Gomez, Inc.

In October 2009, Gomez, Inc., (www.gomez.com)

-- a leader in Web application management and one of Hercules' early portfolio companies -- has entered into a definitive agreement to be acquired by Compuware in a $295 million cash transaction. The acquisition, which will create the industry's only unified Application Performance Management solution, is anticipated to close in November 2009. Hercules anticipates, assuming the transaction is completed, to realize gross estimated proceeds from the sale of its warrants of approximately $2.0 million.

Merrimack Pharmaceuticals, Inc.

In October 2009, Merrimack (www.merrimackpharma.com)

-- a biotechnology company focused on the discovery and development of novel treatments for cancer and autoimmune disease -- has entered into a worldwide collaboration and licensing agreement with Sanofi-aventis on MM-121, an anti-ErbB3 monoclonal antibody. Under the terms of the deal, Merrimack may be eligible to receive up to $530 million, comprised of $60 million upfront plus milestone payments, in addition to future royalties.

Paratek Pharmaceuticals, Inc.

In October 2009, Paratek (www.paratekpharm.com)

-- a privately held biopharmaceutical company engaged in the discovery and commercialization of new therapeutics that treat life threatening infectious and other serious diseases - entered into an exclusive worldwide collaborative development, manufacturing and commercialization license agreement with Novartis for Paratek's lead broad-spectrum antibiotic, PTK 0796. Under the terms of the deal, Paratek may be eligible to receive up to $485 million in milestones and fees combined, plus a royalty on global net sales.

"Hercules continues to recognize the achievements of our portfolio companies in the midst of many challenges as a result of a difficult environment," said Manuel A. Henriquez, co-founder, chairman and chief executive officer of Hercules.