Document:

Exhibit 10.1

 Exhibit 10.1 
 ALDAGEN, INC. 
 LOAN AND SECURITY AGREEMENT 
 This LOAN AND SECURITY AGREEMENT is entered into as of March 21, 2006, by and between Square 1 Bank (“Bank”) and ALDAGEN, INC. (“Borrower”).

 RECITALS 
 Borrower wishes to obtain
credit from time to time from Bank, and Bank desires to extend credit to Borrower. This Agreement sets forth the terms on which Bank will advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 
 AGREEMENT 
 The parties agree as follows: 

 

	 	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1 Definitions. As used in this Agreement, all capitalized terms shall have the definitions set forth on Exhibit A. Any term used in the Code and not defined herein shall have the meaning given to the term in the Code.

 1.2 Accounting Terms. Any accounting term not specifically defined on Exhibit A shall be construed in accordance
with GAAP and all calculations shall be made in accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules. 
  

	 	2.	LOAN AND TERMS OF PAYMENT. 

 2.1
Credit Extensions. 
 (a) Promise to Pay. Borrower promises to pay to Bank, in lawful money of the United States of
America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower, together with interest on the unpaid principal amount of such Credit Extensions at rates in accordance with the terms hereof. 
 (b) Bridge Loan. 
 (i) Subject to and upon the terms and conditions of this Agreement, on the Closing Date or as soon thereafter as is practical, Bank shall make one bridge loan to Borrower in an aggregate amount not to exceed
$1,500,000 (the “Bridge Loan”), which amount shall be used to support the general capital needs of Borrower. 
 (ii) Interest shall accrue from the date the Bridge Loan is made at the rate specified in Section 2.3(a), and shall be payable monthly on the last day of each month commencing on March 31, 2006 in accordance with
Section 2.3(c). On the Bridge Loan Maturity Date all amounts owing under this Section 2.1(b) shall be immediately due and payable. The Bridge Loan, once repaid, may not be reborrowed. Borrower may prepay the Bridge Loan without
penalty or premium. Upon maturity of the Bridge Loan, Borrower and Bank may mutually agree to convert the Bridge Loan into a Term Loan upon terms and conditions mutually acceptable to both Borrower and Bank. 
 (iii) When Borrower desires to obtain the Bridge Loan, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile
transmission to be received no later than 3:00 p.m. Eastern time three (3) Business Days before the day on which the Bridge Loan is to be made. Such notice shall be substantially in the form of Exhibit B. The notice shall be signed by a
Responsible Officer or its designee. 
 2.2 Intentionally Omitted. 
  

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 2.3 Interest Rates, Payments, and Calculations. 
 (a) Interest Rate for Bridge Loan. Except as set forth in Section 2.3(b), the Bridge Loan shall bear interest, on the
outstanding daily balance thereof, at a variable rate equal to 1.00% above the Prime Rate. 
 (b) Late Fee; Default Rate.
If any payment is not made within 10 days after the date such payment is due, Borrower shall pay Bank a late fee equal to the lesser of (i) 5% of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged under
applicable law. All Obligations shall bear interest, from and after the occurrence and during the continuance of an Event of Default, at a rate equal to 5 percentage points above the interest rate applicable immediately prior to the occurrence of
the Event of Default. 
 (c) Payments. Interest hereunder shall be due and payable on the last calendar day of each
month during the term hereof. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts or against the Revolving Line, in which case those amounts shall thereafter
accrue interest at the rate then applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the rate then applicable hereunder. 
 (d) Computation. In the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder
shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All interest chargeable under the Loan Documents shall be computed on the basis of a 360 day year for the actual
number of days elapsed. 
 2.4 Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall credit a
wire transfer of funds, check or other item of payment to such deposit account or Obligation as Borrower specifies. After the occurrence of an Event of Default, Bank shall have the right, in its sole discretion, to immediately apply any wire
transfer of funds, check, or other item of payment Bank may receive to conditionally reduce Obligations, but such applications of funds shall not be considered a payment on account unless such payment is of immediately available federal funds or
unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained herein, any wire transfer or payment received by Bank after 12:00 noon Eastern time shall be deemed to
have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day,
such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period of such extension. 
 2.5 Fees. Borrower shall pay to Bank the following: 
 (a) Facility Fee. On the Closing Date, a fee equal to $5,000, which shall be nonrefundable; 
 (b) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date (provided that Bank Expenses for
outside legal counsel shall not exceed $5,000 on the Closing Date provided there have been two turns or less of the Loan Documents), and, after the Closing Date, all Bank Expenses, as and when they become due; provided however that Bank shall notify
Borrower before deducting any Bank Expenses for outside legal counsel from Borrower’s Accounts. 
 2.6 Term. This
Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this
Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance of an Event of Default.

  

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	 	3.	CONDITIONS OF LOANS. 

 3.1
Conditions Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following:

 (a) this Agreement; 
 (b) an officer’s certificate of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Agreement; 
 (c) a financing statement (Form UCC-1); 
 (d) an intellectual property security agreement; 
 (e) agreement to provide insurance; 
 (f) a subordination agreement from holders of Subordinated Debt; 
 (g) payment
of the fees and Bank Expenses then due specified in Section 2.5; 
 (h) current SOS Reports indicating that
except for Permitted Liens, there are no other security interests or Liens of record in the Collateral; 
 (i) current
financial statements, including unaudited statements for Borrower’s most recently ended fiscal year, company prepared consolidated and consolidating balance sheets and income statements for the most recently ended month in accordance with
Section 6.2, and such other updated financial information as Bank may reasonably request; 
 (j) current
Compliance Certificate in accordance with Section 6.2; 
 (k) a Warrant in form and substance satisfactory to
Bank; and 
 (l) such other documents or certificates, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate. 
 3.2 Conditions Precedent to all Credit Extensions. The obligation of Bank to make
each Credit Extension, including the initial Credit Extension, is further subject to the following conditions: 
 (a)
timely receipt by Bank of the Payment/Advance Form as provided in Section 2.1; and 
 (b) the representations and
warranties contained in Section 5 shall be true and correct in all material respects on and as of the date of such Payment/Advance Form and on the effective date of each Credit Extension as though made at and as of each such date, and no Event
of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in
all material respects as of such date). The making of each Credit Extension shall be deemed to be a representation and warranty (as modified by those exceptions set forth on the Schedule, as the same may be updated or amended from time to time) by
Borrower on the date of such Credit Extension as to the accuracy of the facts in all material respects, referred to in this Section 3.2. 
  

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	 	4.	CREATION OF SECURITY INTEREST. 

 4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest in the Collateral to secure prompt repayment of any and all Obligations and to secure prompt performance by Borrower of each of its
covenants and duties under the Loan Documents. Except as set forth in the Schedule, such security interest constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority
security interest in later-acquired Collateral. Notwithstanding any termination, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations are outstanding. 
 4.2 Perfection of Security Interest. Borrower authorizes Bank to file at any time, during the term of this Agreement or while any
of the Obligations are outstanding, financing statements, continuation statements, and amendments thereto that (i) either specifically describe the Collateral or describe the Collateral as all assets of Borrower of the kind pledged hereunder,
and (ii) contain any other information required by the Code for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment, including whether Borrower is an organization, the type of
organization and any organizational identification number issued to Borrower, if applicable. Any such financing statements may be signed by Bank on behalf of Borrower, as provided in the Code, and may be filed at any time in any jurisdiction whether
or not Revised Article 9 of the Code is then in effect in that jurisdiction. Borrower shall from time to time endorse and deliver to Bank, at the request of Bank, all Negotiable Collateral and other documents that Bank may reasonably request, in
form satisfactory to Bank, to perfect and continue perfected Bank’s security interests in the Collateral and in order to fully consummate all of the transactions contemplated under the Loan Documents. Borrower shall have possession of the
Collateral, except where expressly otherwise provided in this Agreement or where Bank chooses to perfect its security interest by possession in addition to the filing of a financing statement. Where Collateral is in possession of a third party
bailee, Borrower shall take such steps as Bank reasonably requests for Bank to (i) obtain an acknowledgment, in form and substance satisfactory to Bank, of the bailee that the bailee holds such Collateral for the benefit of Bank,
(ii) obtain “control” of any Collateral consisting of investment property, deposit accounts, g of-credit rights or electronic chattel paper (as such items and the term “control” are defined in Revised Article 9 of the Code)
by causing the securities intermediary or depositary institution or issuing bank to execute a control agreement in form and substance satisfactory to Bank. Borrower will not create any chattel paper without placing a legend on the chattel paper
acceptable to Bank indicating that Bank has a security interest in the chattel paper. Borrower from time to time may deposit with Bank specific cash collateral to secure specific Obligations; Borrower authorizes Bank to hold such specific balances
in pledge and to decline to honor any drafts thereon or any request by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the specific Obligations are outstanding. 
 4.3 Right to Inspect. Bank (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 but no more than twice a year (unless an Event of Default has occurred and is continuing), to inspect Borrower’s Books and to make copies thereof and to check, 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. 
  

	 	5.	REPRESENTATIONS AND WARRANTIES. 

 Borrower
represents and warrants as follows: 
 5.1 Due Organization and Qualification. Borrower and each Subsidiary is a
corporation duly existing under the laws of the state in which it is incorporated and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified, except where
the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 
 5.2 Due Authorization; No
Conflict. The execution, delivery, and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s Certificate
of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement by which it is bound, except to the extent such default would not
reasonably be expected to cause a Material Adverse Effect. 
  

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 5.3 Collateral. Borrower has rights in or the power to transfer the Collateral,
and its title to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer or pledge except for Permitted Liens. All Collateral is located solely in the Collateral States. All Inventory is in all material respects of
good and merchantable quality, free from all material defects, except for Inventory for which adequate reserves have been made. Except as set forth in the Schedule, none of the Collateral is maintained or invested with a Person other than Bank or
Bank’s Affiliates. 
 5.4 Intellectual Property Collateral. Borrower is the sole owner of the Intellectual
Property Collateral, except for licenses granted by Borrower to its customers in the ordinary course of business. To the best of Borrower’s knowledge, each of the Copyrights, Trademarks and Patents is valid and enforceable, and no part of the
Intellectual Property Collateral has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of the Intellectual Property Collateral violates the rights of any third party except to the extent
such claim would not reasonably be expected to cause a Material Adverse Effect. Except as set forth in the Schedule, Borrower’s rights as a licensee of intellectual property do not give rise to more than 5% of its gross revenue in any given
month, including without limitation revenue derived from the sale, licensing, rendering or disposition of any product or service. 
 5.5 Name; Location of Chief Executive Office. Except as disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof, and its exact legal name is as set forth in the
first paragraph of this Agreement. The chief executive office of Borrower is located in the Chief Executive Office State at the address indicated in Section 10 hereof. 
 5.6 Litigation. Except as set forth in the Schedule, there are no actions or proceedings pending by or against Borrower or any
Subsidiary before any court or administrative agency in which a likely adverse decision would reasonably be expected to have a Material Adverse Effect. 
 5.7 No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in
all material respects Borrower’s consolidated and consolidating financial condition as of the date thereof and Borrower’s consolidated and consolidating results of operations for the period then ended. There has not been a material adverse
change in the consolidated or in the consolidating financial condition of Borrower since the date of the most recent of such financial statements submitted to Bank. 
 5.8 Solvency, Payment of Debts. Borrower is able to pay its debts (including trade debts) as they mature; the fair saleable value
of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; and Borrower is not left with unreasonably small capital after the transactions contemplated by this Agreement. 
 5.9 Compliance with Laws and Regulations. Borrower and each Subsidiary have met the minimum funding requirements of ERISA with
respect to any employee benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that is reasonably likely to result in Borrower’s incurring any liability that could have a Material
Adverse Effect. Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of
the important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied in all
material respects with all the provisions of the Federal Fair Labor Standards Act. Borrower is in compliance with all environmental laws, regulations and ordinances except where the failure to comply is not reasonably likely to have a Material
Adverse Effect. Borrower has not violated any statutes, laws, ordinances or rules applicable to it, the violation of which would reasonably be expected to have a Material Adverse Effect. Borrower and each Subsidiary have filed or caused to be filed
all tax returns required to be filed, and have paid, or have made adequate provision for the 

  

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payment of, all taxes reflected therein except those being contested in good faith with adequate reserves under GAAP or where the failure to file such
returns or pay such taxes would not reasonably be expected to have a Material Adverse Effect. 
 5.10 Subsidiaries.
Borrower does not own any stock, partnership interest or other equity securities of any Person, except for Permitted Investments. 
 5.11 Government Consents. Borrower and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for
the continued operation of Borrower’s business as currently conducted, except where the failure to do so would not reasonably be expected to cause a Material Adverse Effect. 
 5.12 Inbound Licenses. Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any license or other
agreement that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. 
 5.13 Full Disclosure. No representation, warranty or other statement made by Borrower in any certificate or written statement
furnished to Bank taken together with all such certificates and written statements furnished to Bank 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, it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not to be viewed as facts and that actual results during the
period or periods covered by any such projections and forecasts may differ from the projected or forecasted results. 
  

	 	6.	AFFIRMATIVE COVENANTS. 

 Borrower covenants that,
until payment in full of all outstanding Obligations, and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all of the following: 
 6.1 Good Standing and Government Compliance. Borrower shall maintain its and each of its Subsidiaries’ corporate existence and
good standing in the Borrower State, shall maintain qualification and good standing in each other jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Effect, and shall furnish to Bank the
organizational identification number issued to Borrower by the authorities of the state in which Borrower is organized, if applicable. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements of ERISA with
respect to any employee benefit plans subject to ERISA. Borrower shall comply in all material respects with all applicable Environmental Laws, and maintain all material permits, licenses and approvals required thereunder where the failure to do so
would reasonably be expected to have a Material Adverse Effect. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, and shall maintain,
and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which or failure to comply with which would reasonably be expected to have a Material Adverse Effect. 
 6.2 Financial Statements, Reports, Certificates. Borrower shall deliver to Bank: (i) as soon as available, but in any event
within 30 days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet and income statement covering Borrower’s operations during such period, in a form reasonably acceptable to Bank and certified
by a Responsible Officer; (ii) as soon as available, but in any event within 150 days after the end of Borrower’s fiscal year, audited consolidated and consolidating financial statements of Borrower prepared in accordance with GAAP,
consistently applied, together with an opinion which is unqualified or otherwise consented to in writing by Bank on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (iii) if applicable,
copies of all statements, reports and notices sent or made available generally by Borrower to its security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission;
(iv) promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of $250,000 or more; (v) promptly 

  

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upon receipt, each management letter prepared by Borrower’s independent certified public accounting firm regarding Borrower’s management control
systems; (vi) such budgets, sales projections, operating plans or other financial information generally prepared by Borrower in the ordinary course of business as Bank may reasonably request from time to time; and (vii) within 30 days of
the last day of each fiscal quarter, a report signed by Borrower, in form reasonably acceptable to Bank, listing any applications or registrations that Borrower has made or filed in respect of any Patents, Copyrights or Trademarks and the status of
any outstanding applications or registrations, as well as any material change in Borrower’s Intellectual Property Collateral, including but not limited to any subsequent ownership right of Borrower in or to any Trademark, Patent or Copyright
not specified in Exhibits A, B, and C of any Intellectual Property Security Agreement delivered to Bank by Borrower in connection with this Agreement. 
 (a) Within 30 days after the last day of each month, Borrower shall deliver to Bank with the monthly financial statements a Compliance Certificate certified as of the last day of the applicable month and signed
by a Responsible Officer in substantially the form of Exhibit D hereto. 
 (b) As soon as possible and in any event
within 3 calendar days after becoming aware of the occurrence or existence of an Event of Default hereunder, a written statement of a Responsible Officer setting forth details of the Event of Default, and the action which Borrower has taken or
proposes to take with respect thereto. 
 (c) Bank shall have a right from time to time hereafter to audit
Borrower’s Accounts and appraise Collateral at Borrower’s expense, provided that such audits will be conducted no more often than every 6 months unless an Event of Default has occurred and is continuing. 
 Borrower may deliver to Bank on an electronic basis any certificates, reports or information required pursuant to this Section 6.2, and Bank shall
be entitled to rely on the information contained in the electronic files, provided that Bank in good faith believes that the files were delivered by a Responsible Officer. If Borrower delivers this information electronically, it shall also deliver
to Bank by U.S. Mail, reputable overnight courier service, hand delivery, facsimile or .pdf file within 5 Business Days of submission of the unsigned electronic copy the certification of monthly financial statements, the intellectual property report
and the Compliance Certificate, each bearing the physical signature of the Responsible Officer. 
 6.3 Inventory;
Returns. Borrower shall keep all Inventory in good and merchantable condition, free from all material defects except for Inventory for which adequate reserves have been made. Returns and allowances, if any, as between Borrower and its account
debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist on the Closing Date. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims involving more
than $250,000. 
 6.4 Taxes. Borrower shall make, and cause each Subsidiary to make, due and timely payment or deposit
of all material federal, state, and local taxes, assessments, or contributions required of it by law, including, but not limited to, those laws concerning income taxes, F.I.C.A., F.U.T.A. and state disability, and will execute and deliver to Bank,
on demand, proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits and any appropriate certificates attesting to the payment or deposit thereof; provided that Borrower or a Subsidiary need not make any
payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower. 
 6.5 Insurance. 
 (a) Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers, and all other hazards and risks, and in such amounts, as ordinarily insured against by other owners in
similar businesses conducted in the locations where Borrower’s business is conducted on the date hereof. Borrower shall also maintain liability and other insurance in amounts and of a type that are customary to businesses similar to
Borrower’s. 
  

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 (b) All such policies of insurance shall be in such form, with such companies, and
in such amounts as are reasonably satisfactory to Bank. All policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory to Bank, showing Bank as an additional loss payee, and all liability insurance
policies shall show the Bank as an additional insured and shall specify that the insurer must give at least 20 days notice to Bank before canceling its policy for any reason. Upon Bank’s request, Borrower shall deliver to Bank certified copies
of the policies of insurance and evidence of all premium payments. If no Event of Default has occurred and is continuing, proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property
subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest. If an Event of Default has occurred and is continuing, all proceeds payable under any
such policy shall, at Bank’s option, be payable to Bank to be applied on account of the Obligations. 
 6.6 Accounts.
Borrower shall maintain all its depository and operating accounts with Bank and all its investment accounts with Bank or Bank’s Affiliates. 
 6.7 Intentionally Omitted. 
 6.8 Registration of Intellectual Property Rights.

 (a) Borrower shall register or cause to be registered on an expedited basis (to the extent not already registered)
with the United States Patent and Trademark Office or the United States Copyright Office, as the case may be, those registrable intellectual property rights now owned or hereafter developed or acquired by Borrower, to the extent that Borrower, in
its reasonable business judgment, deems it appropriate to so protect such intellectual property rights. 
 (b) Borrower
shall promptly give Bank written notice of any applications or registrations of intellectual property rights filed with the United States Patent and Trademark Office, including the date of such filing and the registration or application numbers, if
any. 
 (c) Borrower shall (i) give Bank not less than 30 days prior written notice of the filing of any
applications or registrations with the United States Copyright Office, including the title of such intellectual property rights to be registered, as such title will appear on such applications or registrations, and the date such applications or
registrations will be filed; (ii) prior to the filing of any such applications or registrations, execute such documents as Bank may reasonably request for Bank to maintain its perfection in such intellectual property rights to be registered by
Borrower; (iii) upon the request of Bank, either deliver to Bank or file such documents simultaneously with the filing of any such applications or registrations; (iv) upon filing any such applications or registrations, promptly provide
Bank with a copy of such applications or registrations together with any exhibits, evidence of the filing of any documents requested by Bank to be filed for Bank to maintain the perfection and priority of its security interest in such intellectual
property rights, and the date of such filing. 
 (d) Borrower shall execute and deliver such additional instruments and
documents from time to time as Bank shall reasonably request to perfect and maintain the perfection and priority of Bank’s security interest in the Intellectual Property Collateral. 
 (e) Borrower shall (i) protect, defend and maintain the validity and enforceability of the trade secrets, Trademarks, Patents
and Copyrights, (ii) use commercially reasonable efforts to detect infringements of the Trademarks, Patents and Copyrights and promptly advise Bank in writing of material infringements detected and (iii) not allow any material Trademarks,
Patents or Copyrights to be abandoned, forfeited or dedicated to the public without the written consent of Bank, which shall not be unreasonably withheld. 
 (f) Bank may audit Borrower’s Intellectual Property Collateral to confirm compliance with this Section 6.8, provided such audit may not occur more often than twice per year, unless an Event of Default
has occurred and is continuing. Bank shall have the right, but not the obligation, to take, at Borrower’s sole expense, any actions that Borrower is required under this Section 6.8 to take but which Borrower fails to take, after 15
days’ notice to Borrower. Borrower shall reimburse and indemnify Bank for all reasonable costs and reasonable expenses incurred in the reasonable exercise of its rights under this Section 6.8. 
  

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 6.9 Consent of Inbound Licensors. Prior to entering into or becoming bound by any
license or agreement, Borrower shall: (i) provide written notice to Bank of the material terms of such license or agreement with a description of its likely impact on Borrower’s business or financial condition; and (ii) in good faith
use commercially reasonable efforts to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for Borrower’s interest in such licenses or contract rights to be deemed Collateral and for Bank to have a security
interest in it that might otherwise be restricted by the terms of the applicable license or agreement, whether now existing or entered into in the future, provided, however, that the failure to obtain any such consent or waiver shall not constitute
a default under this Agreement. 
 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 Bank to effect the purposes of this Agreement. 
  

	 	7.	NEGATIVE COVENANTS. 

 Borrower covenants and agrees
that, so long as any credit hereunder shall be available and until the outstanding Obligations are paid in full or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will not do any of the following without
Bank’s prior written consent, which shall not be unreasonably withheld: 
 7.1 Dispositions. Convey, sell, lease,
license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, or move cash balances on deposit with Bank to accounts opened at another
financial institution, other than Permitted Transfers. 
 7.2 Change in Name, Location, Executive Office, or Executive
Management; Change in Business; Change in Fiscal Year; Change in Control. Change its name or the Borrower State or relocate its chief executive office without 30 days prior written notification to Bank; replace its chief executive officer or
chief financial officer without 30 days prior written notification to Bank; engage in any business, or permit any of its Subsidiaries to engage in any business, other than or reasonably related or incidental to the businesses currently engaged in by
Borrower; change its fiscal year end; have a Change in Control; notwithstanding the foregoing, the provisions of this Section 7.2 shall not apply to Borrower’s appointment of W. Thomas Amick as its Chief Executive Officer on or about the
date hereof. 
 7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with or into any other business organization (other than mergers or consolidations of a Subsidiary into another Subsidiary or into Borrower), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the
capital stock or property of another Person except where (i) such transactions do not in the aggregate exceed $250,000 during any fiscal year, (ii) no Event of Default has occurred, is continuing or would exist after giving effect to such
transactions, (iii) such transactions do not result in a Change in Control, and (iv) Borrower is the surviving entity. 
 7.4 Indebtedness. Create, incur, assume, guarantee or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness, or prepay any Indebtedness or take any actions which
impose on Borrower an obligation to prepay any Indebtedness, except Indebtedness to Bank. 
 7.5 Encumbrances. Create,
incur, assume or allow any Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens, or covenant
to any other Person that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien with respect to any of Borrower’s property. 
  

 9 

 7.6 Distributions. Pay any dividends or make any other distribution or payment on
account of or in redemption, retirement or purchase of any capital stock, except that Borrower may (i) repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such
repurchase or would not exist after giving effect to such repurchase, and (ii) repurchase the stock of former employees pursuant to stock repurchase agreements by the cancellation of indebtedness owed by such former employees to Borrower
regardless of whether an Event of Default exists. 
 7.7 Investments. Directly or indirectly acquire or own, or make
any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments, or maintain or invest any of its property with a Person other than Bank or Bank’s Affiliates or permit any Subsidiary to do so
unless such Person has entered into a control agreement with Bank, in form and substance satisfactory to Bank, or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary from paying dividends or
otherwise distributing property to Borrower. 
 7.8 Transactions with Affiliates. Directly or indirectly enter into or
permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained
in an arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated Debt. Make any payment in respect
of any Subordinated Debt, or permit any of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision affecting Bank’s rights contained in any documentation relating to the
Subordinated Debt without Bank’s prior written consent. 
 7.10 Inventory and Equipment. Store the Inventory or
the Equipment with a bailee, warehouseman, or similar third party unless the third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party that it is holding or will hold the
Inventory or Equipment for Bank’s benefit or (b) is in possession of the warehouse receipt, where negotiable, covering such Inventory or Equipment. Except for Inventory sold in the ordinary course of business and except for such other
locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment only at the location set forth in Section 10 and such other locations of which Borrower gives Bank prior written notice and as to which Bank files a
financing statement where needed to perfect its security interest. 
 7.11 No Investment Company; Margin Regulation.
Become or be controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the
purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. 
  

	 	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 Payment Default. If
Borrower fails to pay any of the Obligations when due; 
 8.2 Covenant Default. 
 (a) If Borrower fails to perform any obligation under Article 6 or violates any of the covenants contained in Article 7 of this
Agreement; or 
 (b) If Borrower fails or neglects to perform or observe any other material term, provision, condition,
covenant contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term, provision, condition or covenant that can be cured, has failed to
cure such default within 10 days after Borrower receives notice thereof or 

  

 10 

 
any officer of Borrower becomes aware thereof; provided, however, that if the default cannot by its nature be cured within the 10 day period or cannot after
diligent attempts by Borrower be cured within such 10 day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed 30 days) to attempt to
cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made; 
 8.3 Material Adverse Change. If there occurs any circumstance or circumstances which could have a Material Adverse Effect;

 8.4 Intentionally Omitted. 
 8.5 Attachment. 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 attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within 10 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 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 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 ten 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 (provided that no Credit Extensions will be made during such cure period); 
 8.6
Insolvency. If Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within 30 days (provided that no Credit Extensions
will be made prior to the dismissal of such Insolvency Proceeding); 
 8.7 Other Agreements. If there is a default or
other failure to perform in any agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess
of $250,000 or that would reasonably be expected to have a Material Adverse Effect; 
 8.8 Subordinated Debt. If
Borrower makes any payment on account of Subordinated Debt, except to the extent the payment is allowed under any subordination agreement entered into with Bank; 
 8.9 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least
$250,000 shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of 10 days (provided that no Credit Extensions will be made prior to the satisfaction or stay of the judgment); or 
 8.10 Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or
representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document. 
  

 11 

	 	9.	BANK’S RIGHTS AND REMEDIES. 

 9.1 Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are
authorized by Borrower: 
 (a) Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan
Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.5 (insolvency), all Obligations shall become immediately due and payable without any action by Bank);

 (b) Demand that Borrower (i) deposit cash with Bank in an amount equal to the amount of any letters of credit
remaining undrawn, as collateral security for the repayment of any future drawings under such letters of credit, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of the letters of credit,
and Borrower shall promptly deposit and pay such amounts; 
 (c) Cease advancing money or extending credit to or for
the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank; 
 (d) Settle or
adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable; 
 (e) Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral. Borrower agrees to assemble the Collateral if Bank so requires, and to make
the Collateral available to Bank as Bank may designate. Borrower authorizes Bank 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 encumbrance, charge, or lien which in Bank’s determination appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises,
Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies provided herein, at law, in equity, or otherwise; 
 (f) Set off and apply to the Obligations any and all (i) balances and deposits of Borrower held by Bank, and
(ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank; 
 (g) Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this
Section 9.1, to use, without charge, Borrower’s 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, as it pertains to
the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section 9.1, Borrower’s rights under all licenses and all franchise
agreements shall inure to Bank’s benefit; 
 (h) 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 Bank determines is commercially reasonable, and apply any proceeds to the Obligations in whatever manner
or order Bank deems appropriate. Bank may sell the Collateral without giving any warranties as to the Collateral. Bank may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the
commercial reasonableness of any sale of the Collateral. If Bank sells any of the Collateral upon credit, Borrower will be credited only with payments actually made by the purchaser, received by Bank, and applied to the indebtedness of the
purchaser. If the purchaser fails to pay for the Collateral, Bank may resell the Collateral and Borrower shall be credited with the proceeds of the sale; 
 (i) Bank may credit bid and purchase at any public sale; 
 (j) Apply for the
appointment of a receiver, trustee, liquidator or conservator of the Collateral, without notice and without regard to the adequacy of the security for the Obligations and without regard to the solvency of Borrower, any guarantor or any other Person
liable for any of the Obligations; and 
  

 12 

 (k) Any deficiency that exists after disposition of the Collateral as provided
above will be paid immediately by Borrower. 
 Bank may comply with any applicable state or federal law requirements in connection with a disposition of the
Collateral and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. 
 9.2 Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true
and lawful attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or security that
may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to
account debtors; (d) dispose of any Collateral; (e) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and claims respecting the accounts
directly with account debtors, for amounts and upon terms which Bank determines to be reasonable; (g) enter into a short-form intellectual property security agreement consistent with the terms of this Agreement for recording purposes only or
modify, in its sole discretion, any intellectual property security agreement entered into between Borrower and Bank without first obtaining Borrower’s approval of or signature to such modification by amending Exhibits A, B, and C, thereof, as
appropriate, to include reference to any right, title or interest in any Copyrights, Patents or Trademarks acquired by Borrower after the execution hereof or to delete any reference to any right, title or interest in any Copyrights, Patents or
Trademarks in which Borrower no longer has or claims to have any right, title or interest; and (h) file, in its sole discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without
the signature of Borrower where permitted by law; provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clauses (g) and (h) above, regardless of whether an Event of Default has
occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been fully repaid and performed and
Bank’s obligation to provide advances hereunder is terminated. 
 9.3 Accounts Collection. At any time after the
occurrence and during the continuation of an Event of Default, Bank may notify any Person owing funds to Borrower of Bank’s security interest in such funds and verify the amount of such Account. Borrower shall collect all amounts owing to
Borrower for Bank, receive in trust all payments as Bank’s trustee, and immediately deliver such payments to Bank in their original form as received from the account debtor, with proper endorsements for deposit. 
 9.4 Bank Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities
who have a valid claim for payment, as required under the terms of this Agreement, then Bank may do any or all of the following after reasonable notice to Borrower: (a) make payment of the same or any part thereof; (b) set up such reserves
under the Revolving Line as Bank deems necessary to protect Bank from the exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.5 of this Agreement, and take any action with
respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided, and shall be
secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments in the future or a waiver by Bank of any Event of Default under this Agreement. 
 9.5 Bank’s Liability for Collateral. Bank has no obligation to clean up or otherwise prepare the Collateral for sale. All risk
of loss, damage or destruction of the Collateral shall be borne by Borrower. 
 9.6 No Obligation to Pursue Others.
Bank has no obligation to attempt to satisfy the Obligations by collecting them from any other person liable for them and Bank may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without
affecting Bank’s rights against Borrower. Borrower waives any right it may have to require Bank to pursue any other Person for any of the Obligations. 
  

 13 

 9.7 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the
Loan Documents, and all other agreements shall be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right or remedy shall be deemed an
election, and no waiver by Bank of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be effective unless made in a
written document signed on behalf of Bank and then shall be effective only in the specific instance and for the specific purpose for which it was given. Borrower expressly agrees that this Section 9.7 may not be waived or modified by Bank by
course of performance, conduct, estoppel or otherwise. 
 9.8 Demand; Protest. Except as otherwise provided in this
Agreement, Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment and any other notices relating to the Obligations. 
  

	 	10.	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 a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its
addresses set forth below: 
  

			
	If to Borrower:	  	ALDAGEN, INC.
		  	2810 Meridian Parkway, Suite 148
		  	Durham, NC 27713
		  	Attn: Ed Field – President and CEO
		  	FAX: (919) 484-8792
		
	If to Bank:	  	Square 1 Bank
		  	406 Blackwell Street, Suite 240
		  	Crowe Building
		  	Durham, NC 27701
		  	Attn: Manager
		  	FAX: (919) 314-3080
		
	with a copy to:	  	Square 1 Bank
		  	406 Blackwell Street, Suite 240
		  	Crowe Building
		  	Durham, NC 27701
		  	Attn: Peter Meath – Vice President
		  	FAX: (919) 314-3080

 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. 
  

	 	11.	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 North Carolina, without regard to principles of conflicts of law. BANK AND BORROWER WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN, INCLUDING CLAIMS BASED ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES. Borrower submits to the exclusive jurisdiction of the state and federal
courts located in the Counties of Durham or Wake, State of North Carolina. If the jury waiver set forth in this Section is not enforceable, then any dispute, controversy or claim arising out of or relating to this Agreement or any of the
transactions contemplated herein will be finally settled by binding arbitration in Durham, North Carolina in accordance with the then-current Commercial 

  

 14 

 
Arbitration Rules of the American Arbitration Association by one arbitrator appointed in accordance with said rules. The arbitrator shall apply North
Carolina law to the resolution of any dispute, without reference to rules of conflicts of law or rules of statutory arbitration. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this paragraph. The expenses of the arbitration, including the
arbitrator’s fees and expert witness fees, incurred by the parties to the arbitration, may be awarded to the prevailing party, in the discretion of the arbitrator, or may be apportioned between the parties in any manner deemed appropriate by
the arbitrator. Unless and until the arbitrator decides that one party is to pay for all (or a share) of such expenses, both parties shall share equally in the payment of the arbitrator’s fees as and when billed by the arbitrator. 

 

	 	12.	GENERAL PROVISIONS. 

 12.1
Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties and shall bind all persons who become bound as a debtor to this Agreement; provided, however,
that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or
notice to Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits hereunder. 
 12.2 Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents against:
(a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions contemplated by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by
Bank, its officers, employees and agents as a result of or in any way arising out of, following, or consequential to transactions between Bank and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys
fees and expenses), except for losses caused by Bank’s gross negligence or willful misconduct. 
 12.3 Time of
Essence. Time is of the essence for the performance of all obligations set forth in this Agreement. 
 12.4
Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.5 Amendments in Writing, Integration. All amendments to or terminations of this Agreement or the other Loan Documents must be in
writing. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are merged into this Agreement and the
Loan Documents. 
 12.6 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. 
 12.7 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long
as any Obligations remain outstanding or Bank has any obligation to make any Credit Extension to Borrower. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in
Section 12.2 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have run. 
 12.8 Confidentiality. In handling any confidential information, Bank and all employees and agents of Bank shall exercise the same degree of care that Bank exercises with respect to its own proprietary
information of the same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement except that disclosure of such information may be made (i) to the subsidiaries 

  

 15 

 
or Affiliates of Bank in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of
any interest in the Loans, provided that they have entered into a comparable confidentiality agreement in favor of Borrower and have delivered a copy to Borrower, (iii) as required by law, regulations, rule or order, subpoena, judicial order or
similar order, (iv) as may be required in connection with the examination, audit or similar investigation of Bank and (v) as Bank may determine in connection with the enforcement of any remedies hereunder. Confidential information
hereunder shall not include information that either: (a) is in the public domain or in the knowledge or possession of Bank when disclosed to Bank, or becomes part of the public domain after disclosure to Bank through no fault of Bank; or
(b) is disclosed to Bank by a third party, provided Bank does not have actual knowledge that such third party is prohibited from disclosing such information. 
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. 
  

			
	ALDAGEN, INC.
		
	By:	 	/s/ W. Thomas Amick
	Title:	 	Chairman, CEO
	
	SQUARE 1 BANK
		
	By:	 	/s/ Peter Meath
	Title:	 	VP

  

 16 

 EXHIBIT A 
 DEFINITIONS 
 “Accounts” means all presently existing and hereafter arising accounts, contract rights, payment intangibles and all other
forms of obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower 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. 
 “Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common control with such Person, and each of such
Person’s senior executive officers, directors, and partners. 
 “Bank Expenses” means all reasonable costs or expenses (including reasonable
attorneys’ fees and expenses generated by outside counsel) incurred in connection with the preparation, negotiation, administration, and enforcement of the Loan Documents; reasonable Collateral audit fees; and Bank’s reasonable
attorneys’ fees and expenses (generated by outside counsel) incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit
is brought. 
 “Bridge Loan” has the meaning ascribed to such term in Section 2.1(b) hereof. 
 “Bridge Loan Maturity Date” means the earlier of (i) July 31, 2006 or (ii) the date upon which Borrower has received at least $5,000,000 in New
Equity. 
 “Borrower State” means Delaware, the state under whose laws Borrower is organized. 
 “Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities, the
Collateral, business operations or financial condition; and all computer programs, or tape files, and the equipment, containing such information. 
 “Business Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of North Carolina are authorized or required to close. 
 “Cash” means unrestricted cash and cash equivalents. 
 “Change in Control” shall mean a transaction in
which any “person” or “group” (within the meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended), directly or indirectly, of a sufficient number of shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or
“group” to elect a majority of the Board of Directors of Borrower, who did not have such power before such transaction. 
 “Chief Executive
Office State” means North Carolina, where Borrower’s chief executive office is located. 
 “Closing Date” means the date of this
Agreement. 
 “Code” means the North Carolina Uniform Commercial Code as amended or supplemented from time to time. 
 “Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral and Intellectual Property Collateral to the extent not
described on Exhibit B, except to the extent any such property (i) is nonassignable by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable
law, including, without limitation, Sections 9406 and 9408 of the Code), (ii) the granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property
shall automatically become part of the Collateral, or 
  

 1 

 (iii) constitutes the capital stock of a controlled foreign corporation (as defined in the IRC), in excess of 65% of the
voting power of all classes of capital stock of such controlled foreign corporations entitled to vote. 
 “Collateral State” means the state or
states where the Collateral is located, which is North Carolina. 
 “Contingent Obligation” means, as applied to any Person, any direct or indirect
liability, contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed,
endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit cards or
merchant services issued for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or
arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or
deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the
guarantee or other support arrangement. 
 “Copyrights” means any and all copyright rights, copyright applications, copyright registrations and
like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created, acquired or held. 
 “Credit Extension” means the Bridge Loan, or any other extension of credit by Bank to or for the benefit of Borrower hereunder. 
 “Environmental Laws” means all laws, rules, regulations, orders and the like issued by any federal state, local foreign or other governmental or
quasi-governmental authority or any agency pertaining to the environment or to any hazardous materials or wastes, toxic substances, flammable, explosive or radioactive materials, asbestos or other similar materials. 
 “Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which
Borrower has any interest. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.

 “Event of Default” has the meaning assigned in Article 8. 
 “GAAP” means generally accepted accounting principles, consistently applied, as in effect from time to time. 
 “Indebtedness”
means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations
evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations, and (d) all Contingent Obligations. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or insolvency law, including assignments
for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 
 “Intellectual Property Collateral” means all of Borrower’s right, title, and interest in and to the following: 
 (a) Copyrights, Trademarks and Patents; 
  

 2 

 (b) Any and all trade secrets, and any and all intellectual property rights in computer software and computer
software products now or hereafter existing, created, acquired or held; 
 (c) Any and all design rights which may be available to Borrower now or
hereafter existing, created, acquired or held; 
 (d) Any and all claims for damages by way of past, present and future infringement of any of the
rights included above, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the intellectual property rights identified above; 
 (e) All licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees and royalties arising from such use to the extent permitted by such license or rights; 
 (f) All amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents; and 
 (g) All proceeds and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing. 
 “Inventory” means all present and future inventory in which Borrower has any interest. 
 “Investment” means any beneficial ownership of (including stock, partnership or limited liability company interest or other securities) any Person, or any loan, advance or capital contribution to any Person.

 “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 
 “Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
 “Loan Documents” means, collectively, this Agreement, any note or notes executed by Borrower, and any other document, instrument or agreement entered into in
connection with this Agreement, all as amended or extended from time to time. 
 “Material Adverse Effect” means a material adverse effect on
(i) the business operations, condition (financial or otherwise) or prospects of Borrower and its Subsidiaries taken as a whole, (ii) the ability of Borrower to repay the Obligations or otherwise perform its obligations under the Loan
Documents, or (iii) Borrower’s interest in, or the value, perfection or priority of Bank’s security interest in the Collateral. 
 “Negotiable Collateral” means all of Borrower’s present and future letters of credit of which it is a beneficiary, drafts, instruments (including promissory notes), securities, documents of title, and chattel paper, and
Borrower’s Books relating to any of the foregoing. 
 “New Equity” means cash proceeds received after the Closing Date from the sale or
issuance of Borrower’s equity securities. 
 “Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank
by Borrower pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and
including any debt, liability, or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise. 
 “Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Periodic Payments” means all installments or similar recurring payments that Borrower may now or hereafter become obligated to pay to Bank pursuant to the
terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank. 
  

 3 

 “Permitted Indebtedness” means: 
 (a) Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan Document; 
 (b)
Indebtedness existing on the Closing Date and disclosed in the Schedule; 
 (c) Indebtedness not to exceed $250,000 in the aggregate in any fiscal
year of Borrower secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness;

 (d) Subordinated Debt; 
 (e) Indebtedness to
trade creditors incurred in the ordinary course of business; and 
 (f) Extensions, refinancings and renewals of any items of Permitted Indebtedness,
provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investment” means: 
 (a) Investments existing on the Closing Date disclosed in the Schedule; 
 (b) (i) Marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within
one year from the date of acquisition thereof, (ii) commercial paper maturing no more than one year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or
Moody’s Investors Service, (iii) Bank’s certificates of deposit maturing no more than one year from the date of investment therein, and (iv) Bank’s money market accounts; 
 (c) Repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase agreements (i) in an aggregate amount not to
exceed $250,000 in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases, or (ii) in any amount where the consideration for the repurchase is the cancellation of
indebtedness owed by such former employees to Borrower regardless of whether an Event of Default exists; 
 (d) Investments accepted in connection
with Permitted Transfers; 
 (e) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries not
to exceed $250,000 in the aggregate in any fiscal year; 
 (f) Investments not to exceed $250,000 in the aggregate in any fiscal year consisting of
(i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its
Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board of Directors; 
 (g) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s
business; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are
not Affiliates, in the ordinary course of business, provided that this subparagraph (h) shall not apply to Investments of Borrower in any Subsidiary; and 
  

 4 

 (i) Joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the
non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash Investments by Borrower do not exceed $250,000 in the aggregate in any fiscal year. 
 “Permitted Liens” means the following: 
 (a) Any Liens
existing on the Closing Date and disclosed in the Schedule (excluding Liens to be satisfied with the proceeds of the Advances) or arising under this Agreement or the other Loan Documents; 
 (b) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings
and for which Borrower maintains adequate reserves, provided the same have no priority over any of Bank’s security interests; 
 (c) Liens not to
exceed $250,000 in the aggregate (i) upon or in any Equipment (other than Equipment financed by an Equipment Advance) acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such Equipment or indebtedness
incurred solely for the purpose of financing the acquisition or lease of such Equipment, or (ii) existing on such Equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements
thereon, and the proceeds of such Equipment; 
 (d) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness
secured by Liens of the type described in clauses (a) through (e) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness
being extended, renewed or refinanced does not increase; 
 (e) Liens arising from judgments, decrees or attachments in circumstances not constituting
an Event of Default under Sections 8.5 (attachment) or 8.9 (judgments); and 
 (f) Liens securing Subordinated Debt. 
 “Permitted Transfer” means the conveyance, sale, lease, transfer or disposition by Borrower or any Subsidiary of: 
 (a) Inventory in the ordinary course of business; 
 (b)
licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; 
 (c) worn-out or
obsolete Equipment not financed with the proceeds of Equipment Advances; or 
 (d) other assets of Borrower or its Subsidiaries that do not in the
aggregate exceed $250,000 during any fiscal year. 
 “Person” means any individual, sole proprietorship, partnership, limited liability company,
joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency. 
 “Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,” whether or not such announced rate is the lowest rate available from Bank.

 “Responsible Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of
Borrower. 
 “Schedule” means the schedule of exceptions attached hereto and approved by Bank, if any. 
  

 5 

 “SOS Reports” means the official reports from the Secretaries of State of each Collateral State, Chief
Executive Office State and the Borrower State and other applicable federal, state or local government offices identifying all current security interests filed in the Collateral and Liens of record as of the date of such report. 
 “Subordinated Debt” means any debt incurred by Borrower that is subordinated in writing to the debt owing by Borrower to Bank on terms reasonably acceptable to
Bank (and identified as being such by Borrower and Bank). 
 “Subsidiary” means any corporation, partnership or limited liability company or joint
venture in which (i) any general partnership interest or (ii) more than 50% of the stock, limited liability company interest or joint venture of which by the terms thereof ordinary voting power to elect the Board of Directors, managers or
trustees of the entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 
 “Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with
and symbolized by such trademarks. 
  

 6 

			
	DEBTOR	  	ALDAGEN, INC.
		
	SECURED PARTY:	  	SQUARE 1 BANK

 EXHIBIT B 
 COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT 
 All personal property of Borrower
(herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not limited to: 
 (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts,
documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles and software), goods (including
fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and
securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; 
 (b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all
supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised Division 9
of the Uniform Commercial Code-Secured Transactions. 

 FIRST AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This First Amendment (the “Amendment”) to that certain Loan and Security Agreement dated March 21, 2006 (as may be amended from time to time, and together with related documents, the “Existing Loan
Agreement”), between Aldagen, Inc. (“Borrower”) and Square 1 Bank (“Bank”) is made as of this 26th day of July, 2006. 
 Now,
therefore, Borrower and Bank wish to amend the Existing Loan Agreement as follows: 
  

	1)	The definition of “Bridge Loan Maturity Date” in Exhibit A is hereby amended and restated as follows: 

 “Bridge Loan Maturity Date’ means the earlier of (i) August 30, 2006 or (ii) the date upon which the Borrower has received at
least $5,000,000 in New Equity.” 
  

	2)	The Existing Loan Agreement is hereby amended wherever necessary to reflect the changes described above. 

  

	3)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, (i) no other portion of the Agreement is amended hereby and (ii) the execution, delivery, and
performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. 

  

	4)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

 (a) this Amendment, duly executed by Borrower; 
 (b) all reasonable Bank Expenses incurred through the date of this Amendment, including a $500 documentation fee, which may be debited
from any of Borrower’s accounts; and 
 (c) such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate. 
  

	5)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

  

	6)	By signing below, the parties confirm that in modifying the Existing Loan Agreement, Bank is relying upon Borrower’s representations, warranties, and agreements as set forth in
the Existing Loan Agreement. Except as expressly modified hereby, the Existing Loan Agreement remains unchanged and in full force and effect. Bank’s agreement to amend the Existing Loan Agreement in no way obligates Bank to make any future
amendments to any other provisions of the Existing Loan Agreement. 

  

									
	 BORROWER
	 		 	BANK
			
	Aldagen, Inc.	 		 	Square 1 Bank
					
	By: 	 	/s/ W. Thomas Amick	 		 	By: 	 	/s/ Peter Meath
	Its: 	 	 	 		 	Its: 	 	VP

 SECOND AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Second Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of August 30, 2006, by and between SQUARE 1
BANK (“Bank”) and ALDAGEN, INC. (“Borrower”). 
 RECITALS 
 Borrower and Bank are parties to that certain Loan and Security Agreement dated as of March 21, 2006, as amended from time to time including by that
certain First Amendment to Loan and Security Agreement dated as of March 21, 2006 (the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
 NOW, THEREFORE, the parties agree as follows: 
 1. The following defined term in Exhibit A of the Agreement hereby is amended and restated to read as follows: 
 “Bridge Loan Maturity Date” means the earlier of (i) November 30, 2006 or (ii) the date upon which Borrower has received at least $5,000,000 in New Equity. 
 2. Section 2.1(b)(i) of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “Subject to and upon the terms and conditions of this Agreement, on the Closing Date or as soon thereafter as is practical, Bank
shall make one bridge loan to Borrower in an aggregate amount not to exceed $3,000,000 (the “Bridge Loan”), which amount shall be used to support the general capital needs of Borrower.” 
 3. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver
thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank
thereafter to demand strict compliance and perfomance. Any suspension or waiver of a right must be in writing signed by an officer of Bank. 
 4. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and
hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of or as an amendment of, any right, power, or remedy of Bank under the
Agreement, as in effect prior to the date hereof. 
 5. Borrower represents and wanants that the Representations and Warranties contained in
the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 
 6. As a
condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 
 (a) this Amendment, duly executed by Borrower; 
 (b) a Certificate of the Secretary of
Borrower with respect to incumibency and resolutions authorizing the execution and delivery of this Amendment; 
 (c) an
amendment fee in the amount of $2,500, which may be debited from any of Borrower’s accounts; 
 (d) a Warrant to purchase
stock; 

 (e) all reasonable Bank Expenese incurred through the date of this Amendment, which may
be debited from any of Borrower’s accounts; and 
 (f) such other documents, and completion of such other matters, as
Bank may reasonably deem necessary or appropriate. 
 7. This Amendment may be executed in two of more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument. 

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

  

			
	ALDAGEN, INC.
		
	By:	 	/s/ W. Thomas Amick

			
	Title:	 	Chairman & CEO

			
	
	SQUARE 1 BANK
		
	By:	 	/s/ Peter Meath

			
	Title:	 	VP—Venture Banking

 THIRD AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Third Amendment (the “Amendment”) to that certain Loan and Security Agreement dated March 21, 2006 (as may be amended from time to time, and together with related documents, the “Existing Loan
Agreement”), between Aldagen, Inc. (“Borrower”) and Square 1 Bank (“Bank”) is made as of this 29th day of November, 2006. 
 Now,
therefore, Borrower and Bank wish to amend the Existing Loan Agreement as follows: 
  

	1)	The definition of “Bridge Loan Maturity Date” in Exhibit A is hereby amended and restated as follows: 

 ‘“Bridge Loan Maturity Date’ means December 15, 2006 or (ii) the date upon which the Borrower has received at least $5,000,000 in
New Equity.” 
  

	2)	The Existing Loan Agreement is hereby amended wherever necessary to reflect the changes described above. 

  

	3)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, (i) no other portion of the Agreement is amended hereby and (ii) the execution, delivery, and
performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. 

  

	4)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

 (a) this Amendment, duly executed by Borrower; 
 (b) all reasonable Bank Expenses incurred through the date of this Amendment, including a $250 documentation fee, which may be debited
from any of Borrower’s accounts; and 
 (c) such other documents, and completion of such other matters, as Bank may
reasonably deem necessary or appropriate. 
  

	5)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

  

	6)	By signing below, the parties confirm that in modifying the Existing Loan Agreement, Bank is relying upon Borrower’s representations, warranties, and agreements as set forth in
the Existing Loan Agreement Except as expressly modified hereby, the Existing Loan Agreement remains unchanged and in full force and effect. Bank’s agreement to amend the Existing Loan Agreement in no way obligates Bank to make any future
amendments to any other provisions of the Existing Loan Agreement. 

  

									
	BORROWER	 		 	BANK
			
	Aldagen, Inc.	 		 	Square 1 Bank
					
	By:	 	/s/ W. Thomas Amick	 		 	By:	 	/s/ Illegible
	Its:	 	Chairman, CEO	 		 	Its:	 	Vice President

 FOURTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Fourth Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of December 4, 2006, by and between SQUARE 1
BANK (“Bank”) and ALDAGEN, INC. (“Borrower”). 
 RECITALS 
 Borrower and Bank are parties to that certain Loan and Security Agreement dated as of March 21, 2006, as amended from time to time including by that
certain First Amendment to Loan and Security Agreement dated as of July 26, 2006, that certain Second Amendment to Loan and Security Agreement dated as of August 30, 2006 and that certain Third Amendment to Loan and Security Agreement
dated as of November 29, 2006 (the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
 NOW, THEREFORE, the parties agree as follows: 
 1. The following defined term in Exhibit A of the Agreement
hereby is amended and restated to read as follows: 
 “Bridge Loan Maturity Date” means May 30, 2010.

 “New Equity” means cash proceeds received after November 15, 2006 from the sale or issuance of
Borrower’s equity securities. 
 2. Section 2.1 (b)(ii) of the Agreement is hereby amended and restated in its entirety to read as
follows: 
 “(ii) Interest shall accrue from the date the Bridge Loan is made at the rate specified in
Section 2.3(a), and shall be payable quarterly on the last day of each calendar quarter commencing on December 31, 2006 in accordance with Section 2.3(c). The Bridge Loan shall be payable in 24 equal monthly installments of principal,
plus all accrued interest, beginning on June 30, 2008, and continuing on the same day of each month thereafter through the Bridge Loan Maturity Date, at which time all amounts due in connection with the Bridge Loan shall be immediately due and
payable. The Bridge Loan, once repaid, may not be reborrowed. Borrower may prepay the Bridge Loan without penalty or premium.” 
 Section 2.3(a) of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “(a) Interest Rate for Bridge Loan. Except as set forth in Section 2.3(b), the Bridge Loan shall bear interest, on the outstanding daily balance thereof, at a variable rate equal to (i) 1.00% above the Prime Rate from
the Closing Date through May 29, 2008 and (ii) 1.50% above the Prime Rate at all times thereafter.” 
 4. Section 2.3(c)
of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “(c) Payments. Interest
hereunder shall be due and payable on the last calendar day of each calendar quarter during the term hereof. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit
accounts or against the Bridge Line, in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest
shall thereafter accrue interest at the rate then applicable hereunder.” 
 5. Section 6.7 of the Agreement is hereby amended and
restated in its entirety to read as follows: 
 “6.7 New Equity; Milestones. Borrower shall achieve the following

 (a) New Equity. Borrower shall have received at least (i) $6,700,000 in New Equity no later than
December 15, 2006 and (ii) an additional $3,300,000 in New Equity no later than June 30, 2007. 

 (b) Milestones. 
 (i) Borrower shall have successfully completed patient enrollment and collection of neutrophil engraftment, platelet engraftment and 180
day survival data in its Phase 1 cord blood study no later than May 30, 2007. 
 (ii) Borrower shall have successfully
completed 10 patient enrollments and collection of safety data and 6 month data points on qualify of life and exercise capacity in chronic heart failure study no later than October 31, 2007. 
 (iii) Borrower shall have successfully completed 20 patient enrollments and collection of safety data and 3 month data points of
transcutaneous oxygen pressure (increased blood flow to appendage), rest pain and quality of life in Phase I/II critical limb ischemia study no later than November 30, 2007. 
 In each case, Borrower’s investors shall have confirmed achievement of each Milestone to Bank’s satisfaction. 
 6. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver
thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank
thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank. 
 7. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and
hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the
Agreement, as in effect prior to the date hereof. 
 8. Borrower represents and warrants that the Representations and Warranties contained in
the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 
 9. As a
condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 
 (a) this Amendment, duly executed by Borrower; 
 (b) a Certificate of the Secretary of
Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Amendment; 
 (c) an
amendment fee in the amount of $2,500, which may be debited from any of Borrower’s accounts; 
 (d) a Warrant to purchase
stock; 
 (e) all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of
Borrower’s accounts; and 
 (f) such other documents, and completion of such other matters, as Bank may reasonably deem
necessary or appropriate. 
 10. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one instrument. 

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

  

			
	ALDAGEN, INC.
		
	 By:
	 	/s/ W. Thomas Amick
	 Title
	 	 
	
	SQUARE 1 BANK
		
	 By:
	 	/s/ Illegible
	 Title
	 	 

 FIFTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Fifth Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of December 14, 2006, by and between SQUARE 1
BANK (“Bank”) and ALDAGEN, INC. (“Borrower”). 
 RECITALS 
 Borrower and Bank are parties to that certain Loan and Security Agreement dated as of March 21, 2006, as amended from time to time including by that
certain First Amendment to Loan and Security Agreement dated as of July 26, 2006, that certain Second Amendment to Loan and Security Agreement dated as of August 30, 2006, that certain Third Amendment to Loan and Security Agreement dated
as of November 29, 2006 and that certain Fourth Amendment to Loan and Security Agreement dated as of December 4, 2006 (the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

 NOW, THEREFORE, the parties agree as follows: 
 1. The following defined term in Exhibit A of the Agreement hereby is amended and restated to rend as follows: 
 “Collateral” means the property described on Exhibit B attached hereto and all Negotiable Collateral to the extent not described on Exhibit B, except to the extent any such property (i) is nonassignable
by its terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the Code), (ii) the
granting of a security interest therein is contrary to applicable law, provided that upon the cessation of any such restriction or prohibition, such property shall automatically become part of the Collateral, or (iii) constitutes the capital
stock of a controlled foreign corporation (as defined in the JRC), in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporations entitled to vote. 
 2. The defined terms “Copyrights”, “Intellectual Property Collateral”, “Patents” and ‘Trademarks” are hereby
deleted from the Agreement in their entirety. 
 3. Section 4.1 of the Agreement is hereby amended and restated in its entirety to read
as follows: 
 “4.1 Grant of Security Interest. Borrower grants and pledges to Bank a continuing security interest
in the Collateral to secure prompt repayment of any and all Obligations and in order to secure prompt performance by Borrower of each of its covenants and duties under the Loan Documents. Except as set forth in the Schedule, such security interest
constitutes a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security interest in later-acquired Collateral. Borrower also hereby agrees to not sell, transfer, assign,
mortgage, pledge, lease, grant a security interest in, or encumber any of its intellectual property. Notwithstanding any termination, Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations are outstanding.”

 4. Section 5.4 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “5.4 Intellectual Property. Borrower is the sole owner of its patents, trademarks, copyrights and other intellectual properly,
except for non-exclusive licenses granted by Borrower to its customers in the ordinary course of business. To the best of Borrower’s knowledge, each of Borrower’s patents, trademarks and copyrights is valid and enforceable, and no part of
its intellectual property has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower that any part of its Intellectual properly violates the rights of any third party except to the extent such claim would
not reasonably be expected to cause a Material Adverse Effect.” 
 5. Section 6.2(vii) of the Agreement is hereby deleted in its
entirety. 

 6. Section 6.7(a) of the Agreement is hereby amended and restated in its entirety to read as
follows: 
 (a) New Equity. Borrower shall have received at least (i) $6,600,000 in New Equity no later than
December 21, 2006 and (ii) an additional $3,330,000 in New Equity no later than (a) November 30, 2007.” 
 7. The
last sentence of Section 6.7 is hereby amended and restated in its entirety to read as follows: 
 “In each case,
(a) Borrower will confirm achievement of each Milestone in writing to Bank and Borrower’s investors (each such confirmation, a “Notice”), and (b) Borrower’s investors shall subsequently confirm in writing to Bank, to
Bank’s satisfaction, that Borrower’s investors have received the applicable Notice from Borrower and, to such investor’s knowledge, the maters expressed in such notice are true and correct.” 
 8. Section 6.8 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “6.8 Intentionally Omitted.” 
 9. Section 7.1 of the Agreement is hereby amended and restated in its entirety lo read as follows: 
 “7.1 Dispositions. Convey, sell, lease, license, transfer or otherwise dispose of (collectively, to “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or
property, including its intellectual property, or move cash balances on deposit with Bank to accounts opened at another financial institution, other than Permitted Transfers.” 
 10. Section 7.5 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “Encumbrances. Create, incur, assume or allow any Lien with respect to any of its property, or assign or otherwise convey any
right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens. Agree with any Person other than Bank not to grant a security interest in, or otherwise encumber, any of its or
covenant to any Other Person that Borrower in the future will refrain from creating, incurring, assuming or allowing any Lien will respect to any of Borrower’s property, or permit any Subsidiary to do so.” 
 11. A new Section 8.11 is hereby added to the Agreement as follows: 
 “8.11 Investor Support. If Borrower investors (as determined by Bank in its sole discretion) inform Bank that Borrower has not
met any investor mandated milestone such that Borrower’s investors will not provide Borrower with the New Equity required by this Agreement.” 
 12. Section 9.2 of the Agreement is hereby amended and restated in its entirety to read as follows: 
 “9.2 Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or
employees) as Borrower’s true and lawful attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the Accounts; (b) endorse Borrower’s name on any checks or other
forms of payment or security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications
of Accounts, and notices to account debtors; (d) dispose of any Collateral; (c) make, settle, and adjust disputes and claims under and decisions with respect to Borrower’s policies of insurance; (f) settle and adjust disputes and
claims respecting the accounts directly with account debtors, for amounts and upon terms which Bank determines to be reasonable; and (g) file, in its sole discretion, one or more financing or continuation statements and amendments thereto,
relative to any of the Collateral without the signature of Borrower where permitted by law; provided Bank may exercise such power of attorney to sign the name of Borrower on any of the documents described in clause (g) above, regardless of
whether an Event of Default has occurred. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations have been
fully repaid and performed and Bank’s obligation to provide advances hereunder is terminated.” 

 13. Exhibit B to the Agreement is hereby replaced with Exhibit B attached hereto. 
 14. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver
thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank
thereafter to demand strict compliance and performance. Any suspension or waiver of a right must by in writing signed by on officer of Bank. 
 15. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and
hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Back under the
Agreement, as in effect prior to the date hereof. 
 16. Borrower represents and warrants that the Representations and Warranties contained
in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 
 17.
As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 
 (a) this Amendment, duly executed by Borrower; 
 (b) a Certificate of the Secretary of
Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Amendment; 
 (c) a
facility fee in the amount of $7,000 which may be debited from any of Borrower’s accounts; 
 (d) a bank documentation
fee of $500 which may be debited from any of Borrower’s accounts; 
 (e) all other reasonable Bank Expenses incurred
through the date of this Amendment, which may be debited from any of Borrower’s accounts; and 
 (f) such other
documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 
 18. This Amendment may be executed
in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

  

			
	ALDAGEN, INC.
		
	By:	 	/s/ Edward L. Field
		
	Title:	 	President & COO
	
	SQUARE 1 BANK
		
	By:	 	/s/ Illegible
		
	Title:	 	VP

					
	DEBTOR	  	ALDAGEN, INC.	  	
	SECURED PARTY:	  	SQUARE 1 BANK	  	

 EXHIBIT B 
 COLLATERAL DESCRIPTION ATTACHMENT TO LOAN AND SECURITY AGREEMENT 
 All personal property of Borrower
(herein referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not limited to: 
 (a) all accounts (including health-care insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit accounts,
documents (including negotiable documents), equipment (including all accessions and additions thereto), financial assets, general intangibles (including patents, trademarks, copyrights, goodwill, payment intangibles and software), goods (including
fixtures), instruments (including promissory notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and
securities entitlements), letter of credit rights, money, and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; 
 (b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting
obligations and the security therefor or for any right to payment. All terms above have the meanings given to them in the North Carolina Uniform Commercial Code, as amended or supplemented from time to time, including revised Division 9 of
the Uniform Commercial Code-Secured Transactions. 
 Notwithstanding the foregoing, the Collateral shall not include any copyrights, patents,
trademarks, servicemarks and applications therefor, now owned or hereafter acquired, or any claims for damages by way of any past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”);
provided, however, that the Collateral shall include all 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 March 21, 2006, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest in the Rights to Payment. 

 SIXTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Sixth Amendment (the “Amendment”) to that certain Loan and Security Agreement dated March 21, 2006 (as may be amended from time to time, and together with related documents, the “Existing Loan
Agreement”), between Aldagen, Inc. (“Borrower”) and Square 1 Bank (“Bank”) is made as of this 27th day of November, 2007. 
 Now,
therefore, Borrower and Bank wish to amend the Existing Loan Agreement as follows: 
  

	1)	The following definition in Exhibit A is hereby amended and restated as follows: 

 “Permitted Indebtedness” means: 
 (a) Indebtedness of Borrower in favor of Bank arising under this
Agreement or any other Loan Document; 
 (b) Indebtedness existing on the Closing Date and disclosed in the Schedule; 
 (c) Indebtedness not to exceed $260,000 in the aggregate in any fiscal year of Borrower secured by a lien described in clause (c) of the defined term
“Permitted Liens,” provided such Indebtedness does not exceed at the time it is incurred the lesser of the cost or fair market value of the property financed with such Indebtedness; 
 (d) Subordinated Debt; 
 (e) Indebtedness to
trade creditors incurred in the ordinary course of business; and 
 (f) Extensions, refinancings and renewals of any items of Permitted
Indebtedness, provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
  

	2)	The Existing Loan Agreement is hereby amended wherever necessary to reflect the changes described above. 

  

	3)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, (i) no other portion of the Agreement is amended hereby and (ii) the execution, delivery, and
performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. 

  

	4)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

 (a) this Amendment, duly executed by Borrower; 
 (b) all reasonable Bank Expenses incurred through the date of this Amendment, including a $250 documentation fee, which may be debited from any of Borrower’s accounts; and 
 (c) such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

	5)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

  

	6)	By signing below, the parties confirm that in modifying the Existing Loan Agreement, Bank is relying upon Borrower’s representations, warranties, and agreements as set forth in
the Existing Loan Agreement. Except as expressly modified hereby, the Existing Loan Agreement remains unchanged and in full force and effect. Bank’s agreement to amend the Existing Loan Agreement in no way obligates Bank to make any future
amendments to any other provisions of the Existing Loan Agreement. 

  

									
	BORROWER	 		 	BANK
			
	Aldagen, Inc.	 		 	Square 1 Bank
					
	 By:
	 	/s/ Edward L. Field	 		 	By:	 	/s/ Illegible
	 Its:
	 	President	 		 	Its:	 	 SVP

 SEVENTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Seventh Amendment (the “Amendment”) to that certain Loan and Security Agreement dated March 21, 2006 (as may be amended from time to time, and together with related documents, the
“Agreement”), between Aldagen, Inc. (“Borrower”) and Square 1 Bank (“Bank”) is made as of this 21st day of December, 2007. 
 Now, therefore, Borrower and Bank wish to amend the Agreement as follows: 
  

	1)	Section 6.7(b)(ii) is hereby amended and restated as follows: 

 “Borrower shall have successfully completed 10 patient enrollments and collection of safety data and 6 month data points on quality of life and exercise capacity in chronic heart failure study no later than March 31, 2008.”

  

	2)	Section 6.7(b)(iii) is hereby amended and restated as follows: 

 “Borrower shall have successfully completed 10 patient enrollments and collection of safety data and 3 month data points of transcutaneous oxygen pressure (increased blood flow to appendage), rest pain and
quality of life in Phase I/II critical limb ischemia study no later than March 31, 2008.” 
  

	3)	The Agreement is hereby amended wherever necessary to reflect the changes described above. 

  

	4)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, (i) no other portion of the Agreement is amended hereby and (ii) the execution, delivery, and
performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. 

  

	5)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

 (a) this Amendment, duly executed by Borrower; 
 (b) all reasonable Bank Expenses incurred through the date of this Amendment, including a $250 documentation fee, which may be debited from any of Borrower’s accounts; and 
 (c) such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 
  

	6)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

  

	7)	By signing below, the parties confirm that in modifying the Agreement, Bank is relying upon Borrower’s representations, warranties, and agreements as set forth in the
Agreement. Except as expressly modified hereby, the Agreement remains unchanged and in full force and effect. Bank’s agreement to amend the Agreement in no way obligates Bank to make any future amendments to any other provisions of the
Agreement. 

  

									
	BORROWER	 		 	BANK
			
	Aldagen, Inc.	 		 	Square 1 Bank
					
	 By:
	 	/s/ Edward L. Field	 		 	By:	 	/s/ Illegible
	 Its:
	 	President	 		 	Its:	 	AVP

 EIGHTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 This Eighth Amendment to Loan and Security Agreement (the “Amendment”), is entered into as of April 9, 2008, by and between SQUARE 1 BANK (the “Bank”)
and ALDAGEN, INC. (the “Borrower”). 
 RECITALS 
 Borrower and Bank are parties to that certain Loan and Security Agreement dated as of March 21, 2006 (as amended from time to time, the
“Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
 NOW, THEREFORE, the
parties agree as follows: 
  

	1)	Section 2.1(b)(ii) of the Agreement is hereby amended and restated as follows: 

 (ii) Interest shall accrue from the date the Bridge Loan is made at the rate specified in Section 2.3(a), and shall be payable quarterly on the last day of each calendar quarter commencing on December 31,
2006 in accordance with Section 2.3(c). The Bridge Loan shall be payable in 17 equal monthly installments of principal, plus all accrued interest, beginning on January 31, 2009, and continuing on the same day of each month thereafter
through the Bridge Loan Maturity Date, at which time all amounts due in connection with the Bridge Loan shall be immediately due and payable. Bridge Loan, once repaid, may not be reborrowed. Borrower may prepay the Bridge Loan without penalty or
premium. 
  

	2)	Section 2.3(a) of the Agreement is hereby amended and restated as follows: 

 (a) Interest Rate for Bridge Loan. Except as set forth in Section 2.3(b), the Bridge Loan shall bear interest, on the outstanding daily balance thereof, at a variable annual rate equal to 1.50% above the
Prime Rate then in effect. 
  

	3)	Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force
and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an
amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.

  

	4)	Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment. 

 

	5)	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.

  

	6)	As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: 

 a) this Amendment, duly executed by Borrower; 
 b) payments for all Bank Expenses incurred through the date of this Amendment, including a $250 In House Documentation Fee, which may be debited from any of Borrower’s accounts; and 
 c) such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 
 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written. 
  

									
	Aldagen, Inc.	 		 	Square 1 Bank
					
	 By:
	 	/s/ Edward L. Field	 		 	By:	 	/s/ Illegible
	 Its:
	 	President	 		 	Its:	 	VPExhibit 10.6

 Exhibit 10.6 
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

 LICENSE AGREEMENT 
 THIS LICENSE AGREEMENT (the “AGREEMENT”) made and entered into October 12, 2000 (the “EFFECTIVE DATE”), by and between DUKE UNIVERSITY, a North Carolina not-for-profit corporation, (hereinafter called
“DUKE”), having its principal office at Durham, North Carolina 27708, and STEMCO BIOMEDICAL, INC., a Delaware corporation organized under the laws of Delaware (hereinafter called “STEMCO”), having a mailing address at P.O. Box
14509, Research Triangle Park, North Carolina 27709. 
 WHEREAS, [ * ], and [ * ] are inventors of an invention (the “[ * ]
INVENTION” hereinafter) described in Duke Office of Science and Technology File #[ * ] and in related patent applications defined hereinafter; and 
 WHEREAS, [ * ], and [ * ] are inventors of an invention (the “[ * ] INVENTION” hereinafter) described in Duke Office of Science and Technology File #[ * ] and in related patent applications defined
hereinafter; and 
 WHEREAS, DUKE has the right to grant licenses to the [ * ] INVENTION and to the [ * ] INVENTION under PATENT RIGHTS (as
hereinafter defined), and wishes to have the inventions covered by the PATENT RIGHTS utilized in the public interest; and 
 WHEREAS, subject
to certain U.S. Government rights disclosed herein, DUKE represents that it is the sole owner of the entire right, title and interest in and to said inventions and PATENT RIGHTS; and 
 WHEREAS, STEMCO has informed DUKE that it wishes to obtain an exclusive license to commercialize the [ * ] INVENTION and the [ * ] INVENTION under the
terms and conditions specified hereinafter; and 
 WHEREAS, STEMCO represents that it intends to develop and commercialize the
PATENT RIGHTS so that products made under the PATENT RIGHTS shall become available to the public; 
 NOW THEREFORE, in consideration of
the premises and the faithful performance of the covenants herein contained, IT IS AGREED: 
 ARTICLE 1 - DEFINITIONS 
 1.01 - For the purposes of this AGREEMENT, and solely for that purpose, the terms and phrases set forth hereinafter in capital letters shall be defined
as follows: 
  

	 	a.	“INVENTORS” shall mean [ * ], and [ * ]. 

  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 1 of 20 

	 	b.	“FIELD” shall mean all uses of KNOW-HOW and PATENT RIGHTS, specifically including, without limitation, research and development, diagnosis, prevention, therapy, and
monitoring of all human and animal diseases or disorders. 

  

	 	c.	“PATENT RIGHTS” shall mean all U.S. and foreign Patent Applications filed to protect the [ * ] INVENTION or the [ * ] INVENTION and any patent now issued or hereafter
issuing on any such patent application, substitutes, continuations, extensions, renewals, reissues, reexaminations, additions, continuations-in-part, divisionals, or reissues thereof and any patent revalidations, registrations, supplementary
protection certificates, patents of importation or cautionary notices thereof in connection with the [ * ] INVENTION or [ * ] INVENTION. As of the EFFECTIVE DATE of this AGREEMENT, PATENT RIGHTS related to the [ * ] INVENTION consist of a
provisional application filed in the USA numbered [ * ], a PCT application numbered [ * ], a US patent application numbered [ * ], and EPC, Australian, Canadian, and Japanese patent applications filed based on the PCT applications that have not yet
been assigned numbers. As of the EFFECTIVE DATE of this AGREEMENT, PATENT RIGHTS related to the [ * ] INVENTION consist of a provisional application filed in the USA numbered [ * ] and a PCT application designating all possible countries and
numbered [ * ]. 

  

	 	d.	“KNOW-HOW” shall mean any research information, technical information, technical data or other information generated at DUKE by one of the INVENTORS prior to or during the
term of this AGREEMENT, which relate to and are necessary for the practice of the PATENT RIGHTS in the FIELD. For avoidance of doubt, KNOW-HOW shall include all unpatented and unpatentable inventions, technology, cell lines, biological materials,
compounds, probes, sequences, and methods necessary for the practice of the PATENT RIGHTS under this AGREEMENT. KNOW-HOW shall not, however, include any such materials or information or any uses of such materials and information that DUKE cannot
provide to STEMCO on either an exclusive or non-exclusive basis because of other legal obligations of DUKE pursuant to sponsored research, clinical research, material transfer, confidentiality or other agreements. 

  

	 	e.	“VALID CLAIM” means a claim of an issued patent which has not lapsed or become abandoned or been declared invalid or unenforceable by a court of competent jurisdiction or
an administrative agency for which there is no right of appeal or for which the right of appeal is waived. 

  

	 	f.	“LICENSED PRODUCT” shall mean any product which is produced or sold by STEMCO that utilizes the KNOW-HOW or that infringes one or more VALID CLAIMS of the PATENT RIGHTS,
and which is intended for use in, or is used in, the FIELD. 

  

	 	g.	“NET SALES” shall mean the total invoiced sales of LICENSED PRODUCTS sold by STEMCO, less the following sums actually paid or credited by STEMCO as shall be detailed in
STEMCO’s reports made pursuant to Article 5.02 of this AGREEMENT: 

  

	 	(a)	trade, quantity or cash discounts or commissions allowed in amounts customary in the trade; 

  

	 	(b)	any tax, excise or other governmental charge upon or measured by the production, sale, transportation, delivery or use and duties imposed on the import of LICENSED PRODUCTS included
in such amount; 

  

	 	(c)	outbound transportation charges prepaid or allowed on the cost of shipping to customers, if any; and 

  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 2 of 20 

	 	(d)	credits or allowances, if given or made for LICENSED PRODUCTS, price adjustments, returns, rejections, recalls or destructions (voluntarily made by or requested or made by an
appropriate government agency, subdivision or department) of LICENSED PRODUCTS previously delivered. 

 LICENSED PRODUCTS used
by STEMCO for its own use in the FIELD, LICENSED PRODUCTS sold to Affiliates, and internal sales for use in service businesses in arms length transactions shall be considered to be NET SALES for purposes of computing royalty obligations, except such
LICENSED PRODUCT used for non-revenue producing activity such as promotional items or field trials shall not be considered to be NET SALES. 
 With respect to a LICENSED PRODUCT which is sold together with any other products and/or services in a country at a unit price, whether packaged together or separately or that is sold together with a delivery system comprising a device,
equipment, instrumentation, or other components (but not solely containers or packaging) designed to assist in the preparation or administration of the LICENSED PRODUCT (a “BUNDLED PRODUCT”), the NET SALES of a BUNDLED PRODUCT shall first
be calculated in accordance with the definition of NET SALES given in the preceding paragraph, and then the parties to this Agreement shall negotiate in good faith to determine by mutual agreement an equitable reduction in NET SALES which represents
the proportionate economic value added by other products or the delivery system in BUNDLED PRODUCTS. Disputes concerning the determination of NET SALES of BUNDLED PRODUCTS shall be resolved according to Article 20 of this AGREEMENT. 
  

	 	h.	“AFFILIATE” shall mean any entity that controls, is controlled by or is under common control with STEMCO. An entity shall be regarded as in control of another entity if it
owns or controls more than fifty percent (50%) of the voting power of the entity. 

  

	 	i.	“CAPITAL STOCK” shall mean common stock of STEMCO issued and outstanding by STEMCO prior to closing the first round of equity financing with outside investors. The fair
market value and price of CAPITAL STOCK shall be deemed to be [ * ] per share. DUKE and STEMCO agree that all CAPITAL STOCK issued shall be dilutable to the same extent upon each stage of subsequent financing of STEMCO. 

 ARTICLE 2 - LICENSE 
 2.01 - DUKE
hereby grants to STEMCO and STEMCO hereby accepts from DUKE, upon the terms and conditions herein specified, an exclusive worldwide license under the PATENT RIGHTS and a non-exclusive, world-wide license to KNOW-HOW to make, have made, use, import,
offer to sell, sell, offer to provide and provide LICENSED PRODUCTS. Such licenses are worldwide to the full end of the term as provided in Article 11.01 herein, unless sooner terminated as hereinafter provided. DUKE hereby represents that it has
the full right and authority to enter into this AGREEMENT, to grant the licenses provided herein and to perform its other obligations hereunder. 
 2.02 - STEMCO shall have the right to grant sub-licenses. Any such sub-licenses shall be subject to terms of this AGREEMENT. Royalties paid to DUKE for NET SALES of LICENSED PRODUCTS by sublicensees shall be equal to the royalties that
would have been paid to DUKE if LICENSED PRODUCTS were sold directly by STEMCO. The terms of any non-cash sub-licenses will be negotiated by DUKE and STEMCO. STEMCO agrees to be responsible for the payment to DUKE of royalties on funds received by
STEMCO from its sublicensees and for using commercially reasonable efforts to enforce the terms of the sublicense agreements. If, for any reason, this AGREEMENT is terminated, STEMCO agrees to assign all such sublicenses directly to DUKE.

  
 [ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 3 of 20 

 2.03 - It is agreed that, notwithstanding any provisions of this AGREEMENT, DUKE shall be free to use the
[ * ] INVENTION, the [ * ] INVENTION, and PATENT RIGHTS for its own non-commercial educational, teaching, research and clinical purposes without restriction and without payment of royalties or other fees. Further, DUKE shall retain the right to
provide materials related to the [ * ] INVENTION, the [ * ] INVENTION, and/or PATENT RIGHTS to other academic research institutions for their own non-commercial research purposes under a materials transfer agreement (“MTA”), a form of
which is set forth in Appendix A herein, which shall stipulate that no commercial entity shall gain rights to the results or inventions arising from that institution’s research with the subject materials. In addition, notwithstanding any
provisions of this Agreement, DUKE shall be free to use KNOW-HOW for its own educational, teaching, research and clinical purposes without restriction. 
 2.04 - Nothing in this AGREEMENT shall be construed to grant to DUKE any rights in the inventions, discoveries, technology, patent rights or other intellectual property developed by or for STEMCO or its AFFILIATES or
sublicensees and which are not covered by the PATENT RIGHTS or KNOW-HOW. 
 2.05 - Nothing in this AGREEMENT shall be construed to confer any
rights upon STEMCO by implication, estoppel, or otherwise as to any technology or intellectual property owned solely or jointly by DUKE which is not covered by the PATENT RIGHTS or KNOW-HOW as described in Article 1.01c. and Article 1.01d herein,
respectively. 
 2.06 - Within thirty (30) days following the execution of this AGREEMENT and thereafter during the period of this
AGREEMENT, DUKE agrees to provide STEMCO with reasonable access to all technical KNOW-HOW it may have or later obtain relative to the PATENT RIGHTS or KNOW-HOW, and with copies of any and all patents or patent applications owned or controlled by
DUKE covering the PATENT RIGHTS or KNOW-HOW or the use of the PATENT RIGHTS or KNOW-HOW or processes for the manufacture of the LICENSED PRODUCTS, including all Patent Office actions received and amendments filed, if any, relative thereto.

 ARTICLE 3 - GOVERNMENT RIGHTS 
 3.01 - DUKE hereby discloses to STEMCO and STEMCO acknowledges that the research leading to the [ * ] INVENTION and to the [ * ] INVENTION and to PATENT RIGHTS was funded in part by the U.S. Government, and the parties agree that,
notwithstanding any use of descriptive terms such as “exclusive” in Article 2.01 herein and elsewhere in this AGREEMENT, the U.S. Government has certain rights in the [ * ] INVENTION and the [ * ] INVENTION as set forth in 37 CFR 401.
STEMCO agrees to comply with all obligations resulting from such government rights, including, but not limited to, the requirement that any products sold in the United States based upon such technology be substantially manufactured in the United
States. 
 ARTICLE 4 - CONSIDERATION 
 4.01 - As consideration for the rights granted by DUKE in this AGREEMENT, STEMCO shall transfer to DUKE upon execution of this AGREEMENT, ownership of [ * ] shares of the CAPITAL STOCK which shall be equal to [ * ]
percent ([ * ]%)] of the issued and outstanding CAPITAL STOCK of STEMCO as of the date hereof. At the time that STEMCO closes on the sale of CAPITAL STOCK to the public through a registration statement registered under the Securities Act of 1933, as
amended, DUKE’S shares will convert to voting shares of common stock. 
 4.02 - As further consideration for the rights granted by DUKE
in this AGREEMENT, at the times and in the manner set forth hereinafter, STEMCO shall pay to DUKE a royalty on NET SALES of LICENSED PRODUCTS. Such royalty shall be at the rate of [ * ] percent ([ * ]%) of NET SALES of LICENSED PRODUCTS sold by
STEMCO, by AFFILIATES, or by sublicensees; provided, however, that 
  
 [ * ] =
Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 4 of 20 

 STEMCO shall not be obliged to pay a total royalty on any LICENSED PRODUCT to all parties in excess of [ * ] percent
([ * ]%) of NET SALES. In the event that STEMCO’s total royalty obligation on a LICENSED PRODUCT exceeds [ * ] percent ([ * ]%) the amount of royalty paid to all parties will be decreased proportionately so that the total royalty
obligation is reduced to [ * ] percent ([ * ]%); however, in no event shall the royalty paid to DUKE be less than [ * ] percent ([ * ]%). For avoidance of doubt, the parties agree that any other royalties due to DUKE for the LICENSED PRODUCTS based
on other agreements between DUKE and STEMCO shall be included in the calculation of total royalties set forth in this paragraph. 
 4.03 -
STEMCO will pay to DUKE a minimum annual royalty of [ * ] dollars ($[ * ]) per year beginning the calendar year that begins on the second January 1 after the [ * ]. 
 4.04 - STEMCO will pay to DUKE a minimum annual royalty of [ * ] dollars ($[ * ]) per year beginning the calendar year that begins on the second January 1 after [ * ]. In the event that STEMCO is already
obligated to pay a minimum annual royalty pursuant to Article 4.03 herein at the time such [ * ], then this Article 4.04 shall control and the minimum annual royalty due for such calendar year shall be [ * ] dollars ($[ * ]) per year. 
 4.05 - STEMCO has determined, for its internal corporate purposes only, that consideration paid to DUKE under this Article 4 will be allocated as
follows: [ * ] percent ([ * ]%) as consideration for the license granted to the [ * ] INVENTION and related PATENT RIGHTS under Article 2 herein and [ * ] ([ * ]%) percent, as consideration for the license granted to the [ * ] INVENTION and related
PATENT RIGHTS under Article 2 herein. 
 4.06 - DUKE shall be entitled to have one person reasonably acceptable to STEMCO attend all meetings
of the Board of Directors of STEMCO as an observer for a period of five (5) years from the EFFECTIVE DATE of this AGREEMENT. Accordingly, STEMCO shall provide DUKE with reasonable advance notification regarding the time and place of each such
meeting of the STEMCO Board of Directors. 
 ARTICLE 5 - RECORDS AND REPORTS 
 5.01 - STEMCO shall render to DUKE prior to February 28th of each year a written account of progress made toward fulfillment of any due diligence
requirements and commercialization of PATENT RIGHTS pursuant to Article 6 herein. 
 5.02 - STEMCO shall render to DUKE prior to February 28th and August 31st of each year a written account of the NET SALES of
LICENSED PRODUCTS subject to royalty hereunder made during the prior six (6) month period ending December 31st and
June 30th, respectively, and shall simultaneously pay to DUKE the royalties due on such NET SALES in United States Dollars. Reports tendered
shall include the calculation of royalties by LICENSED PRODUCT by country in substantially the format provided in Appendix B hereto. Minimum annual royalties, if any, which are due DUKE for any calendar year, shall be paid by STEMCO along with the
written report due on February 28th of each year. 
 5.03 - STEMCO will make all payments on or before the date required by the terms of this AGREEMENT, or, in the case of reimbursement of patent costs under Articles 7.02, 7.03, and 7.04 herein, within thirty
(30) days of any invoice date on invoices received from DUKE. If STEMCO has not paid any amount due to DUKE in accordance with this Article, DUKE shall increase the amount due (in US Dollars) by an annual percentage rate equal to [ * ] percent
([ * ]%) above the prime rate in effect at the Wachovia Bank (N.A.) (or its successor, as the case may be) on the due date. Such increase(s) shall compound monthly until such time as the STEMCO has met the full financial obligation due at the time
of the next payment or invoice due date. The payment of such interest shall not foreclose DUKE from exercising any other rights it may have as a consequence of the lateness of the payment, including termination in accordance with Article 11.03
herein. 
  
 [ * ] = Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 5 of 20 

 5.04 - STEMCO shall keep full, true and accurate books of accounts and other records containing all
particulars which may be necessary to properly ascertain and verify the royalties payable by it hereunder. Upon DUKE’s request, STEMCO shall permit an independent Certified Public Accountant selected by DUKE (except one to whom STEMCO has some
reasonable objection) to have access during ordinary business hours to such of STEMCO’s records as may be necessary to determine, in respect of any quarter ending not more than [ * ] years prior to the date of such request, the correctness of
any report and/or payment made under this AGREEMENT. Such Certified Public Accountant shall execute a written non-disclosure agreement reasonably acceptable to STEMCO. If such examination determines that STEMCO underpaid the royalties and other
consideration due to DUKE by more than [ * ] percent ([ * ]%), STEMCO shall bear the cost of such examination. 
 5.05 - During the term of
this AGREEMENT, representatives of DUKE will meet with representatives of STEMCO at times and places mutually agreed upon to discuss the progress and results, as well as ongoing plans, with respect to the evaluation and development of the PATENT
RIGHTS licensed to STEMCO; provided, however, that should DUKE’s personnel be required by STEMCO to consult with STEMCO outside of Durham County, North Carolina, STEMCO will reimburse reasonable travel and living expenses incident thereto.

 ARTICLE 6 - DUE DILIGENCE REQUIREMENTS 
 6.01 - STEMCO shall use reasonable commercial diligence in performing research and development to bring LICENSED PRODUCTS to market through a thorough, vigorous, and diligent program for exploitation of the PATENT
RIGHTS, to develop manufacturing capabilities, and to continue active, diligent marketing efforts for LICENSED PRODUCTS throughout the term of this AGREEMENT, and to vigorously sublicense PATENT RIGHTS for applications STEMCO will not pursue
throughout the life of this AGREEMENT. Further, it is agreed that STEMCO shall [ * ] at least one LICENSED PRODUCT [ * ]. 
 6.02 - Within
three (3) months of the EFFECTIVE DATE, STEMCO shall provide DUKE with a written business plan showing annual projections over a three (3) year period for the following: operating costs, revenue, capital expenditures, and funding.

 6.03 - Within [ * ] of the EFFECTIVE DATE, STEMCO shall raise at least [ * ] in equity financing. Further, within [ * ] of the Effective
Date, STEMCO shall raise an additional sum of equity financing equal to at least [ * ]. 
 6.04 - DUKE may terminate this AGREEMENT or
convert this AGREEMENT to a non-exclusive AGREEMENT if STEMCO fails to meet any of the commercialization milestones set forth in Articles 6.01, 6.02, and 6.03 herein and STEMCO has failed to cure such failure within ninety (90) days after
receiving written notice from DUKE of such failure. 
 ARTICLE 7 - PATENTS 
 7.01 - Upon execution of this License Agreement, DUKE shall retain the primary responsibility for applying for, seeking prompt issuance of, and
maintaining the PATENT RIGHTS until STEMCO assumes such responsibility for perfecting PATENT RIGHTS as provided for in Articles 7.04 and 7.05 herein. DUKE shall keep STEMCO advised as to the status of the PATENT RIGHTS by providing STEMCO, in a
timely manner, with copies of all official documents and correspondence relating to the prosecution, 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of
1933, as amended. 
  

 Page 6 of 20 

 
maintenance, and validity of the PATENT RIGHTS. DUKE shall consult with STEMCO in such prosecution and maintenance, shall diligently seek STEMCO’s
advice on all matters pertaining to PATENT RIGHTS, and shall not abandon prosecution of any patent application or any of the claims of the PATENT RIGHTS without first notifying STEMCO in writing in a timely manner. DUKE’S obligations under this
Article 7.01 herein shall include, without limitation, an obligation to seek input from STEMCO in a timely manner concerning foreign countries in which patent applications should be filed and prosecuted. DUKE will make diligent efforts to implement
reasonable strategies for or reasonable actions related to the prosecution of PATENT RIGHTS requested by STEMCO during the period that DUKE has primary responsibility for perfecting PATENT RIGHTS. Notwithstanding the foregoing, during the period
that DUKE has primary responsibility for perfecting PATENT RIGHTS, all decisions with respect to the filing, prosecution, and maintenance of PATENT RIGHTS shall reside with DUKE; however, DUKE shall give reasonable consideration to all suggestions
made by STEMCO concerning such filing, prosecution, and maintenance of PATENT RIGHTS. 
 7.02 - DUKE shall pay all expenses associated with
the establishment and perfection of PATENT RIGHTS during the period that DUKE maintains primary responsibility for such activities as specified in Article 7.01 herein, and STEMCO shall reimburse DUKE for all such expenses related to PATENT RIGHTS
incurred by DUKE during this period, such reimbursement to be made within thirty (30) days of being invoiced by DUKE. 
 7.03 - STEMCO
shall reimburse DUKE for all expenses incurred by DUKE in the perfection and maintenance of PATENT RIGHTS prior to the EFFECTIVE DATE on the earlier of the following: within sixty (60) days of the EFFECTIVE DATE of this AGREEMENT or prior to
assuming primary responsibility for perfecting PATENT RIGHTS. 
 7.04 - STEMCO shall have the option to assume primary responsibility for all
activities associated with the perfection and maintenance of PATENT RIGHTS. In order to exercise this option, STEMCO shall inform DUKE in writing that it is ready to undertake responsibility for PATENT RIGHTS, ask DUKE for approval of the legal
counsel that STEMCO intends to retain for such purposes, and reimburse DUKE for any unreimbursed expenses incurred by DUKE in pursuit of PATENT RIGHTS. DUKE shall not unreasonably withhold approval of STEMCO’s designated legal counsel and shall
make diligent efforts to assist the transfer of responsibility for prosecution of PATENT RIGHTS from DUKE to STEMCO within forty-five (45) days of both receipt of the written notice of the exercise of the option from STEMCO and of reimbursement
for any expense amount due to DUKE with regard to PATENT RIGHTS. STEMCO’s rights and obligations with respect to PATENT RIGHTS should STEMCO opt to assume such responsibilities are more fully set forth in Articles 7.05 through 7.08 herein.

 7.05 - After STEMCO assumes primary responsibility for perfection and maintenance of PATENT RIGHTS as provided in Article 7.04 herein,
STEMCO shall keep DUKE advised as to the status of the PATENT RIGHTS by providing DUKE, in a timely manner, with copies of all official documents and correspondence relating to the prosecution, maintenance, and validity of the PATENT RIGHTS. STEMCO
shall consult with DUKE in such prosecution and maintenance, shall diligently seek DUKE’s advice on all matters pertaining to the PATENT RIGHTS, shall diligently seek strong and broad claims under the PATENT RIGHTS, and shall not abandon
prosecution of any patent application or any of the claims of the PATENT RIGHTS without first notifying DUKE in a timely manner of STEMCO’s intention and reason therefor, and providing DUKE with reasonable opportunity to assume responsibility
for prosecution and maintenance of the patents. All decisions with respect to the prosecution of the PATENT RIGHTS shall be made by STEMCO, subject to the approval of DUKE, which approval shall not be unreasonably withheld. However, notwithstanding
the foregoing, no claims of the PATENT RIGHTS shall be modified, deleted, or abandoned by STEMCO or its patent counsel without the express, prior written approval of DUKE. STEMCO’s obligations under this Article 7.05 shall include, without
limitation, an obligation to inform DUKE in a timely manner that STEMCO will not purse patents in any foreign countries where patent protection may be available such that DUKE may prosecute patents in such countries if DUKE so desires. If DUKE
pursues such foreign patent protection, then from that time forward all such subject patent applications and any patents arising therefrom shall no longer be considered PATENT RIGHTS under this AGREEMENT and STEMCO shall forfeit all rights under
this AGREEMENT to such patent applications and any patents arising therefrom. 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

  

 Page 7 of 20 

 7.06 - After STEMCO assumes primary responsibility for perfection and maintenance of PATENT RIGHTS as
provided in Article 7.04 herein, STEMCO shall be responsible for and pay all costs and expenses incurred during the term of this Agreement, for the preparation, filing, prosecution, issuance and maintenance of the PATENT RIGHTS. STEMCO shall not
allow PATENT RIGHTS to become abandoned due to nonpayment of fees without first affording DUKE the opportunity to assume responsibility for the prosecution and further costs and expenses incurred relating to said PATENT RIGHTS. If DUKE assumes the
responsibility for such prosecution and further costs and expenses of a subject PATENT RIGHTS, then from that time forward all such subject patent applications (and any patents arising therefrom) and patents shall no longer be considered PATENT
RIGHTS under this AGREEMENT and STEMCO shall forfeit all rights under this AGREEMENT to such patent applications (and any patents arising therefrom) and patents. 
 7.07 - In the event that DUKE assumes responsibility for prosecution and maintenance of the PATENT RIGHTS pursuant to Article 7.05 or 7.06 above, STEMCO shall provide reasonable technical assistance to DUKE in the
further prosecution of the PATENT RIGHTS. 
 7.08 - In the event that this Agreement is terminated pursuant to Article 11 herein, the sole
responsibility for applying for, seeking prompt issuance of, and maintaining the PATENT RIGHTS shall revert to DUKE, and DUKE shall pay expenses subsequently incurred for the preparation, filing, prosecution, issuance and maintenance of the PATENT
RIGHTS. In the event that responsibility for patent prosecution reverts to DUKE as specified in this Article 7.08 STEMCO shall, at its own expense, transfer all pertinent documents and materials related to the PATENT RIGHTS to DUKE in a timely
manner so as to avoid loss of potential patent rights. 
 ARTICLE 8 - INFRINGEMENT BY THIRD PARTIES 
 8.01 - Upon learning of the infringement of PATENT RIGHTS by a third party, the party learning of such infringement shall promptly inform the other party
in writing of that fact along with any evidence available pertaining to the infringement. STEMCO shall have the right, at its own expense, to take whatever steps are necessary to stop the infringement and recover damages. In such case, STEMCO will
keep DUKE informed of the steps taken and the progress of any legal actions taken. 
 STEMCO will pay to DUKE [ * ] on any such damages
recovered and allocated by the court, or in the absence of such allocation by the court, reasonably allocated by the mutual agreement of STEMCO and DUKE, as consideration for lost sales of LICENSED PRODUCTS that are in excess of out-of-pocket legal
expenses incurred by STEMCO in enforcing the PATENT RIGHTS plus STEMCO’s reimbursement to DUKE for its out-of-pocket expenses in cooperating with STEMCO in prosecution or arbitration of such infringement. Any damages recovered by STEMCO in
excess of those allocated as set forth above shall be [ * ]. If STEMCO does not undertake, within sixty (60) days of the date of the notice of infringement, to enforce the PATENT RIGHTS against the infringing party, DUKE shall have the right,
at its own expense to take whatever steps are necessary to stop the infringement and recover damages, and shall be entitled to retain damages so recovered and allocated by the court, or in the absence of such allocation by the court, reasonably
allocated by the mutual agreement of STEMCO and DUKE, as consideration for lost sales of LICENSED PRODUCTS that are in excess of out-of-pocket legal expenses incurred by DUKE in enforcing the PATENT RIGHTS plus DUKE’s reimbursement to STEMCO
for its out-of-pocket expenses in cooperating with DUKE in prosecution or arbitration of such infringement. Any damages recovered by DUKE in excess of those allocated as set forth above shall be [ * ]. 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 8 of 20 

 ARTICLE 9 - GOVERNMENT CLEARANCE AND EXPORT 
 9.01 - STEMCO agrees to use its best efforts to have the LICENSED PRODUCTS cleared for marketing and sale in those countries in which STEMCO intends to
sell LICENSED PRODUCTS by the responsible government agencies requiring such clearance. Where such clearance requires payment of taxes or fees, STEMCO shall maintain full responsibility for that payment, which shall not be creditable against any
other amounts due under this AGREEMENT. To accomplish said clearances at the earliest possible date, STEMCO agrees to file, according to the usual practice of STEMCO, any necessary data with said government agencies. 
 9.02 - This AGREEMENT is subject to all of the United States laws and regulations controlling the export of technical data, computer software, laboratory
prototypes and other commodities and technology. 
 ARTICLE 10 - PUBLICATION 
 10.01 - STEMCO agrees that the right of publication/presentation of the [ * ] INVENTION, the [ * ] INVENTION, and information in related PATENT RIGHTS
shall reside in the inventors and other staff of DUKE. DUKE shall use reasonable efforts to provide STEMCO a review copy of such publications/presentations forty-five (45) days in advance of submission for publication or public disclosure, but
such prior review by STEMCO will be in no way construed as a right to restrict such publication/presentation. Such review shall be granted solely so that DUKE and STEMCO can pursue patent protection prior to public disclosure. STEMCO shall also have
the right to publish/present and/or co-author, in accordance with customary academic standards, any publication/presentation on the [ * ] INVENTION and the [ * ] INVENTION based upon data developed by STEMCO. 
 ARTICLE 11 - DURATION AND TERMINATION 
 11.01 - This AGREEMENT shall become effective upon the EFFECTIVE DATE, and unless sooner terminated in accordance with any of the provisions herein, shall remain in full force and effect for the life of the last-to-expire of the patents
included in the PATENT RIGHTS, or any patents issued on KNOW-HOW. Upon the expiration of this AGREEMENT, but not in the event of termination for reasons other than expiration of the last-to expire of the patents included in the PATENT RIGHTS or any
patents issued on KNOW-HOW, DUKE shall grant STEMCO a non-exclusive, worldwide, fully paid license, with the right to grant sub-licenses, under the KNOW-HOW to make, have made, use, import, offer to sell, sell, offer to provide and provide LICENSED
PRODUCTS. 
 11.02 - STEMCO may terminate this AGREEMENT by giving DUKE written notice at least three (3) months prior to such
termination, and thereupon terminate the manufacture, use, and sale of LICENSED PRODUCTS, subject to Article 11.04 herein. 
 11.03 - Either
party may [ * ] terminate this AGREEMENT for fraud, willful misconduct, or illegal conduct of the other party that materially adversely affects such party upon written notice of same to that other party. [ * ], if either party fails to fulfill any
of its material obligations under this AGREEMENT, the non-breaching party may terminate this AGREEMENT, upon written notice to the breaching party, as provided below. Such notice must contain a full description of the event or occurrence
constituting a material breach of this AGREEMENT. The party receiving notice of the breach shall submit a written plan to cure such breach to the non-defaulting party within thirty (30) days of receipt of such notice. The plan shall be subject
to the reasonable acceptance, rejection or modification by the non-defaulting party within ten (10) days of receipt of the plan. The defaulting party shall have the opportunity to cure that breach in accordance with the terms of the accepted
plan. If the breach is not cured within that time, the termination will be effective as of the end of the cure period set forth in the accepted plan. A party’s ability to cure a breach will apply only to the first two breaches properly noticed
under the terms of this 
  
 [ * ] = Certain confidential information contained in
this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 9 of 20 

 
AGREEMENT, regardless of the nature of those breaches. Any subsequent breach by that party will entitle the other party to terminate this AGREEMENT effective
immediately upon the breaching party’s receipt of written notice of the same. 
 11.04 - Upon the termination of this AGREEMENT in
accordance with Articles 6.04, 11.02, 11.03, or 11.04 herein, STEMCO shall notify DUKE of the amount of LICENSED PRODUCTS that STEMCO then has on hand and STEMCO shall then have a license to sell that amount of LICENSED PRODUCTS, but no more, for a
period of ninety (90) days following such termination of this AGREEMENT provided STEMCO shall pay the royalty thereon at the rate and at the time provided for herein. Further, STEMCO shall, within one hundred and eighty (180) days of such
termination of this Agreement destroy in a safe and legal manner all remaining LICENSED PRODUCTS that STEMCO has on hand. 
 11.05 - Within
one hundred and twenty (120) days following termination of this AGREEMENT pursuant to Article 11.03, and except for reason of expiration, STEMCO shall [ * ] to DUKE [ * ] all market clearance applications associated with regulatory/marketing
approval of any and all LICENSED PRODUCT(S) (including all data thereto) and all data related to as yet unified market clearance applications associated with regulatory/marketing approval of any LICENSED PRODUCT. 
 11.06 - If during the term of this AGREEMENT, STEMCO shall become bankrupt or insolvent or if the business of STEMCO shall be placed in the hands of a
receiver or trustee, whether by the voluntary act of STEMCO or otherwise, or if STEMCO shall cease to exist as an active business, this Agreement shall [ * ] terminate, and STEMCO shall [ * ] cease all use of PATENT RIGHTS and KNOW-HOW, including,
inter alia, manufacture, use, and sale of LICENSED PRODUCTS. In such event, DUKE shall have all the remedies and rights available to it for termination with cause; provided, however, that this provision of this Article 11.06 shall not apply
to a reorganization of STEMCO under Chapter 11 of the United States Bankruptcy Code. 
 11.07 - Within thirty (30) days of any
termination or expiration of this AGREEMENT, STEMCO shall destroy in a safe and legal manner any biological materials (including modifications and derivatives thereof) which have been provided to STEMCO by DUKE under this AGREEMENT. Further, within
fifteen (15) days of such destruction STEMCO shall provide DUKE with written certification of such safe and legal destruction of the subject biological materials. 
 11.08 - No termination or expiration of this AGREEMENT shall relieve STEMCO from any obligations of amounts due to DUKE under Articles 2.02, 4.02, 4.03, 4.04, 5.03, 7.02, and 8.01 herein prior to or on the date of
such termination/expiration. 
 ARTICLE 12 - LAW TO GOVERN 
 12.01 - This AGREEMENT shall be construed and enforced in accordance with the laws of the State of North Carolina without regard to its conflict of laws
provisions. 
 ARTICLE 13 - NOTICES 
 13.01 - Notice hereunder shall be deemed sufficient if personally delivered, if given by registered mail, postage prepaid, or by national overnight courier, charges prepaid, and in each instance addressed to the party
to receive such notice at the address given below, or such other address as may hereafter be designated by notice in writing. 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 10 of 20 

			
	 DUKE
	  	 STEMCO

	 Office of Science and Technology
 Duke
University
  
 Room 230, North Building
 Box 90083
 Durham, NC 27708
	  	 P.O. Box 14509
 Research Triangle Park, NC
27709
  
 ATTENTION: CEO

		
	 cc: Office of the University Counsel
 Duke University
Medical Center
 DUMC Box 3024
 2400 Pratt Street, Suite
4000
 Durham, NC 27710
	  	 cc: Fred D. Hutchison, Esquire
 Hutchison & Mason
PLLC
 Suite 100
 3110 Edwards Mill Road
 Raleigh, NC 27612

 13.02 - Information and transactions exchanged between the parties in relation to financial
consideration contemplated under this AGREEMENT, including but not limited to royalty reports and payments, shall be tendered to the following offices of each party respectively: 
  

			
	 DUKE
	  	 STEMCO

	 Office of Science and Technology
 Attn.: Financial
Administrator
 Room 230, North Building
 Box 90083
 Durham, NC 27708
	  	 P.O. Box 14509
 Research Triangle Park, NC
27709
 ATTENTION: CEO

 ARTICLE 14 - ASSIGNMENT 
 14.01 - This AGREEMENT shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto. However, STEMCO may
not assign its rights in this AGREEMENT without approval by DUKE, such approval not to be unreasonably withheld; provided, however, that no such approval shall be required from DUKE if this AGREEMENT is assigned in connection with the sale of all or
substantially all of the assets or stock of STEMCO, whether by merger, acquisition or otherwise. 
 ARTICLE 15 - INDEMNITY, INSURANCE,
REPRESENTATIONS, STATUS 
 15.01 - STEMCO agrees to indemnify, hold harmless and defend DUKE, its trustees, officers, employees,
students, and agents, against any and all claims, suits, losses, damages, costs, fees, and expenses asserted by third parties, both government. and non-government, resulting from or arising out of the exercise of the license granted under this
AGREEMENT. STEMCO shall not be responsible for the gross negligence or intentional wrong doing of DUKE. 
 15.02 - STEMCO shall maintain in
force at its sole cost and expense, with reputable insurance companies, general liability insurance and products liability insurance coverage in amounts customary for companies similarly situated in the same industry. DUKE shall have the right to
ascertain from time to time that such coverage exists, such right to be exercised in a reasonable manner. In lieu of said coverage, DUKE agrees to consider the existence of an adequate self-insurance program as an acceptable alternative. 

15.03 - NOTHING IN THIS AGREEMENT SHALL BE DEEMED TO BE A REPRESENTATION OR WARRANTY BY DUKE OF THE VALIDITY OF ANY OF THE PATENTS OR THE ACCURACY,
SAFETY, EFFICACY, OR USEFULNESS, FOR ANY PURPOSE, OF ANY PATENT RIGHTS. DUKE SHALL HAVE NO OBLIGATION, EXPRESS OR IMPLIED, TO SUPERVISE, MONITOR, REVIEW OR OTHERWISE ASSUME RESPONSIBILITY FOR THE PRODUCTION, MANUFACTURE, TESTING, MARKETING OR SALE
OF ANY LICENSED PRODUCT, AND DUKE SHALL HAVE NO LIABILITY WHATSOEVER TO STEMCO OR ANY THIRD PARTIES FOR OR ON ACCOUNT OF ANY INJURY, LOSS, OR DAMAGE, OF ANY KIND OR NATURE, SUSTAINED BY, OR ANY DAMAGE ASSESSED OR 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 11 of 20 

 
ASSERTED AGAINST, OR ANY OTHER LIABILITY INCURRED BY OR IMPOSED UPON STEMCO OR ANY OTHER PERSON OR ENTITY, ARISING OUT OF OR IN CONNECTION WITH OR RESULTING
FROM: 
  

	 	a.	the production, use, or sale of any LICENSED PRODUCT; 

  

	 	b.	the use of any PATENT RIGHTS by STEMCO or its sublicensees; or 

  

	 	c.	any advertising or other promotional activities by STEMCO with respect to any of the foregoing. 

 15.04 - Neither party hereto is an agent or subcontractor of the other party for any purpose whatsoever. 
 ARTICLE 16 - USE OF A PARTY’S NAME 
 16.01 - Neither party will, without the express, prior written consent of the other party: 
  

	 	a.	use in advertising, publicity, press release, promotional activity, or otherwise, the name or image of that party or its employees, students, or agents, any trade-name, personal
name, trademark, trade device, service mark, symbol, or any abbreviation, contraction or simulation thereof owned by the other party; or 

  

	 	b.	represent, either directly or indirectly, that any product or service of the other party is a product or service of the representing party or that it is made in accordance with or
utilizes the information or documents of the other party. 

 ARTICLE 17 - SEVERANCE, WAIVER AND ALTERATION 
 17.01 - Each clause of this AGREEMENT is a distinct and severable clause and if any clause is deemed illegal, void or unenforceable, the validity,
legality or enforceability of any other clause or portion of this AGREEMENT will not be affected thereby. 
 17.02 - The failure of a party
in any instance to insist upon the strict performance of the terms of this AGREEMENT will not be construed to be a waiver or relinquishment of any of the terms of this AGREEMENT, either at the time of the party’s failure to insist upon strict
performance or at any time in the future, and such terms will continue in full force and effect. 
 17.03 - Any alteration, modification, or
amendment to this AGREEMENT must be in writing and signed by both parties, 
 ARTICLE 18 - CONFIDENTIALITY 
 18.01 - During the term of this AGREEMENT and for a period of five (5) years following the disclosure of subject information, DUKE and STEMCO each
agree to treat any confidential information disclosed to it by the other party to this AGREEMENT with reasonable care and to avoid disclosure of such information to any other person, firm or corporation, except AFFILIATES bound by the obligations of
confidentiality and restricted use set forth in this Article 18, and either party shall be liable for unauthorized disclosure or failure to exercise such reasonable care. Further, the receiving party will not use the disclosing party’s
confidential information other than for the benefit of the parties hereto and relating to this AGREEMENT. Neither party shall have an obligation, with respect to confidential information disclosed to it, or any part thereof, which: 
  

	 	a.	is already known to the party at the time of the disclosure; 

  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission
pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 12 of 20 

	 	b.	becomes publicly known without the wrongful act or breach of this AGREEMENT by the party; 

  

	 	c.	is rightfully received by the party from a third party on a non-confidential basis; 

  

	 	d.	is subsequently and independently developed by employees of the party who had no knowledge of the information, as verified by written records; or 

  

	 	e.	is approved for release by prior written authorization of the party disclosing the information; or 

  

	 	f.	is disclosed pursuant to any judicial or government request, requirement or order, provided that the party so disclosing takes reasonable steps to provide the other party sufficient
prior notice in order to contest such request, requirement or order. 

 18.02 - DUKE and STEMCO agree that any information to
be treated as confidential information under this Article 18 must be disclosed in writing or in another tangible medium and must be clearly marked “CONFIDENTIAL”. Information disclosed orally must be summarized and reduced to writing and
communicated to the other party within thirty (30) days of such disclosure, and the other party agrees that such disclosed information shall be deemed confidential. 
 18.03 - Notwithstanding the foregoing, STEMCO shall have the right to use and disclose any confidential information related to the PATENT RIGHTS and KNOW-HOW to investors, prospective investors, employees, consultants
and agents with a need to know, collaborators, prospective collaborators and other third parties in the chain of manufacturing and distribution provided that STEMCO obtains from such parties written confidentiality agreements the provisions of which
are at least as strenuous as those provided in this Article 18. If a party refuses to execute a written confidentiality agreement, STEMCO may request from DUKE that such requirement be waived, such consent to waiver not to be unreasonably withheld
by DUKE. 
 ARTICLE 19 - TITLES 
 19.01 - All titles and article headings contained in this AGREEMENT are inserted only as a matter of convenience and reference. They do not define, limit, extend or describe the scope of this AGREEMENT or the intent of any of its
provisions. 
 ARTICLE 20 - ARBITRATION 
 20.01 - Disputes relating to the terms and conditions of this AGREEMENT shall be settled by final and binding arbitration in the City of Durham in the State of North Carolina pursuant to commercial arbitration rules
of the American Arbitration Association, in accordance with the following procedures: 
 (a) The arbitration tribunal shall consist of three
arbitrators. Each party shall nominate in the request for arbitration and the answer thereto one arbitrator and the two arbitrators so named will then jointly appoint a third arbitrator as chair of the arbitration tribunal. 
 (b) The decision of the arbitration tribunal shall be final and binding upon the parties hereto and enforceable in any court of competent jurisdiction.

  
 [ * ] = Certain confidential information contained in this document, marked by
brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 13 of 20 

 ARTICLE 21 - SURVIVAL OF TERMS 
 21.01 - The provisions of Articles 1, 4.01, 4.02, 5.02, 5.03, 5.04, 7.07, 7.08, 8.01, 11.01, 11.04, 11.05, 11.06, 11.07, 11.08, 12.01, 13, 15, 16, 18.01,
20, and 21 shall survive the expiration or termination of this AGREEMENT. 
 This space left blank intentionally. 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has
been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 14 of 20 

 ARTICLE 22 - ENTIRE UNDERSTANDING 
 22.01 - This AGREEMENT represents the entire understanding between the parties with respect to the subject matter hereof, and supersedes all other
agreements, express or implied, between the parties concerning the [ * ] INVENTION, the [ * ] INVENTION, the PATENT RIGHTS and the KNOW-HOW. 
 IN WITNESS WHEREOF, the parties have caused these presents to be executed in duplicate as of the EFFECTIVE DATE. 
  

									
	DUKE UNIVERSITY	 		 	STEMCO BIOMEDICAL, INC.
					
	By:	 	/s/ Robert L. Taber, Ph.D.	 		 	By:	 	/s/ Clayton A. Smith, M.D.
		 	 Robert L. Taber, Ph.D.
 Vice Chancellor
 Science and Technology
 Development
	 		 		 	 Name: Clayton A. Smith, M.D.
 Title:
President

  

									
	Date: 10/12/2000	 		 	Date: 10/15/2000
				
	The undersigned, being all of the INVENTORS
have read and understood the foregoing license
agreement and have reached agreement as to their
respective chares of
consideration to be received
under the foregoing license agreement.	 	 	 	 	 	 
					
	By:	 	/s/ Clayton A. Smith, M.D.	 		 		 	
		 	Clayton A. Smith, M.D.	 		 		 	
				
	Date: 10/15/2000	 		 		 	
					
	By:	 	/s/ O. Michael Colvin, M.D.	 		 		 	
		 	O. Michael Colvin, M.D.	 		 		 	
				
	Date: 10/12/2000	 		 		 	
					
	By:	 	/s/ Susan M. Ludeman, Ph.D.	 		 		 	
		 	Susan M. Ludeman, Ph.D.	 		 		 	
				
	Date: October 13, 2000	 		 		 	
					
	By:	 	/s/ Robert W. Storms, Ph.D.	 		 		 	
		 	Robert W. Storms, Ph.D.	 		 		 	
				
	Date: October 13, 2000	 		 		 	
					
	By:	 	/s/ Eli Gilboa, Ph.D.	 		 		 	
		 	Eli Gilboa, Ph.D.	 		 		 	

  

									
	Date: 10/13/2000	 		 		 	

  
 [ * ] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 15 of 20 

 APPENDIX A 
 MATERIAL TRANSFER AGREEMENT 
 Duke University (“Duke”) 
 Durham, NC 27710 
 to 

____________________ (“Recipient”) 
 _______________________ 
 Definitions: 
 Recipient’s Scientist:  _______________________________________________ 
 Original Material:  _________________________________________________ 
 __________________________________________________________________ 
 Progeny: Unmodified descendant from the Original Material, such as virus from virus, cell from cell, or organism from organism. 
 Derivatives: Substances created by Recipient which constitute an important unmodified functional subunit, fractionated subset, intermediate, or expression product of the Original Material, including, but not
limited to, subclones of unmodified cell lines, purified or fractionated sub-sets of the Original Material such as novel plasmids or vectors, proteins expressed by DNA or RNA, antibodies secreted by a hybridoma. 
 Information: All information disclosed to Recipient by Duke relating to the Material and/or Modifications. 
 Material: Original Material plus Derivatives and Information. 
 Modifications: Substances created by Recipient which contain/incorporate any form of the Material (Original Material, Progeny or Derivatives), including, but not limited to, chemical or structural derivatives.

 Research:  ________________________________________________________________ 
 __________________________________________________________________________ 
  

 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and
Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 16 of 20 

 Terms and Conditions of this Agreement: 
 1. (a) The Material is and remains the property of Duke and is to be used by Recipient’s at Recipient’s institutional facilities only, and only under the direction of Recipient’s Scientist. 

(b) The Material is to be used strictly for internal, noncommercial Research as stated above and for no other purpose. 
 (c) Duke does not claim ownership of substances and Modifications produced as a result of Recipient’s research with the material that are not
included in the definition of Material above; however, Duke does retain ownership of any form of the Material included therein. 
 (d) Except
as expressly provided in this Agreement, no rights are provided to Recipient under any patent applications, trade secrets or other proprietary rights of Duke. In particular, no rights are provided to use the Material or Modifications for
profit-making or commercial purposes, such as sale; use in manufacturing; use in drug screening, evaluation, or design programs; or provision of a commercial service based upon the Material or Modifications. 
 (e) If Recipient desires to use the Material or Modifications for such profit-making or commercial purposes, Recipient agrees that it must first
negotiate a license or other appropriate agreement with Duke and third parties as may be required, and it is further understood by Recipient that Duke shall have no obligation to enter into such a license or agreement and in fact may grant exclusive
or non-exclusive commercial licenses to others. 
 (f) Recipient acknowledges that Duke has granted an exclusive commercial license to the
Material to a third party, and that any rights granted to Recipient under this Agreement are subject to the terms of said license. 
 (g)
Recipient represents that research with the Material and/or Modifications will not be subject to the terms of any consultant, option, license, or sponsored research agreement in which a third party (other than the government) gains rights to the
intellectual property arising from research with the Material and/or Modifications. 
 2. Recipient’s Scientist agrees not to transfer the Material or
Modifications to anyone who does not work under his or her direct supervision at Recipient’s Institution without the prior written consent of Duke. To the extent supplies are available, Duke will make the Material available under a material
transfer agreement substantially similar to this Agreement upon request from appropriate scientists at non-profit or governmental institutions for the purpose of replicating Recipient’s Scientist’s research. 
 3. Recipient agrees to hold confidential all Information except as such Information: (a) can be demonstrated was known by the Recipient at the time of disclosure;
(b) becomes part of the public domain, except by breach of this Agreement by Recipient; (c) is rightfully received by Recipient from a third party without an obligation of confidence to Duke; or (d) is independently developed by
Recipient’s personnel who have not had access to Information, Material or Modifications as demonstrated by competent written proof. Recipient’s obligations of nondisclosure of Information shall terminate five (5) years from the date
that this Agreement is signed by Duke. 
 4. If Recipient’s research results in an invention, a new use, or a product based on, containing, or relating
to the Material or Modifications (collectively referred to as “Invention”), Recipient agrees promptly to disclose the Invention to Duke on a confidential basis. Inventorship shall be determined in accordance with U.S. patent law (if
patentable) or by mutual agreement between the parties (if not patentable), taking into account the role and contributions of individuals involved in the development of the Invention. Ownership shall reflect inventorship. Notwithstanding the
foregoing, any Inventions that could not have been made but for use of the Material or Modifications shall be jointly owned by Duke and Recipient. In the case of a joint invention between Duke and Recipient, these parties agree to negotiate a joint
invention agreement which shall provide for fair and equitable sharing of patent costs, income, and invention management responsibilities based on the respective parties’ contributions to the Invention. If either Recipient or Duke decides not
to pursue the further development of a joint Invention hereunder, then the other party may elect to pursue the patenting or commercial development of said joint Invention with third parties. If either Recipient or Duke is the sole inventor of any
Invention, that party shall be free to dispose of such Invention as it sees fit. Duke will have the right to use for its non-profit research and teaching purposes inventions developed through use of the Material under this Agreement without payment
of license or royalty fees. 
  
 [ * ] = Certain confidential information contained
in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 17 of 20 

 5. Recipient’s Scientist agrees to provide appropriate acknowledgment of the source of the Material in all
publications and presentations based on use of the Material or Information, and agrees to furnish Duke with a copy of the manuscript or abstract disclosing such results not less than thirty (30) days prior to submission for publication for
Duke’s review and comment. If Duke determines that the proposed publication contains subject matter that requires patent protection, Recipient will delay submission for no longer than an additional forty-five (45) days for the filing of
patent applications. 
 6. Any Material delivered pursuant to this Agreement is understood to be experimental in nature, and DUKE MAKES NO REPRESENTATIONS
AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE MATERIAL WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK,
OR OTHER RIGHTS, OR THAT THE MATERIAL WILL NOT POSE A SAFETY OR HEALTH RISK. 
 7. Recipient agrees to defend, indemnify, and hold harmless Duke from any
loss, claim, damage, or liability, of any kind whatsoever, which may arise from Recipient’s receipt, use, storage, or disposal of the Material, and Recipient assumes liability for damages which may arise from its receipt, use, storage or
disposal of the Material. 
 8. In no event shall the Material be used in human beings (including for diagnostic purposes), and further provided, that any
other research involving the Material (including but not limited to research involving the use of animals and recombinant DNA) shall be conducted in accordance with all federal, state, local and other laws, regulations, and ordinances governing such
research including applicable NIH guidelines. 
 9. (a) This Agreement will terminate on the earliest of the following dates: (1) on completion of
Recipient’s proposed research studies with the Material, or (2) on thirty (30) days written notice by either party to the other, or (3) two years from the date that this Agreement is signed by Duke. 
 (b) On termination of this Agreement, Recipient shall immediately discontinue its use of the Material and shall, within ten (10) days of receiving
direction of Duke, return or destroy all Material. Further, Recipient shall, within ten (10) days of receiving direction from Duke, destroy all Modifications. In the case of destruction of the Material and/or Modifications under the preceding
two (2) sentences, Recipient shall provide Duke with written certification of the complete, safe, and legal destruction of all of the Material and/or Modifications, as the case may be. 
 (c) Paragraphs 3, 4, 5, 6, 7, 9(b) and 9(c) shall survive termination. 
  
 [ * ] = Certain confidential information contained in this document, marked by brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 18 of 20 

 10. This Agreement is not assignable without the prior written consent of Duke. 
  

					
	AGREED:	 		 	
			
	Duke’s Investigator:	 		 	Recipient’s Scientist:
			
	  	 		 	  
	(Signature)                                    
                                        
    (date)	 		 	(Signature)                                    
                                        (date)

			
	Duke’s Investigator Approval:	 		 	Recipient’s Institutional Approval:
			
	  	 		 	  
	 Linda Fuge Abruzzini,Ph.D.                                 
                   (date)
 Assoc. Director, Office of
Science & Technology
 DUMC Box 3664, M454 Davison Building
 Durham, NC 27710 USA
 Mtastemco.doc
	 		 	 (authorized signature)                                  
                        (date)
 Name:
 Title:
 Address:

  
 [ * ] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 19 of 20 

 APPENDIX B 
 ROYALTY REPORT 
  

																							
	 ROYALTY REPORT for period ending ____________________________

	 Duke File #[ * ] and [ * ]
	 		 		 		 		 		 	
	 Country
	 	Product	 	Sales in
<Month>	 	Sales in
<Month>	 	Sales in
<Month>	 	Sales in
<Month>	 	Sales in
<Month>	 	Sales in
<Month>	 	TOTAL
GROSS
SALES	 	Reductions
to Sales**	 	TOTAL
NET
SALES	 	%
Royalty
Due
												
	 SubTOTAL x Country
	 		 		 		 		 		 		 		 		 		 		 	
												
	 SubTOTAL x Country
	 		 		 		 		 		 		 		 		 		 		 	
												
	 GRANT TOTAL
	 		 		 		 		 		 		 		 		 		 		 	
												
	 ROYALTIES PAID
	 		 		 		 		 		 		 		 		 		 		 	
	
	 **     Note that Reductions to Sales are limited to allowances to customers for spoiled, damaged and
returned goods and Product used for promotional trials

				
	 (Article 1.01.g of the License Agreement).
	 		 		 	

  
 [ * ] = Certain confidential
information contained in this document, marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  

 Page 20 of 20

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