Document:

Secured Promissory Note

 Exhibit 10.2 
 Execution Copy 
 UNIGENE LABORATORIES, INC. 
 SECURED PROMISSORY NOTE 
  

			
	$7,418,803.00	  	May 10, 2007
		  	Fairfield, New Jersey

 FOR VALUE RECEIVED Unigene Laboratories, Inc., a Delaware corporation (the
“Company”), promises to pay to Jaynjean Levy Family Limited Partnership, a Delaware limited partnership (the “Holder”), or its registered assigns, the principal sum of Seven Million, Four Hundred
Eighteen Thousand, Eight Hundred Three and 00/100 Dollars ($7,418,803.00), or such lesser amount as shall equal the outstanding principal amount hereof, together with interest from the date of this Note on the unpaid principal balance at a rate
equal to nine percent (9.00%) per annum, which shall be non-compounding, computed on the basis of the actual number of days elapsed and a year of 365 days. All unpaid principal, together with any then unpaid and accrued interest and other
amounts payable hereunder, shall be due and payable on the earlier of (i) February 10, 2015 (the “Maturity Date”), or (ii) when, upon or after the occurrence of an Event of Default (as defined below), such
amounts are declared due and payable by the Holder or made automatically due and payable in accordance with the terms hereof. This Note is issued pursuant to that certain Patent Security Agreement, dated as of March 31, 2001 (as amended,
restated, modified or supplemented from time to time, the “Security Agreement”), made and entered into by and between the Company and Jay Levy, an individual (“JL”), which was then transferred from JL
to the Holder on February 15, 2005 when JL assigned to the Holder the promissory notes secured by such Security Agreement, and which was further amended on the date hereof by that certain Third Amendment to Patent Security Agreement made and
entered into by and between the Company and the Holder. This Note replaces in their entirety those notes listed on Exhibit A hereto and is not intended to be a novation of said notes, but rather evidences and documents the continuation of all
obligations and liabilities outstanding thereunder, including, without limitation, principal, interest, penalties and fees, as more fully described herein. 
 THE OBLIGATIONS DUE UNDER THIS NOTE ARE SECURED BY THE SECURITY AGREEMENT. ADDITIONAL RIGHTS OF HOLDER ARE SET FORTH IN THE SECURITY AGREEMENT. 
 The following is a statement of the rights of the Holder and the conditions to which this Note is subject, and to which the Holder, by the acceptance of
this Note, agrees: 
 1. Definitions. As used in this Note, the following capitalized terms have the following meanings:

 (a) “Affiliate” with respect to any Person, means (i) any director or officer of such Person,
(ii) any Person directly or indirectly controlling or controlled by or under direct or indirect common control with such Person, and (iii) any Person beneficially owning or holding 5% or more of any class of voting securities of such
Person or any corporation of which such Person beneficially owns or holds, in the aggregate, 5% or more of any class of voting securities. 

 
The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise. 
 (b) “Business
Day” means any day other than a Saturday, Sunday or public holiday under the laws of the United States of America or the State of New Jersey or any other day on which banking institutions are authorized or obligated to close in the
State of New Jersey. 
 (c) “Change in Control” means any of the following: (i) any Person,
either individually or acting in concert with one or more other Persons, shall have acquired beneficial ownership, directly or indirectly, of stock or other securities of the Company (or other securities convertible into stock or other securities)
representing 50% or more of the combined voting power of all stock or other securities of the Company entitled to vote in the election of members of the board of directors of the Company, other than stock or other securities having such power only
by reason of the happening of a contingency; or (ii) the occurrence of a change in the composition of the board of directors of the Company such that a majority of the members thereof are not continuing members. As used herein, (a) the
term “beneficially own” or “beneficial ownership” shall have the meaning set forth in the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder and (b) the term
“continuing member” shall mean, as of any date of determination, any member of the board of directors of the Company who (i) was a member of such board on the date of this Note or (ii) was nominated for election or elected to
such board with the affirmative vote of a majority of the members who were either members of such board on the date of this Note or whose nomination or election was previously so approved. 
 (d) “Company” means the corporation initially executing this Note and any Person which shall succeed to or assume
the obligations of the Company under this Note in accordance with the terms hereof 
 (e) “Event of
Default” has the meaning given in Section 5 hereof. 
 (f) “First Quarterly Payment”
has the meaning given in Section 2(a) of this Note. 
 (g) “Holder” means the Person specified in
the first paragraph of this Note or any Person who shall at the time be the registered holder of this Note pursuant to a transfer permitted by the terms of this Note. 
 (h) “Indebtedness” means the aggregate amount of, without duplication (i) all obligations for borrowed money,
(ii) all obligations evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations to pay the deferred purchase price of property or services (other than accounts payable incurred in the ordinary course of
business), (iv) all obligations with respect to capital leases, (v) all obligations created or arising under any conditional sale or other title retention agreements with respect to property acquired by such Person, (vi) all
reimbursement and other payment obligations, contingent or otherwise, in respect 

  

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of letters of credit and similar surety instruments, (vii) all payment obligations, contingent or otherwise, pursuant to or arising under currency swap
agreements, interest rate swap agreements or other swap or derivative agreements, and (viii) all guaranty obligations with respect to the types of Indebtedness listed in clauses (i) through (vii) above. 
 (i) “Initial Interest Component” has the meaning set forth in Section 2(b)(ii) of this Note. 
 (j) “Lien” means, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or
other encumbrance in, of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement, capital lease or other title retention agreement, or any agreement to
provide any of the foregoing, and the filing of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any jurisdiction. 
 (k) “Maturity Date” has the meaning set forth in the first paragraph of this Note. 
 (l) “Obligations” means all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the
Company to the Holder of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), now existing or hereafter arising under or pursuant to the terms of this Note and the other
Transaction Documents, including, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the Company hereunder and thereunder, in each case, whether direct or indirect,
absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101 et seq.), as amended from time to time (including
post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding. 
 (m) “Ongoing
Interest Component” has the meaning set forth in Section 2(c)(iii) of this Note. 
 (n)
“Permitted Distribution” means: (i) repurchases of stock from employees, consultants or directors of the Company in an aggregate amount not to exceed $50,000 in any fiscal year; provided that no Event of
Default has occurred and is continuing or would exist after giving effect to the repurchases; (ii) dividends or distributions payable solely in capital stock of the Company; and (iii) any dividend or distribution made by any Subsidiary to
another Subsidiary or to the Company. 
 (o) “Permitted Indebtedness” means: (i) Indebtedness of
the Company existing on the date of this Note as set forth on Schedule A (it being understood that any Indebtedness of the Company existing on the date hereof shall constitute Permitted Indebtedness whether or not listed on Schedule
A), and any renewals, refinancings, replacements and extensions thereof; so long as (A) the principal amount of such Indebtedness does not exceed the 

  

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principal amount being renewed, refinanced, replaced or extended plus an amount necessary to pay any fees and expenses related thereto, (B) such
Indebtedness does not contain covenants or other restrictions materially more onerous than those contained in the Indebtedness being renewed, refinanced, replaced or extended, and (C) the average life to maturity thereof is greater than or
equal to that of the Indebtedness being renewed, refinanced, replaced or extended; (ii) other unsecured Indebtedness of the Company or any of its Subsidiaries in an aggregate principal amount at any time outstanding not to exceed $2,000,000;
(iii) Indebtedness of the Company or any of its Subsidiaries secured by Liens described in clauses (vi) and (vii) of the definition of Permitted Liens, so long as (A) at the time when such Indebtedness is incurred, the amount of
such Indebtedness does not exceed the fair market value (as reasonably determined by the principal financial officer of the Company in good faith) of the leased property or purchased equipment and (B) the aggregate amount of such Indebtedness
does not exceed $500,000 at any time outstanding; (iv) Indebtedness of any Subsidiary of the Company to the Company or another Subsidiary; (v) Indebtedness pursuant to or arising under currency swap agreements or interest rate swap
agreements or swap or derivative agreements entered into in connection with bona fide hedging arrangements; (vi) Indebtedness of the Company or any of its Subsidiaries subordinated to the Obligations on terms reasonably satisfactory to the
Holder, and having terms and conditions (other than interest and overall yield) more favorable to the Company than the terms and conditions of this Note and the other Transaction Documents (including, without limitation, covenants and events of
default more favorable to the Company than the covenants and events of default hereunder), and having redemption, prepayment and defeasance provisions reasonably satisfactory to the Holder, in an aggregate principal amount not to exceed $2,000,000
at any time outstanding less any amounts outstanding pursuant to clause (ii) of this definition of Permitted Indebtedness (“Subordinated Indebtedness”); and (vii) the Obligations. 
 (p) “Permitted Liens” means the following types of Liens (excluding any such Lien imposed pursuant to
Section 401(a)(29) or 412(n) of the Internal Revenue Code, as amended, or by the Employee Retirement Income Security Act of 1974, as amended, or any Lien imposed by a governmental authority under any applicable environmental law or with respect
to a foreign deferred compensation plan): (i) Liens for taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being contested in good faith, provided provision is made to the reasonable
satisfaction of the Holder for the eventual payment thereof if subsequently found payable; (ii) Liens of carriers, warehousemen, mechanics, materialmen, vendors, and landlords incurred in the ordinary course of business for sums not overdue or
being contested in good faith, provided provision is made to the reasonable satisfaction of the Holder for the eventual payment thereof if subsequently found payable; (iii) deposits under workers’ compensation, unemployment
insurance and social security laws or to secure the performance of bids, tenders, contracts (other than for the repayment of borrowed money) or leases, or to secure statutory obligations of surety or appeal bonds or to secure indemnity, performance
or other similar bonds in the ordinary course of business; (iv) easements, reservations, rights of way, restrictions, minor defects or irregularities in title and other similar charges or encumbrances affecting real property in a manner not
materially or adversely affecting the value or use of such property; (v) Liens in favor of the Holder; (vi) Liens securing obligations under a capital lease so long as such Liens do not extend to property other than the 

  

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property leased under such capital lease, and any additions, attachments, improvements and accessions thereto and replacements, substitutions and proceeds
(including insurance proceeds) thereof; (vii) Liens upon any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the
acquisition of such equipment, so long as such Lien extends only to the equipment financed, and any additions, attachments, improvements and accessions thereto and replacements, substitutions and proceeds (including insurance proceeds) thereof;
(viii) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of customs duties in connection with the importation of goods; (ix) Liens which constitute rights of setoff of a customary nature or
banker’s liens, whether arising by statute, common law or by contract, (x) Liens on insurance proceeds in favor of insurance companies granted solely as security for financed premiums; (xi) Liens arising from judgments, decrees or
attachments in circumstances not constituting an Event of Default under Section 5(g); (xii) Liens existing on the date hereof as set forth on Schedule B (it being understood that any Lien of the Company existing on the date hereof
shall constitute a Permitted Lien whether or not listed on Schedule B) and any renewals, refinancings or extensions thereof that do not increase the amount of Indebtedness secured thereby or encumber additional collateral or contain covenants
or other restrictions materially more onerous than those contained in the Lien being renewed, refinanced or extended; (xiii) leases or subleases and licenses or sublicenses granted in the ordinary course of the Company’s or any
Subsidiary’s business; and (xiv) purported Liens evidenced by the filing of precautionary UCC financing statements relating solely to operating leases of personal property. 
 (q) “Person” means an individual, a partnership, a corporation (including a business trust), a joint stock
company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority. 
 (r) “Principal Component” has the meaning set forth in Section 2(b)(i) of this Note. 
 (s) “Quarterly Payment” has the meaning set forth in Section 2(a) of this Note. 
 (t)
“Revised Payment Schedule” has the meaning set forth in Section 3(c) of this Note. 
 (u)
“Security Agreement” has the meaning set forth in the first paragraph of this Note. 
 (v)
“Subsidiary” means any other entity included in the financial statements of the Company on a consolidated basis. 
 (w) “Transaction Documents” means this Note, the Security Agreement and each mortgage, pledge agreement, control agreement, grant of security interest in copyrights, patents or trademarks or
other instrument or document delivered by the Company pursuant to the 

  

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Security Agreement or any of the other Transaction Documents in order to grant the Holder a Lien on any property of the Company as security for the
Obligations. 
 (x) “Transfer” has the meaning set forth in Section 4 of this Note. 

2. Principal and Interest. 
 (a) The principal of this Note and interest hereunder shall be due and payable in
consecutive quarterly installments beginning on May 10, 2010 (the “First Quarterly Payment”) and on each August 10th, November 10th, February 10th and May 10th of each year thereafter to and including the Maturity Date (each such payment, a “Quarterly Payment”). 
 (b) The First Quarterly Payment shall consist of: 
 (i) $370.940.15, representing one-twentieth (1/20th) of the principal, which
shall be subject to adjustment pursuant to Section 3(b) herein, as set forth in the Revised Payment Schedule (as so adjusted, the “Principal Component”); and 
 (ii) $100,153.84, representing one-twentieth (1/20th) of the interest that shall have accrued on the unpaid and outstanding principal from the date of this Note through and
until the First Quarterly Payment, which shall be subject to adjustment pursuant to Section 3(b) herein, as set forth in the Revised Payment Schedule (as so adjusted, the “Initial Interest Component”). 
 (c) Each Quarterly Payment after the First Quarterly Payment shall consist of: 
 (i) the Principal Component; 
 (ii) the Initial Interest Component; and 
 (iii) the product of (1) the then outstanding
principal on this Note and (2) the product of (A) nine percent (9.00%) multiplied by (B) a fraction, the numerator of which shall be the actual number of days elapsed since the most recent Quarterly Payment and the denominator of
which shall be 365, which shall represent the interest accruing from Quarterly Payment to Quarterly Payment on this Note (the “Ongoing Interest Component”). 
 3. Optional Prepayment. 
 (a) Upon five (5) days prior written notice to the Holder, the Company may prepay this Note in whole or in part; provided that unless otherwise directed by the Holder any such prepayment will be applied
(i) first to the payment of expenses due under this Note, (ii) second to the aggregate Initial Interest Component accrued but unpaid up to the date of prepayment, (iii) third to the Ongoing Interest Component accrued but unpaid up to
the date of prepayment and (iv) fourth, if the amount of prepayment exceeds the amount of all such expenses and accrued but unpaid interest, to the payment of then outstanding principal of this 

  

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Note, with a prepayment deemed to be applied to the principal component of the last Quarterly Payment then due and owing on this Note. 
 (b) Furthermore, concurrently with any prepayment made pursuant to
Section 3(a) of this Note, the Company will recalculate the Initial Interest Component, the Principal Component and the Ongoing Interest Component if and as necessary to keep the remaining payment schedule consistent with the original payment
structure of this Note (i.e., interest shall accrue on the outstanding principal for the first three (3) years; then, beginning with the third anniversary of this Note and every quarter thereafter, one-twentieth (1/20th) (or such larger fraction if Quarterly Payments have been eliminated in accordance with Section 3(a)(iv) of this
Note) of such principal plus such interest which has accrued during such first three (3) years, together with ongoing interest calculated from Quarterly Payment to Quarterly Payment, shall be paid to the Holder). 
 (c) Upon such recalculation, the Company shall promptly send the Holder a written schedule (the “Revised Payment
Schedule”) detailing the remaining Quarterly Payments, including the amounts which represent (i) the Principal Component, (ii) the Initial Interest Component and (iii) the Ongoing Interest Component, and thereafter the
Company shall make Quarterly Payments on this Note in accordance with such Revised Payment Schedule. 
 4. Certain Covenants.
While any amount is outstanding under the Note, without the prior written consent of the Holder: 
 (a) Indebtedness.
Neither the Company nor any of its Subsidiaries shall create, incur, assume or permit to exist any Indebtedness except Permitted Indebtedness. 
 (b) Liens. Neither the Company nor any of its Subsidiaries shall create, incur, assume or permit to exist any Lien on or with respect to any of its assets or property of any character, whether now owned or
hereafter acquired, except for Permitted Liens. 
 (c) Asset Dispositions. Neither the Company nor any of its
Subsidiaries shall sell, lease, transfer, license or otherwise dispose of (collectively, a “Transfer”) any of its assets or property, whether now owned or hereafter acquired, except (i) Transfers in the ordinary course
of its business consisting of (A) the sale of inventory, (B) sales or transfers of surplus, worn-out or obsolete equipment, (C) leases or subleases entered into in the ordinary course of business or approved by the Holder in writing
and (D) licenses of intellectual property or know-how, (ii) a Transfer from any Subsidiary of the Company to the Company or another Subsidiary, (iii) the granting of Permitted Liens, (iv) expenditures of cash not prohibited by
this Note; and (v) Transfers permitted by Section 4(d) or 4(e) of this Note. 
 (d) Mergers, Acquisitions,
Etc. Neither the Company nor any of its Subsidiaries may consolidate with or merge into any other Person or permit any other Person to merge into it, or acquire all or substantially all of the assets or capital stock of any other Person;
provided that if the surviving entity of such merger expressly agrees to assume all of the Obligations and covenants of the Company and its Subsidiaries arising under or pursuant to the 

  

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terms of this Note and the other Transaction Documents, then such written consent of the Holder shall not be unreasonably withheld. 
 (e) Dividends, Redemptions, Etc. Neither the Company nor any of its Subsidiaries shall (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; (iii) return any capital to any holder of its equity securities; (iv) make any distribution of
assets, equity securities, obligations or securities to any holder of its equity securities in its capacity as such; or (v) set apart any sum for any such purpose; provided, however, that the Company and its Subsidiaries may make
Permitted Distributions. 
 (f) Indebtedness Payments. Neither the Company nor any of its Subsidiaries shall
(i) prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness (other than amounts due under this Note or the Partnership Note (as defined in the Security Agreement)) or lease
obligations; provided that the Company and its Subsidiaries may prepay, redeem, purchase, defease or otherwise satisfy lease obligations prior to the scheduled repayment thereof in an aggregate amount not to exceed $1,000,000 in any
fiscal year; (ii) amend, modify or otherwise change the terms of any Indebtedness (other than the Obligations) or lease obligations so as to accelerate the scheduled repayment thereof, or (iii) repay any notes to officers, directors or
shareholders (other than the Holder or the holder of the Partnership Note (as defined in the Security Agreement)). 
 (g)
Affiliate Transactions. Neither the Company nor any of its Subsidiaries shall enter into any contractual obligation with any Affiliate or engage in any other transaction with any Affiliate except (i) upon terms at least as favorable to
the Company or such Subsidiary as an arms-length transaction with unaffiliated Persons; provided that the foregoing shall not apply to transactions involving the Company and its Subsidiaries, (ii) compensation and benefit
arrangements (including the granting of options or other equity compensation arrangements) approved by or pursuant to any plan approved by the board of directors of the Company or a committee thereof, any indemnification arrangements with employees,
officers, directors and consultants, and advances to employees of such Person for moving and travel expenses, drawing accounts and similar expenditures in the ordinary course of business, (iii) any Permitted Indebtedness and (iv) any
Permitted Distribution. 
 (h) Notice of Defaults. Promptly upon the occurrence thereof, the Company shall furnish to
the Holder written notice of the occurrence of any Event of Default hereunder. Notwithstanding the foregoing, the Company will not be required to disclose, permit the inspection, examination or making of extracts, or discussion of, any document,
information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to Holder (or its designated representative) is then prohibited by law, including,
without limitation, Regulation FD promulgated under the Securities Act of 1933, as amended, or any agreement binding on the Company or any of its Subsidiaries or (iii) is subject to attorney-client or similar privilege or constitutes attorney
work product. 
  

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 (i) Organizational Documents. The Company shall not amend its certificate of
incorporation or its bylaws if such amendment would impair in any material respect the Liens in favor of the Holder granted by the Company pursuant to the Transaction Documents or perfection thereof or the ability of Holder to enforce its rights as
set forth in the Transaction Documents. 
 (j) Subordinated Indebtedness. Neither the Company nor any of its
Subsidiaries shall amend or otherwise change the terms of any Subordinated Indebtedness, or make any payment consistent with an amendment thereof or change thereto, if the effect of such amendment or change is to increase the interest rate on such
Subordinated Indebtedness, change (to earlier dates) any dates upon which payments of principal or interest are due thereon, change any event of default or condition to an event of default with respect thereto (other than to eliminate any such event
of default or increase any grace period related thereto), change the redemption, prepayment or defeasance provisions thereof, change the subordination provisions thereof (or of any guaranty thereof), or change any collateral therefor (other than to
release such collateral), or if the effect of such amendment or change, together with all other amendments or changes made, is to increase materially the obligations of the obligor thereunder or to confer any additional rights on the holders of such
Subordinated Indebtedness (or a trustee or other representative on their behalf) which would be materially adverse to the Company and its Subsidiaries or the Holder. 
 (k) Inspection Rights. The Holder and its representatives shall have the right, at any time during normal business hours, upon
reasonable prior notice which in no case shall be less than five (5) Business Days unless an Event of Default exists in which case no prior notice is required, to visit and inspect the properties of Company (or any of its Subsidiaries) and its
corporate, financial and operating records, and make abstracts therefrom, and to discuss Company’s affairs, finances and accounts with its directors, officers and independent public accountants; provided that the Holder and any of
its representatives who exercise their rights under this Section 4(k) shall at all times keep confidential and not divulge, furnish or make accessible to anyone any confidential information, knowledge or data concerning or relating to the
business or financial affairs of the Company (or any of its Subsidiaries) to which such party has become privy by reason of this Section 4(k). Notwithstanding the foregoing, the Company will not be required to disclose, permit the inspection,
examination or making of extracts, or discussion of, any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to Holder (or its
designated representative) is then prohibited by law, including, without limitation, Regulation FD promulgated under the Securities Act of 1933, as amended, or any agreement binding on the Company or any of its Subsidiaries or (iii) is subject
to attorney-client or similar privilege or constitutes attorney work product. 
  

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 5. Events of Default. The occurrence of any of the following shall constitute an
“Event of Default” under this Note and the other Transaction Documents: 
 (a) Failure to Pay.
The Company shall fail to pay two consecutive Quarterly Payments under this Note on the dates due and such payments shall not have been made in full within thirty (30) days of the Company’s receipt of the Holder’s written notice
(given by any method permitted under Section 11) to the Company of such failure to pay; or 
 (b) Breaches of Certain
Covenants. The Company or any of its Subsidiaries shall fail to observe or perform any covenant, obligation, condition or agreement set forth in Section 4 of this Note or the other Transaction Documents (other than those specified in
Section 5(a)) and (i) such failure shall continue for thirty (30) days, or (ii) if such failure is not curable within such thirty (30) day period, but is reasonably capable of cure within forty-five (45) days, either
(A) such failure shall continue for forty-five (45) days or (B) the Company or such Subsidiary shall not have commenced a cure in a manner reasonably satisfactory to the Holder within the initial thirty (30) day period; or

 (c) Representations and Warranties. Any representation, warranty, certificate, or other statement (financial or
otherwise) made or furnished by or on behalf of the Company to Holder in writing in connection with this Note or any of the other Transaction Documents, or as an inducement to the Holder to enter into this Note and the other Transaction Documents,
shall be false, incorrect, incomplete or misleading in any material respect when made or furnished; or 
 (d) Other Payment
Obligations. The Company or any of its Subsidiaries shall (i) fail to make any payment when due under the terms of any bond, debenture, note or other evidence of Indebtedness having an aggregate principal amount of $1,000,000 or more to be
paid by such Person (excluding this Note and the other Transaction Documents but including any other evidence of Indebtedness of Company or any of its Subsidiaries to the Holder) and such failure shall continue beyond any period of grace provided
with respect thereto, or (ii) default in the observance or performance of any other agreement, term or condition contained in any such bond, debenture, note or other evidence of Indebtedness, and the effect of such failure or default is to
cause, or permit the holder or holders thereof to cause, Indebtedness in an aggregate amount of $1,000,000 or more to become due prior to its stated date of maturity; or 
 (e) Voluntary Bankruptcy or Insolvency Proceedings. The Company or any of its Subsidiaries shall (i) apply for or consent to
the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable, or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general
assignment for the benefit of any of its creditors, (iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined or interpreted under any applicable statute), (vi) commence a voluntary case or other proceeding
seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking 

  

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possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose of
effecting any of the foregoing; or 
 (f) Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the
appointment of a receiver, trustee, liquidator or custodian of the Company or any of its Subsidiaries or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other
relief with respect to the Company or any of its Subsidiaries or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be
dismissed or discharged within sixty (60) days of commencement; or 
 (g) Judgments. A final judgment or order for
the payment of money in excess of $2,000,000 (exclusive of amounts covered by insurance issued by an insurer not an Affiliate of Company, to the extent such insurer has acknowledged in writing is obligation to pay such amount) shall be rendered
against the Company or any of its Subsidiaries and the same shall remain undischarged for a period of thirty (30) days during which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or
execution or similar process shall be issued or levied against a substantial part of the property of the Company or any of its Subsidiaries and such judgment, writ, or similar process shall not be released, stayed, vacated or otherwise dismissed
within thirty (30) days after issue or levy; or 
 (h) Transaction Documents. Any Transaction Document or any
material term of any thereof shall cease to be, or be asserted by the Company not to be, a legal, valid and binding obligation of the Company enforceable in accordance with its terms or if the Liens of Holder in any of the assets of Company shall
cease to be or shall not be valid, first priority perfected Liens (subject to Permitted Liens) or the Company shall assert that such Liens are not valid, first priority and perfected Liens (subject to Permitted Liens); or 
 (i) Change in Control. A Change in Control shall occur. 
 6. Rights of Holder upon Default. Upon the occurrence or existence of any Event of Default (other than an Event of Default referred to in
Section 5(e) or 5(f)) and at any time thereafter during the continuance of such Event of Default, the Holder may, by written notice to the Company, declare all outstanding Obligations to be immediately due and payable without presentment,
demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the other Transaction Documents to the contrary notwithstanding. Upon the occurrence or existence of any Event of Default
described in Section 5(e) or 5(f), immediately and without notice, all outstanding Obligations shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the other Transaction Documents to the contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, the Holder may exercise any other
right, power or remedy granted to it by any of the Transaction Documents or otherwise permitted to it by law, either by suit in equity or by action at law, or both. 
  

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 7. Successors and Assigns. Subject to the restrictions on transfer described in Sections 9
and 10 below, the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties. 
 8. Waiver and Amendment. Any provision of this Note may be amended, waived or modified only upon the written consent of the Company and the
Holder. 
 9. Transfer of this Note. 
 (a) Transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of the Company. Prior
to presentation of this Note for registration of transfer, the Company shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other
purposes whatsoever, whether or not this Note shall be overdue, and the Company shall not be affected by notice to the contrary. Upon such registration, the transferee shall become the “Holder,” “Lender,” “Secured
Party” or “Mortgagee,” as applicable, for all purposes pursuant to the Transaction Documents. 
 (b) Unless an
Event of Default has occurred and is continuing, the Holder may not transfer this Note to any Person without the prior written consent of the Company. 
 10. Assignment by Company. Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part, by the Company without the
prior written consent of the Holder (subject to Section 4(d) of this Note). 
 11. Notices. Any notice, request or other
communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or mailed by registered or certified mail, postage prepaid, or by recognized overnight courier or personal delivery
or sent via facsimile (receipt confirmed) at the respective addresses or facsimile numbers of the parties as set forth in the Security Agreement or on the register maintained by the Company. Any party hereto may by notice so given change its address
for future notice hereunder. Notice shall conclusively be deemed to have been given when received. 
 12. Payment. Payment
shall be made in lawful tender of the United States. 
 13. Usury. In the event any interest is paid on this Note which is
deemed to be in excess of the then legal maximum rate, then that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note.

 14. Expenses; Waivers. If action is instituted to collect this Note, the Company promises to pay all costs and expenses,
including, without limitation, reasonable attorneys’ fees and costs, incurred in connection with such action. The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all
other notices or demands relative to this instrument. 
  

 - 12 - 

 15. Governing Law. This Note and all actions arising out of or in connection with this Note
shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to the conflicts of law provisions of the State of New Jersey, or of any other state. 
 [The remainder of this page is intentionally left blank] 
  

 - 13 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Note as of the date first written above.

  

			
	 UNIGENE LABORATORIES, INC.,
 a
Delaware corporation

		
	By:	 	/s/ William Steinhauer
		 	Name: William Steinhauer
		 	Title: Vice President of Finance

 [Signature Page to Note] 

 EXHIIBIT A 
 Outstanding Promissory Notes After Repayment to be Consolidated into this Note 
  

					
	 	  	 Date
	  	 Currently
 Outstanding
 Principal Amount1

	1	  	03/13/01	  	$300,000
	2	  	03/27/01	  	200,000
	3	  	04/09/01	  	350,000
	4	  	04/16/01	  	100,000
	5	  	04/23/01	  	0
	6	  	05/09/01	  	250,000
	7	  	05/29/01	  	300,000
	8	  	06/11/01	  	175,000
	9	  	06/19/01	  	275,000
	10	  	06/28/01	  	100,000
	11	  	07/05/01	  	275,000
	12	  	07/26/01	  	250,000
	13	  	08/13/01	  	200,000
	14	  	08/29/01	  	200,000
	15	  	09/13/01	  	300,000
	16	  	09/26/01	  	250,000
	17	  	10/11/01	  	200,000
	18	  	10/29/01	  	175,000
	19	  	11/13/01	  	175,000
	20	  	11/28/01	  	175,000
	21	  	12/11/01	  	175,000
	22	  	12/19/01	  	175,000
	23	  	02/13/02	  	175,000
	24	  	02/26/02	  	175,000
	25	  	03/13/02	  	175,000
	26	  	03/26/02	  	175,000
		  	Total:	  	5,300,000

  

	 1
	 Even though one of the notes
listed above has no outstanding principal amount due and owing, it is listed because interest has accrued and continues to accrue and to be payable thereunder and such interest amounts are being consolidated into this Note.

 SCHEDULE A 
 Permitted Indebtedness 
 Secured Promissory Note, dated as of the date hereof, issued by the Company for the benefit
of Jay Levy in the principal amount of $8,318.714 

 SCHEDULE B 
 Permitted Liens 
 Amended and Restated Security Agreement, dated as of the date hereof, by and between the Company
and Jay Levy 
 Modification of Mortgage and Security Agreement, dated as of the date hereof, by and between the Company and Jay Levy 
 UCC-1 Financing Statement filed in New Jersey on 6/26/01 in favor of GE Capital Colonial Pacific Leasing (assignee of lessor Genesis Commercial Capital, LLC) regarding:
Equipment/Lease No. 01328-01 
 UCC-1 Financing Statement filed in Delaware on 8/31/01 in favor of GE Capital Colonial Pacific Leasing regarding:
(1) HELOS/BF Particle Size Analyzer; (1) HP Vectra P3/933, 128 Mbyte RAM, 20 GB HD, 48x CD-ROM, NIC, WIN 2000 Operating System; (1) WINDOX Soft on CD-ROM, CRYPTOBOX, Plus Manuals; (1) IQ/OQ Validation of HELOS; (1) QT Trend
Analysis Software Equipment/Lease No: (as continued on 8/29/06) 
 UCC-1 Financing Statement filed in Delaware on 1/13/03 in favor of CIT Technology
Financing Services, Inc. regarding the true lease of “Canon IR5000, sn: MPL17987” plus all other types of office equipment now and hereafter leased to and/or financed for Debtor/Lessee by Secured Party/Lessor, and including all
replacements, upgrades and substitutions hereafter occurring to all the foregoing equipment and all now existing and future attachments, parts, accessories and add-ons for all of the foregoing items and types of equipment, and all proceeds and
products thereof 
 UCC-1 Financing Statement filed in Delaware on 10/8/04 in favor of US Bancorp regarding: 1 – (S) Akia Purifier 100 with control
and accessories 
 UCC-1 Financing Statement filed in New Jersey on 12/16/04 in favor of US Bancorp regarding 1 HPLC system 
 Lien of The Microcap Fund, Inc., a Maryland corporation, on certain patents of the Company 
 Lien of Olympus Securities, Ltd., Nelson Partners, Citadel Investment Management, L.P. and Citadel Investment Management, Inc. on certain patents of the CompanyAmended and Restated Security Agreement

 Exhibit 10.3 
 Portions of this Exhibit were omitted and filed separately with the Secretary of the Commission pursuant to an application for confidential treatment filed with the Commission pursuant to Rule 406 under the Securities Act of 1933. Such
omissions are designated as ***. 
 AMENDED AND RESTATED SECURITY AGREEMENT 
 This Amended and Restated Security Agreement (as amended, restated, modified or otherwise supplemented from time to time, this “Security
Agreement”), dated as of May 10, 2007, is executed by Unigene Laboratories, Inc., a Delaware corporation (“Grantor”), in favor of Jay Levy (“Secured Party”). 
 RECITALS 
 A. WHEREAS, Secured
Party, Warren Levy (“WL”) and Ronald Levy (“RL,” and together with Secured Party and WL, collectively, the “Levys”) loaned Grantor $500,000, as evidenced by that certain
promissory note, dated as of March 2, 1995 (the “March 2 Note”); 
 B. WHEREAS, in order to secure the repayment
by Grantor of the March 2 Note, Grantor and the Levys entered into that certain Security Agreement (the “Original Agreement”) on March 2, 1995 pursuant to which Grantor, among other things, granted the Levys a
security interest in certain collateral located at Grantor’s premises at 110 Little Falls Road, Fairfield, New Jersey (the “Fairfield Location”); 
 C. WHEREAS, in consideration of additional loans made by the Levys, either together or individually, to Grantor and in order to secure the payment by
Grantor of such additional promissory notes, Grantor and such lenders entered into certain amendments, as set forth on Schedule A hereto, to the Original Agreement (as amended by such amendments, the “Amended
Agreement”); 
 D. WHEREAS, the Levys, either together or individually, made additional loans to Grantor, evidenced by
promissory notes detailed on Schedule B hereto; 
 E. WHEREAS, on July 13, 1999, in order to document certain of the additional
loans to Grantor detailed on Schedule B, and to amend and restate certain of the outstanding promissory notes and the Amended Agreement, (i) Grantor issued and delivered to Secured Party that certain Amended and Restated Secured
Promissory Note in the principal amount of $1,600,000 (the “Restated Note”) in exchange for Secured Party’s surrendering certain outstanding promissory notes, as detailed on Schedule B hereto, and
(ii) Grantor and the Levys entered into that certain Amended and Restated Security Agreement, which superseded the Amended Agreement (the “Restated Agreement”); 

 F. WHEREAS, in consideration of the Restated Note, on July 13, 1999, Grantor entered into that
certain Mortgage and Security Agreement (the “Mortgage”) pursuant to which Grantor granted Secured Party a security interest in its real property located at the Fairfield Location; 
 G. WHEREAS, on August 5, 1999, Grantor and the Levys entered into that certain Amendment to Security Agreement and Subordination Agreement (the
“Final Amendment”) pursuant to which the definition of “Obligations” in the Restated Agreement was amended to include (i) a promissory note, issued on July 30, 1999, in the amount of $70,000 (the
“7/30/99 Note”) and (ii) a promissory note, issued on August 5, 1999, in the amount of $200,000 (the “8/5/99 Note” and together with the 7/30/99 Note, the “Additional 1999
Notes”) (and as so amended by the Final Amendment, the Restated Agreement is hereinafter referred to as the “Current Agreement”); 
 H. WHEREAS, on August 5, 1999, Grantor entered into that certain Modification of Mortgage and Security Agreement (the “Modified Mortgage”) to amend the Mortgage to secure the Additional
1999 Notes as well as the Restated Note; 
 I. WHEREAS, thereafter Secured Party made additional loans to Grantor, evidenced by additional
promissory notes detailed on Schedule B and Schedule C hereto; 
 J. WHEREAS, in order to secure the payment by Grantor of the
notes detailed on Schedule C hereto, on March 13, 2001, Grantor and Secured Party entered into that certain Patent Security Agreement, which was later amended by that certain First Amendment to Patent Security Agreement dated
May 29, 2001, and that certain Second Amendment to Patent Security Agreement dated November 26, 2002 (as amended from time to time, the “Patent Security Agreement”), pursuant to which Grantor granted Secured Party a
security interest in certain of Grantor’s United States patents, as detailed therein; 
 K. WHEREAS, on February 15, 2005, Secured
Party transferred to the Jaynjean Levy Family Limited Partnership, a Delaware limited partnership (the “Partnership”), the promissory notes detailed on Schedule C hereto; 
 L. WHEREAS, by virtue of such transfer, Secured Party’s interest pursuant to the Patent Security Agreement was transferred to the Partnership in
accordance with Section 11 of the Patent Security Agreement; 
 M. WHEREAS, in January 2007 Grantor repaid in full to each of WL and RL
all amounts that Grantor owed them pursuant to the March 2 Note and certain other promissory notes issued to them by Grantor from time to time; 
 N. WHEREAS, by virtue of such repayments to WL and RL, neither of them has an ongoing security interest in the security set forth in the Current Agreement; 
  

 - 2 - 

 O. WHEREAS, effective as of May 9, 2007, Jean Levy (“JL”) transferred to
Secured Party the promissory notes detailed on Schedule B hereto and, in connection with such transfer, JL agreed to terminate that certain Mortgage and Security Agreement, dated February 10, 1995 (as amended, modified, postponed and
restated from time to time), pursuant to which Grantor granted JL a security interest in its real property located at the Fairfield Location; 
 P. WHEREAS, Grantor intends to repay some of the outstanding amounts due and owing to Secured Party and to repay some of the outstanding amounts due and owing to Partnership; 
 Q. WHEREAS, in connection with, and in consideration of, such repayments, Grantor, Secured Party and Partnership are restructuring the remaining
outstanding Obligations (as defined in the Note referred to below) and Grantor is (i) consolidating all of the principal and interest currently outstanding on those certain promissory notes payable to Secured Party, listed on Schedule D
hereto, into one secured promissory note (the “Note”), dated as of the date hereof, payable to Secured Party in the new original principal amount of $8,318,714; and (ii) consolidating all of the principal and interest
currently outstanding on those certain promissory notes payable to Partnership, listed on Schedule E hereto, into one secured promissory note (the “Partnership Note”), dated as of the date hereof, payable to
Partnership in the new original principal amount of $7,418,803; and 
 R. WHEREAS, in connection therewith, (i) Grantor and the Levys
wish to enter into this Security Agreement to amend and restate the Current Agreement to document Secured Party’s interest in the collateral described below; (ii) Grantor and Partnership wish to contemporaneously enter into that certain
Third Amendment to Patent Security Agreement (the “Patent Security Amendment”) to secure the Partnership Note which represents all of the principal and interest outstanding and due and payable with respect to the notes
detailed on Schedule C hereto; provided, that Grantor, the Levys and Partnership each agree that none of the Note, the Partnership Note, this Security Agreement or the Partnership Security Amendment represents, evidences or documents a
novation of said notes, but rather represents, evidences and documents the continuation of all obligations and liabilities of every kind and nature of Grantor outstanding thereunder that exist as of the date hereof, as more fully described herein
and therein; and (iii) Grantor shall contemporaneously also enter into a Modification of Mortgage and Security Agreement (the “New Mortgage Modification”) in favor of Secured Party to amend the Modified Mortgage to
secure the Note instead of the Restated Note and the Additional 1999 Notes. 
  

 - 3 - 

 AGREEMENT 
 NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Grantor hereby agrees with Secured Party as follows:

 1. Definitions and Interpretation. When used in this Security Agreement, the following terms have the following respective
meanings: 
 “Boonton Location” has the meaning given to that term in Section 5(c) hereof. 
 “Collateral” has the meaning given to that term in Section 2 hereof. 
 “GAAP” means generally accepted accounting principles as in effect in the United States of America from time to time. 

“Transaction Documents” means this Security Agreement, the Note, the New Mortgage Modification and each mortgage, pledge
agreement, control agreement, grant of security interest in copyrights, patents or trademarks or other instrument or document delivered by Grantor pursuant to this Security Agreement or any of the other Transaction Documents in order to grant
Secured Party a Lien on any property of Grantor as security for the Obligations (as defined in the Note). 
 “UCC”
means the Uniform Commercial Code as in effect in the State of New Jersey from time to time. 
 All capitalized terms used herein and not
otherwise defined have the respective meanings given to them in the Note. Unless otherwise defined herein or in the Note, all terms defined in the UCC have the respective meanings given to those terms in the UCC. 
 2. Grant of Security Interest. As security for (a) the Obligations and (b) all debts, liabilities and obligations, howsoever arising,
owed by Grantor to Secured Party of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), now existing or hereafter arising under or pursuant to the terms of the Transaction
Documents issued by Grantor on the date hereof, including, without limitation, all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by Grantor hereunder and thereunder,
in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101 et seq.),
as amended from time to time (including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding (all of the foregoing items referred to in clauses (a) and (b) collectively, the “Secured
Obligations”), Grantor hereby grants to Secured Party a security interest in all right, title and interests of Grantor in and to the property described on Attachment 1 hereto, whether now existing or hereafter from time to time
acquired (collectively, the “Collateral”); provided that in no event shall the Collateral include (a) any equipment or accessions, additions or improvements thereto, any replacement thereof or proceeds
thereof to the extent prohibited by the agreement (for as long as the agreement or prohibition is in effect) pursuant to which such equipment was acquired or financed (to the extent permitted by the terms of the Note) and (b) any pledges or
deposits constituting Permitted Liens to the extent prohibited by the agreement (for as long as the agreement or prohibition is in effect) under which the pledge or deposit is made. 
  

 - 4 - 

 3. General Representations and Warranties. Grantor represents and warrants to Secured Party that
(a) Grantor is the owner of the Collateral (or, in the case of after-acquired Collateral, at the time Grantor acquires rights in the Collateral, will be the owner thereof) in which it has granted a security interest and that no other Person has
(or, in the case of after-acquired Collateral, at the time Grantor acquires rights therein, will have) any right, title, claim or interest (by way of Lien or otherwise) in, against or to the Collateral, other than Permitted Liens; (b) based
upon UCC-1 financing statements that have been filed, and any amendments thereto that have been filed, in the appropriate filing offices, Secured Party has (or in the case of after-acquired Collateral, at the time Grantor acquires rights therein,
will have) a first priority perfected security interest in the Collateral in which Grantor has granted a security interest to the extent that a security interest in the Collateral can be perfected by such filing, subject to Permitted Liens;
(c) all accounts receivable and payment intangibles are genuine and enforceable against the party obligated to pay the same; and (d) the originals of all documents evidencing all accounts receivable and payment intangibles of Grantor and
the only original books of account and records of Grantor relating thereto are, and will continue to be, kept at address of Grantor set forth in or determined pursuant to Section 8(a) of this Security Agreement. 
 4. Covenants Relating to Collateral. Grantor hereby agrees (a) to perform all acts that may be necessary to maintain, preserve, protect and
perfect the Collateral, the Lien granted to Secured Party therein and the perfection and priority of such Lien, subject to Permitted Liens; (b) not to use or permit any Collateral to be used (i) in violation in any material respect of any
applicable law, rule or regulation, or (ii) in violation of any policy of insurance covering the Collateral; (c) not to move any of the Collateral from its current location at the Fairfield Location or at the premises leased by the Grantor
at 83 Fulton Street, Boonton, New Jersey (the “Boonton Location”), or between these two locations, without the prior consent of Secured Party, provided however, that Grantor shall be permitted to move, in one or
more transactions, Collateral which at the time of such move has a current fair market value, in the aggregate, of less than $500,000 without Secured Party’s prior consent; (d) to pay promptly when due all taxes and other governmental
charges, all Liens (other than Permitted Liens) and all other charges now or hereafter imposed upon or affecting any Collateral except for such charges or taxes being contested in good faith by appropriate proceedings and for which adequate reserves
are maintained in accordance with GAAP (and no foreclosure proceedings are in effect on the Liens granted hereunder); (e) not to change Grantor’s name or state of incorporation or principal place of business, or change the office in which
Grantor’s records relating to accounts receivable and payment intangibles are kept, in each case without 30 days’ prior written notice to Secured Party; and (f) to procure, execute and deliver from time to time any endorsements,
financing statements and other writings reasonably deemed necessary or appropriate by Secured Party to perfect, maintain and protect its Lien hereunder and the priority thereof (subject to Permitted Liens); provided, however, that
Secured Party shall execute and deliver to Grantor any UCC termination statements and any additional documents or instruments as the Company shall reasonably request to evidence a termination pursuant to Section 7 hereof. 
 5. Authorized Action by Secured Party. Grantor hereby irrevocably appoints Secured Party as its attorney-in-fact (which appointment is coupled with
an interest) and agrees 

  

 - 5 - 

 
that Secured Party may perform (but Secured Party shall not be obligated to and shall incur no liability to Grantor or any third party for failure so to do)
any act which Grantor is obligated by this Security Agreement to perform, and to exercise such rights and powers as Grantor might exercise with respect to the Collateral, including the right to (a) collect by legal proceedings or otherwise and
endorse, receive and receipt for all dividends, interest, payments, proceeds and other sums and property now or hereafter payable on or on account of the Collateral; (b) enter into any extension, reorganization, deposit, merger, consolidation
or other agreement pertaining to, or deposit, surrender, accept, hold or apply other property in exchange for the Collateral; (c) make any compromise or settlement, and take any action it deems advisable, with respect to the Collateral;
(d) insure, process and preserve the Collateral; (e) pay any indebtedness of Grantor relating to the Collateral; and (f) file UCC financing statements and execute other documents, instruments and agreements required hereunder;
provided, however, that Secured Party shall not exercise any such powers granted pursuant to subsections (a) through (e) prior to the occurrence of an Event of Default and shall only exercise such powers during the
continuance of an Event of Default. Grantor agrees to reimburse Secured Party upon demand for any reasonable costs and expenses, including attorneys’ fees, Secured Party may incur while acting as Grantor’s attorney-in-fact hereunder, all
of which costs and expenses are included in the Secured Obligations. It is further agreed and understood between the parties hereto that such care as Secured Party gives to the safekeeping of its own property of like kind shall constitute reasonable
care of the Collateral when in Secured Party’s possession; provided, however, that Secured Party shall not be required to make any presentment, demand or protest, or give any notice and need not take any action to preserve any
rights against any prior party or any other person in connection with the Secured Obligations or with respect to the Collateral. 
 6.
Default and Remedies. 
 (a) Default. Grantor shall be deemed in default under this Security Agreement upon the
occurrence and during the continuance of an Event of Default. 
 (b) Remedies. Upon the occurrence and during the
continuance of any such Event of Default, Secured Party shall have the rights of a secured creditor under the UCC, all rights granted by this Security Agreement and by law, including the right to: (i) require Grantor to assemble the Collateral
and make it available to Secured Party at a place to be designated by Secured Party; and (ii) prior to the disposition of the Collateral, store, process, repair or recondition it or otherwise prepare it for disposition in any manner and to the
extent Secured Party deems appropriate. Grantor hereby agrees that ten (10) days’ notice of any intended sale or disposition of any Collateral is reasonable. 
 (c) 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 Secured Party at the time of, or received by Secured Party after, the occurrence of an Event of Default) shall be paid to and applied as follows: 
 (i) First, to the payment of reasonable costs and expenses, including all amounts expended to preserve the value of the Collateral,
of foreclosure or suit, if any, and of 

  

 - 6 - 

 
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 Secured Party; 
 (ii) Second, to the payment to Secured Party of
the amount then owing or unpaid to Secured Party under the Note (to be applied first to accrued interest and second to outstanding principal); 
 (iii) Third, to the payment of other amounts then payable to Secured Party under any of the Transaction Documents; and 
 (iv) Fourth, to the payment of the surplus, if any, to Grantor, its successors and assigns, or to whomsoever may be lawfully
entitled to receive the same. 
 7. Termination of Security Interest. 
 (a) Partial Termination. On the date on which the Company shall have repaid to the Secured Party aggregate principal of at least
$*** pursuant to the terms and conditions of the Note, the security interest granted herein in the Collateral located at the Boonton Location shall automatically terminate and all rights to the Collateral located at the Boonton Location shall revert
to the Company. Upon such termination, Secured Party shall file or authorize the Company to file any UCC termination statements necessary to effect such termination and Secured Party will execute and deliver to the Company any additional documents
or instruments as the Company shall reasonably request to evidence such termination. 
 (b) Complete Termination. Upon
the payment in full of all Secured Obligations, the security interest granted herein shall terminate and all rights to the Collateral shall revert to Grantor. Upon such termination, Secured Party shall file or authorize Grantor to file any UCC
termination statements necessary to effect such termination and Secured Party will execute and deliver to Grantor any additional documents or instruments as Grantor shall reasonably request to evidence such termination. 
 8. Miscellaneous. 
 (a) Notices. Any notice, request or other communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or mailed by registered or certified mail, postage
prepaid, or by recognized overnight courier or personal delivery or sent via facsimile (receipt confirmed) at the respective addresses or facsimile numbers of the parties as set forth on the signature page hereto or on the register maintained by
Grantor. Any party hereto may by written notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have been given when received. 
  

 - 7 - 

 (b) Nonwaiver. No failure or delay on Secured Party’s part in exercising any
right hereunder shall operate as a waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any other right. 
 (c) Amendments and Waivers. This Security Agreement may not be amended or modified, or may any of its terms be waived, except by
written instruments signed by Grantor and Secured Party. Each waiver or consent under any provision hereof shall be effective only in the specific instances for the purpose for which given. 
 (d) Assignments. This Security Agreement shall be binding upon and inure to the benefit of Secured Party and Grantor and their
respective successors and assigns (including all permitted subsequent holders of the Note); provided, however, that Grantor may not sell, assign or delegate its rights and obligations hereunder without the prior written consent of
Secured Party. Unless an Event of Default has occurred and is continuing, the Secured Party may not transfer any of its rights or obligations under this Security Agreement to any Person without the prior written consent of Grantor. 
 (e) Cumulative Rights, Etc. The rights, powers and remedies of Secured Party under this Security Agreement shall be in addition to
all rights, powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental authority, any Transaction Document or any other agreement, all of which rights, powers, and remedies shall be cumulative
and may be exercised successively or concurrently without impairing Secured Party’s rights hereunder. Grantor waives any right to require Secured Party to proceed against any person or entity or to exhaust any Collateral or to pursue any remedy
in Secured Party’s power. 
 (f) Payments Free of Taxes, Etc. All payments made by Grantor under the Transaction
Documents shall be made by Grantor free and clear of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings (excluding taxes imposed on the income of Secured Party or franchise taxes). In
addition, Grantor shall pay upon demand any stamp or other taxes, levies or charges of any jurisdiction with respect to the execution delivery, registration, performance and enforcement of this Security Agreement. Upon request by Secured Party,
Grantor shall furnish evidence satisfactory to Secured Party that all requisite authorizations and approvals by, and notices to and filings with, governmental authorities and regulatory bodies have been obtained and made and that all requisite
taxes, levies and charges have been paid. 
 (g) Partial Invalidity. If at any time any provision of this Security
Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Security Agreement nor the legality, validity or
enforceability of such provision under the law of any other jurisdiction shall in any way be affected or impaired thereby. 
  

 - 8 - 

 (h) Expenses. Grantor shall pay on demand all reasonable fees and expenses,
including reasonable attorneys’ fees and expenses, incurred by Secured Party in connection with custody, preservation or sale of, or other realization on, any of the Collateral or the enforcement or attempt to enforce any of the Secured
Obligations which is not performed as and when required by this Security Agreement. 
 (i) Construction. Each of this
Security Agreement and the other Transaction Documents is the result of negotiations among, and has been reviewed by, Grantor, Secured Party and their respective counsel. Accordingly, this Security Agreement and the other Transaction Documents shall
be deemed to be the product of all parties hereto and/or thereto, and no ambiguity shall be construed in favor of or against Grantor or Secured Party. 
 (j) Entire Agreement. This Security Agreement taken together with the other Transaction Documents constitute and contain the entire agreement of Grantor and Secured Party and supersede any and all prior
agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof. 
 (k) Other Interpretive Provisions. References in this Security Agreement and each of the other Transaction Documents to any
document, instrument or agreement (i) includes all exhibits, schedules and other attachments thereto, (ii) includes all documents, instruments or agreements issued or executed in replacement thereof, and (iii) means 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 Security Agreement or any other Transaction Document refer to this Security Agreement or such other Transaction Document, as the case may be, as a whole and not to any particular provision of this Security Agreement or such
other Transaction Document, as the case may be. The words “include” and “including” and words of similar import when used in this Security Agreement or any other Transaction Document shall not be construed to be limiting or
exclusive. 
 (l) Governing Law. This Security Agreement shall be governed by and construed in accordance with the laws
of the State of New Jersey without reference to conflicts of law rules (except to the extent governed by the UCC). 
 (m)
Counterparts. This Security Agreement may be executed in any number of counterparts, each of which shall be deemed as original, but all of which together shall be deemed to constitute one instrument, and such counterparts may be delivered by
facsimile or by electronic mail in “portable document format” (or “.pdf”), with any such counterpart delivered in such way deemed an original. 
  

 - 9 - 

 IN WITNESS WHEREOF, Grantor has caused this Security Agreement to be executed as of the day and year
first above written. 
  

			
	UNIGENE LABORATORIES, INC.
		
	By:	 	/s/ William Steinhauer
	Name:	 	William Steinhauer
	Title:	 	Vice President of Finance
	
	 110 Little Falls Road
 Fairfield, NJ
07004
 Fax: 973-227-6088

  

	
	Accepted and Agreed to:
	
	/s/ Jay Levy
	Jay Levy
	
	 2150 Center Street, Apt. 10G
 Fort Lee, NJ
07024
 Fax: 201-461-9891

 [Signature page to Security Agreement] 

 ATTACHMENT 1 
 TO SECURITY AGREEMENT 
 All right, title, interest, claims and demands of Grantor in and to the
following property and assets of Grantor: 
 A. With respect to (x) 110 Little Falls Road, Fairfield, New Jersey (the
“Fairfield Location”) and (y) 83 Fulton Street, Boonton, New Jersey (the “Boonton Location” and together with the Fairfield Property, the “Property”): 
 (i) All trade fixtures, machinery and equipment now or hereafter located at the Property; 
 (ii) All materials and supplies with regard to the same and other equipment, now or hereafter installed, placed upon or owned by Grantor
at the Property; 
 (iii) All awards or payments, including interest thereon which may be made with respect to the property
and assets listed above, all proceeds of any insurance policy covering the property and assets listed above, and all unearned premiums thereon; 
 (iv) All accounts receivable, contract rights and rights of action of debtor of Grantor; and 
 (v) All attachments to and replacements of the assets and property described above, and all proceeds thereof. 
 B. With respect to
the Fairfield Location: 
 (i) All rents and income arising therefrom; 
 (ii) All appurtenances, fixtures and improvements to, and owned by the Grantor, now or hereafter installed, place upon or used in
connection with the Fairfield Location; 
 (iii) All leases and other agreements reflecting the use or occupancy of the
Fairfield Location; 
 (iv) All rents, issues and profits of the Fairfield Location; 
 (v) All awards or payments, including interest thereon, which may be made with respect to the Fairfield Location; 
 (vi) All proceeds of any insurance policy covering the Fairfield Location; and 
 (vii) All unearned premiums thereon and all accounts receivable and rights of action by Grantor thereunder. 

 Schedule A 
 Amendments to the Original Agreement 
  

			
	 Date
	  	 Amendment

	March 20, 1995	  	 Amendment to Loan
 Agreement and Security
 Agreement

		
	June 29, 1995	  	 Amendment to Loan
 Agreement and Security
 Agreement

		
	June 25, 1999	  	 Amendment to Loan
 Agreement and Security
 Agreement

		
	June 29, 1999	  	 Amendment to Loan
 Agreement and Security
 Agreement

		
	June 30, 1999	  	 Amendment to Loan
 Agreement and Security
 Agreement

  

 Schedule B 
 Outstanding Promissory Notes 1 
  

													
	 	 	 Date
	  	Original
Principal
Amount (Not
Amounts
Currently
Outstanding)	    	 	 	 Date
	  	Original
Principal
Amount (Not
Amounts
Currently
Outstanding)
	 1
	 	 03/2/952
	  	$	500,000	    	1B	 	 05/05/993
	  	$	200,000
	 2
	 	 06/29/952
	  	 	700,000	    	2B	 	 05/24/993
	  	 	200,000
	 3
	 	 11/22/99
	  	 	300,000	    	3B	 	 06/07/993
	  	 	200,000
	 4
	 	 02/11/00
	  	 	300,000	    	4B	 	 06/25/993
	  	 	200,000
	 5
	 	 11/13/00
	  	 	125,000	    	5B	 	 06/29/993
	  	 	350,000
	 6
	 	 11/16/00
	  	 	250,000	    	6B	 	 06/30/993
	  	 	350,000
	 7
	 	 01/09/01
	  	 	300,000	    	7B	 	 07/09/993
	  	 	100,000
	 8
	 	 01/16/01
	  	 	300,000	    	8B	 	 07/30/99
	  	 	70,000
	 9
	 	 02/05/01
	  	 	100,000	    	9B	 	 08/05/99
	  	 	200,000
	 10
	 	 02/13/01
	  	 	200,000	    		 	 Total:
	  	 	1,870,000
	 11
	 	 02/22/01
	  	 	200,000	    		 		  		
		 	 Total:
	  	 	3,275,000	    	1C	 	 02/10/954,5
	  	$	650,000
		 		  			    	2C	 	 07/12/004
	  	 	300,000
		 		  			    	3C	 	 07/31/004
	  	 	180,000
		 		  			    	4C	 	 08/11/004
	  	 	200,000
		 		  			    	5C	 	 08/30/004
	  	 	200,000
		 		  			    	6C	 	 09/13/004
	  	 	200,000
		 		  			    	7C	 	 09/27/004
	  	 	200,000
		 		  			    		 	 Total:
	  	 	1,930,000

  

	 1
	 Also outstanding but not listed here is a 5% penalty on overdue amounts on certain notes which were
originally payable to Jean Levy, plus accrued interest, which began accruing on 01/01/01. 

  

	 2
	 These notes were originally issued by, and payable to, Jay Levy, Warren Levy and Ronald Levy. It should
be noted for purposes of this restructuring that the Company has previously repaid the portion of the principal amount of these notes (and accompanying interest) representing the loans subsumed in these notes made by Warren Levy and Ronald Levy.
Therefore, these notes currently represent only the loans extended to the Company by Jay Levy from 02/24/95 through 10/23/95. 

  

	 3
	 These notes were amended and restated by the July 13, 1999 Amended and Restated Secured Promissory Note
in the principal amount of $1,600,000. 

  

	 4
	 These notes were transferred by Jean Levy to Jay Levy effective as of May 9, 2007.

  

	 5
	 This note represents loans extended to the Company by Jean Levy from 02/10/95 through 02/17/95.

 Schedule C 
 Promissory Notes Transferred to 
 Jaynjean Levy Family Limited Partnership 
  

						
	 	  	 Date
	  	 Original
Principal
 Amount (Not
 Amounts
Currently
 Outstanding)

	1	  	 03/13/01
	  	$	300,000
	2	  	 03/27/01
	  	 	200,000
	3	  	 04/09/01
	  	 	350,000
	4	  	 04/16/01
	  	 	100,000
	5	  	 04/23/01
	  	 	400,000
	6	  	 05/09/01
	  	 	250,000
	7	  	 05/29/01
	  	 	300,000
	8	  	 06/11/01
	  	 	175,000
	9	  	 06/19/01
	  	 	275,000
	10	  	 06/28/01
	  	 	100,000
	11	  	 07/05/01
	  	 	275,000
	12	  	 07/26/01
	  	 	250,000
	13	  	 08/13/01
	  	 	200,000
	14	  	 08/29/01
	  	 	200,000
	15	  	 09/13/01
	  	 	300,000
	16	  	 09/26/01
	  	 	250,000
	17	  	 10/11/01
	  	 	200,000
	18	  	 10/29/01
	  	 	175,000
	19	  	 11/13/01
	  	 	175,000
	20	  	 11/28/01
	  	 	175,000
	21	  	 12/11/01
	  	 	175,000
	22	  	 12/19/01
	  	 	175,000
	23	  	 02/13/02
	  	 	175,000
	24	  	 02/26/02
	  	 	175,000
	25	  	 03/13/02
	  	 	175,000
	26	  	 03/26/02
	  	 	175,000
		  	 Total:
	  	 	5,700,000

 Schedule D 
 Outstanding Promissory Notes After Repayment 
 to be
Consolidated into the Note 1 
  

													
	 	 	 Date
	  	Currently
Outstanding
Principal
Amount2	    	 	 	 Date
	  	Currently
Outstanding
Principal
Amount2
	 1
	 	 03/02/95
	  	$	0	    	1B	 	 07/13/99
	  	$	1,525,000
	 2
	 	 06/29/95
	  	 	0	    	2B	 	 07/30/99
	  	 	70,000
	 3
	 	 11/22/99
	  	 	0	    	3B	 	 08/05/99
	  	 	200,000
	 4
	 	 02/11/00
	  	 	0	    		 	 Total:
	  	 	1,795,000
	 5
	 	 11/13/00
	  	 	0	    		 		  		
	 6
	 	 11/16/00
	  	 	0	    		 		  		
	 7
	 	 01/09/01
	  	 	0	    	1C	 	 02/10/95
	  	$	0
	 8
	 	 01/16/01
	  	 	0	    	2C	 	 07/12/00
	  	 	0
	 9
	 	 02/05/01
	  	 	0	    	3C	 	 07/31/00
	  	 	0
	 10
	 	 02/13/01
	  	 	0	    	4C	 	 08/11/00
	  	 	0
	 11
	 	 02/22/01
	  	 	0	    	5C	 	 08/30/00
	  	 	0
		 	 Total:
	  	 	0	    	6C	 	 09/13/00
	  	 	0
		 		  			    	7C	 	 09/27/00
	  	 	0
		 		  			    		 	 Total:
	  	 	0

  

	 1
	 Also outstanding and included in the consolidation into the Note but not listed here is a 5% penalty on
overdue amounts on certain notes which were originally payable to Jean Levy, plus accrued interest, which began accruing on 01/01/01. 

  

	 2
	 Even though certain notes listed
above have no outstanding principal amount due and owing, they are listed because interest has accrued and continues to accrue and to be payable thereunder and such interest amounts are being consolidated into the Note. 

 Schedule E 
 Outstanding Promissory Notes After Repayment to be Consolidated into the Partnership Note 
  

						
	 	  	 Date
	  	 Currently
 Outstanding
 Principal

Amount1

	1	  	 03/13/01
	  	$	300,000
	2	  	 03/27/01
	  	 	200,000
	3	  	 04/09/01
	  	 	350,000
	4	  	 04/16/01
	  	 	100,000
	5	  	 04/23/01
	  	 	0
	6	  	 05/09/01
	  	 	250,000
	7	  	 05/29/01
	  	 	300,000
	8	  	 06/11/01
	  	 	175,000
	9	  	 06/19/01
	  	 	275,000
	10	  	 06/28/01
	  	 	100,000
	11	  	 07/05/01
	  	 	275,000
	12	  	 07/26/01
	  	 	250,000
	13	  	 08/13/01
	  	 	200,000
	14	  	 08/29/01
	  	 	200,000
	15	  	 09/13/01
	  	 	300,000
	16	  	 09/26/01
	  	 	250,000
	17	  	 10/11/01
	  	 	200,000
	18	  	 10/29/01
	  	 	175,000
	19	  	 11/13/01
	  	 	175,000
	20	  	 11/28/01
	  	 	175,000
	21	  	 12/11/01
	  	 	175,000
	22	  	 12/19/01
	  	 	175,000
	23	  	 02/13/02
	  	 	175,000
	24	  	 02/26/02
	  	 	175,000
	25	  	 03/13/02
	  	 	175,000
	26	  	 03/26/02
	  	 	175,000
		  	 Total:
	  	 	5,300,000

  

	 1
	 Even though one of the notes
listed above has no outstanding principal amount due and owing, it is listed because interest has accrued and continues to accrue and to be payable thereunder and such interest amounts are being consolidated into the Partnership Note.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]