Document:

EX-10.4

 Exhibit 10.4 

ASSIGNMENT AND AGREEMENT REGARDING CONSIGNMENT AGREEMENT 

THIS ASSIGNMENT AND AGREEMENT is made and executed by and among AIRCO, LLC, a North Carolina limited liability company
(“Consignee”), MINNESOTA BANK & TRUST, a Minnesota state banking corporation (“Lender”) and AIRCO 1, LLC, a Delaware limited liability company (“Borrower”) as of October 27, 2017. 

WITNESSETH: 
 WHEREAS, Lender and
Borrower have entered into a Loan Agreement dated as the date hereof (as amended, modified, replaced or restated from time to time, the “Loan Agreement”; capitalized terms not otherwise defined herein being used herein as therein defined)
pursuant to which Lender has agreed to make a term loan (the “Loan”) to Borrower up to THREE MILLION FOUR HUNDRED FORTY ONE THOUSAND AND NO/100THS DOLLARS ($3,441,000) to finance the acquisition of a used Boeing 737-800 airframe to be disassembled and sold as parts by the Borrower (the “Airframe”); and 

WHEREAS, in accordance with the Loan Agreement, Borrower delivered to Lender a Promissory Note in the amount of $3,441,000 (the
“Note”), which is secured by, among other instruments, a Security Agreement (the “Security Agreement”) pursuant to which Borrower has granted a security interest in all of its now owned and hereafter acquired personal property to
Lender; and 
 WHEREAS, Consignee and Borrower entered into and executed that certain Consignment Agreement dated as of October 20,
2017 (the “Consignment Agreement”), pursuant to which Consignee agreed to warehouse, overhaul, recertify and sell certain aircraft parts (the “Parts”) on behalf of the Borrower 

WHEREAS, a true, correct and complete copy of the Consignment Agreement is attached hereto as Exhibit A; and 

WHEREAS, Lender will not advance funds pursuant to the Loan Agreement unless this Assignment and Agreement is executed; and 

WHEREAS, Consignee and Borrower each desire to execute this Assignment and Agreement, in accordance with the terms and provisions hereof, in
order to induce Lender to advance funds pursuant to the Loan Agreement. 
 NOW, THEREFORE, in consideration of the foregoing and of the
mutual promises contained herein, and for the additional consideration of Ten and No/100ths Dollars ($10.00), the receipt and sufficiency of which are hereby acknowledged by Consignee and Borrower, the parties hereto hereby agree as follows: 

1.     Borrower hereby assigns its rights and interests in, under and pursuant to the Consignment Agreement to Lender as
security for Borrower’s obligations to Lender pursuant to the Loan Agreement, the Note and the Security Agreement. 

 2.     If an Event of Default does occur under the Loan Agreement and is
continuing, then Lender may, at its option, by written notice to Consignee, take over Borrower’s position as “Consignor” under the Consignment Agreement. In such event, Lender shall have all of the rights of Borrower under the
Consignment Agreement, and Consignee shall continue to perform under the terms of the Consignment Agreement on behalf of Lender, and shall continue to warehouse, overhaul, recertify and sell the Parts as provided in the Consignment Agreement, as if
Lender were originally a party thereto as Consignor. 
 3.     Lender’s taking over of Borrower’s position as
Consignor under the Consignment Agreement shall be preceded by at least three (3) Business Days’ (as that term is defined in the Loan Agreement) prior written notice to Consignee. Notwithstanding anything in the Consignment Agreement to
the contrary, in no event shall Lender have any obligation to perform any of Borrower’s obligations under the Consignment Agreement unless and until Lender delivers such notice to Consignee. 

4.     Borrower and Consignee shall not cause the Consignment Agreement to be modified or amended, and Borrower shall not
waive any of its rights under the Consignment Agreement without, in either case, the prior written consent of Lender. Consignee shall not terminate, or accept termination of, the Consignment Agreement without giving at least thirty
(30) days’ prior written notice to Lender. Lender, upon receipt of such notice, shall have the right, but not the obligation, at its option, to cure the grounds asserted by Consignee for termination of the Consignment Agreement. The
Consignment Agreement shall not be terminated by Consignee while Lender is promptly, diligently and actively prosecuting such a cure, provided that Consignee shall not be obligated to continue to perform work under the Consignment Agreement during
the cure period unless Lender has agreed to pay for such performance. Borrower shall not terminate, or accept termination of, the Consignment Agreement without Lender’s prior written consent. 

5.     In the event Lender does take over Borrower’s position as Consignor under the Consignment Agreement, all
payments to be made thereunder shall be subject to all of the requirements and prerequisites to advances and disbursements set forth in the Loan Agreement and in the Disbursing Agreement of even date therewith referred to therein. 

6.     In addition, Borrower hereby grants to Lender a security interest in Borrower’s right, title and interests in,
to and under the Consignment Agreement, if and to the extent that a security interest may be granted therein under the Minnesota Uniform Commercial Code, and Borrower acknowledges that Lender shall have all of the rights and remedies with respect
thereto provided for by the Minnesota Uniform Commercial Code, in addition to the other rights and remedies herein granted to Lender, in the event of the occurrence of an event of default under the Loan Agreement. 

  
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 7.     In consideration of the Lender’s making the Loan to Borrower,
Consignee hereby grants to Lender a security interest in Consignee’s right, title and interests in, to and under any and all subcontracts, purchase orders and other agreements now or hereafter executed by Consignee and related to the Parts, and
Consignee acknowledges that Lender shall have all of the rights and remedies with respect thereto provided for by the Minnesota Uniform Commercial Code, in addition to the other rights and remedies herein granted to Lender, in the event of the
occurrence of an event of default under the Loan Agreement. 
 8.     Subject to the provisions hereof, this Assignment
and Agreement shall be binding upon Borrower, Consignee and their successors and assigns, and shall inure to the benefit of Lender, its successors and assigns. Lender may assign its rights under this Assignment and Agreement, without the consent of
Consignee or Borrower, but neither Consignee nor Borrower may assign its obligations under the Consignment Agreement or under this Assignment and Agreement without the prior written consent of Lender. 

9.     Any notice required or permitted to be given by any party hereto to any other party thereto under the terms of this
Assignment and Agreement shall be deemed to have been given on the date the same is deposited in the United States mail, registered or certified, return receipt requested, postage prepaid, addressed to the party to which the notice is to be given at
the following address for it: 
  

			
	If to Consignee:	  	Airco, LLC
		  	1853 S. Eisenhower Ct.
		  	Wichita, KS 67209
		  	Attention: Chuck Kingsley
		
	If to Borrower:	  	AirCo 1, LLC
		  	5930 Balsom Ridge Road
		  	Denver, North Carolina 28037
		  	Attention: Candice Otey
		
	If to Lender:	  	Minnesota Bank & Trust
		  	7701 France Avenue South, Suite 110
		  	Edina, MN 55435
		  	Attention: Eric P. Gundersen, VP

 or to such other address as any such party may specify for itself in a written notice given by such party to the other parties
hereto not less than ten (10) days prior to the effective date of said address change. 

  
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 10.     This Assignment and Agreement may be executed in as many counterparts
as may be deemed necessary or convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original but all such counterparts shall constitute but one and the same instrument. Delivery
of a counterpart hereof, or a signature page hereto, by facsimile or in a .pdf or similar file shall be effective as delivery of a manually executed original counterpart thereof. 

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. 

 

			
	 AIRCO, LLC,
 a North Carolina
limited liability company

	
	By Chuck Kingsley
	Its Chief Operating Officer
		
		 	Consignee
	
	 MINNESOTA BANK & TRUST,

a Minnesota state banking corporation

		
	By	 	  

	Its	 	Vice President
		
		 	Lender
	
	AIRCO 1, LLC, a Delaware limited liability company
		
	By:	 	  

	Name:	 	  

	Its: :	 	  

		
		 	Borrower

 [Signature Page to Assignment and Agreement] 

 EXHIBIT A 

CONSIGNMENT AGREEMENT 
 [see
attached]Exhibit

                                                                                                                                                                       Exhibit 10.1

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of September 22, 2017 (the “Amendment Effective Date”), is entered into by and among Axovant Sciences Ltd., an exempted company organized under the laws of Bermuda (“Parent”), Axovant Holdings Limited, a private limited company organized under the laws of England and Wales, Axovant Sciences GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated and organized under the laws of Switzerland, Axovant Sciences America, Inc., a Delaware corporation, and each of Parent’s Subsidiaries that delivers a Joinder Agreement pursuant to Section 7.13 of the Loan and Security Agreement (hereinafter collectively referred to as the “Borrowers” and each, a “Borrower”), Axovant Sciences, Inc., a Delaware corporation (the “Guarantor”), the several banks and other financial institutions or entities from time to time parties thereto as Lender, constituting the Required Lenders, and HERCULES CAPITAL, INC., formerly known as Hercules Technology Growth Capital, Inc., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, together with its successors and assigns in such capacity, “Agent”).
The Borrower, the Guarantor, the Lender and Agent are parties to a Loan and Security Agreement dated as of February 2, 2017 (as amended by that certain First Amendment to Loan and Security Agreement, dated as of May 24, 2017, and as further amended, restated or modified from time to time, the “Loan and Security Agreement”).  The Loan Parties have requested that Agent and Lender agree to certain amendments to the Loan and Security Agreement.  Agent and Lender have agreed to such request, subject to the terms and conditions hereof.
Accordingly, the parties hereto agree as follows:
		
	SECTION 1
	Definitions; Interpretation.

(a)Terms Defined in Loan and Security Agreement.  All capitalized terms used in this Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement.
(b)Interpretation.  The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement shall be applicable to this Amendment and are incorporated herein by this reference.
SECTION 2Amendments to the Loan and Security Agreement.
(a)The Loan and Security Agreement shall be amended as follows effective as of the Amendment Effective Date:
(i)Amended Definitions.  The following definitions are hereby amended as follows:
The definition of “Permitted Convertible Debt Financing” is hereby amended by replacing “Three Hundred Million Dollars ($300,000,000) with “Five Hundred Seventy Five Million Dollars ($575,000,000)” therein.
The definition of “Permitted Investment” is hereby amended by  amending and replacing clause (ix) therein in its entirety with: “(ix) Investments in (A) newly-formed Subsidiaries, provided that each such Subsidiary enters into a Joinder Agreement within the time periods specified in Section 7.13 and executes such other related documents as shall be reasonably requested by Agent, and (B) any Subsidiary that has entered into a Joinder Agreement or is otherwise a “Borrower” or “Guarantor” under the Loan Documents pursuant to other documentation entered into by such Subsidiary and Collateral Agent;”.

(b)References Within Loan and Security Agreement.  Each reference in the Loan and Security Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment.
SECTION 3Conditions of Effectiveness.  The effectiveness of Section 2 of this Amendment shall be subject to the satisfaction of each of the following conditions precedent: 
(a)Fees and Expenses.  The Parent shall have paid (i) all attorney fees and other costs and expenses then due in accordance with Section 5(e), and (iii) all other fees, costs and expenses, if any, due and payable as of the Amendment Effective Date under the Loan and Security Agreement.
(b)This Amendment.  Agent shall have received this Amendment, executed by Agent, the Lender and the Loan Parties.
(c)Representations and Warranties; No Default.  On the Amendment Effective Date, after giving effect to the amendment of the Loan and Security Agreement contemplated hereby:
(i)The representations and warranties contained in Section 4 shall be true and correct on and as of the Amendment Effective Date as though made on and as of such date; and
(ii)There exist no Events of Default or events that with the passage of time would result in an Event of Default.
SECTION 4Representations and Warranties.  To induce Agent and Lender to enter into this Amendment, each Loan Party hereby confirms, as of the date hereof, (a) that the representations and warranties made by it in Section 5 of the Loan and Security Agreement and in the other Loan Documents are true and correct in all material respects; 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; (b) that there has not been and there does not exist a Material Adverse Change; and (c) that the information included in the Perfection Certificate delivered to Agent on the Closing Date remains true and correct in all material respects after taking into account the updates delivered to Agent on the date hereof.  For the purposes of this Section 4, (i) each reference in Section 5 of the Loan and Security Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,” or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct and complete as of such earlier date).  
SECTION 5Miscellaneous.
(a)Loan Documents Otherwise Not Affected; Reaffirmation.  Except as expressly amended pursuant hereto or referenced herein, the Loan and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.  The Lender’s and Agent’s execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future.  Each Loan Party hereby reaffirms the grant of security under Section 3.1 of the Loan and Security Agreement and hereby reaffirms that such grant of security in the Collateral secures all Secured Obligations under the Loan and Security Agreement and the other Loan Documents.  Each Loan Party further reaffirms each grant of security under each Bermuda Security Document, English Security Document and Swiss Security Document.
(b)Conditions.  For purposes of determining compliance with the conditions specified in Section 3, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Agent shall have received notice from such Lender prior to the Amendment Effective Date specifying its objection thereto.

(c)Release.  In consideration of the agreements of Agent and each Lender contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby fully, absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Lenders and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which any Loan Party, or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.  Each Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.  Each Loan Party agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.
(d)No Reliance.  Each Loan Party hereby acknowledges and confirms to Agent and the Lender that such Loan Party is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.
(e)Costs and Expenses.  Each Loan Party agrees to pay to Agent on the Amendment Effective Date the out-of-pocket costs and expenses of Agent and the Lenders party hereto, and the fees and disbursements of counsel to Agent and the Lenders party hereto (including allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the Amendment Effective Date or after such date.
(f)Binding Effect.  This Amendment binds and is for the benefit of the successors and permitted assigns of each party.  
(g)Governing Law.  This Agreement and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws of the State of California, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.
(h)Complete Agreement; Amendments.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter.  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.  
(i)Severability of Provisions.  Each provision of this Amendment is severable from every other provision in determining the enforceability of any provision.
(j)Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.
(k)Loan Documents. This Amendment shall constitute a Loan Document.

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

BORROWERS:
AXOVANT SCIENCES LTD.
By: /s/ Marianne L. Romeo
Name: Marianne L. Romeo
Title: Head, Global Transactions and Risk Management

AXOVANT HOLDINGS LIMITED
By: /s/ Marianne Romeo
Name: Marianne Romeo
Title: Director

AXOVANT SCIENCES GmbH
By: /s/ Marianne Romeo Dinsmore
Name: Marianne Romeo Dinsmore
Title: Managing Director

                                                                                    By: /s/ Mark Altmeyer
Name: Mark Altmeyer
Title: President

AXOVANT SCIENCES AMERICA, INC.
By: /s/ Gregory Weinhoff
Name: Gregory Weinhoff
Title: Chief Financial Officer

                                                                                                                                                                        GUARANTOR:
AXOVANT SCIENCES, INC.
By: /s/ Gregory Weinhoff
Name: Gregory Weinhoff
Title: Chief Financial Officer

AGENT:
HERCULES CAPITAL, INC.
By: /s/ Zhuo Huang
Zhuo Huang
Associate General Counsel

LENDER:
HERCULES CAPITAL, INC.
By: /s/ Zhuo Huang
Zhuo Huang
Associate General Counsel

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