Document:

Machinery and Equipment Loan Fund Security Agreement

 Exhibit 10.18 
 MACHINERY AND EQUIPMENT LOAN FUND 
 SECURITY AGREEMENT 

 THIS AGREEMENT made this 20th day of December, 2007, effective as of December 31, 2007, (the “Effective Date”) between TENGION, INC., a
corporation organized and existing under the laws of Delaware and having its principal offices at 2200 Renaissance Boulevard, Suite 150, King of Prussia, Pennsylvania 19406 (the “Debtor”) and the COMMONWEALTH OF PENNSYLVANIA, acting
through the DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT with an office at 400 North Street, 4th Floor, Harrisburg, Pennsylvania 17120 (the “Department”). 
 RECITALS 

 A. The Department and the Debtor have entered into a Loan Agreement effective as of the Effective Date (the “Loan
Agreement”). Under the Loan Agreement, the Department has agreed to lend the Debtor the principal sum of One Million Six Hundred Fifty Thousand Dollars ($1,650,000) (the “Loan”) upon the terms and subject to the conditions of the Loan
Agreement. 
 B. As evidence of its obligation to repay the Loan, the Debtor has signed a Note effective as of the Effective
Date (the “Note”) which the Debtor has delivered to the Department. The Note describes the interest rate and the payment terms of the Loan. Unless otherwise defined herein, capitalized terms which are used herein shall have the meanings
ascribed to them in the Loan Agreement. 
 NOW THEREFORE, in consideration of the Loan and intending to be legally bound, the
Debtor hereby grants, covenants and agrees with the Department as follows: 
 GRANTING CLAUSE 
 The Debtor grants to the Department a security interest in the machinery and equipment listed on Exhibit “A” hereto and all parts,
replacements and/or substitutions, accessions, equipment, tools and operating manuals and any proceeds thereof and all insurance proceeds therefrom (the “Collateral”). 
  

 Security Agreement 
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 This Security Agreement secures payment and performance by the Debtor to the Department of
the Debtor’s obligations under the Loan Agreement and any other present or future obligations of the Debtor to the Department. Capitalized terms used in this Security Agreement will have the meanings defined in the Loan Agreement. 

LOCATION AND USE OF COLLATERAL 
 Debtor has good, marketable and unencumbered title to the Collateral which it has acquired. Debtor will have good, marketable and unencumbered title to the Collateral which Debtor will acquire in the
future. Debtor covenants that the Collateral will be used primarily for Debtor’s business. The Collateral is or will be located at the property commonly known as 2900 Potshop Lane in East Norriton Township, Montgomery County, Pennsylvania
described in Exhibit “B” (the “Property”). Debtor will not permit any of the Collateral to be removed from the Property without the prior written consent of the Department. 
 It is the Debtor’s intent that the Collateral will not be permanently attached to the Property in such a manner as to become a fixture
under Pennsylvania law, including without limitation the Pennsylvania Uniform Commercial Code. In the event that the Collateral is attached to the Property in such a manner as to become a fixture, the security interest created by this Security
Agreement and the security interest and liens granted hereunder will attach to the fixtures. The Debtor is the lessee of the Property as evidenced by a copy of a Lease furnished to and reviewed by the Department. If requested by the Department,
Debtor will furnish a written disclaimer of any interest in the Collateral by any encumbrancer of the Property. 
 The proceeds
of the obligation secured hereby will be used to purchase the Collateral and the security interest will create, upon filing of financing statements in the required offices, a perfected first lien upon the Collateral. 
  

 Security Agreement 
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 DEBTOR’S DUTIES 
 1. Debtor will not permit any lien or security interest to attach to the Collateral nor permit the Collateral to be levied upon, attached or
seized, nor permit the Collateral to become an accession to other goods. Debtor will defend the Collateral against the claims and demands of all persons except the Department. Debtor will not lease or dispose of the Collateral without the prior
written consent of the Department. Debtor will notify the Department at least 30 days in advance of its intention to acquire the Collateral, and the location of the newly acquired Collateral. 
 2. Debtor agrees to comply with any governmental regulations or statutes which apply to the Collateral and will not commit nor permit any
act of waste or injury to the Collateral nor use or permit use of the Collateral in any unlawful manner. Debtor will keep the Collateral in good repair. Upon reasonable notice to the Debtor, the Department may inspect the Collateral at reasonable
times and intervals and may for this purpose enter the Property. 
 3. The Debtor shall comply with the following insurance
requirements: 
 (a) The Debtor shall provide, or cause to be provided, to the Department, a certificate of the
following insurance policies: 
 (i) Property Coverage. The Debtor shall keep, or cause to be kept, the
Collateral insured for the benefit of the Department under an all-risk hazard insurance policy covering physical loss or damage including fire and extended coverage, collapse, liquid damage, flood (to the extent required below), earthquake and
comprehensive boiler/machinery coverage (if applicable), written on a replacement cost basis in an amount not less than the full insurable value of the Collateral, as determined, upon request of the Department, not more than once annually by
an appraiser or rating bureau satisfactory to the Department. The Department shall be listed as a loss payee on the policy in a standard clause with the understanding that any obligation imposed upon Debtor (including without limitation, the
liability to pay premiums) shall be the sole obligation of Debtor and not that of the Department. All coverage shall be written with a valid agreed amount endorsement and in a sufficient amount to prevent any coinsurance penalty. 
  

 Security Agreement 
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 (ii) General Liability Coverage. The Debtor shall maintain, or cause
to be maintained, general liability insurance, in an amount not less than $1,000,000, which policy shall include coverage of all buildings and improvements now or hereafter erected upon the Premises. 
 (iii) Worker’s Compensation Insurance. While this Security Agreement is in effect, the Debtor shall also
maintain, or cause to be maintained, worker’s compensation insurance (containing a stop gap endorsement) in amounts satisfactory to the Department. 
 (b) With respect to all insurance maintained pursuant to this Section 3, such policies shall be endorsed to provide that: 
 (i) the insurers thereunder waive all rights of subrogation against the Department, any right of set-off and counterclaim and
any other right to deduction whether by attachment or otherwise; 
 (ii) such insurance is primary without right
of contribution of any other insurance carried by or on behalf of the Department; and 
 (iii) if such
insurance is cancelled by the insurer for any reason whatsoever (including without limitation, nonpayment of premium) or any substantial change is made in the coverage that affects the interests of the Department, such cancellation or substantial
change is not to be effective as to the Department until thirty (30) days after receipt by the Department of notice sent to the Department as specified in the Loan Agreement. 
 (c) The Department shall receive copies of all of said certificates upon the execution of this Security Agreement and upon
each renewal, expansion or modification thereof, together with a current Acord 27 Evidence of Property Insurance Certificate. 
 (d) All insurance policies described in this Section 3 shall be written by insurance companies licensed to do business within the Commonwealth of Pennsylvania and satisfactory to the Department.

 (e) Each year until the Loan is paid in full, (i) the Debtor shall prepay, or cause to be prepaid, the
premiums for a full year of all such insurance, at least thirty (30) days before such premiums are due; and (ii) the Debtor shall deliver to the Department,

  

 Security Agreement 
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or cause to be delivered, at least thirty (30) days before such premiums are due, evidence of payment of such premiums together with certificates of such insurance and copies of a current
Acord Evidence of Property Insurance Certificate. 
 (f) Any modification of any of the above-listed insurance
policies must be approved by the Department in writing prior to the effective date of such modification. 
 (g)
The Debtor shall cause each insurer or broker to advise the Department promptly in writing of any default in the payment of any premiums or any other act or omission on the part of Debtor or any contractor of Debtor which might invalidate or render
unenforceable, in whole or part, any insurance provided hereunder. The Department, at its sole option, may obtain such insurance if not provided by Debtor within thirty (30) days after Debtor shall have received written notice from the
Department to provide same, and in such event, Debtor shall reimburse the Department upon demand for the cost thereof, together with interest from the date of payment of the premiums by the Department to the date on which Debtor repays such
premiums, at the rate set forth in Section 7 hereof. Upon the occurrence and continuance of an Event of Default, all proceeds payable from any property and casualty insurance policy described above which are payable to the Department shall be
paid to the Department, without the consent of Debtor. 
 (h) The Debtor expressly consents and agrees to the
following: 
 (i) The Department may settle all claims under all such policies except worker’s compensation
and may demand, receive and receipt for all moneys becoming payable thereunder. The proceeds under any policy shall be paid by the insurer to the named insured and the Department as their interests may appear, and the Department in its discretion
may apply the amount so collected toward the payment of the Indebtedness or toward the alteration, reconstruction, repair or restoration of the Collateral or any portion thereof. 
 (ii) With respect to all insurance maintained pursuant to this Section 3, the interests of the Department are not
invalidated by any action or inaction of Debtor or any other natural or artificial person and the Department is insured regardless of any breach or violation by Debtor or any other person of any warranties, declarations or conditions contained in
such policies. 
  

 Security Agreement 
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 4. Debtor will pay all taxes or governmental charges levied against the Collateral or its
use before the taxes or governmental charges become delinquent and will provide the Department with evidence of payment upon request. 
 5. Debtor agrees that the Department may at any time and from time to time, file financing statements, continuation statements and amendments thereto (collectively, the “Financing Statements”) and that the Financing Statements may
describe the Collateral in particular or in generic terms. Debtor further agrees that the Financing Statements may contain any information (including but not limited to whether the Debtor is an organization, the type of organization and the
organization identification number issued to the Debtor) required by the Uniform Commercial Code as codified at 13 Pa.C.S.A.§ 9101, et seq. (the “UCC”) to be deemed sufficient and/or acceptable by any filing office (as defined in the
UCC). The Debtor agrees to furnish any such information to the Department promptly upon request. Any such Financing Statements may be signed by the Department on behalf of the Debtor or may be filed by the Department without the Debtor’s
signature and may be filed at any time in any jurisdiction whether or not Revised Article 9 of the UCC is then in effect in that jurisdiction to perfect or continue the Department’s security interest in the Collateral. Debtor will do other acts
considered by the Department to be appropriate to secure, maintain, perfect or protect and continue the Department’s security interest in the Collateral and will pay all costs and expenses (including reasonable fees and expenses of counsel and
filing fees) related to the preparation and filing of any financing statements, continuation statements or other documents related to the protection of the Department’s security interest in the Collateral. 
 6. Debtor shall not change its name without notice to the Department. 
 7. At its option, and without any obligation to do so, the Department may pay any taxes, assessments, liens, security interest or other
encumbrances at any time placed against the Collateral, and may pay for insurance, repair and preservation of the Collateral and any necessary expenses, including reasonable attorney fees, to protect the priorities of the Department’s interests
in the Collateral and in exercising its rights and remedies on default, provided that Debtor has failed to pay any of the foregoing expenses within thirty (30) days after Debtor shall have received written notice from the Department to pay
same. All such sums so paid or advanced by the

  

 Security Agreement 
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Department shall immediately and without demand be secured hereby and be repaid by the Debtor to the Department, together with interest thereon at the rate of fifteen percent (15%) per
annum, and shall be added to the principal of the indebtedness and be secured by this Security Agreement. The production of a receipt by the Department shall be conclusive proof of a payment or advance authorized hereby, and the amount and validity
thereof. 
 8. Debtor agrees to indemnify and save harmless the Department from any loss, or damage caused by the Collateral or
its use and to (except to the extent such loss or damage is caused by the gross negligence or willful misconduct of Department or its agents) immediately give written notice to the Department of any loss or damage to, or loss of possession
of, the Collateral, occasioned by any cause whatsoever. 
 EVENTS OF DEFAULT 
 An event of default hereunder (an “Event of Default”) shall be the occurrence of any Event of Default as defined in the Loan
Agreement. 
 REMEDIES ON DEFAULT 
 Upon the occurrence of an Event of Default, in addition to the remedies provided in the Loan Agreement and the other Loan Documents, the Department will have the immediate right to pursue any or all of
the of the remedies available to a secured party under the Pennsylvania Uniform Commercial Code. In furtherance of those remedies, the Department may require Debtor to assemble all or any part of the Collateral and make it available to the
Department at any place designated in a notice sent to Debtor. The Debtor agrees that the Department’s place of business shown on this Security Agreement is a place reasonably convenient to it to assemble the Collateral. The Debtor agrees that
a notice sent to it by first class mail thirty days before the time of any public sale or the time after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable notice of such sale or other
disposition. 
  

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 MISCELLANEOUS 
 Time is of the Essence in the interpretation of this Security Agreement. 
 No
failure or delay of the Department in exercising any right or remedy shall be a waiver thereof. No single or partial exercise by the Department of any right or remedy hereunder will preclude any other or future exercise of any other right or remedy.
Any notice required to be given hereunder shall be given by following the procedure outlined in Section 8.14 of the Loan Agreement. This Security Agreement shall be interpreted in accordance with the laws of the Commonwealth of Pennsylvania
including its statutes of limitation but without regard to its rules regarding conflicts of laws. The venue of any action brought upon this agreement, shall be Dauphin County or the county wherein the Project is located. All the terms of the
Security Agreement will inure to the benefit of and bind the successors and assignees of the parties. This Security Agreement may be amended in writing only. Such amendment must be executed by any party against whom enforcement of any waiver,
modification or discharge is sought. The recitals set forth herein constitute a material part of this agreement and are expressly incorporated herein. 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of this 20th day of December, 2007. 
  

							
	ATTEST/WITNESS:	 		 	TENGION, INC.
				
	  
	 		 	By	 	 /s/ Gary Sender

		 		 		 	Chief Financial Officer

  

 Security Agreement 
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 EXHIBIT “A” 
 The “Collateral” – the machinery, equipment and other tangible personal property listed below, and all parts,
replacements and/or substitutions, additions and accessions, any equipment in which the equipment listed below has been incorporated into, tools and operating manuals thereto, any proceeds of sale or disposition thereof and any proceeds of insurance
thereon or condemnation thereof. 
  

					
	 Type of Equipment
	 	 Vendor/Manufacturer
	 	 Model No./Serial No.

		 		 	

  

 Security Agreement 
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 EXHIBIT “B” 
 The Property 
 2900 Potshop Lane, East Norriton
Township, Montgomery County, PA as more fully described in the sublease agreement dated February 1, 2006 between Corporate Interiors, Inc. and the borrower. 
  

 Security Agreement 
 Page 10 of 10Offer Letter

 Exhibit 10.19 
 EXECUTION COPY 
 Tengion, Inc. 
 c/o Scheer & Company, Inc. 
 250 W. Main Street 
 Branford, CT 06405 
 May 25, 2004 
 Steven
Nichtberger, M.D. 
 Re: Tengion, Inc. 
 Dear Steven: 
 I am pleased to extend this offer for you to join Tengion, Inc. (the “Company”). This offer is
conditioned upon your signing the attached memorandum and satisfying the conditions identified in paragraph 11 of this letter. 
 The terms and
conditions of the offer are as follows: 
  

	1.	Your position is Chief Executive Officer, President, and Member of the Board of Directors. 

  

	2.	Your commencement date is April 1, 2004. 

  

	3.	Your gross base compensation will be $275,000 per year. You may be eligible for a merit bonus of up to 30% of your base salary. The magnitude of the bonus, if any, will
be determined by the Company’s Board of Directors (the “Board”) in its sole discretion, based upon your achievement of a series of mutually agreed upon performance milestones each fiscal year. A proposed series of such
milestones is contained in Exhibit B to this letter. 

  

	4.	You will be provided with a one-time award of 1,588,000 shares of restricted stock in connection with your joining the Company full-time. These shares will be subject
to a repurchase agreement between you and the Company, which provides for the functional equivalent of a four-year vesting schedule. Subject to paragraph 9 hereof, these shares will be subject to repurchase by the Company, with such right lapsing
immediately for 156,000 shares, and the right of repurchase will lapse for 25% or 358,000 shares upon your first anniversary of employment, and the right of repurchase for the remaining 1,074,000 shares will lapse ratably on a quarterly basis over
the following three years (at the rate of 89,500 shares per quarter). From your commencement date to the date of the closing of the A-Round of financing of the Company, the shares of restricted stock that you are acquiring hereunder shall not be
treated differently than the shares of common stock held by other holders on the date of the closing of the Bridge Round financing with respect to dilution or any other action that may have a material adverse effect on such shares of restricted
stock. 

  

	5.	You will have the right but not the obligation to invest in the Company’s Bridge Round an amount to not exceed $100,000, on terms equivalent to those agreed upon
with the other Bridge Round investors. 

  

	6.	You will be reimbursed for reasonable costs and expenses incurred by your legal counsel in connection with the review of documentation between the Company and you
solely related to your employment with the Company, such amounts not to exceed $5,000. 

  

	7.	 You will be eligible to enroll in our group benefits program upon eligibility. The benefits package to be provided to you is equivalent to that offered
to our management employees. The Company may from time to time modify or eliminate any or all benefits extended or provided in its sole discretion. You will also be entitled to four (4) weeks paid vacation each fiscal year,

	 	 
subject to and in accordance with the policies of the Company in effect from time to time, as determined by the Board. 

  

	8.	You will receive a performance review on an annual basis, which will include a determination of potential adjustment of your base salary, along with an assessment of a
merit bonus. The Board may also consider on an annual basis, a grant of stock incentives, including but not limited to incentive stock options, pursuant to the Company’s stock incentive plan, in recognition of your performance for the preceding
year. Nothing herein should be interpreted as a guarantee of a salary increase, merit bonus, or grant of stock incentives, 

  

	9.	Upon termination of your employment, you will be entitled to the following additional benefits: 

  

	 	a.	In the event that your employment is terminated by the Company for reasons other than Cause (as such term is defined below) or in the event you resign your employment
for Good Reason (as defined below): 

  

	 	1.	you will be provided a severance package with continuation of salary (at not less than the gross base compensation specified above) and benefits and, at the discretion
of the Board, prorated bonus to the target level. Such severance package will be paid for a period of twelve (12) months from the date of termination. Your severance will be subject to set off in the event that you obtain other employment
during such severance period. 

  

	 	2.	you will receive an acceleration of vesting for 25% of the net shares which at the time are not yet vested, and the remainder of the unvested shares shall be subject to
repurchase at an amount equal to the actual tax liability you incurred in connection with the purchase of such shares. 

  

	 	3.	the unvested stock options shall be deemed expired. 

  

	 	b.	In the event that your employment is terminated for Cause: 

  

	 	1.	you will not be entitled to a severance package. 

  

	 	2.	you will not receive any acceleration of vesting for the net shares which at the time are not yet vested, and all vested and unvested shares shall be subject to
repurchase at your cost. 

  

	 	3.	the unvested stock options shall be deemed expired. 

  

	 	c.	In the event that you resign without Good Reason: 

  

	 	1.	you will not be entitled to a severance package. 

  

	 	2.	you will not receive any acceleration of vesting for the net shares which at the time are not yet vested, and such unvested shares shall be subject to repurchase at
your cost. 

  

	 	3.	the unvested stock options shall be deemed expired. 

  

	 	d.	Pursuant to tax regulations, with respect to any incentive stock options you may be granted, in the event that your employment with the Company is terminated for any
reason, (i) you will have 90 days to exercise the vested portion of such stock options, or they will be forfeited and (ii) any unvested stock options as of such date of termination shall be cancelled, provided, however, that if your
employment terminates by reason of death or disability, and in all events in the case of non-qualified stock options, you or your personal representatives will have twelve (12) months in which to exercise such stock options.

	 	e.	Notwithstanding the foregoing, in the event your employment is terminated without Cause or you resign with Good Reason in relation to the sale or other disposition of
all or substantially all of the Company’s assets or a change in ownership of fifty percent (50%) or more of the Company’s stock, in a single transaction or series of related transactions, your shares shall vest in full (if not sooner
vested). 

  

	10.	For purposes of paragraph 9 hereof, the term “Cause” shall mean (i) your continued failure to perform your duties (other than as a result of physical or
mental illness, accident or injury) or any other material breach by you after a written demand to correct such failure or breach is delivered to you by the Company (the time for correction being reasonably appropriate to the applicable
circumstances, but in no event less than one week); (ii) dishonesty, willful or gross misconduct, or illegal conduct by you in connection with your employment with the Company, which in the Board’s reasonable judgment will result in
material damage to the business or reputation of the Company; (iii) your conviction of, or plea of guilty or nolo contendere to, a charge of commission of a felony (exclusive of any felony relating to negligent operation of a motor
vehicle) and not including a conviction, plea of guilty or nolo contendere arising solely under a statutory provision imposing criminal liability upon you on a per se basis due to the Company offices held by you, so long as any act or
omission by you with respect to such matter was not taken or omitted in contravention of any applicable policy or directive of the Board; and (iv) a material breach by you of this Offer Letter, including the memo attached hereto as Exhibit A,
or the confidentiality and assignment agreement required to be executed pursuant to paragraph 11 below, provided that in either case such breach in the Board’s reasonable judgment will result in material damage to the business or reputation of
the Company; provided that in any case (other than item (iii) hereof), the Company provides you with written notice of its intention to terminate your employment for Cause, gives you a opportunity for thirty (30) days following receipt of
such notice to cure, if the event is capable of being cured, or if not capable of being cured, to appear personally before the Board with counsel to be heard on whether Cause exists to terminate your employment. For purposes of paragraph 9 hereof,
the term Good Reason shall mean (i) your being assigned by the Company to a position inconsistent in any material respect with the position of President, Chief Executive Officer and a Board Member of the Company; (ii) a change without your
consent in the principal location of your office to an office that is more than forty (40) miles from your current residence, such consent not to be unreasonably withheld; (iii) the Company’s failure to pay you your compensation or
benefits when due, a reduction of your salary (other than pursuant to an across-the-board reduction in the compensation of all senior management; provided that such reduction is proportionately equal amongst all such members of senior management) or
any other material breach by the Company of its obligations under this Agreement; or (iv) your death or disability; provided that in any case (other that item (iv) hereof) you provide the Company with written notice of your intention to
terminate your employment for Good Reason, give the Company an opportunity for thirty (30) days following receipt of such notice to cure, if the event is capable of being cured, or if not capable of being cured, to have the Company’s
representatives meet with you and your counsel to be heard on whether Good Reason exists for you to terminate your employment. 

  

	11.	You will be asked to execute a standard confidentiality and assignment agreement. You will also agree that in the event that for any reason your employment with the
Company is terminated (with or without Cause), for a period of twelve (12) months thereafter, you will not engage in a business activity that will be directly competitive with the business of the Company or that will result in the use or
disclosure of the Company’s confidential, trade secret or proprietary information; provided, however, that for purposes of this paragraph 11 hereof, a business activity directly competitive with the business of the Company shall not include any
pharmaceutical, pharmacological or biopharmaceutical products for the prevention or treatment of disease. 

  

	12.	 Subject to the limitations set forth in the second sentence of this paragraph 12, the Company will advance the costs and expenses and indemnify you to
the fullest extent permitted by law against all costs, expenses, liabilities and losses (including, without limitation, attorneys’ fees, judgments, fines, penalties, excise taxes and amounts paid in settlement) reasonably incurred by you in
connection with any action, suit or proceeding, whether civil, criminal, administrative or investigative (“Proceeding”), in which you are made, or threatened to be made, a party, or a witness by reason of the fact of your service as an
officer, director or employee of Company or as an officer, director, member, employee, trustee or agent of any other entity at the request of the Company. The Company will advance to you all reasonable costs and expenses incurred in connection with
a Proceeding within 20 days after receipt by the Company of a written request for such advance, except that in any Proceeding arising out of your gross negligence or willful misconduct, the Company’s obligation to advance costs and expenses to
you will exist only to the

	 	 
extent such obligation would exist to advance costs and expenses to other directors and officers of the Company in the event the Proceeding involved any such other director or officer. Such
request shall include an itemized list of the costs and expenses and an undertaking by you to repay the amount of such advance if ultimately it shall be determined that you are not entitled to be indemnified against such costs and expenses. The
Company will maintain a policy of directors and officers liability insurance in a reasonable amount of coverage. 

  

	13.	Your offer of employment is dependent upon the following conditions: 

  

	 	a.	Compliance with the Immigration Reform and Control Act indicating that verifying your identify and authorization to work in the United States. 

 

	 	b.	Your agreement to maintain in secrecy the Company’s Confidential and Proprietary Business Information. 

  

	 	c.	Your return of the Memorandum attached hereto as Exhibit A. 

 Your employment with the Company will remain “at-will,” meaning that you may terminate your employment with the Company at any time and for any reason simply by notifying the Company. Likewise,
the Company may terminate your employment at any time and for any reason, with or without cause or advance notice. This at-will relationship cannot be changed except in a writing signed by the Chairman of the Board. Please understand that your
acceptance of this offer of employment should not be based on any promises or representations other than those contained in this letter and attached memorandum. Any promises contrary to the terms of this letter are superceded by this offer letter
and such promises are not binding on the Company. 
 If the terms and condition of this proposal are acceptable, please so indicate by
executing on the line provided below. This proposal may be executed in any number of counterparts all of which when taken together, shall be deemed to be one and the same instrument, and that execution may be delivered by facsimile. We very much
look forward to your joining the Company. 
  

	
	Sincerely,
	
	/s/ David I. Scheer
	 David I. Scheer
 Acting
Chief Executive Officer
 Chairman of the Board

  

	CC	Ting-Pau Oei, Johnson & Johnson Development Corporation 

	 	Per Samuelsson, HealthCap 

 In
full understanding and agreement to the terms and conditions of the Company’s conditional offer of employment, including those contained in the attached memorandum, I hereby accept the offer. 
  

	
	
	/s/    Steven Nichtberger
	Steven Nichtberger, M.D.

  

	
	
	5-25-04
	 Dated:

 Exhibit A 
  

			
	 TO:
	  	David I. Scheer
		  	Chairman of the Board Tengion, Inc.
		  	c/o Scheer & Company, Inc.
		  	250 W. Main Street
		  	Branford, CT 06405
	 RE:
	  	Acceptance of Employment
	 DATE:
	  	May 25, 2004

 I represent that to the best of my understanding. I am under no common law or
contractual obligation that would be an impediment to my employment with Tengion, Inc. (the “Company”). I will not use or disclose any confidential, proprietary or trade secret information belonging to any former employer, in my employment
with the Company. 
 I represent and warrant that I have not knowingly and improperly retained or copied any confidential,
proprietary or trade secret information or property, in any form, belonging to any former employer, and that if I was in possession of any such information or property, I have returned it to my former employer(s). 
 I agree that, if at any time during my employment with the Company, I am at risk of using or disclosing any confidential, proprietary or
trade secret information belonging to any former employer, I will immediately recuse myself from acting on the matter and advise the Chairman of the Board of the Company, without revealing any protected information, the nature of my conflict;
provided, however, that I will not be required to recuse myself in the event such disclosure is required by law or regulation or as a result of a response to a valid order of a court or another governmental body of the United States or any political
subdivision thereof. 
 I understand that if any of the representations or warranties herein are intentionally false, or if I
violate any of the terms of this memorandum, I will forfeit any unvested portion of the award of 1,558,000 shares of restricted stock and any other unvested stock incentives awarded or issued to me. 
 Dated: May 25, 2004 
  

	
	/s/    Steven Nichtherger, M.D.
	Steven Nichtherger, M.D.

 Exhibit B 
 Performance Objectives/Milestones 
 In each of the following
objectives/milestones, the Chief Executive Officer is responsible for leading and otherwise materially participating along with other members of the management team, Board, advisors, cofounders, etc., in its successful consummation 
  

	 	1.	Negotiate and finalize a Sponsored Research Agreement with Wake Forest 

	 	2.	Assist the Chairman of the Board to negotiate and finalize updated agreements with the Company’s Chair of the Scientific Advisory Board (“SAB”) and
co-founder, Dr. Anthony Atala. 

	 	3.	Negotiate and finalize other key relationships including outside board members, SAB, CAB, Business Advisory Board (if elected to form one) 

	 	4.	Negotiate and finalize a corporate collaboration with Johnson & Johnson. 

	 	5.	Lead the consummation of a Series A Preferred Investment 

	 	6.	Lead the recruitment of the rest of the management team, and staff 

	 	7.	On an ongoing basis, attract and retain experienced, seasoned, motivated management talent 

	 	8.	Participate in the refinement of the Company’s business plan and plan and participate in the development of the operating plans 

	 	9.	On an ongoing basis, review and update an intellectual property strategy, working closely with internal management, patent counsel (inside and/or outside) and the Board

	 	10.	Maintain excellent communications and reporting to the Board as well as investors. 

	 	11.	Develop a human resources plan and have it appropriately staffed to ensure smooth and effective operations. 

	 	12.	Work effectively with the Company’s inside and/or outside legal counsel to ensure that it enters into appropriate agreements and relationships, and that it
complies with the terms of such agreements. 

	 	13.	Work with the Board and/or the Audit Committee to identify auditors for the Company and subsequently work effectively with such auditors to ensure fall and accurate
reporting of the Company’s financial status. 

	 	14.	Develop and lead an ongoing highly effective business development effort to explore and implement relationships with companies for both in- and outlicensing purposes.

	 	15.	Work with the Board and other members of the team to identify and establish the necessary facilities for the Company 

	 	16.	Other objectives to be mutually agreed upon with the Board

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]