Venture Loan and Security Agreement



 Exhibit 10.10 
 VENTURE LOAN AND SECURITY AGREEMENT 
 Executed
September 19, 2006 to be 
 effective as of September 1, 2006 
 by and between 
 HORIZON TECHNOLOGY FUNDING COMPANY LLC,

 a Delaware limited liability company 
 76 Batterson Park Road 
 Farmington, CT 06032 
 as Lender 
 and

 TENGION, INC., 
 a Delaware corporation 
 2200 Renaissance Boulevard 
 Suite 150 
 King of Prussia, PA 19406 
 as Borrower 
 COMMITMENT AMOUNT: $20,000,000 
  

			
	Commitment Amount Loan A:	  	$11,545,243.71
		
	Commitment Amount Loan B:	  	$3,000,000
		
	Commitment Amount Loan C:	  	$5,454,756.29
		
	Commitment Termination Date Loan A:	  	September 22, 2006
		
	Commitment Termination Date Loan B:	  	December 31, 2006
		
	Commitment Termination Date Loan C:	  	December 31, 2006

  

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 The Lender and Borrower hereby agree as follows: 
 AGREEMENT 
 1. Definitions and Construction.

 1.1 Definitions. As used in this Agreement, the following capitalized terms shall have the following
meanings: 
 “Account Control Agreement” means an agreement acceptable to Lender which perfects
via control Lender’s security interest in Borrower’s deposit accounts and/or accounts holding securities. 
 “Account Collateral” means accounts receivable due or to become due under all purchase orders and contracts for the sale of products or the performance of services or both (and related general intangibles in the nature of
rights to payment) and the proceeds thereof. 
 “Affiliate” means any Person that owns or
controls directly or indirectly ten percent (10%) or more of the stock of another entity, any Person that controls or is controlled by or is under common control with such Persons or any Affiliate of such Persons and each of such Person’s
officers, directors, joint venturers or partners. 
 “Agreement” means this certain Venture Loan
and Security Agreement by and between Borrower and Lender dated as of the date on the cover page hereto (as it may from time to time be amended or supplemented in writing signed by the Borrower and Lender). 
 “Borrower” means the Borrower as set forth on the cover page of this Agreement. 
 “Borrower’s Home State” means Pennsylvania. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banking institutions are
authorized or required to close in Connecticut or Borrower’s Home State. 
 “Claim” has the
meaning given such term in Section 10.3 of this Agreement 
 “Code” means the
Uniform Commercial Code as adopted and in effect in the State of Connecticut, as amended from time to time; provided that if by reason of mandatory provisions of law, the creation and/or perfection or the effect of perfection or
non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Connecticut, the term “Code” shall also mean the Uniform Commercial Code as in effect from time
to time in such jurisdiction for purposes of the provisions hereof relating to such creation, perfection or effect of perfection or non-perfection. 
 “Collateral” has the meaning given such term in Section 4.1 of this Agreement. 
  

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 “Commitment Termination Date Loan A”, “Commitment
Termination Date Loan B”, and “Commitment Termination Date Loan C” have the meanings as set forth on the cover page of this Agreement. 
 “Commitment Amount”, “Commitment Amount Loan A”, “Commitment Amount Loan
B”, and “Commitment Amount Loan C” have the meanings as set forth on the cover page of this Agreement. 
 “Default” means any event which with the passing of time or the giving of notice or both would become an Event of Default hereunder. 
 “Default Rate” means the per annum rate of interest equal to four percent (4%) over the Loan Rate, but
such rate shall in no event be more than the highest rate permitted by applicable law to be charged on commercial loans in a default situation. 
 “Disclosure Schedule” means Exhibit A attached hereto. 
 “Environmental Laws” means all foreign, federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative orders,
directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authorities, in each case relating to environmental, health, safety and land use matters, including the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the Toxic Substances Control Act and the Emergency Planning
and Community Right-to-Know Act. 
 “Equity Securities” of any Person means (a) all common
stock, preferred stock, participations, shares, partnership interests, membership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and
other rights to acquire any of the foregoing. 
 “ERISA” has the meaning given to such term in
Section 7.12 of this Agreement. 
 “Event of Default” has the meaning given to such
term in Section 8 of this Agreement. 
 “Funding Certificate” means a certificate
executed by a Responsible Officer of Borrower substantially in the form of Exhibit B or such other form as Lender may agree to accept. 
 “Funding Date” means any date on which a Loan is made to or on account of Borrower under this Agreement. 
 “GAAP” means generally accepted accounting principles as in effect in the United States of America from time
to time, consistently applied. 
 “Good Faith Deposit” has the meaning given such term in
Section 2.6(a) of this Agreement. 
  

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 “Governmental Authority” means (a) any federal, state,
county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department, instrumentality or public body, (c) any court or administrative
tribunal, or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented. 
 “Hazardous Materials” means all those substances which are regulated by, or which may form the basis of
liability under, any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or toxic substance,
or petroleum or petroleum derived substance or waste. 
 “Indebtedness” means, with respect to
Borrower or any Subsidiary, the aggregate amount of, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments,
(c) all obligations of such Person to pay the deferred purchase price of property or services (excluding trade and other payables aged less than one hundred eighty (180) days), (d) all capital lease obligations of such Person,
(e) all obligations or liabilities of others secured by a Lien on any asset of such Person, whether or not such obligation or liability is assumed, (f) all obligations or liabilities of others guaranteed by such Person, and (g) any
other obligations or liabilities which are required by GAAP to be shown as debt on the balance sheet of such Person. Unless otherwise indicated, the term “Indebtedness” shall include all Indebtedness of Borrower and the
Subsidiaries. 
 “Indemnified Person” has the meaning given such term in
Section 10.3 of this Agreement. 
 “Intellectual Property” means all of
Borrower’s right, title and interest in and to patents, patent rights (and applications and registrations therefor), trademarks and service marks (and applications and registrations therefor), inventions, copyrights, mask works (and
applications and registrations therefor), trade names, trade styles, software and computer programs, source code, object code, trade secrets, methods, processes, know how, drawings, specifications, descriptions, and all memoranda, notes, and records
with respect to any research and development, all whether now owned or subsequently acquired or developed by Borrower and whether in tangible or intangible form or contained on magnetic media readable by machine together with all such magnetic media
(but not including embedded computer programs and supporting information included within the definition of “goods” under the Code) and all agreements, instruments or other documents pursuant to or under which any right, title or interest
in or to any of the foregoing items in this definition have been or will be acquired, including but not limited to purchase agreements, leases, licenses, installment sale agreements, joint venture arrangements or corporate collaboration agreements.

 “Investment” means the purchase or acquisition of any capital stock, equity interest, or any
obligations or other securities of, or any interest in, any Person, or the extension of any advance, loan, extension of credit or capital contribution to, or any other investment in, or deposit with, any Person. 
  

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 “Landlord Agreement” means an agreement in favor of Lender
in substantially the form provided by Lender or any Third Part Equipment lender to Borrower or such other form as Lender may agree to accept. 
 “Lender” means the Lender as set forth on the cover page of this Agreement. 
 “Lender’s Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the preparation, negotiation,
documentation, administration and funding of the Loan Documents; and Lender’s reasonable attorneys’ fees, costs and expenses incurred in amending, modifying, enforcing or defending the Loan Documents (including fees and expenses of appeal
or review), including the exercise of any rights or remedies afforded hereunder or under applicable law, whether or not suit is brought, whether before or after bankruptcy or insolvency, including without limitation all fees and costs incurred by
Lender in connection with Lender’s enforcement of its rights in a bankruptcy or insolvency proceeding filed by or against Borrower or its Property. 
 “Lien” means any voluntary or involuntary security interest, pledge, bailment, lease, mortgage, hypothecation, conditional sales and title retention agreement, encumbrance or other lien
with respect to any Property in favor of any Person. 
 “Loan” means each advance of credit by
Lender to Borrower under this Agreement. 
 “Loan A” means the advance of credit by Lender to
Borrower under this Agreement in the Commitment Amount Loan A. 
 “Loan B” means the advance of
credit by Lender to Borrower under this Agreement in the Commitment Amount Loan B. 
 “Loan C”
means the advance of credit by Lender to Borrower under this Agreement in the Commitment Amount Loan C. 
 “Loan Documents” means, collectively, this Agreement, the Notes, the Warrant, any Landlord Agreement, any Account Control Agreement and all other documents, instruments and agreements entered into in connection with this
Agreement, all as amended or extended from time to time. 
 “Loan Rate” means, with respect to
each Loan, the per annum rate of interest (based on a year of twelve 30-day months) equal to the one month LIBOR Rate, as reported in the Wall Street Journal, on the date which is five (5) days before the Funding Date for such Loan (or,
if such date is not a Business Day, the next earlier Business Day) plus (ii) 6.45%. The Loan Rate shall be fixed for the term of each Loan. 
 “Material Adverse Change” has the meaning set forth in Section 2.1(d). 
 “Maturity Date” means, with respect to each Loan, the date which is forty-two (42) months after (a) if the Funding Date for such Loan is the first day of a calendar month, the
Funding Date or (b) if the Funding Date for such Loan is not the first day of a calendar month, the first Business Day of the next calendar month following the Funding Date, or, in any case, if earlier, the date of acceleration of such Loan
following an Event of Default or the date of prepayment, whichever is applicable. 
  

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 “Note” means each promissory note executed in connection
with a Loan in substantially the form of Exhibit C attached hereto, and, collectively, “Notes” means all such promissory notes. 
 “Obligations” means all debt, principal, interest, fees, charges, expenses and attorneys’ fees and costs and other amounts, obligations, covenants, and duties owing by Borrower to
Lender of any kind and description (pursuant to or evidenced by the Loan Documents (other than the Warrant) and whether or not for the payment of money), whether direct or indirect, absolute or contingent, due and payable or to become due and
payable, now existing or hereafter arising, including all Lender’s Expenses. 
 “Officer’s
Certificate” means a certificate executed by a Responsible Officer substantially in the form of Exhibit E or such other form as Lender may agree to accept. 
 “Payment Date” has the meaning given such term in Section 2.2(a) of this Agreement. 

“Permitted Indebtedness” means and includes: 
 (a) Indebtedness of Borrower to Lender; 
 (b) Indebtedness of Borrower secured by Liens permitted under clause (e) of the definition of Permitted Liens in an
aggregate original principal amount not to exceed (i) until such time as Borrower has received cash proceeds of not less than Twenty Million Dollars ($20,000,000) from the sale of its Equity Securities, Five Million Dollars ($5,000,000), and
(ii) after the receipt of such proceeds, Ten Million Dollars ($10,000,000) (inclusive of the Indebtedness permitted in clause (b)(i) of this definition); 
 (c) Indebtedness arising from the endorsement of instruments in the ordinary course of business; and 
 (d) Indebtedness existing on the date hereof and set forth on the Disclosure Schedule. 
 “Permitted Investments” means and includes any of the following Investments as to which Lender has a
perfected security interest: 
 (a) Deposits and deposit accounts with commercial banks organized under the laws
of the United States or a state thereof to the extent: (i) the deposit accounts of each such institution are insured by the Federal Deposit Insurance Corporation up to the legal limit; and (ii) each such institution has an aggregate
capital and surplus of not less than One Hundred Million Dollars ($100,000,000). 
 (b) Investments in marketable
obligations issued or fully guaranteed by the United States. 
  

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 (c) Investments in open market commercial paper rated at least
“A1” or “P1” or higher by a national credit rating agency. 
 (d) Investments pursuant to or
arising under currency agreements or interest rate agreements entered into in the ordinary course of business. 
 (e) Other Investments aggregating not in excess of Two Hundred Fifty Thousand Dollars ($250,000) at any time. 
 “Permitted Liens” means and includes: 
 (a) the Lien created by this Agreement;

 (b) Liens for fees, taxes, levies, imposts, duties or other governmental charges of any kind which are not yet
delinquent or which are being contested in good faith by appropriate proceedings which suspend the collection thereof (provided that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of
any material item of Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower); 
 (c) Liens identified on the Disclosure Schedule; 
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar Liens arising
in the ordinary course of business and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings (provided that such appropriate proceedings do not involve any
substantial danger of the sale, forfeiture or loss of any material item of Collateral or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have
been provided on the books of Borrower); 
 (e) Liens upon any equipment or other personal property acquired by
Borrower after the date hereof to secure (i) the purchase price of such equipment or other personal property, or (ii) lease obligations or indebtedness incurred solely for the purpose of financing the acquisition of such equipment or other
personal property; provided that (A) such Liens are confined solely to the equipment or other personal property so acquired and the amount secured does not exceed the acquisition price thereof, including, without limitation, soft
costs (including, without limitation, engineering and installation expenses) and taxes, and (B) no such Lien shall be created, incurred, assumed or suffered to exist in favor of Borrower’s officers, directors or shareholders holding five
percent (5%) or more of Borrower’s Equity Securities; and 
 (f) licenses of Intellectual Property
pursuant to or in connection with leases, license agreements, purchase agreements, joint ventures and corporate collaborations entered into in the ordinary course of business. 
 “Person” means and includes any individual, any partnership, any corporation, any business trust, any joint
stock company, any limited liability company, any unincorporated association or any other entity and any domestic or foreign national, state or local government, any political subdivision thereof, and any department, agency, authority or bureau of
any of the foregoing. 
  

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 “Property” means any interest in any kind of property or
asset, whether real, personal or mixed, whether tangible or intangible. 
 “Responsible Officer”
has the meaning given such term in Section 6.3 of this Agreement. 
 “Scheduled
Payments” has the meaning given such term in Section 2.2(a) of this Agreement. 
 “Solvent” has the meaning given such term in Section 5.12 of this Agreement. 
 “Subsidiary” means any corporation or other entity of which a majority of the outstanding Equity Securities entitled to vote for the election of directors or other governing body (otherwise than as the result of a default)
is owned by Borrower directly or indirectly through Subsidiaries. 
 “Supplemental Board
Consent” means the resolutions of the Board of Directors of the Borrower adopted either at a duly convened meeting of such Board of Directors after the date of this Agreement and set forth in a writing memorializing same or pursuant to a
consent in lieu of such meeting. 
 “Third Party Equipment” has the meaning given such term in
Section 4.8 of this Agreement. 
 “Transfer” has the meaning given such term in
Section 7.4 of this Agreement. 
 “Warrant” means the separate warrant or warrants
dated on or about the date hereof in favor of the Lender or its designees to purchase securities of Borrower. 
 1.2 Construction. References in this Agreement to “Articles,” “Sections,” “Exhibits,” “Schedules” and “Annexes” are to recitals, articles, sections, exhibits, schedules and annexes
herein and hereto unless otherwise indicated. References in this Agreement and each of the other Loan Documents to any document, instrument or agreement shall include (a) all exhibits, schedules, annexes and other attachments thereto,
(b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document, instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time to time and in
effect at any given time. The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement or any other Loan Document shall refer to this Agreement or such other Loan Document, as the
case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. The words “include” and “including” and words of similar import when used in this Agreement or any
other Loan Document shall not be construed to be limiting or exclusive. Unless otherwise indicated in this Agreement or any other Loan Document, all accounting terms used in this Agreement or any other Loan Document shall be construed, and all
accounting and financial computations hereunder or thereunder shall be computed, in accordance with GAAP, and all terms describing Collateral shall be construed in accordance with the Code. The terms and information set forth on the cover page of
this Agreement are incorporated into this Agreement. 
  

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 2. Loans; Repayment. 
 2.1 Commitment. 
 (a) The Commitment Amount. Subject to the terms and conditions of this Agreement and relying upon the representations and warranties herein set forth as and when made or deemed to be made, Lender
agrees (i) to lend to Borrower prior to the Commitment Termination Date Loan A, Loan A in the amount of Commitment Amount Loan A, (ii) to lend to Borrower prior to the Commitment Termination Date Loan B, Loan B in the amount of Commitment
Amount Loan B, if, and only if, Borrower shall have met the conditions in Section 3.3 below, and (iii) to lend to Borrower prior to the Commitment Termination Date Loan C, Loan C in the amount of Commitment Amount Loan C, if, and only if,
Borrower shall have met the conditions in Section 3.3 below. 
 (b) The Loans and the Notes. The
obligation of Borrower to repay the unpaid principal amount of and interest on each Loan shall be evidenced by a Note issued to Lender. 
 (c) Use of Proceeds. The proceeds of the Loans shall be used solely to repay the existing obligations of Borrower to Lender pursuant to a certain Venture Loan and Security Agreement dated as of
July 19, 2005 and for working capital or general corporate purposes of Borrower, including, but not limited to, research and development and administrative expenses. 
 (d) Termination of Commitment to Lend. Notwithstanding anything in the Loan Documents, Lender’s obligation to
lend the undisbursed portion of the Commitment Amount to Borrower hereunder shall terminate on the earlier of (i) at Lender’s sole election, the occurrence of any Default or Event of Default hereunder, and (ii) the applicable
Commitment Termination Date. Notwithstanding the foregoing, Lender’s obligation to lend the undisbursed portion of the Commitment Amount to Borrower shall terminate if, in Lender’s reasonable judgment, there has been a material adverse
change in the results of operations and financial condition of Borrower, whether or not arising from transactions in the ordinary course of business, or there has been any material adverse deviation by Borrower from the business plan of Borrower
presented to Lender on or before the date of this Agreement (each, a “Material Adverse Change”). 
 (e)
Current Funding Certificate; No Obligation to Borrow. Concurrently herewith, Borrower is delivering to Lender a Funding Certificate for the full amount of Loan A. Nothing in any Loan Document shall be construed to require Borrower to borrow
any of Loan B or Loan C. 
  

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 2.2 Payments. 
 (a) Scheduled Payments. With respect to each Loan, Borrower shall make payments of accrued interest only on the
outstanding principal amount of such Loan on the first twelve (12) Payment Dates specified in the Note applicable to such Loan and thirty (30) equal payments of principal plus accrued interest on the outstanding principal amount of such
Loan on each subsequent Payment Date as set forth in the Note applicable to such Loan (collectively, the “Scheduled Payments”). Borrower shall make such Scheduled Payments commencing on the date set forth in the Note applicable to
such Loan and continuing thereafter on the first Business Day of each calendar month (each a “Payment Date”) through the Maturity Date. On or before the Funding Date of each Loan Lender shall provide Borrower with an amortization
and payment schedule for such Loan. In any event, all unpaid principal and accrued interest shall be due and payable in full on the Maturity Date. 
 (b) Interim Payment. Unless the Funding Date for a Loan is the first day of a calendar month, Borrower shall pay the per diem interest (accruing at the Loan Rate from the Funding Date through the
last day of that month) payable with respect to such Loan on the first Business Day of the next calendar month. 
 (c) Payment of Interest. Borrower shall pay interest on each Loan at a per annum rate of interest equal to the Loan Rate. All computations of interest (including interest at the Default Rate, if applicable) shall be based on a year
of twelve 30-day months. Notwithstanding any other provision hereof, the amount of interest payable hereunder shall not in any event exceed the maximum amount permitted by the law applicable to interest charged on commercial loans. 
 (d) Application of Payments. All payments received by Lender prior to an Event of Default shall be applied as follows:
(1) first, to Lender’s Expenses then due and owing; and (2) second to all Scheduled Payments then due and owing (provided, however, if such payments are not sufficient to pay the whole amount then due, such payments
shall be applied first to unpaid interest at the Loan Rate, then to the remaining amount then due). After an Event of Default and until such Event of Default shall have been waived, all payments and application of proceeds shall be made as set forth
in Section 9.7. 
 (e) Late Payment Fee. Borrower shall pay to Lender a late payment fee equal
to five percent (5%) of any Scheduled Payment not paid within three (3) Business Days of Lender notifying Borrower that such payment is past due. 
 (f) Default Rate. Borrower shall pay interest at a per annum rate equal to the Default Rate on any amounts required to be paid by Borrower under this Agreement or the other Loan Documents
(including Scheduled Payments), payable with respect to any Loan, accrued and unpaid interest, and any fees or other amounts which remain unpaid after such amounts are due. If an Event of Default has occurred and the Obligations have been
accelerated (whether automatically or by Lender’s election), Borrower shall pay interest on the aggregate, outstanding accelerated balance hereunder from the date of the Event of Default until all Events of Default are cured, at a per annum
rate equal to the Default Rate. 
  

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 2.3 Prepayments. 
 (a) Mandatory Prepayment Upon an Acceleration. If the Loans are accelerated following the occurrence of an Event of
Default pursuant to Section 9.1(a) hereof, then Borrower, in addition to any other amounts which may be due and owing hereunder, shall immediately pay to Lender the amount set forth in Section 2.3(b) below, as if the Borrower had opted to
prepay on the date of such acceleration. 
 (b) Optional Prepayment. Upon five (5) Business
Days’ prior written notice to Lender, Borrower may, at its option, at any time, prepay all of the Loans by paying to Lender an amount equal to (i) all accrued and unpaid Scheduled Payments with respect to the Loans due prior to the date of
prepayment; (ii) any accrued and unpaid interest on the then outstanding principal balance of the Loans; (iii) calculated with respect to each Loan, an amount equal to (A) if the Loan is prepaid within twelve (12) months from its
Funding Date, five (5%) percent of the then outstanding principal balance of the Loan, (B) if the Loan is prepaid more than twelve (12) months from the date hereof but less than twenty-four (24) months from its Funding Date,
three (3%) percent of the then outstanding principal balance of the Loan, or (C) if the Loan is prepaid more than twenty-four (24) months from the Funding Date, two (2%) percent of the then outstanding principal balance of the
Loan; (iv) the outstanding principal balance of the Loans and (v) all other sums, if any, that shall have become due and payable hereunder. Notwithstanding anything to the contrary contained herein, if (i) the Lender terminates its
obligation to disburse the undisbursed portion of the Commitment Amount pursuant to Section 2.1(d) above, because Lender believes a Material Adverse Change has occurred or (ii) the Lender fails to fund any undisbursed portion of the
Commitment Amount when no Event of Default or MAC has occurred, and, in either case, Borrower elects to prepay the Loans, the Borrower shall have no obligation to pay Lender the amount set forth in subsection 2.3(b)(iii) above. 
 2.4 Other Payment Terms. 
 (a) Place and Manner. Borrower shall make all payments due to Lender in lawful money of the United States. All payments of principal, interest, fees and other amounts payable by Borrower hereunder
shall be made, in immediately available funds, not later than 10:00 a.m. Connecticut time, on the date on which such payment is due. Borrower shall make such payments to Lender via wire transfer as follows: 
  

			
	 Payment via wire transfer:
 Credit:
	 	Horizon Technology Funding Company LLC
		
	Bank Name:	 	ABN Amro/LaSalle Bank NA CDO Trust Services
		
	Bank Address:	 	 135 South LaSalle Street, Suite 1625
 Chicago, Illinois 60603
 Attn: Greg Myers, 312-904-0283

		
	Account No.:	 	
		
	FFCT-Reference Account Number	 	
		
	ABA Routing No.:	 	
		
	Reference:	 	Tengion Invoice #_________

  

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 (b) Date. Whenever any payment is due hereunder on a day other than a
Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest or fees, as the case may be. 
 2.5 Procedure for Making Loans. 
 (a) Notice. Whenever Borrower desires that Lender make a Loan, Borrower shall notify Lender of the date on which
Borrower desires Lender to make such Loan. Borrower’s notice shall be made at least five (5) Business Days in advance of the desired Funding Date, unless Lender elects at its sole discretion to allow the Funding Date to be within five
(5) Business Days of the notice. Borrower’s execution and delivery to Lender of a Note shall be Borrower’s agreement to the terms and calculations thereunder with respect to the Loan. Lender’s obligation to make any Loan shall be
expressly subject to the satisfaction of the conditions set forth in Sections 3.1 and 3.2 and its obligation to make Loan E shall be further conditioned on the satisfaction of the conditions set forth I Section 3.3 below.

 (b) Loan Rate Calculation. Prior to each Funding Date, Lender shall establish the Loan Rate with
respect to such Loan, which shall be set forth in the Note to be executed by Borrower with respect to such Loan and shall be conclusive in the absence of a manifest error. 
 (c) Disbursement. Lender shall disburse the proceeds of each Loan by wire transfer to Borrower at the account
specified in the Funding Certificate for the Loan. 
 2.6 Good Faith Deposit; and Legal and Closing
Expenses. 
 (a) Good Faith Deposit. Borrower has delivered to Lender a good faith deposit in the
amount of Forty Thousand Dollars ($40,000) (the “Good Faith Deposit”). The Good Faith Deposit will be applied to the legal, due diligence and documentation expenses as set forth in Section 2.6(b) below and the balance shall be
applied pro rata to the first payment due on each Loan. 
 (b) Legal, Due Diligence and Documentation
Expenses. Borrower authorizes Lender, concurrently with Borrower’s and Lender’s execution and delivery of this Agreement, to apply Fifteen Thousand Dollars ($15,000) from the Good Faith Deposit to pay for Lender’s legal, due
diligence and documentation expenses in connection with the negotiation and documentation of this Agreement and the Loan Documents and such payment shall satisfy in full Borrower’s obligation to pay the same. 
 3. Conditions of Loans. 
 3.1 Conditions Precedent to Closing. At the time of the execution and delivery of this Agreement, Lender shall have received, in form and substance reasonably satisfactory to Lender, all of the
following (unless Lender has agreed to waive such condition or document, in which case such condition or document shall be a condition precedent to the making of any Loan and shall be deemed added to Section 3.2): 
 (a) Loan Agreement. This Agreement duly executed by Borrower and Lender. 
  

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 (b) Warrant. The Warrant to be issued to Lender or its designees,
duly executed by Borrower. 
 (c) Secretary’s Certificate. A certificate of the secretary or
assistant secretary of Borrower with copies of the following documents attached: (i) the certificate of incorporation and bylaws of Borrower certified by Borrower as being complete and in full force and effect on the date thereof,
(ii) incumbency and representative signatures, and (iii) resolutions authorizing the execution and delivery of this Agreement and each of the other Loan Documents. 
 (d) Good Standing Certificates. A good standing certificate from Borrower’s state of incorporation and the state,
in which Borrower’s principal place of business is located, each dated as of a recent date. 
 (e)
Certificate of Insurance. Evidence of the insurance coverage required by Section 6.8 of this Agreement. 
 (f) Consents. All necessary consents of shareholders and other third parties with respect to the execution, delivery and performance of this Agreement, the Warrant and the other Loan Documents.

 (g) Legal Opinion. A legal opinion of Borrower’s counsel covering the matters set forth in
Exhibit D hereto. 
 (h) Account Control Agreements. Account Control Agreements for all of
Borrower’s deposit accounts and accounts holding securities duly executed by all of the parties thereto, in the forms provided by Lender. 
 (i) Other Documents. Such other documents and completion of such other matters, as Lender may in good faith deem reasonably necessary or appropriate. 
 3.2 Conditions Precedent to Making a Loan. The obligation of Lender to make each Loan is further subject to the
following conditions: 
 (a) No Default. No Default or Event of Default shall have occurred and be
continuing. 
 (b) Landlord Agreements. Borrower shall have provided Lender with a Landlord Agreement for
each location where Borrower’s books and records and the Collateral is located (unless Borrower is the fee owner thereof). 
 (c) Note. Borrower shall have duly executed and delivered to Lender a Note in the amount of the Loan. 
  

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 (d) UCC Financing Statements. Lender shall have received such
documents, instruments and agreements, including UCC financing statements or amendments to UCC financing statements, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted to Lender pursuant to
Section 4. Borrower authorizes Lender to file any UCC financing statements, continuations of or amendments to UCC financing statements it deems necessary to perfect its security interest in the Collateral. 
 (e) Funding Certificate. Borrower shall have duly executed and delivered to Lender a Funding Certificate for such
Loan. 
 (f) Other Documents. Such other documents and completion of such other matters, as Lender in good
faith may deem reasonably necessary or appropriate. 
 3.3 Condition to Making Loans B and C. Lender shall
have no obligation to make, and Borrower shall not request the Lender to make, either Loan B or Loan C, unless and until, prior to Commitment Termination Date Loan B or Loan C, as applicable, Borrower shall have provided Lender with (a) a
Supplemental Board Consent authorizing Loan B or Loan C, as applicable (b) evidence satisfactory to Lender, that Borrower has filed with the Food and Drug Administration (“FDA”) an IND (investigational new drug) or IDE
(investigational device exemption) in connection with the Borrower’s Intellectual Property in the field of adult and/or pediatric bladder regeneration, and the FDA has accepted such filing. 
 3.4 Covenant to Deliver. Borrower agrees (not as a condition but as a covenant) to deliver to Lender each item
required to be delivered to Lender as a condition to each Loan, if such Loan is advanced. Borrower expressly agrees that the extension of such Loan prior to the receipt by Lender of any such item shall not constitute a waiver by Lender of
Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Lender’s sole discretion. 
 4. Creation of Security Interest. 
 4.1 Grant of Security
Interest. Borrower grants to Lender a valid, first priority (except for Permitted Liens that may have priority), continuing security interest in all presently existing and hereafter acquired or arising Collateral in order to secure prompt, full
and complete payment of any and all Obligations and in order to secure prompt, full and complete performance by Borrower of each of its covenants and duties under each of the Loan Documents (other than the Warrant). The “Collateral”
shall mean and include all right, title, interest, claims and demands of Borrower in and to all personal property of Borrower, including without limitation, all of the following: 
 (a) All goods (and embedded computer programs and supporting information included within the definition of “goods”
under the Code) and equipment now owned or hereafter acquired, including, without limitation, all laboratory equipment, computer equipment, office equipment, machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in
any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 
  


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 (b) All inventory now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or possession or in transit and including
any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s books relating to any of the
foregoing; 
 (c) All contract rights and general intangibles (excluding Intellectual Property), now owned or
hereafter acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, software, computer programs, computer disks, computer
tapes, literature, reports, catalogs, design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of any kind; 
 (d) All now existing and hereafter arising accounts, contract rights, royalties, license rights, license fees and all other
forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Borrower (subject, in each case, to the contractual rights of third parties to require funds received by
Borrower to be expended in a particular manner), whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s
books relating to any of the foregoing; 
 (e) All documents, cash, deposit accounts, letters of credit (whether
or not the letter of credit is evidenced by a writing), certificates of deposit, instruments, promissory notes, chattel paper (whether tangible or electronic) and investment property, including, without limitation, all securities, whether
certificated or uncertificated, security entitlements, securities accounts, commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired and
Borrower’s books relating to the foregoing; and 
 (f) Any and all claims, rights and interests in any of
the above and all substitutions for, additions and accessions to and proceeds thereof, including, without limitation, insurance, condemnation, requisition or similar payments and proceeds of the sale or licensing of Intellectual Property; but

 (g) Notwithstanding the foregoing, the Collateral shall not include any Intellectual Property;
provided, however, that the Collateral shall include all accounts receivables, accounts, and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in,
the foregoing (the “Rights to Payment”). Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a
security interest in the Rights to Payment, then the Collateral shall automatically, and effective as of the Closing Date, include the Intellectual Property to the extent necessary to permit perfection of Lender’s security interest solely with
respect to the Rights to Payment. 
 4.2 After-Acquired Property. If Borrower shall at any time acquire a
commercial tort claim, as defined in the Code, Borrower shall immediately notify Lender in writing signed by Borrower of the brief details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon
the terms of this Agreement, with such writing to be in form and substance satisfactory to Lender. 
  

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 4.3 Duration of Security Interest. Lender’s security interest in
the Collateral shall continue until the payment in full and the satisfaction of all Obligations and termination of Lender’s commitment to fund any Loans, whereupon such security interest shall terminate. Lender shall, at Borrower’s sole
cost and expense, execute such further documents and take such further actions as may be reasonably necessary to make effective the release contemplated by this Section 4.3, including duly executing and delivering termination statements
for filing in all relevant jurisdictions under the Code. 
 4.4 Location and Possession of Collateral. The
Collateral is and shall remain in the possession of Borrower at its location listed on the cover page hereof or as set forth in the Disclosure Schedule or such other locations which Borrower has identified in writing to Lender. Borrower shall remain
in full possession, enjoyment and control of the Collateral (except only as may be otherwise required by Lender for perfection of its security interest therein) and so long as no Event of Default has occurred, shall be entitled to manage, operate
and use the same and each part thereof with the rights and franchises appertaining thereto; provided that the possession, enjoyment, control and use of the Collateral shall at all time be subject to the observance and performance of
the terms of this Agreement. 
 4.5 Delivery of Additional Documentation Required. Borrower shall from
time to time execute and deliver to Lender, at the request of Lender, all financing statements and other documents Lender may reasonably request, in form satisfactory to Lender, to perfect and continue Lender’s perfected security interests in
the Collateral and in order to consummate fully all of the transactions contemplated under the Loan Documents. 
 4.6 Right to Inspect. Lender (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to time during Borrower’s usual business hours, to inspect Borrower’s books and
records and to make copies thereof and to inspect, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount, condition of, or any other matter relating to, the Collateral. 
 4.7 Protection of Intellectual Property. Borrower shall (i) protect, defend and maintain the validity and
enforceability of its Intellectual Property material to Borrower’s business, to the extent that failure to do so would have a material adverse effect on Borrower’s business, and (ii) not allow any Intellectual Property material to
Borrower’s business to be abandoned, forfeited or dedicated to the public other than in the ordinary course of business. Borrower’s obligations under this section shall be subject to Borrower’s good faith determination as to whether
and in what manner Borrower should exercise its obligations, including as to whether and in what manner legal proceedings should be pursued. 
 4.8 Lien Subordination. Lender agrees that the Liens granted to it hereunder in Third Party Equipment shall be subordinate to the Liens of current and future lenders providing equipment financing
and equipment lessors for equipment and other personal property acquired by Borrower after the date hereof (“Third Party Equipment”); provided that such Liens are confined solely to the equipment so financed and the
proceeds thereof and are Permitted Liens.

  

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Notwithstanding the foregoing, the Obligations hereunder shall not be subordinate in right of payment to any obligations to other lenders, equipment lenders or equipment lessors and Lender’s
rights and remedies hereunder in the Collateral which does not constitute Third Party Equipment shall not in any way be subordinate to the rights and remedies of any such lenders or equipment lessors. So long as no Event of Default has occurred
which has not been waived by Lender, Lender agrees to execute and deliver such agreements and documents as may be reasonably requested by Borrower from time to time which set forth the lien subordination described in this Section 4.8 and
are reasonably acceptable to Lender. Lender shall have no obligation to execute any agreement or document which would impose obligations, restrictions or lien priority on Lender which are less favorable to Lender than those described in this
Section 4.8. 
 5. Representations and Warranties. Except as set forth in the Disclosure Schedule, Borrower
represents and warrants as follows: 
 5.1 Organization and Qualification. Borrower is a corporation duly
organized and validly existing and in good standing under the laws of its state of incorporation and qualified and licensed to do business in, and is in good standing in, any state in which the conduct of its business or its ownership of Property
requires that it be so qualified or in which the Collateral is located, except for such states as to which any failure to so qualify would not have a material adverse effect on Borrower. 
 5.2 Authority. Borrower has all necessary power and authority to execute, deliver, and perform in accordance with the
terms thereof, the Loan Documents to which it is a party. Borrower has all requisite power and authority to own and operate its Property and to carry on its businesses as now conducted. 
 5.3 Conflict with Other Instruments, etc. Except as set forth in Section 5.3 to the Disclosure Schedule, neither
the execution and delivery of any Loan Document to which Borrower is a party nor the consummation of the transactions therein contemplated nor compliance with the terms, conditions and provisions thereof will conflict with or result in a breach of
any of the terms, conditions or provisions of the certificate of incorporation, the by-laws, or any other organizational documents of Borrower or any law or any regulation, order, writ, injunction or decree of any court or governmental
instrumentality or any material agreement or instrument to which Borrower is a party or by which it or any of its Property is bound or to which it or any of its Property is subject, or constitute a default thereunder or result in the creation or
imposition of any Lien, other than Permitted Liens. 
 5.4 Authorization; Enforceability. The execution
and delivery of this Agreement, the granting of the security interest in the Collateral, the incurring of the Loans, the execution and delivery of the other Loan Documents to which Borrower is a party and the consummation of the transactions herein
and therein contemplated have each been duly authorized by all necessary action on the part of Borrower. No authorization, consent, approval, license or exemption of, and no registration, qualification, designation, declaration or filing with, or
notice to, any Person is, was or will be necessary to (i) the valid execution and delivery of any Loan Document to which Borrower is a party, (ii) the performance of Borrower’s obligations under any Loan Document,

  

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or (iii) the granting of the security interest in the Collateral, except for filings in connection with the perfection of the security interest in any of the Collateral or the issuance of
the Warrant. The Loan Documents have been duly executed and delivered and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws of general application relating to or affecting the enforcement of creditors’ rights or by general principles of equity. 
 5.5 No Prior Encumbrances. Borrower has good and marketable title to the Collateral, free and clear of Liens except
for Permitted Liens. Borrower has good title and ownership of, or is licensed under, all of Borrower’s current Intellectual Property. Borrower has not received any written communications alleging that Borrower has violated, or by conducting its
business as proposed, would violate any proprietary rights of any other Person. Borrower has no knowledge of any infringement or violation by it of the intellectual property rights of any third party and has no knowledge of any violation or
infringement by a third party of any of its Intellectual Property. The Collateral and the Intellectual Property constitute substantially all of the assets and property of Borrower. 
 5.6 Name; Location of Chief Executive Office, Principal Place of Business and Collateral. Borrower has not done
business under any name other than that specified on the signature page hereof. Borrower’s jurisdiction of incorporation, chief executive office, principal place of business, and the place where Borrower maintains its records concerning the
Collateral are presently located in the states and at the addresses set forth on the cover page of this Agreement and in Section 5.6 of the Disclosure Schedule. The Collateral is presently located at the address set forth on the cover page
hereof or as set forth in the Disclosure Schedule. 
 5.7 Litigation. There are no actions or proceedings
pending by or against Borrower before any court or administrative agency in which an adverse decision could have a material adverse effect on Borrower or the aggregate value of the Collateral. Borrower does not have knowledge of any such pending or
threatened actions or proceedings. 
 5.8 Financial Statements. All financial statements relating to
Borrower or any Affiliate that have been or may hereafter be delivered by Borrower to Lender present fairly in all material respects Borrower’s financial condition as of the date thereof and Borrower’s results of operations for the period
then ended. 
 5.9 No Material Adverse Effect. To Borrower’s knowledge, no event has occurred and no
condition exists which would reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower since December 31, 2005. 
 5.10 Full Disclosure. No representation, warranty or other statement made by Borrower in any Loan Document (including
the Disclosure Schedule), certificate or written statement furnished to Lender contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or statements
not misleading. There is no fact known to Borrower which materially adversely affects, or which would in the future be reasonably expected to materially adversely affect, its ability to perform its obligations under this Agreement. 
  

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 5.11 Solvency, Etc. Borrower is Solvent (as defined below)
and, after the execution and delivery of the Loan Documents and the consummation of the transactions contemplated thereby, Borrower will be Solvent. “Solvent” means, with respect to any Person on any date, that on such date
(a) the fair value of the property of such Person is greater than the fair value of the liabilities (including, without limitation, contingent liabilities) of such Person, (b) the present fair saleable value of the assets of such Person is
not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would
constitute an unreasonably small capital. 
 5.12 Subsidiaries. Borrower has no Subsidiaries. 

5.13 Catastrophic Events; Labor Disputes. None of Borrower or its properties is or has been affected by any
fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or other casualty that could reasonably be expected to have a material adverse effect on the financial condition, business or
operations of Borrower. There are no disputes presently subject to grievance procedure, arbitration or litigation under any of the collective bargaining agreements, employment contracts or employee welfare or incentive plans to which Borrower is a
party, and there are no strikes, lockouts, work stoppages or slowdowns, or, to the knowledge of Borrower, jurisdictional disputes or organizing activity occurring or threatened which could reasonably be expected to have a material adverse effect on
the financial condition, business or operations of Borrower. 
 5.14 Certain Agreements of Officers, Employees
and Consultants.  
 (a) No Violation. To the knowledge of Borrower, no officer, employee or
consultant of Borrower is, or is now expected to be, in violation of any term of any employment contract, proprietary information agreement, nondisclosure agreement, noncompetition agreement or any other material contract or agreement or any
restrictive covenant relating to the right of any such officer, employee or consultant to be employed by Borrower because of the nature of the business conducted or to be conducted by Borrower or relating to the use of trade secrets or proprietary
information of others, and to Borrower’s knowledge, the continued employment of Borrower’s officers, employees and consultants does not subject Borrower to any material liability for any claim or claims arising out of or in connection with
any such contract, agreement, or covenant. 
 (b) No Present Intention to Terminate. To the knowledge of
Borrower, no officer of Borrower, and no employee or consultant of Borrower whose termination, either individually or in the aggregate, would reasonably be expected to have a material adverse effect on the financial condition, business or operations
of Borrower, has any present intention of terminating his or her employment or consulting relationship with Borrower. 
  

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 6. Affirmative Covenants. Borrower, until the full and complete payment of the
Obligations, covenants and agrees that: 
 6.1 Good Standing. Borrower shall maintain its corporate
existence and its good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a material adverse effect on the financial condition,
operations or business of Borrower. Borrower shall maintain in force all licenses, approvals and agreements, the loss of which would reasonably be expected to have a material adverse effect on its financial condition, operations or business.

 6.2 Government Compliance. Borrower shall comply with all statutes, laws, ordinances and government
rules and regulations to which it is subject, noncompliance with which would reasonably be expected to materially adversely affect the financial condition, operations or business of Borrower. 
 6.3 Financial Statements, Reports, Certificates. Borrower shall deliver to Lender: (a) as soon as available, but
in any event within thirty (30) days after the end of each month, a company prepared balance sheet, income statement and cash flow statement covering Borrower’s operations during such period, certified by Borrower’s president,
treasurer or chief financial officer (each, a “Responsible Officer”); (b) as soon as available, but in any event within one hundred fifty (150) days after the end of Borrower’s fiscal year, audited financial
statements of Borrower prepared in accordance with GAAP, together with an unqualified opinion on such financial statements of a nationally recognized or other independent public accounting firm reasonably acceptable to Lender; and (c) as soon
as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year or the date of Borrower’s board of directors’ adoption, Borrower’s operating budget and plan for the next fiscal year; and
(d) such other financial information as Lender may reasonably request from time to time. From and after such time as Borrower becomes a publicly reporting company, promptly as they are available and in any event: (x) within five
(5) Business Days after the time of filing of Borrower’s Form 10-K with the Securities and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such Form 10-K; and
(y) within five (5) Business Days after the time of filing of Borrower’s Form 10-Q with the Securities and Exchange Commission after the end of each of the first three fiscal quarters of Borrower, the financial statements of
Borrower filed with such Form 10-Q. In addition, Borrower shall deliver to Lender (i) promptly upon becoming available, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders
(other than requests for approvals or consents); (ii) immediately upon receipt of notice thereof, a report of any material legal actions pending or threatened against Borrower or the commencement of any action, proceeding or governmental
investigation involving Borrower is commenced that is reasonably expected to result in damages or costs to Borrower of One Hundred Fifty Thousand Dollars ($150,000) or more; and (iii) such other financial information as Lender may reasonably
request from time to time. 
 6.4 Certificates of Compliance. Each time financial statements are furnished
pursuant to Section 6.3 above, Borrower shall deliver to Lender an Officer’s Certificate signed by a Responsible Officer in the form of, and certifying to the matters set forth in Exhibit E hereto. 
  

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 6.5 Notice of Defaults. As soon as possible, and in any event within
ten (10) days after the discovery of a Default or an Event of Default, Borrower shall provide Lender with an Officer’s Certificate setting forth the facts relating to or giving rise to such Default or Event of Default and the action which
Borrower proposes to take with respect thereto. 
 6.6 Taxes. Borrower shall make due and timely payment
or deposit of all federal, state, and local taxes, assessments, or contributions required of it by law or imposed upon any Property belonging to it, and will execute and deliver to Lender, on demand, appropriate certificates attesting to the payment
or deposit thereof; and Borrower will make timely payment or deposit of all tax payments and withholding taxes required of it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal
income taxes, and will, upon request, furnish Lender with proof satisfactory to Lender indicating that Borrower has made such payments or deposits; provided that Borrower need not make any payment if the amount or validity of such
payment is contested in good faith by appropriate proceedings which suspend the collection thereof (provided that such proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral
or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such amounts or reserves sufficient to discharge such amounts have been provided on the books of Borrower). 
 6.7 Use; Maintenance. Borrower shall keep and maintain all items of equipment and other similar types of personal
property that form any significant portion or portions of the Collateral in good operating condition and repair and shall make all necessary replacements thereof and renewals thereto so that the value and operating efficiency thereof shall at all
times be maintained and preserved. Borrower shall not permit any such material item of Collateral to be operated or maintained in violation of any applicable law, statute, rule or regulation where failure to comply would reasonably be expected to
have a material adverse effect on Borrower’s business. With respect to items of leased equipment (to the extent Lender has any security interest in any residual Borrower’s interest in such equipment under the lease), Borrower shall keep,
maintain, repair, replace and operate such leased equipment in accordance with the terms of the applicable lease. 
 6.8 Insurance. Borrower shall keep its business and the Collateral insured for risks and in amounts, and as Lender may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are reasonably
satisfactory to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as an additional loss payee and all liability policies shall show Lender as an additional insured and all policies shall provide that
the insurer must give Lender at least thirty (30) days notice before canceling its policy. At Lender’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy
shall, at Lender’s option, be payable to Lender on account of the Obligations. Notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty
policy, toward the replacement or repair of destroyed or damaged property; provided that (i) any such replaced or repaired property (a) shall be of equal or like value as the replaced or repaired Collateral and (b) shall be deemed
Collateral in which Lender has been granted a security interest as provided herein and (ii) after the occurrence and during the continuation of an Event of Default all proceeds payable under such casualty policy

  

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shall, at the option of Lender, be payable to Lender, on account of the Obligations. If Borrower fails to obtain insurance as required under Section 6.8 or to pay any amount or furnish any
required proof of payment to third persons and Lender, Lender may make all or part of such payment or obtain such insurance policies required in Section 6.8, and take any action under the policies Lender deems prudent. On or prior to the first
Funding Date and prior to each policy renewal, Borrower shall furnish to Lender certificates of insurance or other evidence satisfactory to Lender that insurance complying with all of the above requirements is in effect. 
 6.9 Security Interest. Assuming the proper filing of one or more financing statement(s) identifying the Collateral
with the proper state and/or local authorities, the security interests in the Collateral granted to Lender pursuant to this Agreement (i) constitute and will continue to constitute first priority security interests (except to the extent any
Permitted Liens may have a superior priority to Lender’s Lien under this Agreement) and (ii) are and will continue to be superior and prior to the rights of all other creditors of Borrower (except to the extent of such Permitted Liens).

 6.10 Further Assurances. At any time and from time to time Borrower shall execute and deliver such
further instruments and take such further action as may reasonably be requested by Lender to make effective the purposes of this Agreement, including without limitation, the continued perfection and priority of Lender’s security interest in the
Collateral. 
 6.11 Equity Investment. Borrower shall permit Lender, at Lender’s option, to purchase
up to One Million Two Hundred Thousand Dollars ($1,200,000) of the securities sold in Borrower’s next round of equity financing at the same price and on the same terms as paid and received by the lead investor of the equity financing. Borrower
agrees that it shall notify Lender promptly upon the execution by Borrower of a term sheet or letter of intent setting forth the terms and conditions of such financing and in any event within five (5) Business Days of such execution.

 7. Negative Covenants. Borrower, until the full and complete payment of the Obligations, covenants and agrees that
Borrower shall not, without the prior written consent of Lender: 
 7.1 Chief Executive Office. Change its
name, jurisdiction of incorporation, chief executive office, principal place of business or any of the items set forth in Section 1 of the Disclosure Schedule without thirty (30) days prior written notice to Lender. 
 7.2 Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items of Collateral from
Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule. 
 7.3 Liens. Create, incur, assume or suffer to exist any Lien of any kind upon any Collateral, whether now owned or hereafter acquired, except Permitted Liens. 
 7.4 Other Dispositions of Collateral. Convey, sell, lease or otherwise dispose of all or any part of the Collateral to
any Person (collectively, a “Transfer”), except for: (i) Transfers of inventory in the ordinary course of business; (ii) Transfers of worn-out or obsolete equipment; or (iii) Transfers permitted under subclause
(f) of the definition of Permitted Liens with respect to Collateral. 
  

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 7.5 Distributions. (i) Pay any dividends or make any
distributions on its Equity Securities; (ii) purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Securities (other than repurchases pursuant to the terms of employee stock purchase plans, employee restricted stock
agreements or similar arrangements in an aggregate amount not to exceed One Hundred Thousand Dollars ($100,000)); (iii) return any capital to any holder of its Equity Securities as such; (iv) make any distribution of assets, Equity
Securities, obligations or securities to any holder of its Equity Securities as such; or (v) set apart any sum for any such purpose; provided, however, Borrower may pay dividends payable solely in common stock. 
 7.6 Mergers or Acquisitions. Merge or consolidate with or into any other Person or acquire all or substantially all of
the capital stock or assets of another Person. 
 7.7 Change in Ownership. Engage in or permit any of its
Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto or have a material change in its ownership of greater than twenty five percent (25%) (other than by the sale by
Borrower of Borrower’s Equity Securities in a public offering or to venture capital or other investors so long as Borrower identifies to Lender the venture capital or other investors prior to the closing of the investment). 
 7.8 Transactions With Affiliates. Enter into any contractual obligation with any Affiliate or engage in any other
transaction with any Affiliate except upon terms at least as favorable to Borrower as an arms-length transaction with Persons who are not Affiliates of Borrower. 
 7.9 Indebtedness Payments. (i) Prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the
scheduled repayment thereof any Indebtedness for borrowed money (other than amounts due or permitted to be prepaid under this Agreement) or lease obligations in an aggregate amount of more than Fifty Thousand Dollars ($50,000) in any calendar year ,
(ii) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease obligations so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers, directors or shareholders. 

7.10 Indebtedness. Create, incur, assume or permit to exist any Indebtedness except Permitted Indebtedness.

 7.11 Investments. Make any Investment except for Permitted Investments. 
 7.12 Compliance. Become an “investment company” or a company controlled by an “investment company”
under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Loan for that purpose; fail to meet the minimum funding requirements of the
Employment Retirement Income Security Act of 1974, and its regulations, as amended from time to time (“ERISA”), permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair
Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business or operations or could reasonably be expected to cause a material adverse change,
or permit any of its Subsidiaries to do so. 
  

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 7.13 Maintenance of Accounts. (i) Maintain any deposit account
or account holding securities owned by Borrower except (a) accounts with respect to which Lender is able to take such actions as it deems reasonably necessary to obtain a perfected security interest in such accounts through one or more Account
Control Agreements or (b) accounts whose value when added to the value of all other such accounts of Borrower is not more than One Hundred Thousand Dollars ($100,000) in the aggregate; or (ii) grant or allow any other Person (other than
Lender) to perfect a security interest in, or enter into any agreements with any Persons (other than Lender) accomplishing perfection via control as to, any of its deposit accounts or accounts holding securities. 
 7.14 Negative Pledge Regarding Intellectual Property. Create, incur, assume or suffer to exist any Lien of any kind
upon any Intellectual Property or Transfer any Intellectual Property, whether now owned or hereafter acquired, other than leases or licenses of Intellectual Property (a) pursuant to or in connection with license agreements, joint ventures and
corporate collaborations entered into in the ordinary course of business or (b) as may be customary in the pharmaceutical, biotechnical or tissue engineering industries. 
 8. Events of Default. Any one or more of the following events shall constitute an “Event of Default” by Borrower
under this Agreement: 
 8.1 Failure to Pay. If Borrower fails to pay when due and payable or when
declared due and payable in accordance with the Loan Documents: (i) any Scheduled Payment on the relevant Payment Date or on the relevant Maturity Date, or (ii) any other portion of the Obligations within five (5) days after receipt
of written notice from Lender that such payment is due. 
 8.2 Certain Covenant Defaults. If Borrower
fails to perform any obligation under Section 6.8 or violates any of the covenants contained in Section 7 of this Agreement; provided, that Borrower shall have thirty (30) days from the date it obtains knowledge of any
involuntary Lien on the Collateral to cure such violation. 
 8.3 Other Covenant Defaults. If Borrower
fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement (other than as set forth in Sections 8.1, 8.2 or 8.4 through 8.13), in any of the other Loan
Documents and Borrower has failed to cure such default (a) within thirty (30) days of the occurrence of such default, or (b) if such default is capable of being cured and the Collateral or Lender’s prospects of repayment are not
materially impaired by such default, within thirty (30) days of Borrower’s obtaining knowledge of such default. During this cure period, the failure to cure the default is not an Event of Default (but no Loan will be made during the cure
period). 
 8.4 Intentionally Omitted. 
 8.5 Seizure of Assets, Etc. If any material portion of Borrower’s assets is attached, seized, subjected to a writ
or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or Person acting in a similar capacity and such

  

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attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within twenty (20) days, or if Borrower is enjoined, restrained, or in any way prevented
by court order from continuing to conduct all or any material part of its business affairs, or if a judgment or other claim not covered by insurance and in an amount greater than Two Hundred Fifty thousand Dollars ($250,000) becomes a lien or
encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any material portion of Borrower’s assets by the United States Government, or any department,
agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within twenty (20) days after Borrower receives notice thereof; provided that none of the foregoing shall
constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower. 
 8.6 Notice of Control. The delivery of a notice of foreclosure or exclusive control to any entity holding or maintaining Borrower’s deposit accounts or accounts holding securities by any
Person (other than Lender) seeking to foreclose or attach any such accounts or securities, which results in the foreclosure or the exclusive control of such accounts or inability of Borrower to access of such accounts, whether by judicial or
administrative hold on such accounts. 
 8.7 Default on Indebtedness. One or more defaults shall exist
under any agreement with any third party or parties which consists of the failure to pay any Indebtedness at maturity or which results in a right by such third party or parties, whether or not exercised, to accelerate the maturity of Indebtedness in
an aggregate amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) or a default shall exist under any financing agreement with Lender or any of Lender’s Affiliates. 
 8.8 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of
at least Two Hundred Fifty Thousand Dollars ($250,000) shall be rendered against Borrower, is not substantially covered by insurance and shall remain unsatisfied and unstayed for a period of twenty (20) days or more. 
 8.9 Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any
warranty, representation, statement, certification, or report made to Lender by Borrower or any officer, employee, agent, or director of Borrower. 
 8.10 Breach of Warrant. If Borrower shall breach any term of the Warrant, which breach is not cured within thirty (30) days of Borrower becoming aware thereof. 
 8.11 Unenforceable Loan Document. If (a) any Loan Document shall in any material respect cease to be a legal,
valid and binding obligation of Borrower enforceable in accordance with its terms so as to deprive Lender of the practical realization of the principal benefits provided by the Loan Documents, or (b) Borrower shall assert that any Loan Document
is not a legal, valid and binding obligation of Borrower enforceable in accordance with its terms. 
  

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 8.12 Involuntary Insolvency Proceeding. If a proceeding shall have
been instituted in a court having jurisdiction in the premises seeking a decree or order for relief in respect of Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the
appointment of a receiver, liquidator, assignee, custodian, trustee (or similar official) of Borrower or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, and such proceeding shall remain undismissed or
unstayed and in effect for a period of sixty (60) consecutive days or such court shall enter a decree or order granting the relief sought in such proceeding. 
 8.13 Voluntary Insolvency Proceeding. If Borrower shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian (or other similar official) of Borrower or for any substantial part of its Property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any
corporate action in furtherance of any of the foregoing. 
 9. Lender’s Rights and Remedies. 
 9.1 Rights and Remedies. Upon the occurrence of any Default or Event of Default and during the continuance thereof,
Lender shall not have any further obligation to advance money or extend credit to or for the benefit of Borrower. In addition, upon the occurrence of an Event of Default and during the continuance thereof, Lender shall have the rights, options,
duties and remedies of a secured party as permitted by law and, in addition to and without limitation of the foregoing, Lender may, at its election, without notice of election and without demand, do any one or more of the following, all of which are
authorized by Borrower: 
 (a) Acceleration of Obligations. Declare all Obligations, whether evidenced by
this Agreement, by any of the other Loan Documents, or otherwise, including (i) all accrued and unpaid Scheduled Payments with respect to each Loan, (ii) any accrued and unpaid interest, (iii) the amounts which would have otherwise
come due under Section 2.3(b)(iii) if the Loans had been voluntarily prepaid, (iv) the unpaid principal balance of the Loans and (v) all other sums, if any, that shall have become due and payable hereunder, immediately due and payable
(provided that upon the occurrence of an Event of Default described in Section 8.12 or 8.13 all Obligations shall become immediately due and payable without any action by Lender); 
 (b) Protection of Collateral. Make such payments and do such acts as Lender considers necessary or reasonable to
protect Lender’s security interest in the Collateral. Borrower agrees to assemble the Collateral if Lender so requires and to make the Collateral available to Lender as Lender may designate. Borrower authorizes Lender and its designees and
agents to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any Lien which in Lender’s determination appears or is claimed to
be prior or superior to its security interest and to pay all reasonable expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants Lender a license to enter into possession of such
premises and to occupy the same, without charge, for up to one hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein, at law, in equity, or otherwise; 
  

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 (c) Preparation of Collateral for Sale. Ship, reclaim, recover,
store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Collateral. Lender and its agents and any purchasers at or after foreclosure are hereby granted a non-exclusive, irrevocable,
perpetual, fully paid, royalty-free license or other right, solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s Intellectual Property, including without limitation, labels, patents, copyrights,
rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any Property of a similar nature, now or at any time hereafter owned or acquired by Borrower or in which Borrower now or at any time
hereafter has any rights; provided that such license shall only be exercisable in connection with the disposition of Collateral upon Lender’s exercise of its remedies hereunder and shall automatically terminate upon the
disposition of the Collateral; 
 (d) Sale of Collateral. Sell the Collateral at either a public or
private sale, or both, by way of one or more contracts or transactions, for cash or on terms, in such manner and at such places (including Borrower’s premises) as Lender determines are commercially reasonable and otherwise in accordance with
applicable law; and 
 (e) Purchase of Collateral. Credit bid and purchase all or any portion of the
Collateral at any public sale. 
 Any deficiency that exists after disposition of the Collateral as provided above will be paid
immediately by Borrower. 
 9.2 Set Off Right. Upon the occurrence and during the continuance of any Event
of Default, Lender may set off and apply to the Obligations any and all indebtedness at any time owing to or for the credit or the account of Borrower or any other assets of Borrower in Lender’s possession or control. 
 9.3 Effect of Sale. Upon the occurrence of an Event of Default, to the extent permitted by law, Borrower covenants
that it will not at any time insist upon or plead, or in any manner whatsoever claim or take any benefit or advantage of, any stay or extension law now or at any time hereafter in force, nor claim, take nor insist upon any benefit or advantage of or
from any law now or hereafter in force providing for the valuation or appraisement of the Collateral or any part thereof prior to any sale or sales thereof to be made pursuant to any provision herein contained, or to the decree, judgment or order of
any court of competent jurisdiction; nor, after such sale or sales, claim or exercise any right under any statute now or hereafter made or enacted by any state or otherwise to redeem the property so sold or any part thereof, and, to the full extent
legally permitted, except as to rights expressly provided herein, hereby expressly waives for itself and on behalf of each and every Person, except decree or judgment creditors of Borrower, acquiring any interest in or title to the Collateral or any
part thereof subsequent to the date of this Agreement, all benefit and advantage of any such law or laws, and covenants that it will not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any power herein
granted and delegated to Lender, but

  

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will suffer and permit the execution of every such power as though no such power, law or laws had been made or enacted. Any sale, whether under any power of sale hereby given or by virtue of
judicial proceedings, shall operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of Borrower in and to the Property sold, and shall be a perpetual bar, both at law and in equity, against Borrower,
its successors and assigns, and against any and all Persons claiming the Property sold or any part thereof under, by or through Borrower, its successors or assigns. 
 9.4 Power of Attorney in Respect of the Collateral. Borrower does hereby irrevocably appoint Lender (which appointment
is coupled with an interest), the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name to file any notices of security interests, financing statements and continuations and amendments thereof pursuant
to the Code or federal law, as may be necessary to perfect, or to continue the perfection of Lender’s security interests in the Collateral. Borrower does hereby irrevocably appoint Lender (which appointment is coupled with an interest) on the
occurrence and during the continuance of an Event of Default, the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name: (a) to ask, demand, collect, receive, receipt for, sue for, compound and
give acquittance for any and all rents, issues, profits, avails, distributions, income, payment draws and other sums in which a security interest is granted under Section 4 with full power to settle, adjust or compromise any claim
thereunder as fully as if Lender were Borrower itself; (b) to receive payment of and to endorse the name of Borrower to any items of Collateral (including checks, drafts and other orders for the payment of money) that come into Lender’s
possession or under Lender’s control; (c) to make all demands, consents and waivers, or take any other action with respect to, the Collateral; (d) in Lender’s discretion to file any claim or take any other action or proceedings,
either in its own name or in the name of Borrower or otherwise, which Lender may reasonably deem necessary or appropriate to protect and preserve the right, title and interest of Lender in and to the Collateral; (e) endorse Borrower’s name
on any checks or other forms of payment or security; (f) sign Borrower’s name on any invoice or bill of lading for any account or drafts against account debtors; (g) make, settle, and adjust all claims under Borrower’s insurance
policies; (h) settle and adjust disputes and claims about the accounts directly with account debtors, for amounts and on terms Lender determines reasonable; (i) transfer the Collateral into the name of Lender or a third party as the Code
permits; and (j) to otherwise act with respect thereto as though Lender were the outright owner of the Collateral. 
 9.5 Lender’s Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Lender may do any or all of the
following: (a) after five (5) Business Days’ prior written notice of Lender’s intention to do so, make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in
Section 6.8 of this Agreement, and take any action with respect to such policies as Lender deems prudent. Any amounts so paid or deposited by Lender shall constitute Lender’s Expenses, shall be immediately due and payable, shall
bear interest at the Default Rate and shall be secured by the Collateral. Any payments made by Lender shall not constitute an agreement by Lender to make similar payments in the future or a waiver by Lender of any Event of Default under this
Agreement. Borrower shall pay all reasonable fees and expenses, including without limitation, Lender’s Expenses, incurred by Lender in the enforcement or attempt to enforce any of the Obligations hereunder not performed when due. 
  

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 9.6 Remedies Cumulative. Lender’s rights and remedies under this
Agreement, the Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Lender of one right or remedy
shall be deemed an election, and no waiver by Lender of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Lender shall constitute a waiver, election, or acquiescence by it. 
 9.7 Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part thereof, and the
proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Lender, at the time of or received by Lender after the occurrence of an Event of Default hereunder) shall be paid to and applied as follows:

 (a) First, to the payment of out-of-pocket costs and expenses, including all amounts expended to
preserve the value of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability and advances, including reasonable legal expenses and
attorneys’ fees, incurred or made hereunder by Lender, including, without limitation, Lender’s Expenses; 
 (b) Second, to the payment to Lender of the amount then owing or unpaid on the Loans for Scheduled Payments, any accrued and unpaid interest, the amounts which would have otherwise come due under Section 2.3(b)(iii), if the
Loans had been voluntarily prepaid, the principal balance of the Loans, and all other Obligations with respect to the Loans (provided, however, if such proceeds shall be insufficient to pay in full the whole amount so due, owing or
unpaid upon the Loans, then to the unpaid interest thereon, then to the amounts which would have otherwise come due under Section 2.3(b)(iii), if the Loans had been voluntarily prepaid, then to the principal balance of the Loans, and then to
the payment of other amounts then payable to Lender under any of the Loan Documents); and 
 (c) Third, to
the payment of the surplus, if any, to Borrower, its successors and assigns, or to the Person lawfully entitled to receive the same. 
 Reinstatement of Rights. If Lender shall have proceeded to enforce any right under this Agreement or any other Loan Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for
any reason or shall have been determined adversely, then and in every such case (unless otherwise ordered by a court of competent jurisdiction), Lender shall be restored to its former position and rights hereunder with respect to the Property
subject to the security interest created under this Agreement. If Lender at any time after it has accelerated the Loans chooses in its sole discretion to declare the acceleration void and reinstate the Loans, Borrower and Lender shall thereafter
continue to be governed by the terms and conditions of the Loan Document as if such acceleration had not occurred. 
 10.
Waivers; Indemnification. 
 10.1 Demand; Protest. Except as expressly set forth in any Loan
Document, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts,
documents, instruments, chattel paper, and guarantees at any time held by Lender on which Borrower may in any way be liable. 
  

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 10.2 Lender’s Liability for Collateral. So long as Lender
complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto occurring or arising in any manner or fashion
from any cause other than Lender’s gross negligence or willful misconduct; (c) any diminution in the value thereof; or (d) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All
risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
 10.3 Indemnification and
Waiver. Whether or not the transactions contemplated hereby shall be consummated: 
 (a) General
Indemnity. Borrower agrees upon demand to pay or reimburse Lender for all liabilities, obligations and out-of-pocket expenses, including Lender’s Expenses and reasonable fees and expenses of counsel for Lender from time to time arising in
connection with the enforcement or collection of sums due under the Loan Documents, and in connection with any amendment or modification of the Loan Documents or any “work-out” in connection with the Loan Documents. Borrower shall
indemnify, reimburse and hold Lender, and each of its respective successors, assigns, agents, attorneys, officers, directors, shareholders, servants, agents and employees (each an “Indemnified Person”) harmless from and against all
liabilities, losses, damages, actions, suits, demands, claims of any kind and nature (including claims relating to environmental discharge, cleanup or compliance), all costs and expenses whatsoever to the extent they may be incurred or suffered by
such Indemnified Person in connection therewith (including reasonable attorneys’ fees and expenses), fines, penalties (and other charges of any applicable Governmental Authority), licensing fees relating to any item of Collateral, damage to or
loss of use of property (including consequential or special damages to third parties or damages to Borrower’s property), or bodily injury to or death of any person (including any agent or employee of Borrower) (each, a
“Claim”), directly or indirectly relating to or arising out of the use of the proceeds of the Loans or otherwise, the falsity of any representation or warranty of Borrower or Borrower’s failure to comply with the terms of this
Agreement or any other Loan Document. The foregoing indemnity shall cover, without limitation, (i) any Claim in connection with a design or other defect (latent or patent) in any item of equipment or product included in the Collateral,
(ii) any Claim for infringement of any patent, copyright, trademark or other intellectual property right, (iii) any Claim resulting from the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release of
any Hazardous Materials on the premises owned, occupied or leased by Borrower, including any Claims asserted or arising under any Environmental Law, (iv) any Claim for negligence or strict or absolute liability in tort, or (v) any Claim
asserted as to or arising under any Account Control Agreement or any Landlord Agreement; provided, however, Borrower shall not indemnify Lender for any liability incurred by Lender as a direct and sole result of Lender’s gross
negligence or willful misconduct or any Claim arising from (i) Lender’s disposition of any Collateral which was still a work-in-process at the time Lender took control of such Collateral, or (ii) any Collateral altered after Lender
took control of such Collateral. Such indemnities shall continue in full force and effect, notwithstanding the expiration or termination of this Agreement. Upon Lender’s written demand,

  

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Borrower shall assume and diligently conduct, at its sole cost and expense, the entire defense of Lender, each of its partners, and each of their respective, agents, employees, directors,
officers, shareholders, successors and assigns against any indemnified Claim described in this Section 10.3(a). Borrower shall not settle or compromise any Claim against or involving Lender without first obtaining Lender’s written
consent thereto, which consent shall not be unreasonably withheld; provided, that Borrower may settle Claims which require the payment of monetary damages only, without Lender’s consent, so long as Borrower obtains a general release of all
claims against Lender. 
 (b) Waiver. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT
OR ANYWHERE ELSE, EACH OF BORROWER AND LENDER AGREES THAT IT SHALL NOT SEEK FROM THE OTHER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES. 
 (c) Survival; Defense. The obligations in this Section 10.3 shall survive payment of all other Obligations
pursuant to Section 12.8. At the election of any Indemnified Person, Borrower shall defend such Indemnified Person using legal counsel satisfactory to such Indemnified Person in such Person’s reasonable discretion, at the sole cost
and expense of Borrower. All amounts owing under this Section 10.3 shall be paid within thirty (30) days after written demand. 
 11. Notices. Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement entered into in connection herewith shall be in
writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by certified mail, postage prepaid, return receipt requested, by prepaid
nationally recognized overnight courier, or by prepaid facsimile to Borrower or to Lender, as the case may be, at their respective addresses set forth below: 
  

			
	If to Borrower:	  	 Tengion, Inc.
 2200
Renaissance Blvd., Suite 150
 King of Prussia, PA 19406
 Attention: Chief Financial Officer
 Fax: (610) 275-3754
 Ph: (610) 292-8364 ext. 102

		
		  	 With a copy to:
 Sills
Cummis Epstein & Gross P.C.
 One Riverfront Plaza
 Newark, NJ 07102-5400
 Attention: Ira Rosenberg, Esq.
 Fax: (973) 643-6500
 Ph: (973)
643-5082

		
	If to Lender:	  	 Horizon Technology Funding Company LLC
 76 Batterson Park Road
 Farmington, CT 06032
 Attention: Legal Department
 Fax: (860) 676-8655
 Ph: (860) 676-8654


  

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 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
 12. General Provisions. 
 12.1 Successors and Assigns. This Agreement and the Loan Documents shall bind and inure to the benefit of the
respective successors and permitted assigns of each of the parties; provided, however, neither this Agreement nor any rights hereunder may be assigned by Borrower without Lender’s prior written consent, which consent may be
granted or withheld in Lender’s sole discretion. Lender shall have the right without the consent of or notice to Borrower to sell, transfer, assign, negotiate, or grant participations in all or any part of, or any interest in Lender’s
rights and benefits hereunder, provided that such sale, transfer, assignment, negotiation, or participation is not to a competitor of the Borrower. Lender will endeavor to give notice of the same to Borrower, but failure to do so shall not affect
the validity of the same. Lender may disclose the Loan Documents and any other financial or other information relating to Borrower or any Subsidiary to any potential participant or assignee of any of the Loans, provided that such
participant or assignee agrees to protect the confidentiality of such documents and information using the same measures that it uses to protect its own confidential information. 
 12.2 Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement.

 12.3 Severability of Provisions. Each provision of this Agreement shall be several from every other
provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.4 Entire Agreement; Construction; Amendments and Waivers. 
 (a) Entire Agreement. This
Agreement and each of the other Loan Documents dated as of the date hereof, taken together, constitute and contain the entire agreement between Borrower and Lender and supersede any and all prior agreements, negotiations, correspondence,
understandings and communications between the parties, whether written or oral, respecting the subject matter hereof. Borrower acknowledges that it is not relying on any representation or agreement made by Lender or any employee, attorney or agent
thereof, other than the specific agreements set forth in this Agreement and the Loan Documents. 
 (b)
Construction. This Agreement is the result of negotiations between and has been reviewed by each of Borrower and Lender executing this Agreement as of the date hereof and their respective counsel; accordingly, this Agreement shall be deemed
to be the product of the parties hereto, and no ambiguity shall be construed in favor of or against Borrower or Lender. Borrower and Lender agree that they intend the literal words of this Agreement and the other Loan Documents and that no parol
evidence shall be necessary or appropriate to establish Borrower’s or Lender’s actual intentions. 
  

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 (c) Amendments and Waivers. Any and all amendments, modifications,
discharges or waivers of, or consents to any departures from any provision of this Agreement or of any of the other Loan Documents shall not be effective without the written consent of Lender. Any waiver or consent with respect to any provision of
the Loan Documents shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or demand on Borrower in any case shall entitle Borrower to any other or further notice or demand in similar or
other circumstances. Any amendment, modification, waiver or consent affected in accordance with this Section 12.4 shall be binding upon Lender and on Borrower. 
 12.5 Reliance by Lender. All covenants, agreements, representations and warranties made herein by Borrower shall be
deemed to be material to and to have been relied upon by Lender, notwithstanding any investigation by Lender. 
 12.6 No Set-Offs by Borrower. All sums payable by Borrower pursuant to this Agreement or any of the other Loan Documents shall be payable without notice or demand and shall be payable in United States Dollars without set-off or
reduction of any manner whatsoever. 
 12.7 Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. 
 12.8 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and
effect so long as any Obligations or commitment to fund remain outstanding. The obligations of Borrower to indemnify Lender with respect to the expenses, damages, losses, costs and liabilities described in Section 10.3 shall survive
until all applicable statute of limitations periods with respect to actions that may be brought against Lender have run. 
 13.
Relationship of Parties. Borrower and Lender acknowledge, understand and agree that the relationship between Borrower, on the one hand, and Lender, on the other, is, and at all time shall remain solely that of a borrower and lender. Lender
shall not under any circumstances be construed to be a partner or a joint venturer of Borrower or any of its Affiliates; nor shall Lender under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship
with Borrower or any of its Affiliates, or to owe any fiduciary duty to Borrower or any of its Affiliates. Lender does not undertake or assume any responsibility or duty to Borrower or any of its Affiliates to select, review, inspect, supervise,
pass judgment upon or otherwise inform Borrower or any of its Affiliates of any matter in connection with its or their Property, any Collateral held by Lender or the operations of Borrower or any of its Affiliates. Borrower and each of its
Affiliates shall rely entirely on their own judgment with respect to such matters, and any review, inspection, supervision, exercise of judgment or supply of information undertaken or assumed by Lender in connection with such matters is solely for
the protection of Lender and neither Borrower nor any Affiliate is entitled to rely thereon. 
  

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 14. Confidentiality. All information (other than periodic reports filed by Borrower
with the Securities and Exchange Commission) disclosed by Borrower to Lender in writing or through inspection pursuant to this Agreement that is marked confidential or a reasonable person would deem confidential shall be considered confidential.
Lender agrees to use the same degree of care to safeguard and prevent disclosure of such confidential information as Lender uses with its own confidential information, but in any event no less than a reasonable degree of care. Lender shall not
disclose such information to any third party (other than to Lender’s partners, attorneys, governmental regulators, or auditors, or to Lender’s subsidiaries and affiliates and prospective transferees and purchasers of the Loans, all subject
to the same confidentiality obligation set forth herein or as required by law, regulation, subpoena or other order to be disclosed) and shall use such information only for purposes of evaluation of its investment in Borrower and the exercise of
Lender’s rights and the enforcement of its remedies under this Agreement and the other Loan Documents. The obligations of confidentiality shall not apply to any information that (a) was known to the public prior to disclosure by Borrower
under this Agreement, (b) becomes known to the public through no fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Notwithstanding
the foregoing, Lender’s agreement of confidentiality shall not apply if Lender has acquired indefeasible title to any Collateral or in connection with any enforcement or exercise of Lender’s rights and remedies under this Agreement
following an Event of Default, including the enforcement of Lender’s security interest in the Collateral. 
 15. CHOICE
OF LAW AND VENUE; JURY TRIAL WAIVER. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF BORROWER AND LENDER HEREBY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE DISTRICT OF CONNECTICUT. BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. 
 [Remainder of page intentionally left blank.] 
  

 34 








 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first above written. 
  

			
	 BORROWER:
 TENGION,
INC.

		
	By:	 	/s/ Gary Sender
	Name:	 	Gary Sender
	Title:	 	Chief Financial Officer
	
	LENDER:
	 HORIZON TECHNOLOGY FUNDING
 COMPANY LLC

	 By: Horizon Technology Finance, LLC, its
 sole member

		
	By:	 	/s/ Robert D. Pomeroy, Jr.
	Name:	 	Robert D. Pomeroy, Jr.
	Title:	 	Managing Member









 LIST OF EXHIBITS AND SCHEDULES 
  

			
	Exhibit A	  	Disclosure Schedule
	Exhibit B	  	Funding Certificate
	Exhibit C	  	Form of Note
	Exhibit D	  	Form of Legal Opinion
	Exhibit E	  	Form of Officer’s Certificate








 EXHIBIT A 
 DISCLOSURE SCHEDULE 
 Borrower hereby certifies the following information to
Lender: 
 Section 1. Information For UCC Financing Statements and Searches and Deposit Accounts and Accounts Holding Securities.

 (a) The exact corporate name of Borrower as it appears in its Certificate of Incorporation, as amended to date is: Tengion,
Inc. 
 (b) Borrower’s state of incorporation is: Delaware. 
 (c) The organizational ID number of Borrower from its jurisdiction of incorporation is 3679969. 
 (d) Borrower’s taxpayer identification number is 20 021 4813. 
 (e) The following is a list of all corporate names, dba or trade names used by Borrower in the past five years: Tengion, Inc. 
 (f) The following is a list of all Subsidiaries of Borrower: none. 
 (g) The address of Borrower’s headquarters and chief executive office is: 2200 Renaissance Boulevard Suite 150, King of Prussia,
Pennsylvania 19404. The following is a list of all States where Borrower’s headquarters and chief executive office has been located in the past five years: Pennsylvania, Connecticut. 
 (h) The following is a list of all States where Borrower’s property and assets have been located in the past five years: Pennsylvania,
North Carolina, Connecticut, New York. 
 (i) The following is a list of all of Borrower’s deposit accounts (bank name,
address and account names and numbers): 
 Commerce Bank 
 100 East Dekalb Pike 
 King of Prussia PA 19406 
 Premier Savings/Investment 
 (j) The following is a list of all of Borrower’s accounts holding securities (broker/bank name, address and account names and numbers):

 Morgan Stanley Private Wealth Management 
 1221 Ave of the Americas 
 New York NY 10020 
 Bank: Citibank NYC 







 A/C Morgan Stanley & Co. 
 FBO Tengion Inc. 
 FBO # 32-78FT2 
 Section 5.3 Conflict with Other Instruments, etc. 
 Borrower’s covenants in Section 7.5(iii) may conflict with rights of the equity holders of Borrower with respect to dividends,
redemption rights and liquidation preferences contained in Borrower’s Amended and Restated Certificate of Incorporation and the documents related to the sale and purchase of Borrower’s outstanding shares of Series A Convertible Preferred
Stock and Series B Convertible Preferred Stock. 
 Section 5.4 Authorization; Enforceability. 
 The Board of Directors of Borrower needs to adopt a Supplemental Board Consent for each of Loans B and C to be deemed duly authorized by all
necessary action on the part of the Borrower. 
 Section 5.6 Name; Location of Chief Executive Office, Principal Place of Business and
Collateral. 
 In addition to the Borrower’s chief executive office, the address of which is included on the cover page of
this Agreement, certain Collateral is or will be located at the Borrower’s Science and Technology facility in North Carolina, the address of which is: 
 Main NC Office and Laboratory Facility: 
 Westpoint Industrial Park

 3929 Westpoint Boulevard, Suite G 
 Winston-Salem, NC 27103 







 EXHIBIT B 
 FUNDING CERTIFICATE 
 The undersigned, being the duly
elected and acting              of TENGION, INC., a Delaware corporation (“Borrower”), does hereby certify to HORIZON TECHNOLOGY FUNDING COMPANY LLC (the
“Lender”) in connection with that certain Venture Loan and Security Agreement dated as of [Date], between Borrower and Lender (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in
the Loan Agreement) that: 
 1. The representations and warranties made by Borrower in Section 5 of the Loan
Agreement and in the other Loan Documents are true and correct as of the date hereof. 
 2. No event or condition has occurred
that would constitute a Default or an Event of Default under the Loan Agreement or any other Loan Document. 
 3. Borrower is in
compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement. 
 4. All
conditions referred to in Section 3 of the Loan Agreement to the making of Loan [A] to be made on or about the date hereof have been satisfied. 
 5. No material adverse change in the general affairs, results of operations, and financial condition of Borrower, whether or not arising from transactions in the ordinary course of business, has occurred.

 6. The proceeds for Loan [A] should be disbursed as follows: 
 Disbursement from Lender: 
  

			
	        Loan Amount	  	$
	        Less:	  	
	        Legal Fees	  	$
		
	Net Proceeds due from Lender:	  	$








 7. The aggregate net proceeds of Loan [A] in the amount of $_________________ shall be
transferred to Borrower’s account as follows: 
  

					
	Bank	  	Citibank NYC	  	
	ABA	  	021-000089	  	
			
	A/C	  	Morgan Stanley & Co.	  	
			
	FBO	  	Tengion Inc.	  	
	FBO #	  	32-78FT2	  	

 Dated: _________, 2006 
  

			
	 BORROWER:
 TENGION,
INC.

		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 









 EXHIBIT C 
 SECURED PROMISSORY NOTE 
 (LOAN [A]) 

 

			
	$____________	  	Dated: [Date]

 FOR VALUE RECEIVED, the undersigned, TENGION, INC., a Delaware corporation
(“Borrower”), HEREBY PROMISES TO PAY to the order of HORIZON TECHNOLOGY FUNDING COMPANY LLC, a Delaware limited liability company (“Lender”) the principal amount of ________________ Dollars ($_________) or such
lesser amount as shall equal the outstanding principal balance of Loan _ made to Borrower by Lender pursuant to the Loan Agreement (as defined below), and to pay all other amounts due with respect to the Loan on the dates and in the amounts set
forth in the Loan Agreement. 
 Interest on the principal amount of this Note from the date of this Note shall accrue at the
Loan Rate or, if applicable, the Default Rate. The Loan Rate for this Note is             % per annum based on a year of twelve 30-day months. If the Funding Date is not the
first day of the month, interim interest accruing from the Funding Date through the last day of that month shall be paid on the first calendar day of the next calendar month. Borrower shall make payments of accrued interest only on the outstanding
principal amount of the Loan on the first day of each month (“Payment Date”), commencing __________, 200_, through and including ________, 200_. Commencing on ________, 200_, and continuing on consecutive Payment Dates thereafter,
Borrower shall make to Lender _______ (__) equal payments of principal plus accrued interest on the then outstanding principal amount due hereunder of _______ Dollars ($________). If not sooner paid, all outstanding amounts hereunder and under the
Loan Agreement shall become due and payable on _______________________. 
 Principal, interest and all other amounts due with
respect to the Loan, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement. The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto,
shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note. 
 This Note is referred to in, and is entitled to the benefits of, the Venture Loan and Security Agreement dated as of [Date] by and between Borrower and Lender (the “Loan Agreement”). The Loan Agreement, among other things,
(a) provides for the making of a secured Loan to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events. 
 This Note may not be prepaid except as set forth in Section 2.3 of the Loan Agreement. 
 This Note and the obligation of Borrower to repay the unpaid principal amount of the Loan, interest on the Loan and all other amounts due
Lender under the Loan Agreement is secured under the Loan Agreement. 







 Presentment for payment, demand, notice of protest and all other demands and notices of any
kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived. 
 Borrower shall
pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due. This
Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of Connecticut. 
 Note
Register; Ownership of Note. The ownership of an interest in this Note shall be registered on a record of ownership maintained by Borrower or its agent. Notwithstanding anything else in this Note to the contrary, the right to the principal of,
and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation. Borrower shall be entitled to treat the registered
holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or entity.

 IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly authorized on the
date hereof. 
  

			
	 BORROWER:
 TENGION,
INC.

		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 









 EXHIBIT D 
 ITEMS TO BE COVERED BY OPINION OF BORROWER’S COUNSEL 
 1. Borrower is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified and authorized to do business in the State of Pennsylvania. 
 2. Borrower has the full corporate power, authority and legal right, and has obtained all necessary approvals, consents and given all
notices to execute and deliver the Loan Documents and perform the terms thereof. 
 3. The Loan Documents have been duly
authorized, executed and delivered by Borrower and constitute valid, legal and binding agreements, and are enforceable in accordance with their terms. 
 4. To our knowledge, there is no action, suit, audit, investigation, proceeding or patent claim pending or threatened against Borrower in any court or before any governmental commission, agency, board or
authority which might have a material adverse effect on the business, condition or operations of Borrower or the ability of Borrower to perform its obligations under the Loan Documents. 
 5. The Shares (as defined in the Warrant) issuable pursuant to exercise or conversion of the Warrant have been duly authorized and reserved
for issuance by Borrower and, when issued in accordance with the terms thereof, will be validly issued, fully paid and nonassessable. 
 6. The shares of Common Stock issuable upon conversion of the Shares have been duly authorized and reserved and, when issued in accordance with the terms of Borrower’s [Articles/Certificate] of Incorporation, as amended, will be
validly issued, fully paid and nonassessable. 
 7. The execution and delivery of the Loan Documents are not, and the issuance
of the Shares upon exercise of the Warrant in accordance with the terms thereof will not be, inconsistent with Borrower’s [Articles/Certificate] of Incorporation, as amended, or Bylaws, do not and will not contravene any law, governmental rule
or regulation, judgment or order applicable to Borrower, and do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other agreement or instrument of which Borrower is a
party or by which it is bound or require the consent or approval of, the giving of notice to, the registration or filing with or the taking of any action in respect of or by, any federal, state or local government authority or agency or other
person, except for the filing of notices pursuant to federal and state securities laws, which filings will be effected by the time required thereby. 







 EXHIBIT E 
 FORM OF OFFICER’S CERTIFICATE 
 TO: HORIZON
TECHNOLOGY FUNDING COMPANY LLC 
 Reference is made to the Venture Loan and Security Agreement dated as of _____, 200_ (as it
may be amended from time to time, the “Loan Agreement”) by and between TENGION, INC. (“Borrower”) and HORIZON TECHNOLOGY FUNDING COMPANY LLC (“Lender”). Unless otherwise defined herein, capitalized
terms have the meanings given such terms in the Loan Agreement. 
 The undersigned Responsible Officer of Borrower hereby
certifies to Lender that: 
  

	1.	No Event of Default or Default has occurred under the Loan Agreement. (If a Default or Event of Default has occurred, specify the nature and extent thereof and the
action Borrower proposes to take with respect thereto.) 

  

	2.	The information provided in Section 1 of the Disclosure Schedule is currently true and accurate, except as noted below. 

  

	3.	Borrower is in compliance with the provisions of Sections 4, 6 and 7 of the Loan Agreement, except as noted below. 

  

	4.	Attached herewith are the [monthly financial statements pursuant to Section 6.3(a) of the Loan Agreement/annual audited financial statements pursuant to
Section 6.3(b) of the Loan Agreement]. These have been prepared in accordance with GAAP and are consistent from one period to the next except as noted below. 

  

	
	NOTES TO ABOVE CERTIFICATIONS:
	
	 
	
	 

  

			
	 BORROWER:
 TENGION,
INC.

		
	By:	 	 
		
	Name:	 	 
		
	Title: