Document:

EXHIBIT 10.6

 

 

 

 

 

 

 

 

 

 

 

 

Account Pledge Agreement

 

(Vereinbarung über die Verpfändung 

von Kontoguthaben)

 

     

     

    

BETWEEN

 

Silicon Valley Bank

3003 Tasman Drive, 

Santa Clara

95054, CA 

USA

 

– hereinafter referred to as "Bank"
–

 

AND

 

Affimed GmbH

Im Neuenheimer Feld 582 

69120 Heidelberg

Germany

 

- registered with the Commercial Register
of the local court of Mannheim under registration number HRB 721206 -

 

– hereinafter referred to as "Affimed"
–

 

- The Bank and Affimed hereinafter individually
referred to as "Party" and collectively referred to as "Parties" -

 

Preamble

 

Reference is hereby made to a certain loan
arrangement by and among (a) the Bank and (b) Affimed GmbH, a German limited liability company, which loan arrangement is evidenced
by, among other documents, a certain Loan Agreement dated as of the date hereof between the Bank and Affimed GmbH (as may from
time to time be further amended, modified, supplemented, or restated; hereinafter referred to as the “Loan Agreement”).
Affimed is hereinafter also referred to as “Borrower”.

 

In order to secure, inter alia, its
assumed obligations as a borrower under the Loan Agreement, Affimed agreed - among other securities - to provide the Bank collateral
by way of pledging its German corporate bank accounts for security purposes under or pursuant to the terms and conditions of this
agreement (the "Agreement”).

 

NOW, this stated above, the Parties agree
on the following:

 

     

     

    

		1.	Scope of Account Pledge 

 

		1.1	Affimed hereby pledges to the Bank

 

		·	all present and future
credit balances, including all interest payable, from time to time standing to the credit of (i) its bank accounts currently held
with Sparkasse Heidelberg, Deutsche Bank AG and Volksbank Kurpfalz H+G Bank eG (the "Existing Account Banks”)
and as further specified in the Exhibit 1 hereto and (ii) any new accounts which Affimed may open in the future with any
bank (the "Future Account Banks” and together with the Existing Account Banks individually each an "Account
Bank” and collectively the "Account Banks”), which shall in each case include any sub-account, renewal,
redesignation or replacement thereof (collectively the "Accounts"); and 

 

		·	all rights, title and
interest in and to (but not its obligations) all present and future monies owing and all rights including, in particular, termination
rights (Kündigungsrechte) and instruction rights (Weisungsrechte) and any other claims related thereto or related
to the underlying account relationship, in particular, without limitation, any claims credited on any of the Accounts by the Account
Banks for the account of Affimed.

 

		1.2	Moreover, Affimed assigns to the Bank all claims against each Account Bank for redemption and all
ancillary rights and claims associated with the Accounts.

 

		1.3	The Bank accepts the pledge of the Accounts referred to in Section 1.1 and the assignment of claims
as per Section 1.2 (individually and collectively the "Pledge").

 

		1.4	Affimed shall bear any costs, charges and other debits incurred in connection with the management
of the Accounts without any right of recourse against the Bank.

 

		1.5	Immediately after signing this Agreement, Affimed shall notify the Account Banks of the Pledge
by submitting a duly signed notification letter in the form attached hereto as Exhibit 2, and shall use commercially reasonable
efforts that the Account Banks confirm to the Bank in writing that they (i) have received notice of the Pledge and the irrevocable
instructions as per Section 3.3 below, (ii) are not aware of any third party rights relating to the Accounts, in particular as
regards any prior pledges of the Accounts of any third parties and (iii) waive their prior pledges or other security rights in
relation to the Accounts which have arisen under the general terms and conditions of the Account Banks or otherwise. A draft confirmation
letter to be issued by the Account Banks is attached hereto as Exhibit 3.

 

     

     

    

		1.6	Should the Pledge require additional statements or actions, the Parties agree to make such statements
and/or to take such actions without any reservation.

 

		2.	Security Purpose 

 

The Pledge and any other
collateral granted by Affimed to the Bank according to this Agreement shall secure all of the Obligations (as defined in the Loan
Agreement) (the "Secured Obligations").

 

		3.	Notification of Account Balances, Right of Disposal 

 

		3.1	No later than ten (10) Business Days (as defined in the Loan Agreement) after the end of each month
Affimed shall inform the Bank of the balances on the Accounts as of the end of the month.

 

		3.2	It is expressly agreed between Affimed and the Bank that Affimed shall have no right to exercise
any of its rights and powers in respect of the Accounts without the prior written consent (such consent not to be unreasonably
withheld, conditioned or delayed) of the Bank, except as expressly set out herein. In particular, without limitation, during the
continuation of the Pledge (i) Affimed shall have no right to withdraw any monies from or otherwise debit the Accounts and (ii)
Affimed shall not have the right to close any of the Accounts. However, the Bank agrees that Affimed shall have the right to withdraw
monies from or otherwise debit the Accounts in the ordinary course of business until an Enforcement Event (as defined under Section
6 below) occurs.

 

		3.3	Affimed shall give to the Account Banks the irrevocable instruction that Affimed may only operate
the Accounts and shall only have the right to withdraw monies from or otherwise debit the Accounts until the relevant Account Bank
receives notice to the contrary from the Bank and that on the receipt of such revocation notice/enforcement notice the Bank may
dispose over the Accounts without the prior consent of Affimed. If Affimed fails to give the irrevocable instruction as per sentence
1 to any one of the Account Banks and/or to notify the Account Banks about the Pledge as per Section 1.5 above and provide to the
Bank a copy of the notification letter with the relevant Account Bank (including a fax confirmation proving that the notification
letter was at least sent to the relevant Account Bank by fax) within 2 weeks after signature of this Agreement, the Bank shall
also be entitled to give to each Account Bank the irrevocable instruction as per sentence 1 above and/or to notify the relevant
Account Bank about the Pledge by delivering a notification letter as per Exhibit 2 on behalf of Affimed, which hereby expressly
authorises, and grants an irrevocable power of attorney to the Bank to do so.

 

     

     

    

		4.	Undertakings of Affimed

 

		4.1	During the term of this Agreement, Affimed undertakes to inform the Bank promptly upon becoming
aware of any attachments (Pfändung) or any enforcement of any prior contractual pledge with respect to any of the Accounts,
any part thereof or any other measures which may materially impair or jeopardise the Bank's rights or interests relating thereto.

 

		4.2	In the event of it becoming aware of an attachment or any other enforcement measure in relation
to the Accounts, Affimed undertakes to forward to the Bank without undue delay a copy of the attachment order or other relevant
communication, the garnishee order and all other documents necessary for a defence against the attachment or the enforcement. Affimed
shall inform the attaching creditor or the holder of the relevant contractual pledge immediately about the Bank's rights and interests
in the Accounts.

 

		4.3	Affimed undertakes not to open any new bank accounts that are not listed in Exhibit 1 neither
in Germany nor elsewhere unless (i) with the prior written consent (such consent not to be unreasonably withheld, conditioned or
delayed) of the Bank and (ii) under the proviso that the Bank will obtain a first ranking security interest over any new bank account
(with the exception of any pledges existing by operation of the general terms and conditions (Allgemeine Geschäftsbedingungen
provided that Affimed uses commercially reasonable efforts to have such banks waive their prior pledge) of the Account Bank) according
to the requirements of the applicable local laws and in each case in form and substance reasonably acceptable to the Bank.

 

		4.4	Finally, Affimed undertakes (i) not to do or cause anything which may adversely affect the Pledge
or the rights of the Bank under this Agreement and (ii) to notify the Bank without undue delay of any event or circumstance which
might adversely affect the validity or enforceability of the Pledge or cause an Enforcement Event (as defined in Section 6 below)
to occur.

 

		5.	Representation and Warranties 

 

Affimed hereby represents
and warrants to the Bank by way of an independent guarantee statement within the meaning of Section 311 German Civil Code, that
(i) it has full and unaffected title to the Accounts, (ii) the Accounts are free and clear from any encumbrances and adverse rights
and claims of any third parties (except for (a) the currently existing pledge in favour of Perceptive Credit Holdings, LP (i.e.
former Account Pledge Agreement with PCOF 1, LLC dated 24 July 2014 meanwhile having been transferred from PCOF 1, LLC by Transfer
Certificates, i.e. assumption of contract (Vertragsübernahme), dated 4 December 2014, 23 December 2015 and 27 June
2016 via Perceptive Credit Opportunities Fund, LP and PCOF Phoenix II Fund, LP to Perceptive Credit Holdings, LP, which shall be
released by way of a Security Release Agreement in the course of the funding of the loan amount under the Loan Agreement) and (b)
any pledges in favour of the Account Banks which have arisen under the

 

     

     

    

general terms and conditions
of the Account Banks and which shall presumably be waived by the Account Banks as outlined in in Section 1.5 above), and (iii)
Exhibit 1 is a true and complete list of all Accounts currently held by Affimed with any Account Bank in Germany.

 

		6.	Realization ("Verwertung")

 

		6.1	The Pledge shall become enforceable upon the occurrence of the earlier of: (i) an Event of Default
(as defined in the Loan Agreement) which is continuing and has not been waived by Bank or (ii) the Bank making a demand for the
due payment or discharge of the Secured Obligations (or any part of them) and such demand remains unpaid (hereinafter referred
to as "Enforcement Event") and provided any additional requirements, if any, set forth in Section 1204 et seq.
German Civil Code with regard to the enforcement of the Pledge are met (Pfandreife), then the Bank may at any time thereafter
enforce the Pledge in accordance with applicable law.

 

		6.2	Notwithstanding Section 1277 German Civil Code, the Bank is entitled to exercise its rights without
obtaining enforceable judgment or other instrument (vollstreckbarer Titel) by way of collecting any monies standing to the
credit of the Accounts directly from the Account Banks but only to the extent necessary to fully satisfy all outstanding amounts
under the Secured Obligations. After complete, full, unconditional and irrevocable satisfaction and discharge of the Secured Obligations
any remaining surplus shall be re-transferred to Affimed.

 

		6.3	Should the Bank seek to enforce the Pledge under this Section, Affimed shall (i) (at its own expense),
at the reasonable request of the Bank, render forthwith all necessary assistance in order to facilitate the prompt enforcement
of the Pledge or any part thereof and/or the exercise by the Bank of any other rights it may have as pledgee (ii) provide all documentation
on the Accounts to the Bank.

 

		6.4	If the Pledge is enforced, no rights of the Bank shall pass to Affimed by subrogation or otherwise
unless and until the occurrence of all of: (a) the Secured Obligations have been unconditionally and irrevocably repaid and discharged
in full and (b) Bank having no commitment or obligation to lend any further funds to the Borrower. Until then all enforcement proceeds
shall serve as additional collateral and the Bank shall be entitled to seek satisfaction from such proceeds at any time.

 

		6.5	Following satisfaction of the requirements for enforcement of Section 6.1, all subsequent payments
and all payments based on similar ancillary rights attributed to the Accounts may be applied by the Bank in satisfaction in whole
or in part of the obligations secured hereunder or serve as additional collateral.

 

     

     

    

		6.6	The Bank may, in its sole discretion, determine which of several security interests, if applicable,
shall be used to satisfy the Secured Obligations, however taking into account the legitimate interests of Affimed.

 

		6.7	Affimed hereby expressly waives for itself all defences of revocation (Anfechtung) and set-off
(Aufrechnung) pursuant to Sections 770 and 1211 German Civil Code.

 

		7.	Release of the Pledge 

 

		7.1	After the occurrence of all of: (a) the Secured Obligations have been unconditionally and irrevocably
repaid and discharged in full and (b) the Bank having no commitment or obligation to lend any further funds to the Borrower, the
Bank will as soon as reasonably practical declare the release of the Pledge (Pfandfreigabe) to Affimed and the Account Bank
as a matter of record. For the avoidance of doubt, the Parties are aware that upon the Bank being satisfied that all of the Secured
Obligations have been unconditionally and irrevocably repaid and discharged in full and in all other cases where those obligations
cease to exist, as, for example, without limitation, in a case of a novation, due to the accessory nature of the pledge as a security
(Pfandrechtsakzessorietät) the Pledge automatically ceases to exist by operation of German mandatory law.

 

		7.2	The Bank shall be obliged – even prior to the unconditional and irrevocable repayment and
discharge of all the Secured Obligations – to release the Pledge and/or, at the Bank's discretion, to release any other collateral
granted to the Bank by Affimed in whole or in part if and to the extent that the realizable value of all collateral permanently
exceeds 110% of the value of the Secured Obligations. In case the total value of the collateral should permanently fall below the
afore-mentioned threshold of 110%, Affimed shall be obliged to re-transfer such assigned Claims to the Bank or, at the Bank’s
discretion, provide other collateral to the Bank which had been previously released pursuant to the provisions in this paragraph
to the extent necessary to cover the deficit. Affimed shall bear any and all reasonable costs incurred in connection with the release
of the Pledge or of any other collateral in accordance with this Section 7.

 

		7.3	The Bank undertakes to promptly release from the scope of this Agreement all current and future
special accounts for the increase of the share capital (Kapitalerhöhungssonderkonten) of Affimed.

 

		8.	Indemnity 

 

		8.1	The Bank shall not be liable for any loss or damage suffered by Affimed save in respect of such
loss or damage which is suffered as a result of gross negligence or willful misconduct of the Bank or any of its directors, officers,
employees, agents, attorneys or the persons representing the Bank.

 

     

     

    

		8.2	Affimed shall indemnify the Bank and keep the Bank indemnified against any losses, actions, claims,
expenses, demands and liabilities which is suffered or incurred by the Bank as a result of, following from, consequential to, or
arising from a breach of Affimed's obligations or undertakings pursuant to this Agreement. except for any losses, actions, claims,
expenses, demands and liabilities which is suffered or incurred by the Bank as a result of, following from, consequential to, or
arising from gross negligence or willful misconduct of the Bank or any of its directors, officers, employees, agents, attorneys
or the persons representing the Bank.

 

		9.	Assignment 

 

The Bank shall be entitled, at its own expenses
and costs, to assign or otherwise transfer any and all of its rights and duties under this Agreement as well as the entire Agreement
to a third party only if the Bank transfers all of its rights and obligations under the Secured Obligations to such third party.
Affimed shall not be entitled to assign or transfer its rights under this Agreement to any third party.

 

		10.	Continuing Security 

 

This Agreement shall create a continuing
security and no change or amendment whatsoever in any document or agreement related to it, nor (in deviation of Section 418 German
Civil Code (BGB)) any assumption of debt (Schuldübernahme) in relation to the Secured Obligations, shall affect
the validity or scope of this Agreement or the obligations which are imposed on Affimed pursuant to it.

 

		11.	Independence 

 

This Agreement is independent from any other
security or guarantee which may have been or will be given to the Bank with respect to any obligation of the Borrower. None of
such other security shall prejudice, or shall be prejudiced by this Agreement.

 

		12.	Final Provisions 

 

		12.1	This Agreement (together with the Exhibits hereto) contains the entire agreement between the Parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings with respect thereto. In case
of any discrepancies between this Agreement and the provisions of the Loan Agreement the provisions of the Loan Agreement shall
– to the extent legally permissible – prevail.

 

		12.2	Any amendment or supplement to or modification of this Agreement (including the Exhibits hereto),
including this provision, shall be valid only if made in writing, except where a stricter form (e.g. notarization) is required
under applicable law. For the avoidance of

 

     

     

    

doubt,
this provision also applies to a waiver of any right or claim any Party may have under this Agreement.

 

		12.3	This Agreement is written in the English language (except that the Exhibits may be in the German
language in whole or in part). Terms to which a German translation has been added in parentheses shall be interpreted pursuant
to the meaning assigned to them in German.

 

		12.4	This Agreement shall be governed by and construed in accordance with the substantive laws of the
Federal Republic of Germany, even if the German conflict of laws provisions should refer to another legal system. The courts of
Frankfurt/Main, Germany shall have exclusive jurisdiction.

 

		12.5	Should any provision of this Agreement be or become invalid, ineffective or unenforceable in whole
or in part, the validity, effectiveness and enforceability of the remaining provisions shall not be affected thereby. Any such
invalid, ineffective or unenforceable provision shall, to the extent permitted by law, be deemed replaced by such valid, effective
and enforceable provision as comes closest to the economic intent and purpose of such invalid, ineffective or unenforceable provision.
The aforesaid shall apply mutatis mutandis to any gap in this Agreement.

 

	SILICON VALLEY BANK 	Affimed GmbH	 
	 	 	 
	 	 	 
	 	 	 
	30 November 2016	30 November 2016	 
	Place, Date	Place, Date	 
	 	 	 
	 	 	 
	 	 	 
	By: /s/ Nooman
    Haque	By: /s/ Florian Fischer	 
	Name: Nooman
    Haque	Name: Dr. Florian Fischer	 
	Title: Director of
    Life Sciences 	Title: Managing Director (Geschäftsführer)	 
	 	 	 
	 	 	 
	 	 	 
	 	By: /s/ Jörg Windisch	 
	 	Name: Dr. Jörg Windisch	 
	 	Title: Managing Director (Geschäftsführer)	 

     

     

    

Exhibit 1

 

- Bank Account Details Affimed GmbH-

 

Account Bank1:

 

Account Details:

 

	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:

     

     

    

Account Bank2:

 

Account Details:

 

	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN: 
	BIC: 
	 
	Account Bank3:
	 
	Volksbank Kurpfalz H+G Bank eG
	Hauptstrasse 46
	69117 Heidelberg
	 
	Account Details:
	 
	Name of Account Owner:
	IBAN:
	BIC:
	 
	Name of Account Owner:
	IBAN:
	BIC:

     

     

    

Exhibit 2

 

- Notification Letter Template -

 

     

     

    

	
        [Account Bank]

        

        [Street]

        

        [ZIP Code] [Pace]

        

        [Country]

         

[Letterhead Affimed GmbH]

 

Per Einschreiben / By Registered Mail

 

[Datum/Date]

 

	
        Affimed GmbH

        

        Verpfändungsanzeige

         

        Sehr geehrte Damen und Herren,

         
	 	
        Affimed GmbH

        

        Notification of Pledge

         

        Dear Sir / Madam,

         

	
        hiermit zeigen wir Ihnen an, dass wir die
        nachfolgenden bei Ihnen geführten Bankkonten und alle damit zusammenhängenden Forderungen und Rechte gemäß
        eines Kontoverpfändungsvertrages vom __ 2016 erstrangig an die Silicon Valley
        Bank, 3003 Tasman Drive, Santa Clara, CA 95054, USA ("SVB"), verpfändet haben ("Verpfändungsvertrag"):

         

        Konto

        

        IBAN:         __

        

        BIC:           __

         
	 	
        We hereby notify you that we pledged the
        following bank accounts held with you together with any and all ancillary rights and claims pursuant to an Account Pledge Agreement
        dated __ 2016 in favor of Silicon Valley Bank, 3003 Tasman Drive, Santa Clara,
        CA 95054, USA ("SVB") by way of a first ranking pledge ("Account Pledge Agreement"):

         

        Account

        

        IBAN:         __

        

        BIC:           __

         

	
        Nach dem Verpfändungsvertrag sind wir
        berechtigt, nur solange über das vorgenannte Bankkonto zu verfügen, bis Sie eine anderslautende Mitteilung von SVB (im
        Folgenden der "Pfandgläubiger") erhalten.

         
	 	
        According to the Account Pledge Agreement,
        we may only dispose of the afore-mentioned bank account until you receive notice to the contrary from SVB (hereinafter referred
        to as "Pledgee").

         

	
        Hiermit bitten wir Sie, uns sowie dem Pfandgläubiger
        jeweils den Erhalt dieser Verpfändungsanzeige gemäß beiliegendem Bestätigungsschreiben oder dem in
        Ihrem Haus verwendeten Muster schriftlich zu bestätigen.

         

        Weiterhin bitten wir um Bestätigung
        gegenüber dem Pfandgläubiger, dass

         
	 	
        Please confirm to us and to the Pledgee
        in writing that you have received this notification of pledge as per the attached confirmation letter or any template that you
        use internally.

         

        Moreover we kindly ask you to acknowledge
        vis-à-vis the Pledgee that

         

     

     

    

 

	
        a)     wir
        nur solange über die vorgenannten Bankkonten verfügen können, bis Sie eine anderslautende Mitteilung von dem Pfandgläubiger
        erhalten, so dass der Pfandgläubiger in diesem Fall ohne unsere Zustimmung unmittelbar über die Bankkonten verfügen
        und insbesondere auf etwaige Guthabenbeträge auf den Bankkonten zugreifen kann;

         

        b)     Sie
        auf Ihr vorrangiges Pfandrecht gemäß Ihrer Banken-AGB sowie auf sonstige Pfand- oder Sicherungsrechte in Bezug auf unsere
        bei Ihnen geführten Konten verzichten bzw. zugunsten des Pfandgläubigers den Rangrücktritt erklären

         

        sowie

         

        c)    Sie
        im Übrigen keine Kenntnis von einer anderweitigen Verpfändung der Bankkonten an Dritte oder von sonstigen Rechten Dritter
        in Bezug auf die Bankkonten haben.

         
	 	
        a)   we
        may only dispose of the afore-mentioned bank accounts until you receive notice to the contrary from the Pledgee so that the Pledgee
        is in that event entitled to immediately dispose of the bank accounts and to make use of any funds credited to the bank accounts
        without our consent;

         

        b)   you
        waive or subordinate your prior pledges or other security rights in relation to our bank accounts held with you in favour of the
        Pledgee which have arisen under your general terms and conditions or otherwise

         

        and

         

        c)   you
        are not aware of any prior pledge of the bank accounts or any other third party rights relating to the above-mentioned bank accounts.

         

	
        Bitte übermitteln Sie Ihre Antwortschreiben
        an den Pfandgläubiger zur Vermeidung etwaiger postalischer Fehlleitungen an dessen deutsche Rechtsanwälte:

         

        Fieldfisher (Germany) LLP

        

        RA Dr. Florian Streiber

        

        Am Sandtorkai 68

        

        20457 Hamburg

         

        Mit freundlichen Grüßen

         
	 	
        Please submit your response letter to the
        Pledgee directly to its German lawyers to avoid any postal misrouting:

         

        Fieldfisher (Germany) LLP

        

        Dr. Florian Streiber

        

        Am Sandtorkai 68

        

        20457 Hamburg

         

        Yours sincerely,

         

     

     

    

Exhibit 3

 

- Confirmation Letter Template -

 

     

     

    

	
        Fieldfisher (Germany) LLP

        

        Dr. Florian Streiber

        

        Am Sandtorkai 68

        

        20457 Hamburg

        

        Deutschland

         

[Datum/Date]

 

	
        Verpfändung Bankkonto

        Affimed GmbH

         

        Sehr geehrter Herr Dr. Streiber,

         
	 	
        Pledge of Bank Account

        

        Affimed GmbH

         

        Dear Dr. Streiber,

         

	 	 	 
	
        hiermit bestätigen wir, dass die Affimed
        GmbH uns die Verpfändung ihrer bei uns geführten Konten zu Gunsten der Silicon Valley Bank angezeigt hat.

         

        Wir haben keine Kenntnis von einer anderweitigen
        Verpfändung der Bankkonten an Dritte oder von sonstigen Rechten Dritter in Bezug auf die Bankkonten.

         

        Weiterhin bestätigen wir gegenüber
        der Silicon Valley Bank, dass

         

        a)     die
        Affimed GmbH nur solange über die bei uns geführten Bankkonten verfügen kann, bis wir eine anderslautende Mitteilung
        von der Silicon Valley Bank hierzu erhalten, so dass der Pfandgläubiger im Falle der Pfandreife ohne Zustimmung der Affimed
        GmbH unmittelbar über die Bankkonten verfügen und insbesondere auf etwaige Guthabenbeträge zugreifen kann und

         

        b)     wir
        hiermit auf unser vorrangiges Pfandrecht gemäß unserer Banken-AGB sowie auf sonstige Pfand- oder Sicherungsrechte in
        Bezug auf die von der Affimed

         
	 	
        We hereby confirm that Affimed GmbH notified
        us about the pledge of its bank accounts held with us in favour of Silicon Valley Bank.

         

        We are not aware of any prior pledges of
        the bank accounts or any other third party rights relating to the bank accounts.

         

        Moreover we hereby acknowledge vis-à-vis
        Silicon Valley Bank that

         

        a)   Affimed
        GmbH may only dispose of the bank accounts held with us until we receive notice to the contrary from Silicon Valley Bank so that
        the pledgee is in an enforcement event entitled to immediately dispose of the bank accounts and to make use of any funds credited
        to the bank accounts without the approval of Affimed GmbH; and

         

        b)   we
        hereby waive our prior pledges or other security rights in relation to the bank accounts held with us by Affimed GmbH which have
        arisen under our general

         

     

     

    

 

	
        GmbH bei
        uns geführten Konten verzichten.

         
	 	banking terms and conditions or otherwise.

 

 

	
        Mit freundlichen Grüßen

         
	 	
        Yours sincerely,EXHIBIT 10.7

 

 

 

 

 

 

 

 

 

 

 

 

Security Assignment Agreement

(Globalzession)

 

     

     

    

BETWEEN

 

Silicon Valley Bank

3003 Tasman Drive,

Santa Clara

95054, CA

USA

– hereinafter referred to as "Bank"
–

AND

 

Affimed GmbH

Im Neuenheimer Feld 582 

69120 Heidelberg

Germany

 

- registered with the Commercial Register
of the local court of Mannheim under registration number HRB 721206 -

 

– hereinafter referred to as "Affimed"
–

 

– The Bank and Affimed hereinafter
individually referred to as "Party" and collectively referred to as "Parties" -

 

Preamble

 

Reference is hereby made to a certain loan
arrangement by and among (a) the Bank and (b) Affimed GmbH, a German limited liability company, which loan arrangement is evidenced
by, among other documents, a certain Loan Agreement dated as of the date hereof between the Bank and Affimed GmbH (as may from
time to time be further amended, modified, supplemented, or restated; hereinafter referred to as the “Loan Agreement”).
Affimed is also referred to as “Borrower”.

 

In order to secure, inter alia, its
assumed obligations as a borrower under the Loan Agreement, Affimed agreed - among other securities - to provide the Bank collateral
by way of assigning its claims against third parties including but without limitation its current and future claims in relation
to trade receivables and payment claims against insurance companies to the Bank for se-

 

     

     

    

curity purposes under or pursuant to the
terms and conditions of this agreement (the "Agreement”).

 

NOW, this stated above, the Parties agree
on the following:

 

		1.	Scope of the Security Assignment

 

		1.1	Affimed hereby assigns to the Bank all of its present, future, contingent or unconditional claims,
rights, interests (Forderungen und Ansprüche) and expectant rights (Anwartschaftsrechte) (collectively the "Claims"),
in particular but without limitation Claims relating to (i) trade accounts receivable (Forderungen aus Lieferungen und Leistungen),
(ii) Claims against insurance companies and (iii) Claims payable by or existing against any and all third party debtors, however
with the exception of any claims in connection with any future equity financing of Affimed, (hereinafter also referred to as the
"Assignment"). If and to the extent that any Claims for payment against its customers have been or are to be assigned
to a supplier of Affimed as part of a customary agreement on an extended retention of title (verlängerter Eigentumsvorbehalt)
the Assignment shall become effective only after the retention of title by the respective supplier has been lifted and its payment
claims have been satisfied. The presently existing Claims shall pass over to the Bank upon execution of this Agreement and any
future Claims shall pass over to the Bank on the date such assigned Claims come into existence. The Bank accepts such Assignment.

 

		1.2	The current status of the assigned Claims as of 31 October 2016 is attached hereto as Exhibit. Affimed
shall provide to the Bank no later than ten (10) Business Days (as defined in the Loan Agreement) after the end of each calendar
quarter an updated list which shows all assigned Claims as of the end of the calendar quarter. The Parties agree that any and all
Claims shall be assigned to the Bank under or pursuant to Section 1.1 above irrespective of whether the relevant Claim is mentioned
in the list of assigned Claims or not.

 

		1.3	Any existing collateral with respect to the assigned Claims as well as all ancillary rights and
rights pertaining to any surrogates for any of the assigned Claims shall also be transferred to the Bank.

 

		1.4	Provided that the Assignment according to this Section 1 requires additional statements or actions,
the Parties agree to promptly make such statements and/or to take such actions without any reservation.

 

     

     

    

		2.	Security Purpose 

 

The Assignment and any
other collateral granted by Affimed to the Bank according to this Agreement shall secure all of the Obligations (as defined in
the Loan Agreement) (the "Secured Obligations").

 

		3.	Collection of Funds

 

		3.1	Subject to and without limiting the terms and conditions of the Loan Agreement and subject to Section
3.2 below, Affimed shall remain entitled to collect the assigned Claims in its own name and for its own account in the ordinary
course of business until such authorization is revoked by the Bank. The Bank may revoke such authorization at any time and at its
sole discretion if an Event of Default (as defined under the Loan Agreement) has occurred which is continuing and has not been
waived by Bank and may then enforce the Assignment pursuant to Section 6 below. Until such revocation the Assignment constituted
hereunder will not be disclosed to any third party debtors.

 

		3.2	Affimed shall in any event only be entitled to collect the funds that are due in relation to the
assigned Claims through a bank account in Germany that is pledged in favour of Bank pursuant to the terms and conditions of a separate
Account Pledge Agreement or such other designated account as Bank may stipulate from time to time (the “German Collections
Account”) and shall at all times during the continuance of this Agreement get in and realise and pay into the German
Collections Account all monies which Affimed may otherwise receive in respect of the Assigned Claims that are not directly paid/transferred
into the German Collections Account by the relevant account debtors.

 

		4.	Undertakings of Affimed 

 

Without limiting the provisions
of the Loan Agreement, Affimed hereby undertakes vis-à-vis the Bank:

 

		4.1	to procure that all its present and future payments in respect of all assigned Claims are duly
and promptly directly paid/transferred by the relevant debtor to the German Collections Account;

 

		4.2	without the prior written consent of the Bank (such consent not to be unreasonably withheld, conditioned
or delayed), (a) not to dispose of the assigned Claims, (b) to refrain from anything that could lead to the cessation or devaluation
of an assigned Claim, and (c) not to agree on any deferment (Stundung), change of maturity (Änderung des Fälligkeitszeitpunkts),
moratorium (Stillhalteabkommen – pactum de non petendo) or any other material amendment of the contracts underlying
the assigned Claims other than in the ordinary course of business;

 

     

     

    

		4.3	not to assign any of the assigned Claims to a third party;

 

		4.4	not to deal with the assigned Claims or other monies in respect of them without the prior written
consent of the Bank (such consent not to be unreasonably withheld, conditioned or delayed), otherwise than by getting in the same
and making payments of the same into the German Collections Account;

 

		4.5	not at any time factor or discount any of the assigned Claims or enter into any agreement for such
factoring or discounting;

 

		4.6	to highlight the Assignment in its books and accounting records upon the reasonable request of
the Bank and to refrain from anything which could prevent third parties - who may have a legitimate interest in knowing the Assignment
- from obtaining knowledge about this Assignment;

 

		4.7	to immediately notify the Bank if the Bank’s rights in relation to the assigned Claims are
or may be compromised or endangered by activity by a third party and to immediately provide the Bank with any and all information
and documentation that the Bank requires, to take legal actions or remedy against the action taken by the relevant third party,
including but without limitation any attachment orders (Pfändungsbeschluss), garnishee orders (Überweisungsbeschluss)
and all other documents necessary for a defence against the attachment. Affimed is obliged to immediately disclose to the relevant
third party the existence of security rights of the Bank under this Agreement as well as to other third parties. Affimed shall
bear all costs and expenses and hold the Bank harmless for all activities of the defense connected therewith;

 

		4.8	to grant the Bank and/or its representatives access at reasonable intervals to all records and
documents of Affimed upon reasonable notice during normal business hours and to provide them with any and all information requested
by the Bank and/or its representatives, in order for the Bank to be able to conduct checks in relation to the assigned Claims according
to this Agreement;

 

		4.9	to inform the Bank promptly in case the value of the assigned Claims substantially changes afterwards
due to complaints, reduction of prices, payment defaults or any other reason;

 

		4.10	(i) to inform the Bank promptly in case Claims governed by any US state law (hereinafter referred
to as "US Claims") should exceed the amount of USD 750,000.00 in total, and (ii) to procure that the Bank will
obtain a first ranking security interest over such US Claims according to the requirements of the applicable local laws and in
each case in form and substance reasonably acceptable to the Bank.

 

     

     

    

		4.11	to use commercially reasonable efforts in reference to contracts with third parties not to include
a regulation that would prohibit an assignment of claims under the relevant contract to the Bank according to this Agreement;

 

		4.12	to use all commercially reasonable efforts to avoid any counter-claims that could create an offset
or retention right of a third party in relation to an assigned Claim under this Agreement;

 

		4.13	to immediately provide the Bank at its reasonable request with all (additional) information and
documents which may become and/or are necessary for perfecting and/or enforcing the Assignment; and

 

		4.14	to comply with any and all other obligations stated elsewhere under this Agreement.

 

		5.	Representation and Warranties 

 

Affimed hereby represents
and guarantees to the Bank by way of an independent guarantee statement according to Section 311 German Civil Code, that

 

		5.1	- subject to the re-assignment of the assigned claims under / termination of the existing Global
Assignment Agreement dated 28 July 2014 between Affimed and PCOF 1, LLC (meanwhile being transferred from PCOF 1, LLC by Transfer
Certificates, i.e assumption of contract (Vertragsübernahme), dated 4 December 2014, 23 December 2015 and 27 June 2016
via Perceptive Credit Opportunities Fund, LP and PCOF Phoenix II Fund, LP to Perceptive Credit Holdings, LP) - (i) Affimed is the
sole owner of the assigned Claims (except for an assignment under an extended retention of title), (ii) Affimed is legally capable
to freely dispose of the assigned Claims (except for Claims that are not assignable pursuant to mandatory law), and (iii) the assigned
Claims are not encumbered with any third party rights (except for an assignment under an extended retention of title);

 

		5.2	there are currently no existing counter-claims in relation to the assigned Claims as referred to
in Section 4.11 above; and that

 

		5.3	there are currently no litigation, arbitration or administrative proceedings pending, in progress
or about to start in relation to the assigned Claims or which could threaten to restrain Affimed in respect of the entry into,
performance or compliance with any of its obligations under this Agreement.

 

		6.	Realization ("Verwertung")

 

		6.1	The Bank is entitled to collect (einziehen) the funds itself and to make use of any other
collateral granted to Bank and to realize/enforce the Assignment according to the following sub-sections:

 

     

     

    

		6.2	Upon the earlier of (i) the occurrence of an Event of Default (as defined in the Loan Agreement)
which is continuing and has not been waived by Bank or (ii) the Bank making a demand for the due payment or discharge of the Secured
Obligations (or any part of them) and such demand remains unpaid (hereinafter referred to as "Enforcement Event")
and after the Bank has given Affimed reasonable notice of at least ten (10) Business Days (as defined in the Loan Agreement) that
the realization / enforcement of the Assignment is imminent (the "Enforcement Notice"), the Bank shall be entitled
to

 

		a.	take any and all steps necessary or which the Bank deems appropriate in order to make the assigned
Claims due for payment, in particular by terminating contracts between Affimed and the relevant debtor of the assigned Claim on
behalf of Affimed which hereby grants an irrevocable power of attorney to the Bank to do so;

 

		b.	collect all of the assigned Claims in total or in part in its (the Bank’s) own name or have
them collected by Affimed on behalf of the Bank, including by bringing a suit before a court or an arbitrational tribune, initiating
compulsory execution of any judgments or arbitrational awards and take all other enforcement measures the Bank considers to be
expedient for the collection of the assigned Claims. Affimed shall bear all reasonable costs incurred in connection with such enforcement
measures; and

 

		c.	make - in the Bank’s reasonable discretion - arrangements with garnishees in relation to
the assigned Claims, in particular to grant deferred payments, discounts or reductions or to conclude settlements; and

 

		d.	collect from and make use of any monies held with the German Collections Account but only to the
extent necessary to fully satisfy all outstanding amounts under the Secured Obligations. After all Secured Obligations have been
completely, unconditionally and irrevocably discharged in full and subject to any provisions contained in the Loan Agreement, any
remaining funds standing to the credit of the German Collections Account shall be remitted by the Bank to Affimed (or as Affimed
shall direct) unless otherwise provided for in the Loan Agreement.

 

The Enforcement
Notice is not necessary if Affimed has generally ceased to make payments or if an application for the institution of insolvency
proceedings or similar proceedings is filed by it.

 

		6.3	In case of an Enforcement Event the Bank is entitled to reclaim a copy of the contractual documentation
in relation to the assigned Claims from Affimed.

 

     

     

    

		6.4	The Bank is entitled to freely choose between several assigned Claims which one to realize/utilize,
however taking into account the legitimate interests of Affimed. The Bank does not assume any obligation as regards the collection
of the assigned Claims.

 

		6.5	The Bank may determine which of several security interests, if applicable, shall be used to satisfy
the Secured Obligations, however taking into account the legitimate interests of Affimed.

 

		7.	Security Release

 

		7.1	After the occurrence of all of: (a) the Secured Obligations have been unconditionally and irrevocably
repaid and discharged in full, and (b) the Bank having no commitment or obligation to lend any further funds to the Borrower, the
Bank shall immediately re-transfer all assigned Claims to Affimed and surrender all other financial collateral granted under this
Agreement. The Bank shall, however, remain entitled to transfer any security to a third party, as long as it is legally obliged
to do so, for example, if a guarantor has made payments to the Bank on behalf of Affimed.

 

		7.2	The Bank shall be obliged – even prior to the unconditional and irrevocable repayment and
discharge of all the Secured Obligations – to re-transfer the assigned Claims and/or, at the Bank's discretion, to release
any other collateral granted to the Bank by Affimed in whole or in part if and to the extent that the realizable value of all collateral
granted under this Agreement permanently exceeds 110% of the value of the Secured Obligations (plus any VAT). In case the total
value of the collateral should permanently fall below the afore-mentioned threshold of 110%, Affimed shall be obliged to re-transfer
such assigned Claims to the Bank or, at the Bank’s discretion, provide other collateral to the Bank which had been previously
released pursuant to the provisions in this paragraph to the extent necessary to cover the deficit. Affimed shall bear any and
all reasonable and proven costs incurred in connection with the re-transfer of the assigned Claims or the release of any other
collateral in accordance with this Section 7.

 

		7.3	The realizable value of the assigned Claims corresponds to the nominal value of the assigned Claims
minus a lump-sum deduction of 30% to cover a potential payment default. In case the Parties have different views of the valuation
of the assigned Claims, the decision shall be made by a chartered accountant to be mutually appointed by the Parties or –
if the Parties cannot agree on a person or an accounting firm – by an expert to be appointed by the Institute of Chartered
Accountants in Germany (IDW), Dusseldorf. The costs of such dispute resolution shall be borne by the respective parties in accordance
with section 91 et seq. of the German Code of Civil Procedure (ZPO).

 

		7.4	The nominal value of the assigned Claims under the Assignment shall be the net nominal value of
the assigned Claims but without taking into consideration (i) claims not assigned to the Bank because of non-assignability or consent-requirements,
(ii) claims for which

 

     

     

    

there
are off-settable counter-claims, (iii) claims which are subject to a defence, and (iv) claims which are not valid or enforceable
due to any other reason.

 

		8.	Indemnity 

 

		8.1	The Bank shall not be liable for any loss or damage suffered by Affimed save in respect of such
loss or damage which is suffered as a result of gross negligence or willful misconduct of the Bank or any of its directors, officers,
employees, agents, attorneys or the persons representing the Bank.

 

		8.2	Affimed shall indemnify the Bank and keep the Bank indemnified against any losses, actions, claims,
expenses, demands and liabilities which is suffered or incurred by the Bank as a result of, following from, consequential to, or
arising from a breach of Affimed's obligations or undertakings pursuant to this Agreement except for any losses, actions, claims,
expenses, demands and liabilities which is suffered or incurred by the Bank as a result of, following from, consequential to, or
arising from gross negligence or wilful misconduct of the Bank or any of its directors, officers, employees, agents, attorneys
or the persons representing the Bank.

 

		9.	Assignment 

 

The Bank shall be entitled, at its own expenses
and costs, to assign or otherwise transfer any and all of its rights and duties under this Agreement as well as the entire Agreement
to a third party only if the Bank transfers all of its rights and obligations under the Secured Obligations to such third party.
Affimed shall not be entitled to assign or transfer its rights under this Agreement to any third party.

 

		10.	Continuing Security 

 

This Agreement shall create a continuing
security and no change or amendment whatsoever in any document or agreement related to it, nor (in deviation of Section 418 German
Civil Code (BGB)) any assumption of debt (Schuldübernahme) in relation to the Secured Obligations, shall affect
the validity or scope of this Agreement or the obligations which are imposed on Affimed pursuant to it.

 

		11.	Independence 

 

This Agreement is independent from any other
security or guarantee which may have been or will be given to the Bank with respect to any obligation of the Borrower. None of
such other security shall prejudice, or shall be prejudiced by this Agreement.

 

     

     

    

		12.	Condition Precedent

 

This Agreement is entered into under the
condition precedent (aufschiebende Bedingung) of the valid re-assignment of the assigned claims under / termination of the
existing Global Assignment Agreement dated 28 July 2014 between Affimed and PCOF 1, LLC (meanwhile being transferred from PCOF
1, LLC by Transfer Certificates, i.e assumption of contract (Vertragsübernahme), dated 4 December 2014, 23 December
2015 and 27 June 2016 via Perceptive Credit Opportunities Fund, LP and PCOF Phoenix II Fund, LP to Perceptive Credit Holdings,
LP).

 

		13.	Final Provisions 

 

		13.1	This Agreement (together with the Exhibit hereto) contains the entire agreement between the Parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings with respect thereto. In case
of any discrepancies between this Agreement and the provisions of the Loan Agreement the provisions of the Loan Agreement shall
– to the extent legally permissible – prevail.

 

		13.2	Any amendment or supplement to or modification of this Agreement (including the Exhibit hereto),
including this provision, shall be valid only if made in writing, except where a stricter form (e.g. notarization) is required
under applicable law. For the avoidance of doubt, this provision also applies to a waiver of any right or claim any Party may have
under this Agreement.

 

		13.3	This Agreement is written in the English language (except that the Exhibits may be in the German
language in whole or in part). Terms to which a German translation has been added in parentheses shall be interpreted pursuant
to the meaning assigned to them in German.

 

		13.4	This Agreement shall be governed by and construed in accordance with the substantive laws of the
Federal Republic of Germany, even if the German conflict of laws provisions should refer to another legal system. The courts of
Frankfurt/Main, Germany shall have exclusive jurisdiction.

 

		13.5	Should any provision of this Agreement be or become invalid, ineffective or unenforceable in whole
or in part, the validity, effectiveness and enforceability of the remaining provisions shall not be affected thereby. Any such
invalid, ineffective or unenforceable provision shall, to the extent permitted by law, be deemed replaced by such valid, effective
and enforceable provision as comes closest to the economic intent and purpose of such invalid, ineffective or unenforceable provision.
The aforesaid shall apply mutatis mutandis to any gap in this Agreement.

 

     

     

    

	SILICON VALLEY BANK 	Affimed GmbH
	 	 
	 	 
	 	 
	 	 
	30 November 2016	30 November 2016
	Place, Date	Place, Date
	 	 
	 	 
	 	 
	 	 
	By: /s/ Nooman
    Haque	By: /s/ Florian Fischer
	Name: Nooman
    Haque	Name: Dr. Florian Fischer
	Title: Director of
    Life Sciences 	Title: Managing Director (Geschäftsführer)
	 	 
	 	 
	 	 
	 	 
	 	By: /s/ Jörg Windisch
	 	Name: Dr. Jörg Windisch
	 	Title: Managing Director (Geschäftsführer)

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