Document:

Exhibit
10.4 

 

CONTINUING
GUARANTY

  

TO: WELLS
FARGO BANK, NATIONAL ASSOCIATION

 

1.       GUARANTY;
DEFINITIONS. In consideration of any credit or other financial accommodation heretofore, now or hereafter extended or made to
COMMUNICATIONS SYSTEMS, INC., a Minnesota corporation (together with any other person or entity that becomes a borrower under
the Credit Agreement referenced below from time to time, collectively, “Borrowers”), or any of them, by WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Bank”), and for other valuable consideration, each of the undersigned ECESSA
CORPORATION, a Minnesota corporation (“Ecessa”), JDL TECHNOLOGIES, INCORPORATED, a Minnesota corporation (“JDL”),
TRANSITION NETWORKS, INC., a Minnesota corporation (“Transition Networks”), and TWISTED TECHNOLOGIES, INC.,
a Georgia corporation (“Twisted”; together with Ecessa, JDL and Transition Networks, each a “Guarantor”
and collectively, “Guarantors”), jointly and severally unconditionally guarantees and promises to pay to Bank,
or order, on demand in lawful money of the United States of America and in immediately available funds, any and all Indebtedness
of any of the Borrowers to Bank, all without relief from valuation and appraisement laws as applicable. The term “Indebtedness”
is used herein in its most comprehensive sense and includes any and all advances, debts, obligations and liabilities of Borrowers
and Guarantors, or any of them, including, without limitation, all Obligations (as defined in the Credit Agreement) under the
Credit Agreement of even date herewith between the Borrowers and Bank (as amended, restated, supplemented or otherwise modified,
the “Credit Agreement”), in each case heretofore, now or hereafter made, incurred or created, whether voluntary
or involuntary and however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or
undetermined, including under any swap, derivative, foreign exchange, hedge, deposit, treasury management or other similar transaction
or arrangement, and whether any of the Borrowers or Guarantors may be liable individually or jointly with others, or whether recovery
upon such Indebtedness may be or hereafter becomes unenforceable. This Guaranty is a guaranty of payment and not collection.

 

2.       MAXIMUM
LIABILITY; SUCCESSIVE TRANSACTIONS; REVOCATION; OBLIGATION UNDER OTHER GUARANTIES. This is a continuing guaranty and all rights,
powers and remedies hereunder shall apply to all past, present and future Indebtedness of each of the Borrowers and Guarantors
to Bank, including that arising under successive transactions which shall either continue the Indebtedness, increase or decrease
it, or from time to time create new Indebtedness after all or any prior Indebtedness has been satisfied, and notwithstanding the
death, incapacity, dissolution, liquidation or bankruptcy of any of the Borrowers or Guarantors or any other event or proceeding
affecting any of the Borrowers or Guarantors. This Guaranty shall not apply to any new Indebtedness created after actual receipt
by Bank of written notice of its revocation as to such new Indebtedness; provided however, that loans or advances made by Bank
to any of the Borrowers or Guarantors after revocation under commitments existing prior to receipt by Bank of such revocation,
and extensions, renewals or modifications, of any kind, of Indebtedness incurred by any of the Borrowers or Guarantors or committed
by Bank prior to receipt by Bank of such revocation, shall not be considered new Indebtedness. Any such notice must be sent to
Bank by registered U.S. mail, postage prepaid, addressed to its office at 90 South 7th Street, 18th Floor, Minneapolis, MN 55402,
MAC N9305- 187, or at such other address as Bank shall from time to time designate. Any payment by any Guarantor shall not reduce
such Guarantor’s maximum obligation hereunder unless written notice to that effect is actually received by Bank at or prior
to the time of such payment. The obligations of any Guarantor hereunder shall be in addition to any obligations of any Guarantor

 

 

 

     

     

    

 

under
any other guaranties of any liabilities or obligations of any of the Borrowers, Guarantors or any other persons or entities heretofore
or hereafter given to Bank unless said other guaranties are expressly modified or revoked in writing; and this Guaranty shall
not, unless expressly herein provided, affect or invalidate any such other guaranties.

 

3.       OBLIGATIONS
JOINT AND SEVERAL; SEPARATE ACTIONS; WAIVER OF STATUTE OF LIMITATIONS; REINSTATEMENT OF LIABILITY. The obligations hereunder are
joint and several and independent of the obligations of Borrowers, and a separate action or actions may be brought and prosecuted
against any Guarantor whether action is brought against any of the Borrowers, Guarantors or any other person or entity, or whether
any of the Borrowers, Guarantors or any other person or entity is joined in any such action or actions. Each Guarantor acknowledges
that this Guaranty is absolute and unconditional, there are no conditions precedent to the effectiveness of this Guaranty, and
this Guaranty is in full force and effect and is binding on such Guarantor as of the date written below, regardless of whether
Bank obtains collateral or any guaranties from others or takes any other action contemplated by Guarantor. To the extent permitted
by applicable law, each Guarantor waives the benefit of any statute of limitations affecting such Guarantor’s liability
hereunder or the enforcement thereof, and each Guarantor agrees that any payment of any Indebtedness or other act which shall
toll any statute of limitations applicable thereto shall similarly operate to toll such statute of limitations applicable to any
Guarantor’s liability hereunder. The liability of Guarantors hereunder shall be reinstated and revived and the rights of
Bank shall continue if and to the extent for any reason any amount at any time paid on account of any Indebtedness guaranteed
hereby is rescinded or must otherwise be restored by Bank, whether as a result of any proceedings in bankruptcy or reorganization
or otherwise, all as though such amount had not been paid. The determination as to whether any amount so paid must be rescinded
or restored shall be made by Bank in its sole discretion; provided however, that if Bank chooses to contest any such matter at
the request of any Guarantor, each Guarantor agrees to indemnify and hold Bank harmless from and against all costs and expenses,
including reasonable attorneys’ fees, expended or incurred by Bank in connection therewith, including without limitation,
in any litigation with respect thereto.

 

4.       AUTHORIZATIONS
TO BANK. Each Guarantor authorizes Bank either before or after revocation hereof, without notice to, demand on, or consent of
any Guarantor, and without affecting any Guarantor’s liability hereunder, from time to time to: (a) alter, compromise, renew,
extend, accelerate or otherwise change the time for payment of, or otherwise change the terms of the Indebtedness or any portion
thereof, including increase or decrease of the rate of interest thereon; (b) do any and all of the following with respect to any
Loan Document (as defined in the Credit Agreement): (i) amend, amend and restate, supplement, replace, or otherwise modify any
Loan Document; (ii) waive compliance with any provision of any Loan Document on any number of occasions; (iii) consent to departure
from any provision of any Loan Document on any number of occasions; and/or (iv) forbear from exercising any rights or remedies
of Bank in connection with a breach of any provision of any Loan Document for any duration of time and on any number of occasions;
(c) take and hold security for the payment of this Guaranty or the Indebtedness or any portion thereof, and exchange, enforce,
waive, subordinate or release any such security; (d) apply such security and direct the order or manner of sale thereof, including
without limitation, a non-judicial sale permitted by the terms of the controlling security agreement, mortgage or deed of trust,
as Bank in its discretion may determine; (e) release or substitute any one or more of the endorsers or any other guarantors of
the Indebtedness, or any portion thereof, or any other party thereto; and (f) apply payments received by Bank from any of the
Borrowers or Guarantors to any Indebtedness of any of the Borrowers or Guarantors to Bank, in such order as Bank shall determine
in its sole discretion, whether or not such

 

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Indebtedness
is covered by this Guaranty, and each Guarantor hereby waives any provision of law regarding application of payments which specifies
otherwise. Bank may without notice assign this Guaranty in whole or in part.

 

5.       REPRESENTATIONS,
WARRANTIES, AND AGREEMENTS. Each Guarantor represents and warrants to Bank that: (a) this Guaranty is executed at Borrowers’
request; (b) Bank has made no representation to any Guarantor as to the creditworthiness of any of the Borrowers or Guarantors;
and (c) each Guarantor has established adequate means of obtaining from each of the Borrowers and Guarantors on a continuing basis
financial and other information pertaining to Borrowers’ and Guarantors’ financial condition. Each Guarantor agrees
with Bank: (i) to keep adequately informed from such means of any facts, events or circumstances which might in any way affect
such Guarantor’s risks hereunder; (ii) that Bank shall have no obligation to disclose to any Guarantor any information or
material about any of the Borrowers or Guarantors which is acquired by Bank in any manner; (iii) upon Bank’s request, each
Guarantor shall provide to Bank copies of such Guarantor’s financial statements; and (iv) that no Guarantor shall, without
Bank’s prior written consent, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or a substantial
or material part of such Guarantor’s assets other than in the ordinary course of such Guarantor’s business, nor accomplish
any of the above by virtue of a division or similar transaction.

 

6.       BANK’S
RIGHTS WITH RESPECT TO GUARANTORS’ PROPERTY IN BANK’S POSSESSION. In addition to all liens upon and rights of setoff
against the monies, securities or other property of any Guarantor given to Bank by law, Bank shall have a lien upon and a right
of setoff against all monies, securities and other property of each Guarantor now or hereafter in the possession of or on deposit
with Bank, whether held in a general or special account or deposit or for safekeeping or otherwise, and every such lien and right
of setoff may be exercised without demand upon or notice to any Guarantor. No lien or right of setoff shall be deemed to have
been waived by any act or conduct on the part of Bank, or by any neglect to exercise such right of setoff or to enforce such lien,
or by any delay in so doing, and every right of setoff and lien shall continue in full force and effect until such right of setoff
or lien is specifically waived or released by Bank in writing. Bank may exercise this remedy regardless of the adequacy of any
collateral for the obligations of Guarantors to Bank and whether or not the Bank is otherwise fully secured.

 

7.       SUBORDINATION.
Any Indebtedness of any of the Borrowers or any Guarantor now or hereafter held by any other Guarantor is hereby subordinated
to the Indebtedness of Borrowers and such other Guarantor to Bank. Such Indebtedness of Borrowers or Guarantors to any other Guarantor
is assigned to Bank as security for this Guaranty and the Indebtedness and, if Bank requests, shall be collected and received
by such other Guarantor as trustee for Bank and paid over to Bank on account of the Indebtedness of Borrowers or Guarantors to
Bank but without reducing or affecting in any manner the liability of any Guarantor under the other provisions of this Guaranty.
Any notes or other instruments now or hereafter evidencing such Indebtedness of any of the Borrowers or Guarantors to any other
Guarantor shall be marked with a legend that the same are subject to this Guaranty and, if Bank so requests, shall be delivered
to Bank. Bank is hereby authorized in the name of each Guarantor from time to time to file financing statements and continuation
statements and execute such other documents and take such other action as Bank deems necessary or appropriate to perfect, preserve
and enforce its rights hereunder.

 

8.       REMEDIES;
NO WAIVER. All rights, powers and remedies of Bank hereunder are cumulative. No delay, failure or discontinuance of Bank in exercising
any right, power or

 

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remedy
hereunder shall affect or operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any
such right, power or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other
right, power or remedy. Any waiver, permit, consent or approval of any kind by Bank of any breach of this Guaranty, or any such
waiver of any provisions or conditions hereof, must be in writing and shall be effective only to the extent set forth in writing.

 

9.       COSTS,
EXPENSES AND ATTORNEYS’ FEES. Guarantors shall pay to Bank immediately upon demand the full amount of all payments, advances,
charges, costs and expenses, including, to the extent permitted by applicable law, reasonable attorneys’ fees (to include
outside counsel fees and all allocated costs of Bank’s in-house counsel to the extent permissible), expended or incurred
by Bank in connection with the enforcement of any of Bank’s rights, powers or remedies and/or the collection of any amounts
which become due to Bank under this Guaranty, and the prosecution or defense of any action in any way related to this Guaranty,
whether or not suit is brought, and if suit is brought, whether incurred at the trial or appellate level, in an arbitration proceeding
or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation,
any adversary proceeding, contested matter or motion brought by Bank or any other person or entity) relating to any Guarantor
or any other person or entity. Subject to any restrictions under applicable law pertaining to usury, all of the foregoing shall
be paid by Guarantors with interest from the date of demand until paid in full at a rate per annum equal to the greater of ten
percent (10%) or Bank’s Prime Rate in effect from time to time. Notwithstanding anything in this Guaranty to the contrary,
reasonable attorneys’ fees shall not exceed the maximum amount permitted by law.

 

10.       SUCCESSORS;
ASSIGNMENT. This Guaranty shall be binding upon and inure to the benefit of the heirs, executors, administrators, legal representatives,
successors and assigns of the parties; provided however, that no Guarantor may assign or transfer any of its interests or rights
hereunder without Bank’s prior written consent. Each Guarantor acknowledges that Bank has the right to sell, assign, transfer,
negotiate or grant participations in all or any part of, or any interest in, any Indebtedness of Borrowers or Guarantors to Bank
and any obligations with respect thereto, including this Guaranty. In connection therewith, Bank may disclose all documents and
information which Bank now has or hereafter acquires relating to any Guarantor and/or this Guaranty, whether furnished by Borrowers,
Guarantors or otherwise. Each Guarantor further agrees that Bank may disclose such documents and information to Borrowers or any
other Guarantor.

 

11.       AMENDMENT.
This Guaranty may be amended or modified only in writing signed by Bank and Guarantors.

 

12.       APPLICATION
OF SINGULAR AND PLURAL. In all cases where there is but a single Borrower, then all words used herein in the plural shall be deemed
to have been used in the singular where the context and construction so require; and when there is more than one Borrower named
herein, the word “Borrowers” shall mean all or any one or more of them as the context requires.

 

13.       COUNTERPARTS;
GOVERNING LAW. This Guaranty may be executed in as many counterparts as may be required to reflect all parties assent; all counterparts
will collectively constitute a single agreement. This Guaranty shall be governed by and construed in accordance with the laws
of the State of Minnesota, but giving effect to federal laws applicable to national banks, without reference to the conflicts
of law or choice of law principles thereof.

 

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14.       GUARANTORS’ WAIVERS.

 

(a)       Each
Guarantor waives any right to require Bank to: (i) proceed against any of the Borrowers, Guarantors or any other person or entity;
(ii) marshal assets or proceed against or exhaust any security held from any of the Borrowers, Guarantors or any other person
or entity; (iii) give notice of the terms, time and place of any public or private sale or other disposition of personal property
security held from any of the Borrowers, Guarantors or any other person or entity; (iv) take any other action or pursue any other
remedy in Bank’s power; or

(v)
make any presentment or demand for performance, or give any notices of any kind, including, without limitation, any notice of
nonperformance, protest, notice of protest or notice of dishonor, notice of intention to accelerate or notice of acceleration
hereunder or in connection with any obligations or evidences of indebtedness held by Bank as security for or which constitute
in whole or in part the Indebtedness guaranteed hereunder, or in connection with the creation of new or additional Indebtedness;
or (vi) set off against the Indebtedness the fair value of any real or personal property given as collateral for the Indebtedness
(whether such right of setoff arises under statute or otherwise). In addition to the foregoing, each Guarantor specifically waives
any statutory right it might have to require Bank to proceed against Borrowers, any other Guarantor or any collateral that secures
the Indebtedness.

 

(b)       Each
Guarantor waives any defense to its obligations hereunder based upon or arising by reason of: (i) any disability or other defense
of any of the Borrowers, Guarantors or any other person or entity; (ii) the cessation or limitation from any cause whatsoever,
other than payment in full, of the Indebtedness of any of the Borrowers, Guarantors or any other person or entity; (iii) any lack
of authority of any officer, director, partner, agent or any other person or entity acting or purporting to act on behalf of any
of the Borrowers or Guarantors which is a corporation, partnership or other type of entity, or any defect in the formation of
any such Borrower or Guarantor; (iv) the application by any of the Borrowers or Guarantors of the proceeds of any Indebtedness
for purposes other than the purposes represented by Borrowers or Guarantors to, or intended or understood by, Bank or any Guarantor;
(v) any act or omission by Bank which directly or indirectly results in or aids the discharge of any of the Borrowers or Guarantors
or any portion of the Indebtedness by operation of law or otherwise, or which in any way impairs or suspends any rights or remedies
of Bank against any of the Borrowers or Guarantors; (vi) any impairment of the value of any interest in security for the Indebtedness
or any portion thereof, including without limitation, the failure to obtain or maintain perfection or recordation of any interest
in any such security, the release of any such security without substitution, and/or the failure to preserve the value of, or to
comply with applicable law in disposing of, any such security; (vii) any modification of the Indebtedness, in any form whatsoever,
including any modification made after revocation hereof to any Indebtedness incurred prior to such revocation, and including without
limitation the renewal, extension, acceleration or other change in time for payment of, or other change in the terms of, the Indebtedness
or any portion thereof, including increase or decrease of the rate of interest thereon; or (viii) or any requirement that Bank
give any notice of acceptance of this Guaranty. Until all Indebtedness shall have been paid in full and all commitments of Bank
to Borrowers and Guarantors have been terminated, no Guarantor shall have any right of subrogation, and each Guarantor waives
any right to enforce any remedy which Bank now has or may hereafter have against any of the Borrowers, Guarantors or any other
person or entity and waives any benefit of, or any right to participate in, any security now or hereafter held by Bank. To the
fullest extent permitted by applicable law, each Guarantor waives all rights of a surety and the benefits of any applicable suretyship
law, statute or regulation, and without limiting any of the waivers set forth herein, each Guarantor further waives any other
fact or event that, in the

 

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absence
of this provision, would or might constitute or afford a legal or equitable discharge or release of or defense to Borrower or
any other Guarantor.

 

(c)       Each
Guarantor further waives all rights and defenses such Guarantor may have arising out of (i) any election of remedies by Bank,
even though that election of remedies, such as a non-judicial foreclosure with respect to any security for any portion of the
Indebtedness, destroys such Guarantor’s rights of subrogation or such Guarantor’s rights to proceed against any of
the Borrowers or Guarantors for reimbursement, or (ii) any loss of rights such Guarantor may suffer by reason of any rights, powers
or remedies of any of the Borrowers or Guarantors in connection with any anti-deficiency laws or any other laws limiting, qualifying
or discharging Borrowers’ or Guarantors’ Indebtedness, whether by operation of law or otherwise, including any rights
such Guarantor may have to claim a fair market credit with respect to a deficiency or have a fair market value hearing to determine
the size of a deficiency following any foreclosure sale or other disposition of any real property security for any portion of
the Indebtedness, and each Guarantor waives any right such Guarantor may have under any “one-action” rule. Each Guarantor
further waives the benefit of any homestead, exemption or other similar laws.

 

15.       UNDERSTANDING
WITH RESPECT TO WAIVERS; SEVERABILITY OF PROVISIONS. Each Guarantor warrants and agrees that each of the waivers set forth herein
is made with such Guarantor’s full knowledge of its significance and consequences, and that under the circumstances, the
waivers are reasonable and not contrary to public policy or law. If any waiver or other provision of this Guaranty shall be held
to be prohibited by or invalid under applicable public policy or law, such waiver or other provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of such waiver or other provision or any remaining
provisions of this Guaranty.

 

 16.       JURY TRIAL WAIVER; OTHER WAIVERS AND CONSENTS.

 

(a)       FORUM
NON CONVENIENS. THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS GUARANTY AND THE OTHER LOAN
DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED
IN THE COUNTY OF HENNEPIN, STATE OF MINNESOTA; PROVIDED, THAT, ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL
OR OTHER PROPERTY MAY BE BROUGHT, AT BANK’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE BANK ELECTS TO BRING SUCH ACTION
OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH GUARANTOR AND BANK WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE
LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING
IS BROUGHT IN ACCORDANCE WITH THIS SECTION.

 

(b)       WAIVER
OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH GUARANTOR AND BANK HEREBY WAIVE THEIR RESPECTIVE RIGHTS,
IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT
OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR ANY TRANSACTION CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A “CLAIM”). EACH OF GUARANTORS AND BANK
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. IN THE EVENT OF

 

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LITIGATION,
A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

(c)       SUBMISSION
TO JURISDICTION. EACH OF GUARANTORS HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE
AND FEDERAL COURTS LOCATED IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH OF THE PARTIES HERETO
AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS GUARANTY OR ANY OTHER LOAN DOCUMENT SHALL AFFECT
ANY RIGHT THAT BANK MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT
AGAINST BORROWER OR ANY GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(d)       WAIVER
OF CLAIMS. NO CLAIM MAY BE MADE BY ANY GUARANTOR AGAINST BANK OR ANY AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE,
AGENT, OR ATTORNEY-IN-FACT OF ANY OF THEM FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN
RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED
BY THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND EACH OF GUARANTORS
HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN
OR SUSPECTED TO EXIST IN ITS FAVOR.

 

17.       AMENDMENT
AND RESTATEMENT. This Guaranty amends, restates and supersedes in its entirety, and is given as a replacement for, and not in
satisfaction of or as a novation with respect to, that certain Guaranty executed by Twisted in favor of Bank and dated August
12, 2016, as amended to date.

 

Signature
page follows

 

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 IN
WITNESS WHEREOF, each of the undersigned Guarantor has executed this Guaranty, intending to be legally bound hereby, as of August
28, 2020.

 

	 	ECESSA CORPORATION 
	 	 	              
	 	By:	
	 	Name: Mark D. Fandirch
	 	Title: Chief Financial Officer

 

	 	JDL TECHNOLOGIES, INCORPORATED
	 	 	            
	 	By:	
	 	Name: Mark D. Fandirch
	 	Title: Chief Financial Officer

 

	 	TRANSITION NETWORKS, INC.
	 	 	            
	 	By:	
	 	Name: Mark D. Fandirch
	 	Title: Chief Financial Officer

 

	 	TWISTED TECHNOLOGIES, INC.
	 	 	            
	 	By:	
	 	Name: Mark D. Fandirch
	 	Title: Chief Financial Officer

  

Signature
Page to Continuing Guaranty

 

     

     

    

  

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	            
	 	By:	
	 	Name: Kael Peterson 
	 	Title: Senior Vice President

 

Signature
Page to Continuing GuarantyExhibit 10.1

 

SECOND Amendment

to

Loan
and security agreement

 

This Second Amendment
to Loan and Security Agreement (this “Amendment”) is entered into this 28th day of August, 2020, by and between
SILICON VALLEY BANK (“Bank”) and MERSANA THERAPEUTICS, INC., a Delaware corporation (“Borrower”)
whose address is 840 Memorial Drive, Cambridge, Massachusetts 02139.

 

Recitals

 

A.       Bank
and Borrower have entered into that certain Loan and Security Agreement dated as of May 8, 2019, as amended by that certain First
Amendment to Loan and Security Agreement between Bank and Borrower dated as of June 21, 2019, (as the same may from time to time
be further amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.       Bank
has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.       Borrower
has requested that Bank amend the Loan Agreement to (i) provide a new term loan, and (ii) make certain other revisions to
the Loan Agreement as more fully set forth herein.

 

D.       Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject
to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.                 
Definitions. Capitalized terms used
but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.                 
Amendments to Loan Agreement.

 

2.1             
Section 2.1.2 (2020 Term Loan Advances). The
Loan Agreement is amended by inserting the following new provision to appear as Section 2.1.2 (2020 Term Loan Advances) thereof:

 

     

     

    

 

“2.1.2           2020 Term Loan
Advances.

 

(a)       Availability.
Subject to the terms and conditions of this Agreement, upon Borrower’s request, during the 2020 Draw Period A, Bank
shall make up to five (5) term loan advances (each, a “2020 Term A Loan Advance”, and collectively, the
 “2020 Term A Loan Advances”) available to Borrower in an aggregate original principal amount not to exceed
Twenty Five Million Dollars ($25,000,000.00); provided that the initial 2020 Term A Loan Advance (which shall be in an amount
of at least Five Million Two Hundred Thousand Dollars ($5,200,000.00) (the “Initial 2020 Term A Loan
Advance”) (i) shall be made on or about the Second Amendment Effective Date, and (ii) all or a portion of the
proceeds of the Initial 2020 Term A Loan Advance shall be used to repay in full Borrower’s outstanding obligations and
liabilities to Bank existing as of the Second Amendment Effective Date, which shall include the Final Payment (but shall not
include the Unused Term Loan Commitment Fee, the Prepayment Fee, or the Waived Final Payment, which are waived by Bank as of
the Second Amendment Effective Date) (the “Prior Obligations”). Borrower hereby authorizes Bank to apply
the proceeds of the Initial 2020 Term A Loan Advance to the Prior Obligations as part of the funding process without actually
depositing such funds into an account of Borrower. Upon the application of the Initial 2020 Term A Loan Advance to the Prior
Obligations, the Prior Obligations will be paid in full. Subject to the terms and conditions of this Agreement, upon
Borrower’s request, during the 2020 Draw Period B, Bank shall make one (1) term loan advance (the “2020 Term B
Loan Advance”) available to Borrower in an original principal amount of Five Million Dollars ($5,000,000.00). The
2020 Term A Loan Advances and the 2020 Term B Loan Advance are each hereinafter referred to singly as a “2020 Term
Loan Advance” and collectively as the “2020 Term Loan Advances”. After repayment, no 2020 Term
Loan Advance (or any portion thereof) may be reborrowed. For the avoidance of doubt, upon the repayment of the Prior
Obligations, no further Term Loan Advances are available.

 

(b)       Interest
Period. Commencing on the first (1st) Payment Date of the month following the month in which the Funding Date of the applicable
2020 Term Loan Advance occurs, and continuing on each Payment Date thereafter, Borrower shall make monthly payments of interest
on the principal amount of each 2020 Term Loan Advance at the rate set forth in Section 2.2(a)(ii).

 

(c)       Repayment.
Commencing on the 2020 Term Loan Amortization Date, and continuing on each Payment Date thereafter, Borrower shall repay each 2020
Term Loan Advance in (i) consecutive equal monthly installments of principal according to the 2020 Repayment Schedule, plus (ii)
monthly payments of accrued interest at the rate set forth in Section 2.2(a)(ii). All outstanding principal and accrued and unpaid
interest with respect to the 2020 Term Loan Advances, and all other outstanding Obligations with respect to the 2020 Term Loan
Advances, are due and payable in full on the 2020 Term Loan Maturity Date.

 

(d)       Mandatory
Prepayment Upon an Acceleration. If the 2020 Term Loan Advances are accelerated following the occurrence of an Event of Default,
Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal plus accrued and unpaid interest,
(ii) the 2020 Final Payment, (iii) the 2020 Prepayment Fee, plus (iv) all other sums, if any, that shall have become due and payable,
including interest at the Default Rate with respect to any past due amounts.

 

(e)       Permitted
Prepayment of 2020 Term Loan Advances. Borrower shall have the option to prepay all, but not less than all, of the 2020 Term
Loan Advances advanced by Bank under this Agreement, provided Borrower (i) provides written notice to Bank of its election to prepay
the 2020 Term Loan Advances at least ten (10) days prior to such prepayment, and (ii) pays, on the date of such prepayment (A)
all outstanding principal plus accrued and unpaid interest, (B) the 2020 Final Payment, (C) the 2020 Prepayment Fee, plus (D) all
other sums, if any, that shall have become due and payable, including interest at the Default Rate with respect to any past due
amounts.”

 

     

     

    

 

2.2         
Section 2.2 (Payment of Interest on the Credit Extensions).
Section 2.2(a) is amended in its entirety and replaced with the following:

 

“              (a)          Interest Rate.

 

(i)       Subject
to Section 2.2(b), the principal amount outstanding for each Term Loan Advance shall accrue interest at a floating per annum rate
equal to the greater of (i) four percent (4.0%) and (ii) one and one-half of one percent (1.50%) below the Prime Rate, which interest,
in each case, shall be payable monthly in accordance with Section 2.2(d) below.

 

(ii)       Subject
to Section 2.2(b), the principal amount outstanding for each 2020 Term Loan Advance shall accrue interest at a floating per annum
rate equal to the greater of (i) one percent (1.00%) above the Prime Rate, and (ii) four and one-quarter of one percent (4.25%),
and which interest, in each case, shall be payable monthly in accordance with Section 2.2(d) below.”

 

2.3         
Section 2.3 (Fees). Section 2.3 is amended
by (i) deleting the text “and” appearing at the end of subsection (e) thereof; (ii) re-lettering subsection (f) to
appear as subsection (i) thereof, and (iii) inserting the following new subsections (f), (g), and (h) thereof:

 

“              (f)            2020 Final Payment. The 2020
Final Payment, when due hereunder;

 

(g)           2020
Prepayment Fee. The 2020 Prepayment Fee, if and when due hereunder;

 

(h)       
    2020 Good Faith Deposit. Borrower has paid to Bank a deposit of Thirty Thousand Dollars ($30,000.00)
(the “2020 Good Faith Deposit”), to initiate Bank’s due diligence review process. The 2020 Good
Faith Deposit shall be utilized toward the payment of Bank Expenses on the Second Amendment Effective Date; and”

 

2.4          
Section 6.2 (Financial Statements, Reports, Certificates).
Section 6.2(b) is amended in its entirety and replaced with the following:

 

“              (b)          Monthly
Compliance Certificate. Within thirty (30) days after the last day of each month, a duly completed Compliance Certificate
signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the
terms and conditions of this Agreement, and setting forth calculations showing compliance with the financial covenants (if any)
set forth in this Agreement and such other information as Bank may reasonably request;”

 

2.5         
Section 6.6 (Operating Accounts). The first
two sentences of Section 6.6(a) are amended in their entirety and replaced with the following:

 

“              (a)           Maintain all
of its and all of its Subsidiaries’ (excluding Securities Corp.) operating accounts and all excess cash with Bank and Bank’s
Affiliates. In addition to the foregoing, Borrower shall at all times have on deposit in operating accounts maintained in the name
of Borrower with Bank, cash in an amount equal to the lesser of (i) one hundred percent (100.0%) of the Dollar value of Borrower’s
consolidated cash, including any Subsidiaries’, Affiliates’, or related entities’ cash, in the aggregate, at
all financial institutions, and (ii) one hundred five percent (105.0%) of the then-outstanding Obligations of Borrower to Bank.”

 

2.6         
Section 6.7 (Financial Covenant – Liquidity Ratio).
Section 6.7 is amended in its entirety and replaced with the following:

 

“6.7        Reserved.”

 

     

     

    

 

2.7         
Section 7.1 (Dispositions). Section 7.1 of
the Loan Agreement is amended by inserting the words “(including, without limitation, pursuant to a Division)” to appear
immediately prior to the words “(collectively, “Transfer”)”.

 

2.8         
Section 7.3 (Mergers or Acquisitions). Section
7.3 of the Loan Agreement is amended in its entirety and replaced with the following:

 

“7.3         Mergers or Acquisitions.
Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any
of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without
limitation, by the formation of any Subsidiary or pursuant to a Division). A Subsidiary may merge or consolidate into another Subsidiary
or into Borrower.”

 

2.9         
Section 8.1 (Payment Default). Section 8.1
is amended by replacing the words “Term Loan Maturity Date” with “Maturity Date”.

 

2.10       
Section 12.1 (Termination Prior to Maturity Date; Survival).
Section 12.1 is amended by replacing the words “Term Loan Maturity Date” with “Maturity Date”.

 

2.11       
Section 13.1 (Definitions). The following
terms and their respective definitions set forth in Section 13.1 are amended in their entirety and replaced with the following:

 

“              “Credit Extension”
is any Term Loan Advance, any 2020 Term Loan Advance, or any other extension of credit by Bank for Borrower’s benefit.”

 

“              “Obligations”
are Borrower’s obligations to pay when due any debts, principal, interest, fees, Bank Expenses, the Unused Term Loan Commitment
Fee, the Prepayment Fee, the Final Payment, the 2020 Final Payment, the 2020 Prepayment Fee, and other amounts Borrower owes Bank
now or later, whether under this Agreement, the other Loan Documents, or otherwise, including, without limitation, all obligations
relating to Bank Services and any interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of
Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents.”

 

“              “Term Loan
Maturity Date” is the Second Amendment Effective Date.”

 

2.12       
Section 13.1 (Definitions). The Loan Agreement
is amended by inserting the following new terms and their respective definitions to appear alphabetically in Section 13.1 thereof:

 

“              “2020 Draw
Period A” is the period of time commencing on the Second Amendment Effective Date, and continuing through the earlier
to occur of (a) April 30, 2022, or (b) an Event of Default.

 

“              “2020 Draw
Period B” is the period of time commencing upon the occurrence of the 2020 IND Event, and continuing through the earlier
to occur of (i) April 30, 2022, or (ii) an Event of Default.”

 

     

     

    

 

“              “2020 Final
Payment” is a payment (in addition to and not in substitution for the regular monthly payments of principal plus accrued
interest) equal to the original principal amount of the 2020 Term Loan Advances extended by Bank to Borrower hereunder multiplied
by five and one-half of one percent (5.5%), due on the earliest to occur of (a) the 2020 Term Loan Maturity Date, (b) the payment
in full of such 2020 Term Loan Advances, (c) as required by Section 2.1.2(d) or Section 2.1.2(e), or (d) the termination of this
Agreement.”

 

“              “2020 Good
Faith Deposit” is defined in Section 2.3(h).”

 

“              “2020 Interest
Only Extension Event” occurs if and when (if ever) Bank confirms in writing that it has received evidence, on or prior
to May 31, 2022, satisfactory to Bank in its sole and absolute discretion, that Borrower has received sufficient data, on or prior
to May 31, 2022, to submit a Biologics License Application for XMT 1536 to the FDA.”

 

“              “2020 IND
Event” occurs if and when (if ever) Bank confirms in writing that it has received evidence, on or prior to April 30,
2022, satisfactory to Bank in Bank’s sole and absolute discretion, that (i) Borrower has submitted an IND to the FDA for
a third (3rd) clinical asset and the FDA has not made any objections within thirty (30) days of Borrower filing such IND application
with the FDA on prior to April 30, 2022, or (ii) Borrower has submitted an IND to the FDA for a third (3rd) clinical asset and
the FDA has provided clearance in writing (satisfactory to Bank in its sole and absolute discretion) to proceed to a human clinical
trial under such IND on prior to April 30, 2022.”

 

“              “2020 Prepayment
Fee” shall be an additional fee, payable to Bank, with respect to the 2020 Term Loan Advances, in an amount equal to:

 

(a)       for
a prepayment of the 2020 Term Loan Advances made on or prior to the first (1st) anniversary of the Second Amendment
Effective Date, three percent (3.0%) of the then outstanding principal amount of the 2020 Term Loan Advances immediately prior
to the date of such prepayment;

 

(b)       for
a prepayment of the 2020 Term Loan Advances made after the first (1st) anniversary of the Second Amendment Effective
Date, but on or prior to the second (2nd) anniversary of the Second Amendment Effective Date, two percent (2.0%) of
the then outstanding principal amount of the 2020 Term Loan Advances immediately prior to the date of such prepayment; and

 

(c)       for
a prepayment of the 2020 Term Loan Advances made after the second (2nd) anniversary of the Second Amendment Effective
Date, but before the 2020 Term Loan Maturity Date, one percent (1.0%) of the then outstanding principal amount of the 2020 Term
Loan Advances immediately prior to the date of such prepayment.

 

Notwithstanding
the foregoing, provided no Event of Default has occurred and is continuing, the 2020 Prepayment Fee shall be waived by Bank if
Bank closes on the refinance and redocumentation of the 2020 Term Loan Advances (in its sole and absolute discretion) prior to
the 2020 Term Loan Maturity Date.”

 

     

     

    

 

“              “2020 Repayment
Schedule” means the period of time equal to thirty (30) consecutive calendar months, which shall be reduced to twenty-two
(22) consecutive calendar months upon the occurrence of the 2020 Interest Only Extension Event.”

 

“              “2020 Term
A Loan Advance” and “2020 Term A Loan Advances” are each defined in Section 2.1.2(a).”

 

“              “2020 Term
B Loan Advance” is defined in Section 2.1.2(a).”

 

“              “2020 Term
Loan Advance” and “2020 Term Loan Advances” are each defined in Section 2.1.2(a).”

 

“              “2020 Term
Loan Amortization Date” is June 1, 2022, which shall be extended to February 1, 2023, upon the occurrence of the 2020
Interest Only Extension Event.”

 

“              “2020 Term
Loan Maturity Date” is November 1, 2024.”

 

“              “Biologics
License Application” means an application for licensure of a biological product submitted to the FDA under 42 U.S.C.
 § 262(k) for permission to introduce, or deliver for introduction, a biologic product into interstate commerce.”

 

“              “Division”
means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the
dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated
under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or
any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership
or other entity.”

 

“              “FDA”
means the U.S. Food and Drug Administration or any successor thereto.”

 

“              “IND”
means an investigational new drug application submitted to the FDA pursuant to 21 C.F.R. § 312 (or its successor regulation)
requesting authorization to initiate clinical trials in human subjects.”

 

“              “Initial 2020
Term A Loan Advance” is defined in Section 2.1.2(a).”

 

“              “Maturity Date”
means the Term Loan Maturity Date and the 2020 Term Loan Maturity Date, as applicable.”

 

“              “Prior Obligations”
is defined in Section 2.1.2(a).”

 

“              “Second Amendment
Effective Date” is August 28, 2020.”

 

“              “Waived Final
Payment” is the unaccrued portion of the Final Payment, which shall be an amount equal to Fifty Thousand Dollars ($50,000.00).”

 

2.13        
Exhibit B (Compliance Certificate).
The Compliance Certificate is amended in its entirety and replaced with the Compliance Certificate in the form of Schedule 1
attached hereto.

 

     

     

    

 

3.                 
Limitation of Amendments.

 

3.1             
 The amendments set forth in Section 2 above are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification
of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have
or may have in the future under or in connection with any Loan Document.

 

3.2             
This Amendment shall be construed in connection with and as part of the Loan Documents
and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein
amended, are hereby ratified and confirmed and shall remain in full force and effect.

 

4.              
Representations and Warranties. To
induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 

4.1             
Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent
such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no
Event of Default has occurred and is continuing;

 

4.2             
Borrower has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Agreement, as amended by this Amendment;

 

4.3             
The organizational documents of Borrower delivered to Bank on the Effective Date remain
true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4             
The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 

 

4.5             
The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation
binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment
or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower; 

 

4.6             
The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority,
or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

 

4.7             
This Amendment has been duly executed and delivered by Borrower and is the binding obligation
of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights.

 

     

     

    

 

5.                  Updated
Perfection Certificate. Borrower has delivered an updated Perfection
Certificate in connection with this Amendment (the “Updated Perfection Certificate”) dated as of the
date hereof, which Updated Perfection Certificate shall supersede in all respects that certain Perfection
Certificate dated as of May 8, 2019. Borrower agrees that all references in the Loan Agreement to “Perfection
Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate.

 

6.                 
Ratification of Stock Pledge Agreement.
Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Stock Pledge Agreement dated
as of May 8, 2019 between Borrower and Bank, and acknowledges, confirms and agrees that said Stock Pledge Agreement shall
remain in full force and effect.

 

7.                 
Integration. This Amendment and the
Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior
agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this
Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

8.                 
Counterparts. This Amendment may be
executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same
instrument.

 

9.                 
Effectiveness. This Amendment shall
be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, and (b) Borrower’s
payment of Bank’s legal fees and expenses incurred in connection with this Amendment.

 

[Signature page follows.]

 

     

     

    

 

In
Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first
written above.

 

	BANK	BORROWER
	 	 
	SILICON VALLEY BANK	 MERSANA THERAPEUTICS, INC.
	 	 	 	 	 
	By:	/s/ Dan Greaney	 	By:	/s/ Brian DeSchuytner
	Name:  	Dan Greaney	Name: 	Brian DeSchuytner
	Title:	Vice President	Title:	Senior Vice President, Finance and Product Strategy

 

     

     

    

 

SCHEDULE 1

 

EXHIBIT B

 

COMPLIANCE CERTIFICATE

 

	TO:	SILICON VALLEY BANK	Date:	 	 

FROM:   MERSANA THERAPEUTICS,
INC.

 

The undersigned authorized
officer of MERSANA THERAPEUTICS, INC. (“Borrower”) certifies that under
the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”):

 

(1) Borrower is
in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there
are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects
on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations
and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise
permitted pursuant to the terms of Section 5.8 of the Agreement; and (5) no Liens have been levied or claims made against
Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided
written notification to Bank.

 

Attached are the required
documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently
applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that
no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of
the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but
not otherwise defined herein shall have the meanings given them in the Agreement.

 

Please indicate
compliance status by circling Yes/No under “Complies” column.

 

	Reporting Covenants	Required	Complies
	10-Q Report	Within 45 days of quarter end 	 
	Compliance Certificate	Monthly within 30 days	Yes   No
	Board projections	At least annually, FYE within 60 days and contemporaneously with any updates or changes thereto	Yes   No
	10-K Report and annual audited financial statement	FYE within 90 days 	Yes   No
	Filed Proxy, 10-Q, 10-K and 8-K	Within 5 days after filing with SEC	Yes   No

 

Other Matters

 

	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?  If yes, provide copies of any such amendments or changes with this Compliance Certificate.	Yes	No

 

The following are the exceptions with respect
to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

     

     

    

 

	MERSANA THERAPEUTICS, INC.	BANK USE ONLY

 

	By:	 	 	Received by:	 

	Name:	 	 	 	AUTHORIZED
    SIGNER

	Title:	 	 	Date:	 
	 	 	 	 	 

	 	 	 	Verified:	 

	 	 	 	 	AUTHORIZED
    SIGNER

	 	 	 	Date:	 
	 	 	 	 	 

	 	Compliance Status:      Yes       No

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