal       |   | April 18, 2011 |
| Steven Nichtberger, MD                                                                                                                                                                                                                 |                                      | Executive Officer)                                               |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
| /s/    A. Brian Davis                                                                                                                                                                                         |                                      | Chief Financial Officer and Vice President of Finance (Principal |   | April 18, 2011 |
| A. Brian Davis                                                                                                                                                                                                                         |                                      | Financial and Accounting Officer)                                |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Chairman of the Board of Directors                               |   | April 18, 2011 |
| David I. Scheer                                                                                                                                                                                                                        |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Director                                                         |   | April 18, 2011 |
| Carl-Johan Dalsgaard, MD, PhD                                                                                                                                                                                                          |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Director                                                         |   | April 18, 2011 |
| Brenda D. Gavin, DVM                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Director                                                         |   | April 18, 2011 |
| Richard Kuntz, MD                                                                                                                                                                                                                      |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Director                                                         |   | April 18, 2011 |
| Gary J. Kurtzman, MD                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
|                             *            |                                      | Director                                                         |   | April 18, 2011 |
| Lorin J. Randall                                                                                                                                                                                                                       |                                      |                                                             |   |           |
|                                                                                                                                                                                                                                   |                                      |                                                             |   |           |
| * By:                                                                                                                                                                                                                                  | /s/ Steven Nichtberger                    |                                                             |   |           | April 18, 2011 |
|                                                                                                                                                                                                                                   | Steven Nichtberger, MDAs Attorney-in-fact |                                                             |   |           |   |

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|   |       |   |                                               |
|--------|------------|--------|----------------------------------------------------|
|   | 31.1       |   | Rule 13a-14(a)/15d-14(a) Certification*       |
|   |  31.2 |   |  Rule 13a-14(a)/15d-14(a) Certification* |
|   |       |   |                                               |

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