On September 3, 2019, Spring Bank Pharmaceuticals, Inc. and Sperovie Biosciences, Inc., as borrowers, entered into a Loan and Security Agreement with Pontifax Medison Finance (Israel) L.P. and Pontifax Medison Finance (Cayman) L.P., as lenders, and Pontifax Medison Finance GP, L.P., in its capacity as administrative agent and collateral agent for itself and Lender. The Loan and Security Agreement provides for a $20.0 million term loan to be delivered in a single installment on the date on which all conditions to the funding of the Term Loan by the Lender are met. The Borrower intends to use the proceeds of the Term Loan for working capital purposes and general corporate purposes. The Term Loan matures on the 48-month anniversary following the Closing Date unless accelerated pursuant to an event of default. All amounts outstanding under the Term Loan will be due and payable upon the earlier of the maturity date or the acceleration of the loans and commitments upon an event of default. The principal balance of the Term Loan bears interest at 8% rate per annum. Interest is payable on a quarterly basis based on the Term Loan principal amount outstanding the preceding quarter.