MassMEDIC Presentation July 27, 2010

2 Background The Emerging Technology Fund (“The Fund”) was established in December of 2004 through an Enabling Act (Chapter 23G of the Massachusetts General Laws). The Fund was originally capitalized in the amount of $25 million and subsequently recapitalized (2006 and 2007) in the amounts of $15 million and $10 million respectively. MassDevelopment, the Commonwealth’s economic development and financing Agency, administers the fund on behalf of the Commonwealth. An Advisory Committee selected by the Governor and the MassDevelopment Board of Directors, provides industry expertise and guidance.

3 Purpose The Fund was established to encourage emerging technology companies to open their post R&D product production operations in the Commonwealth. It does this by making qualified investments in the form of secured loans to borrowers. MassDevelopment is responsible for originating, underwriting and monitoring loans provided by the Fund.

4 Funding Uses Proceeds of the loan can be utilized to finance the expansion and build-out of leased facilities and for the acquisition of equipment defined as “Project Cost.” The program has been designed to leverage private financing for highly productive state-of-the-art facilities to foster the growth of high tech industry clusters and the skilled jobs they will bring in the 21 st century.

5 Funding Criteria Must be considered an “emerging technology industry”; Shall involve a transaction with the participation of at least two at-risk private parties; Loan amount not to exceed $2.5 million or 25% of the expansion project cost, whichever is less; Loans approved by MassDevelopment Board of Directors.

6 Terms Seven year loan terms with interest-only payment options during the first year, converting to full amortization over the remaining loan term; Fixed-rate pricing at 1.50% over the WSJ prime rate with a current floor rate of 6.50%; One percent commitment fee; First security interest in assets to be acquired (equipment financing). Leasehold improvements to require ABA security interest and collateral assignment of lease; Warrants (To be determined).

7 Portfolio Companies The following is a representative sample of companies financed through the Emerging Technology Fund: Beacon Power Corp. Konarka Technologies, Inc. Celldex Therapeutics (formerly Avant Immunotherapeutics) BioVex, Inc. Lilliputian Systems, Inc. Valeritas, Inc. Luminus Devices, Inc. Qteros, Inc.

8 Contact James P. Kenney – Vice President & Fund Manager MassDevelopment 160 Federal Street 7 th Floor Boston, MA