Document:

Exhibit 10.1

 

Trust Loan Contract

 

Between

 

China Minsheng Trust Co., Ltd.

 

And

 

Wuhan Kingold Jewelry Co., Ltd.

 

Contract No.: [2016-MSDY-47-2]

 

2016

 

 

 

 

     

     

    

 

Trust Loan Contract

 

Lender (Party A): China Minsheng Trust
Co., Ltd. 

 

Address: 19/F, Tower C, Minsheng Financial
Center, No. 28, Jianguo Mennei Road, Dongcheng District, Beijing

 

Zip Code: 100005

 

Legal Representative: Zhiqiang Lu

 

Fax Number: 010-85259080

 

Phone Number: 010-85259071

 

Borrower (Party B): Wuhan Kingold Jewelry
Co., Ltd.  

 

Address: Te 15, Huangpu Science & Technology
Garden, Jiangan District

 

Zip Code: 430023

 

Legal representative: Zhihong Jia 

 

Fax Number: 027-65694977

 

Phone Number: 027-65694977

 

Whereas:

 

1. Party A is a duly
incorporated trust company with good standing, and Party B is a duly incorporated limited liability company with good standing.

 

2. According to [2016-MSJH-60-1]
China Mingshen Trust – Zhixin No. 173 Kingold Jewelry Loan Assembled Fund Trust Plan Trust Contract (“Trust Contract”
or “Trust Document”), Party A sets up China Mingshen Trust – Zhixin No. 173 Kingold Jewelry Loan Assembled Fund
Trust Plan (“Trust Plan”) and agrees the trust fund is used to issue loans to Party B.

 

3. According to the
Trust Document, Party A plans to sign this Contract with Party B and issue a trust loan to Party B.

 

The Contract is made
in line with relevant laws and regulations to specify the rights and obligations of both parties after reaching consensus through
consultation.

 

 

 

     

     

    

 

Article 1 Definitions

 

1. In the Contract (as
defined below), save where the context or text otherwise requires, the following words and expressions shall have the same meanings
in the Trust Document:

 

1.1 Contract:
the Contract [2016-MSDY-47-2] Trust Loan Contract between China Minsheng Trust Co., Ltd. and Wuhan Kingold Jewelry Co., Ltd.
and any other effective revisions and annexes.

 

1.2 Issuance Date
of Loan: for each allocation of trust loan, the date of issued loan by Party A to Party B, specified on the certificate of
indebtedness of loan regarding that allocation. If the first Issuance Date of Loan is inconsistent with the date of establishment
of the Trust Plan, or if any following Issuance Date of Loan is inconsistent with the date of successful funding of the fund corresponding
to this loan, the date of when the Trust Plan begins effective or the corresponding following date of actual usage of each fund
allocation is the Issuance Date of Loan.

 

1.3 Expiration
Date of Loan: for each allocation of the trust loan, the expected expiration date of each trust loan, or the date of advanced
expiration of loan of each trust loan, or the date when the extending period of this loan ends.

 

1.4 Interest Settlement
Date: March 15, June 15, September 15, December 15 of each natural year and each Expiration Date of Loan. The Interest Settlement
Date cannot be extended.

 

1.5 Interest Payment
Date: each Interest Settlement Date. If Interest Payment Date is not a business day, then it will be the next business day.

 

1.6 Month:
for each allocation of trust loan, the period from the Issuance Date of Loan or corresponding date of the Issuance Date of Loan
(including that date; if there is no corresponding date of that month, then to be the last date of that month) to the corresponding
date of the Issuance Date of Loan of next month (excluding that date; if there is no corresponding date of that month, then to
be the last date of that month) is a loan Month for that allocation. The specific starting date and ending date should be the dates
on the certificate of indebtedness of that allocation.

 

1.7 Year: for
each allocation of the trust loan, the 12 Month period since the Date of Loan is a loan Year for that allocation.

 

1.8 Pledgor:
Wuhan Kingold Jewelry Co., Ltd.

 

1.9 Gold Pledge
Agreement: Gold Pledge Agreement between China Minsheng Trust Co., Ltd. and Wuhan Kingold Jewelry Co., Ltd. signed by
Party A and Pledgor [2016-MSJH-60-3].

 

1.10 Authorized
Subscription Contract of Trust Industry Security Fund: Authorized Subscription Contract of Trust Industry Security Fund [2016-MSJH-60-4]
signed by Party A and Party B.

 

1.11 Yuan:
refers to the monetary unit of China, the Reminbi or RMB.

 

1.12 China:
Refers to the People’s Republic of China excluding Hong Kong, Macau and Taiwan.

 

Article 2 Amount
of Loan 

 

The amount of loan under
the Contract is Two Hundred Million Yuan, or RMB 200,000,000.00, in multiple allocations. The specific amount of each allocation
of loan shall follow the amount specified on the certificate of indebtedness of loan. 

 

     

     

    

 

Article 3 Purpose
of Loan and Supervision

 

3.1 Party B shall use
the loan for supplementary liquidity needs.

 

Party B is not allowed
to change the purpose of loan without prior written consent of Party A. Party B is not allowed to use the loan for fixed investment
in assets and stock rights etc., securities market investment, land storage, and real estate development, projects prohibited by
any law, regulation, regulatory provision and national policy.

 

3.2 The trustor under
the trust or a third party designated by it supervises if Party uses the money according to this Contract, and checks if

 

Article 4 Life of
Loan

 

4.1 The loan
under this Contract is issued in allocations. The life of loan of each allocation of loan is 24 Months, calculated since its respective
Issuance Date of Loan.

 

4.2 Based on conditions
prescribed in the Contract, Party A shall have the right to announce that the loan or partial of the loan is due in advance.

  

Article 5 Interest
Rate, Interest Calculation, Settlement of Interest, Payment of Interest and Penalty Interest

 

5.1 Interest Rate

 

The
annual interest rate of loan under the Contract is 10.85%.

 

5.2 Interest Calculation

 

Interest of each loan
under the Contract will calculated respectively starting from the Issuance Date of Loan. The interest of each loan is calculated
by day, with daily interest rate= monthly interest rate/30= yearly interest rate/360. For each loan, amount of loan interest due
every day = amount of loan balance on that date x [10.85]%/360.

 

5.3 Interest Settlement

 

Interest on the loan
under this Contract is calculated by using the Interest Settlement Date corresponding to each loan. The period is from loan issuance
date (inclusive) or the last Interest Settlement Date (inclusive) to this Interest Settlement Date (exclusive). The last interest
settlement date of each loan under this Contract is the Expiration Date of Loan. The principal should be paid off along with its
interest.

 

5.4 Interest
Payment

 

Party B shall make full
interest payment to Party A for each loan on each Interest Payment Date. If the loan is issued by allocations, each allocation
is calculated in following way and the interest is paid accordingly.

 

Interest that Party
B should pay includes the sum of the front end interest and term interest. Front end interest should be paid in a lump sum on the
first Interest Payment Date after the issuance of the loan. Front end interest shall be paid by Party B = Current loan balance
* [1]%. Term interest shall be paid seasonally: interest shall be paid by Party B on every Interest Payment Date within first year
after the issuance of the loan= Σ the loan balance every day from the Issuance Date of Loan (inclusive) or last interest
settlement date (inclusive) to the interest settlement date (exclusive)* [9.85]%/ 360; : interest shall be paid by Party B on every
Interest Payment Date within second year after the issuance of the loan= Σ the loan balance every day from the Issuance Date
of Loan (inclusive) or last interest settlement date (inclusive) to the interest settlement date (exclusive)* [10.85]%/ 360

 

5.5 Penalty Interest

 

(1) If Party B changes
the purpose of loan, Party B should pay additional 100% interest based on the original interest rate starting from the date of
such change regarding the changed part.

 

     

     

    

 

(2) If Party B fails
to make loan payments as scheduled, Party B shall pay additional 50% interest based on the original interest rate starting from
the date of such failure. If Party B fails to make interest payment as scheduled, Party B shall pay compound interest according
to the 50% penalty interest rate.

 

(3) Original interest
rate refers to the applicable rate used prior to the Expiration Date of Loan (including accelerated maturity date or expiration
date for extension).

 

(4) In case the payment
is overdue AND the purpose of loan has been changed, Party B shall pay the higher interest rate according to above provisions.

 

Article 6 Issuance
of Loan

 

6.1 Only after satisfying
the following prerequisites, Party A is in duty bound to issue a loan to Party B.

 

 (1) To issue the first loan, the
trust plan has been set; to issue each of following loans, the subscription of that trust unit is successful;

 

(2) According to currently
effective laws, regulations, certificate of incorporations and other organizational documents, Party B, each Warrantor and others
have provided all necessary legal documents and legally valid internal/external approval and authorization documents, and submit
the list of persons with signature rights and the signature specimen of these persons;

 

(3) The Contract, Contract
of Warranty, Fund Supervision Contract, Safekeeping Contract, Authorized Subscription Contract of Trust Industry Security Fund
and other transaction documents have been signed and taken affect;

 

(4) Notarization of
compulsory execution of the Contract and Gold Pledge Agreement has been transacted;

 

(5) Contract of Pledge
has been signed and taken affect and the pledged gold has been stored in a safe in Xingye Bank Ltd, Wuhan Branch;

 

(6) Until the issuance
date of the loan, all the statements and guarantees provided by Party B in Article 10 of this Contract are true, accurate and effective.
Party B’s financial situation is basically similar with it when signs this Contract without any major adverse change;

 

(7) Until the issuance
date of the loan, the issuance of the trust loan of Party A to Party B under the Contract does not violate all the laws and regulations;

 

(8) Party B’s
business operation status (including but not limited to its financial status) does not have any substantial changes which cause
any major adverse influence on the transaction under the Contrac;.

 

(9) Any laws, regulations,
regulatory provisions, other regulatory documents or regulatory agencies do not limit or prohibit Party A to issue a loan to Party
B as described in the Contract;

 

(10) Other requirements
by Party A.

 

6.2 Within three
days since all conditions under Article 6.1 are met (unless Party A waives any or more of them), Party A should transfer each loan
to the following loan account opened by Party B.

 

Bank Name: Huaxia Bank,
Wuhan Qiaokou Branch

Account Number: 11160000000449494

Account Name: Wuhan
Kingold Jewelry Co., Ltd

 

     

     

    

 

Article 7 Repayment

 

7.1 Principal of Repayment

 

As for the loan under
the Contract, Party B shall repay interest first and then principal. Party A is entitled to use the payment of Party B to first
pay off all expenses which should be undertaken by Party B but are paid by Party A for Party B and expenses for Party A realizing
creditor’s right.

 

If the payment of Party
B is insufficient to pay off the payable amount of Party A (including but not limited to loan principal, interest, liquidated damages,
compensation for damage, expense for achieving the creditor’s right and other expenses payable) under the Contract, Party
A is entitled to decide the sequence of refunding principal, interest and other expenses.

 

7.2 Repayment of Principal
and Interest

 

Party B shall pay the
interest according to the Article 5.4 in the Contract on each Interest Payment Date. The last Interest Payment Date of every loan
is the Expiration Date of Loan for such loan under the Contract and the principal should be paid along with the interest.

 

7.3 Prepayment

 

(1) After each allocation
is issued for 12 months, Party B could request prepayment, but only after sending request in writing 30 days in advance to Party
A and getting Party A’s approval.

 

(2) Interest rate under
the Contract shall not change if Party B prepays.

 

(3) The interest of
prepayment is calculated according to this Contract. If the life of the loan of that month is less than 30 days, the loan interest
is calculated basing on 30 days. If the life of the loan is over 30 days (including), the loan interest is calculated basing on
the actual usage dates.

 

(4) If Party B prepays,
Party B shall make one lump-sum payment of principal along with interest.

 

7.4 Party B shall transfer
the payment of principals and interests to the following account appointed by Party A:

 

Bank name: Shanghai
Pudong Development Bank Beijing East Chang’an Branch

Account number: 91190153910001603

Account name: China
Minsheng Trust Co., Ltd 

 

Article 8 Warrant
of Loan

 

8.1 All debts under
the Contract (including but not limited to all principals, interests, default interests, compound interests, liquidated damages,
compensation, all payments for creditor to realize the creditor’s rights and other payments that Party B shall pay) are guaranteed
by the Pledgor in the following manners:

 

(1) Pledge: Party B
provides pledge guarantee with its inventory of gold with standard not lower than Au9995. Under the presumption of principal pledge
rate no higher than 70%, the gold amount that should be pledged is calculated basing on the Au9995 closing price of Shanghai Gold
Exchange on the day prior to pledgor date. The details are specified in the Gold Pledge Agreement.

 

8.2 For the details
about all warrant ways under Article 8., the Gold Pledge Agreement prevails.

 

Article 9 Rights,
Obligations, Representations and Warranties of Party A

 

9.1 Rights of Party
A

 

(1) Party A is entitled
to require Party B to repay the principals, interests and expenses of the loan;

 

     

     

    

 

(2). Party A is entitled
to require Party B to provide the most recent audited financial statements and all other relevant documents related to the loan
under the Contract;

 

(3) Party A is entitled
to understand the production and management, financial activity of Party B;

 

(4) Party A is entitled
to report to the authorities if Party B evades Party A’s supervision, delays payment of loan principal and interest and conducts
other actions of breach of Contract;

 

(5) Party A or its authorized
third party is entitled to collect payments that are not fully paid or timely paid by Party B via various communication channels.
The expenses resulted from such collection acts will be borne by Party B;

 

(6) Party A or its authorized
third party is entitled to perform regular inspections on Party B’s purchase agreements to check the matching status of the
actual purchase agreements and actual fund usage;

 

(7) If any situation
happens as prescribed in Article 11 and Party A believes it may endanger creditor’s rights under the Contract, or Party B
defaults under this Contract in any way, Party A is entitled to announce the loan is due in advance and require Party B to pay
all due principals and interests of the loan;

 

(8) Party A’s other rights entitled
by law, regulations and the Contract.

 

9.2 Obligations
of Party A

 

(1) Issue the
loan on schedule based on the Contract, save the delay due to reason of Party B or other reasons not concerned about Party A;

 

(2) Keep the financial
information and the commercial secrets about production and management provided by Party B in confidentiality, save the laws and
regulations otherwise require, or disclose according to regulatory department and administrative supervision department or disclose
to engaged third parties.

 

9.3 Representations
and Warranties of Party A

 

Representations and
Warranties of Party A are as follows:

 

(1) It is a registered
trust company approved by China Banking Regulatory Commission and has the qualification to sign this Contract;

 

(2) It is its real intention
to sign and perform the Contract. It has legally performed all necessary formalities for signing and performing the Contract. All
the procedures to sign and fulfill the Contract have been legally performed and are legally effective.

 

(3) It issues trust
loan to Party B under the Trust Contract and its execution and enforcement of this Contract does not violate any of its obligations
under the Trust Contract.

 

Article 10 Rights
and Obligations of Party B

 

10.1 Rights of Party
B

 

(1) Entitled to get
and use the loan according to the stipulated terms and loan usages of the Contract.

 

(2) Entitled to require
Party A to keep the relevant financial information and commercial secrets about production and management provided by Party B in
confidentiality, save where laws, regulations or this Contract otherwise require or necessary disclosure to principals and beneficiaries
because Party A sets up the trust .

 

     

     

    

 

10.2 Obligations of
Party B

 

(1) Get the loan according
to stipulations of the Contract;

 

(2) Per Party A’s
requests, provide materials quarterly to Party A about financial accounting and production and management (depending on specific
situation of projects), including but not limited to the balance sheet, profit and loss statement, cash flow statement and financing
situation (all the banks with its accounts, accounts, balance situation, etc.), usage situation of loan fund, etc., and takes responsibility
of the authenticity, legality, completeness and validity of the foregoing provided documents;

  

(3) Use the loan for
the purpose agreed in the Contract and do not forcibly occupy and misappropriate it or use it in any project that violates the
laws and regulations;

 

(4) Actively cooperate
and consciously accept the investigation and supervision of Party A or its engaged third party on its production and management,
financial activity and loan utilization under the Contract;

 

(5) Pay off principals
and interests of loan on schedule and pay other amounts due (if any) in accordance with the stipulations of the Contract;

 

(6) Bear related expenses
under this Contract, including but not limited to insurance, evaluation, registration, safekeeping, appraisal, notarization and
other matters;

 

(7) Party B and its
investors are not allowed to secretly withdraw funds or transfer assets to evade debts to Party A;

 

(8) Before paying off
the principals and interests, it shall not, without Party A’s consent, use the assets resulted from the loan to warrant for
a third party;

 

(9) During the duration
of the Contract, it shall not provide any warrant to a third party without Party A’s consent, shall not allocate its profits;
repayment of loans of Party A’s shareholders shall not be done before the repayment of principal and interest of the loan
under this Contract;

 

(10) Before any full
or partial transfer of debt to a third party, it shall get prior written consent of Party A;

 

(11) During the duration
of the Contract, if Party B alters its name, legal representative, address, business scope and registered capital, it should notify
Party A in writing;

 

(12) During the duration
of the Contract, in case Party B engages in contracting out business operation, lease, shareholding system transformation, joint
venture, merger, acquisition, separation, increase and decrease of capital, alternation of stock rights, transfer of material assets
or other acts of disposition which will impact the realization of Party A’s credit, Party B shall notify Party A in writing
at least 30 days in advance for its consent and address the matters of payment and guaranty of the debt under the Contract according
to Party A’s requirements;

 

(13) In case Party B
suffers business halts, bankruptcy, dissolution, closure of business, cancellation of business license, and revocation, the Contract
is deemed to reach its expiration. Party B shall send a written notice to Party A within three days since the date of its occurrence
and repay all principals and interests immediately;

 

(14) If any incident
causes danger to Party B’s normal business or materially and adversely affect Party B’s ability to fulfill its payment
obligation under the Contract, including but not limited to, material financial disputes, litigation, deterioration of financial
situation, serious hardship of production and operation, dissolution, closure of business, cancellation of business license, and
revocation, etc., Party B shall send a written notice to Party A within three days since the date of its occurrence and address
the matters of payment and guaranty of the debt under the Contract according to Party A’s requirements;

 

(15) Ensure all Warrantors
(if any) to work with Party A to sign Contracts of Warranty (if any) and go through relevant notarization and registration procedures;

 

     

     

    

 

(16) In case the Warrantors
under the Contract suffers business halts, bankruptcy, dissolution, closure of business, cancellation of business license, revocation
or similar situations, and partly or fully loses the warrant ability corresponding to this loan, Party B shall promptly provide
Party A other warrant recognized by Party A;

 

(17) Party B, without
any consent from Party A, shall not incur any kind of debt, investment or financing, including but not limited to, bank loan, trust
loan, merger loan, setting property trust, setting special asset earning right, share or share beneficiary investment and financing,
and other kinds of investment and financing activities;

 

(18) During the term
of this Contract, Party B does not distribute dividends to shareholders;

 

(19) Party B shall take
responsibility to Party A for the loss caused by breaching the Contract.

 

10.3 Representations and Warranties
of Party B

 

Representations and
warranties of Party B are as follows:

 

(1) It is a legally
registered and validly existing business entity. Until the Issuance Date of Loan, it is in normal operation, and does not have
any current or reasonably expected factor which may cause it to be unable to keep the normal operation during the loan term;

 

(2) It is its real intention
to sign and perform the Contract. It has legally performed all necessary formalities for signing and performing the Contract. These
conducts do not violate the certificate of incorporation or other organizational documents or any laws, regulations, charters and
other regulatory documents, judgments, contracts, commitments, or arrangements. All the procedures to sign and fulfill the Contract
have been legally performed and are legally effective;

 

(3) All the documents,
materials, relevant financial statements and certificates provided to Party A for the loan under the Contract are true, correct,
complete, legally valid, and do not have any misleading statements, false record or material omission;

 

(4) It does not conceal
any past actions or actions that may happen which might prevent the issuance of the loan under the Contract, including but not
limited to,

 

1) serious illegal actions,
discipline incidents or material claims related to it or its person in charge;

3) any breach actions
related to contracts with other creditors;

2) litigations, arbitrations
and other disputes;

4) its debt and debt
guarantees;

5) other situations
that might influence its financial status or repayment ability.

 

(5) It allows Party
A to investigate its credits from the credit data center approved and set up by People's Bank of China and its credit supervisor
department or relevant agencies, agrees Party A to disclose its information to the credit data center approved and set up by People's
Bank of China and its credit supervisor department, or reasonably use or disclose those credit information out of business needs;

 

(6) Any existing legal
documents relevant to financing and/or guarantee (if any) do not include any terms that limit Party B’s refinancing or providing
guarantee and do not affect Party B’s application of trust loan to Party A under the Contract.

 

Article 11 Responsibility of Default

 

11.1 Default Situations

 

(1) Party B shall take
the responsibility of default by law if any situation as follow happens:

 

1) Fail to provide true,
complete and valid financial, accounting, operation status and other materials; conceal information that may affect its ability
to repay the loan;

 

     

     

    

 

2) Fail to use the loan
for the purpose agreed in the Contract, refuse Party A’s or its authorized third party’s supervision over the usage
of the loan;

 

3) Fail to pay interests
or any term of interest under the Contract on schedule, or fail to pay other amount payable (if any);

 

4) Transfer assets or
withdraw funds to evade debt;

 

5) Deterioration of
operation and financial conditions, failure to pay off due debt, involvement in serious litigation, arbitration or other legal
disputes or undertaking other debts happens and Party A believes it may affect or threaten its rights and benefits under the Contract;

 

6) During the duration
of the Contract, conducting transactions such as contracting out business operation, lease, shareholding system transformation,
joint venture, merger, acquisition, separation, increase and decrease of capital, alternation of stock rights, and other actions
changing operating way or system which Party A believes may impact or have impacted Party A’s rights under the Contract;

 

7) Its other debts may
or have affected the fulfillment of obligations to Party A;

 

8) Distribute dividend
without any consent from Party A during the duration of the Contract;

 

9) Enter into legal
proceedings of custody, taken over, consolidation, settlement, reorganization, bankruptcy, or dissolution, or being cancelled business
license, or being ordered business closure, stop, revocation or dissolution;

 

10) If Party B and/or
Warrantor has any situation that Party A believes material and disadvantageous, or violates any other project or contract with
Party A or other financial institution, Party A has the right to adopt the remedies under Article 11.2 under this Contract. If
the violation is serious, Party A has the right to terminate all projects cooperated with Party B;

 

11) Other breaches of
the Contract or other circumstances that Party A believes may affect or threaten or have affected or threatened the realization
of Party A’s rights and benefits under the Contract.

 

(2) If any following
circumstances happens to the Pledgor that Party A believes may affect the warrant ability of the mortgagor (or the Pledgor) and
requires the mortgagor (or the Pledgor) to remove the adverse implication caused by it, but the Pledgor and Party B do not cooperate,
or Party B refuses to provide new warrant and/or other remedies approved by Party A, Party B is deemed to violate the contract
:

 

1) Upon signing the
Gold Pledge Agreement, the Pledgor concealed any situation that the rights associated with the pledge has been addressed, including
but not limited to, that the pledge has been rented, sold, the beneficial rights, operation rights or other rights have been transferred
by the Pledgor, the Pledgor/lessor has obtained long term rent in a lump-sum, or the Pledgor has already set up warrant, pledge
and other rights;

 

2) The behavior of a
third party resulted in the damage, lost, or devaluation of the pledge, and the Pledgor fails to address the damages under the
mortgage agreement;

 

3) The Pledgor’s
behavior will decrease the value of the pledge but refuses or fails to stop the action, restore its original situation or provide
any warrant upon Party A’s request;

 

4) Without any written
consent from Party A, the Pledgor gives, transfer, leases, repledges, transfer-pledges, moves the pledge, or addresses the pledge
in any other way or sets up other rights on the pledge;

 

5) The Pledgor addresses
the pledge with Party A’s consent, but fails to follow the Gold Pledge Agreement when handling the disposal price of the
pledge;

 

     

     

    

 

6) The pledge is damaged,
lost or its value is reduced which affects the repayment of the debt under the Contract, and the pledgor does not restore its value
promptly, or provides other warrants recognized by Party A;

 

7) The Pledgor fails
to transact notarization according to the Contract and the Gold Pledge Agreement;

 

8) Other breach scenarios
under the Gold Pledge Agreement.

 

11.2 Default Remedies

 

Party A is entitled
to take one or more of the following measures if and of the abovementioned defaults happen:

 

1) Stop issuing the
rest of the loan that has not been issued yet;

 

2) Announce the payment
is due immediately, collect in advance those loans issued, and require Party B to repay all the loan principals, interests and
other payments under the Contract;

 

3) Charge Party B the
liquidated damage which is 20% of the principal;

 

4) Exercise guarantee
rights;

 

5) Terminate the Contract
and other Contracts of Warranty (if needed);

 

6) Other measures provided
by regulations, regulatory provisions and the Contract.

 

11.3 Special Agreement

 

Within 5 days since
the Loan Trust is set up, if Party B fails to fulfill relevant borrowing obligations under this Contract without any reasons, it
shall pay Party A liquidated damages of 3,000,000 Yuan and Party A has the right to terminate this Contract unilaterally.

 

Article 12 Amendment
and Termination of Contract

 

Upon the effectiveness
of the Contract, any party shall not alter or terminate the Contract unilaterally unless the Contract provides otherwise. Any amendments
or alterations shall be agreed by both parties in a written agreement.

 

Article 13 Applicable
Laws and Dispute Resolutions

 

13.1 Both parties shall
solve disputes arising from the Contract or related to the Contract by negotiation or settlement. In case no settlement can be
reached through negotiation, the parties shall submit the dispute to the people’s court with jurisdiction in the domicile
of Party A. Unless otherwise specified in the judgment, the actual cost of the parties related to the suit (including but not limited
to court fees and reasonable attorneys' fees) shall be borne by the losing party.

 

13.2 The agreement,
interpretation, performance and dispute resolution under the Contract are subject to laws and regulations of People’s Republic
of China.

 

13.3 During the period
of dispute resolution, Party A and Party B shall still perform the terms without disputes under the Contract. No party could refuse
to perform any of its obligations under the Contract.

 

Article 14 Notarization
of Compulsory Execution

 

14.1 Party A and Party
B confirm that, within three days of execution of the Contract, both parties will transact compulsory notarization of the Contract
at Beijing Fangzheng Notary Office.

 

     

     

    

 

14.2 Party B hereby
commits that if it fails to fulfill or incompletely fulfills any of its obligations under the Contract, it is willing to receive
judiciary compulsory execution, without any judicial proceeding. Party A can directly apply for compulsory execution to people’s
court with jurisdiction according to Article 238 of Civil Procedure. Party B waives right of defense for such application.

 

14.3 Party A and Party
B confirm that both parties fully understand the meaning, content, procedure and effect of notarization of compulsory execution
proscribed by relevant laws, regulations and regulatory documents.

 

14.4 If Party B fails
to perform or inappropriately performs debt documents which has been notarized and have the compulsory execution effect, Party
A can apply for issuance of compulsory execution document to the notary office. Party B shall cooperate with the notary office
to complete the verification procedure. Party B commits to cooperate fully with the application by Party A (including but not limited
to the verification procedure with the completion of the notary office). If Party B fails to fulfill such obligation timely, Party
B hereby confirms: in the case of absence of Party B, after the notary, based on the notary application by Party A and its internal
procedure, completes the verification process, it deems to finish the verification process. Party B fully recognizes its legal
consequences.

 

14.5 This Article has
priority to the Article 13.1. Party B shall bear the expense arising from application of compulsory notarization.

 

Article 15 Notification
and Delivery

 

15.1 All the notifications,
documents and materials sent or provided to each party because of execution of the Contract shall be delivered according to the
contact in the cover page. If the contact information of one party changes, it shall notify the other party in writing (fax or
express mail) within three workdays since the date of change. Otherwise, the notification from he party which does not change the
contact information to the other party by fax or express mail according to the contact information in this Contract is deemed to
be delivered.

 

15.2 Contact information
of both parties:

 

Party A: China
Minsheng Trust Co., Ltd.

Mailing Address: 19/F,
Tower C, Minsheng Financial Center, No. 28, Jianguo Mennei Road, Dongcheng District, Beijing

Zip Code: 430023

Contact Person: You
Li

Phone Number: 18627822266

Fax Number: 010-85259080

Email: liyou@msxt.com

 

Party B: Wuhan Kingold
Jewelry Co., Ltd.

Mailing Address: Te
15, Huangpu Science & Technology Garden, Jiangan District

Zip Code: 430023

Contact Person: Qiao
Hu

Phone Number: 113317109760

Fax Number: 027-65694977

Email: webmaster@kingold.com.cn

 

15.3 Notification is
deemed to be delivered to the other party on the following date:

 

(1) Personal delivery:
effectively delivered on the date when the designated person delivers it;

 

(2) Registered letter
service: the third day after the mailing day (postmark as the proof) ;

 

(3) Fax: when the confirmation
of successful delivery is created by the fax machine;

 

     

     

    

 

(4) Express mail service:
the second day after postmark date;

 

(5) Email: date stated
in the email system of successful delivery.

 

Article 16 Supplementary
Provisions

 

16.1 Any amendment of
the Contract as the attachment of the Contract has the equal legal effect with the Contract.

 

16.2 The Certificate
of Indebtedness under the Contract and other relevant documents confirmed by both parties are indivisible component of the Contract.

 

16.3 Party B has read
all the terms of this Contract. Per Party B’s requirements, Party A has explained the relevant provisions under this Contract.
Party B has acknowledged and fully understood on the meaning of the Contract terms and the corresponding legal consequences.

 

16.4 In the course of
performing this Contract, if Party A does not exercise or timely exercise any of its rights under this Contract, it shall not be
deemed to have waived such rights, and it does not affect the exercise of Party A’s other rights and fulfillment of Party
B’s obligations under this Contract. All waiver of rights shall be made in writing.

 

16.5 Representations
and Warranties in the Contract are set out separately and independently. Except as otherwise expressly agreed in this Contract
or the parties otherwise agreed in writing, they will not be restricted by other terms in the Contract that may contain contrary
meanings. If a provision of this Contract or any part of a provision becomes invalid at present or in the future, this invalid
provision or the invalid part of the terms of the Contract does not affect the other terms of the Contract or the validity of other
content in the term.

 

16.6 The agreements
in the Contract include Representations and Warranties specified in this Contract, and any violation of these Representations and
Warranties are treated as breach of Contract.

 

16.7 Both parties shall
ensure that the Contract is fully executed by conducting and signing any further actions, incidents, documents, so the expected
purpose of this Contract could be fully achieved.

 

16.8 The titles in the
Contract only serve as easy access to all the terms. Under no circumstances they shall be construed as an integral part of this
Contract, or as limitation of its terms of indication.

 

16.9 The Contract is
the complete document on the matters covered by it agreed by both parties. This Contract, together with any attachments to this
Contract constitutes the entire agreement between the parties of this Contract. If any previously signed letter of intent, other
legal documents or other written and oral agreements are inconsistent with this Contract, this Contract shall prevail.

 

16.10 The Contract is
effective on the day when it is signed and stamped by the legal representative or an authorized representative of each party and
shall terminate when all loan principals, interests, penalty interests, liquidated damages, damages compensation and all other
sums due (if any) are paid off.

 

16.11 All nine copies
of the original Contract has the same legal effect; three copies are possessed by Party A and three copies are possessed by Party
B; the remaining copies are for handling enforcement of notarization, pledge registration procedures, etc.

 

Both parties have
read all terms of the Contract and have completely understood the meaning of Contract terms and corresponding legal consequences.
No party shall challenge any terms under the Contract on the any basis such as material misunderstanding or unconscionability.

 

(Signature page follows)

 

 

     

     

    

 

(This is the signature page of Trust Loan
Contract of No. 2016-MSDY-47-2 and has no content of contract)

 

Party A: /s/ China Minsheng
Trust Co., Ltd.

Legal Representative/Authorized
Representative: /s/ Zhiqiang Lu

 

Party B: /s/ Kingold
Jewelry Co., Ltd.

Legal Representative/Authorized
Representative: /s/ Zhihong Jia

  

Contract signed on:
September 17, 2016

Contract signed in:
Dongcheng District of Beijing Cityaveo-ex104_222.htm

 

Exhibit 10.4

AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT

This AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT (this “Amendment”), is entered into this 13th day of May, 2016 (the “Effective Date”), by and among (a) AVEO PHARMACEUTICALS, INC., a Delaware corporation (“Borrower”), (b) HERCULES CAPITAL, INC., formerly known as HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation in its capacity as administrative agent for itself and the Lender (as defined herein) (in such capacity, the “Agent”), and (c) (i) HERCULES TECHNOLOGY III, L.P., a Delaware limited partnership and (ii) the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (as defined below) (collectively, referred to as “Lender”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

WHEREAS, Borrower and Lender are parties to a certain Loan and Security Agreement, dated as of May 28, 2010, as amended by that certain Amendment No. 1 to Loan and Security Agreement, dated as of December 21, 2011, as amended by that certain Amendment No. 2 to Loan and Security Agreement, dated as of March 31, 2012, and as further amended by that certain Amendment No. 3 to Loan and Security Agreement, dated as of September 24, 2014 (as the same may from time to time be further amended, modified or supplemented in accordance with its terms, the “Loan Agreement”);

WHEREAS, the Borrower has repaid all Term Loan Advances in accordance with the terms of the Loan Agreement; and

WHEREAS, in accordance with Section 11.3 of the Loan Agreement, Borrower and Lender desire to amend the Loan Agreement as provided herein.

NOW THEREFORE, in consideration of the mutual agreements contained in the Loan Agreement and herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Defined Terms.  Terms not otherwise defined herein which are defined in the Loan Agreement shall have the same respective meanings herein as therein.

2. Amendments to Loan Agreement.  Subject to the satisfaction of the conditions set forth in Section 4 of this Amendment, the Loan Agreement is hereby amended as follows:

(a) The Loan Agreement shall be amended by (i) deleting “and” at the end of Recital F, (ii) changing “.” to “;” at the end of Recital G; and (iii) inserting the following new provisions to appear as Recitals H and G thereof:

“H. Borrower has requested Lender to make available to Borrower terms loans (each  a “2016 Term Loan Advance” and collectively “2016 Term Loan Advances”) in aggregate principal amount of Ten Million Dollars ($10,000,000) comprised of (i) a term loan (the “2016 Term A Loan Advance”) in an aggregate principal amount of Five Million Dollars ($5,000,000), and (ii) a term loan (the “2016 Term B Loan Advance”) in an aggregate principal amount of Five Million Dollars ($5,000,000); and 

G. Lender is willing to make the 2016 Term Loan Advances on the terms and conditions set forth in this Agreement.”

(b) The Loan Agreement shall be amended by inserting the following new definitions to appear alphabetically in Section 1.1 (Definitions and Rules of Construction) thereof:

“2016 Closing Date” May 13, 2016.

1

 

“2016 End of Term Charge” has the meaning given to it in Section 2.5 hereof.

“2016 Facility Fee” means One Hundred Thousand Dollars ($100,000.00). 

“2016 Prepayment Charge” has the meaning given to it in Section 2.4 hereof.  

“2016 Term A Loan Advance” has the meaning given to it in Recital H hereof.

“2016 Term B Loan Advance” has the meaning given to it in Recital H hereof

“2016 Term Loan Advance” or “2016 Term Loan Advances” has the meaning given to it in Recital H hereof.

 “2016 Term Loan A Funding Event” means confirmation by Lender, that Borrower has received after the 2016 Closing Date, unrestricted and unencumbered gross cash proceeds in an amount equal to or greater than Fifteen Million Dollars ($15,000,000) resulting from the issuance and sale by Borrower of its equity securities to one or more investors reasonably acceptable to Agent.

“2016 Term Loan Amortization Date” means July 1, 2017; provided, however, that if the 2016 Term Loan B Funding Event occurs prior to July 1, 2017, at the request of Borrower, the 2016 Term Loan Amortization Date shall be January 1, 2018.

“2016 Term Loan B Funding Event” means confirmation by Lender, in Lender’s reasonable discretion, that Borrower has achieved the following: (i) satisfactory developmental progression on a minimum of two (2) clinical programs (other than the Phase 3 clinical trial of Tivozanib for the treatment of renal cell carcinoma for patients in the third-line setting (the “US Phase III (Tivo)”) that are either managed directly by Borrower or funded, in whole or in part, by the Borrower, and (ii) on the Advance Date of the 2016 Term Loan B Advance, Borrower shall have unrestricted Cash equal to or greater than Twenty-Five Million Dollars ($25,000,000). 

“2016 Term Loan Commitment” means as to any Lender, the obligation of such Lender, if any, to make 2016 Term Loan Advances to Borrower in a principal amount not to exceed the amount set forth under the heading “2016 Term Loan Commitment” opposite such Lender’s name on Schedule 1.1.

“2016 Term Loan Interest Rate” means the greater of (i) 11.90% and (ii) 11.90% plus the Prime Rate; provided, however, that in no event shall the 2016 Term Loan Interest Rate exceed fifteen percent (15.0%) (provided such limit does not include any Default Rate which may be imposed by Agent).

“2016 Term Loan Maturity Date” means December 1, 2019.

“2016 Warrants” shall mean the warrants to purchase shares of common stock of the Borrower issued to the Lender by the Borrower on the 2016 Closing Date. 

“Amendment No. 4 to the Loan and Security Agreement” is that certain amendment by and among Borrower, Lenders, and Agent dated as of the 2016 Closing Date.

“Draw Period” is the period of time commencing on and after March 1, 2017 and upon the occurrence of the 2016 Term Loan B Funding Event and continuing through the earlier to occur of (a) June 30, 2017 or (b) an Event of Default.

2

 

 “Due Diligence Fee” means Fifteen Thousand Dollars ($15,000), which fee is due to Lender on or prior to the 2016 Closing Date, and shall be deemed fully earned on such date regardless of the early termination of the Amendment No. 4 to the Loan and Security Agreement.

(c) The following definitions appearing in Section 1.1 thereof are amended in their entirety and replaced with the following:

“2014 Term Loan Amortization Date” means June 1, 2016; provided however, that if the 2016 Term Loan A Funding Event occurs, at the request of Borrower, the 2014 Term Loan Amortization Date shall be July 1, 2017; and provider further, however, that if the 2016 Term Loan B Funding Event occurs prior to July 1, 2017, at the request of Borrower, the 2014 Term Loan Amortization Date shall be January 1, 2018.

“2014 Term Loan Maturity Date” means January 1, 2018; provided however, that if the 2016 Term Loan A Funding Event occurs, the 2014 Term Loan Maturity Date is December 1, 2019.

“Advance(s)” means a Term Loan Advance, a 2014 Term Loan Advance, and/or a 2016 Term Loan Advance, as applicable.

“Prime Rate” means the prime rate as reported in The Wall Street Journal minus 5.00%.

 “Warrant” means, collectively, all warrants to purchase shares of capital stock of the Borrower issued to Lender by the Borrower (including, without limitation, the New Warrants, the 2014 Warrants, and the 2016 Warrants).   

(d) Section 2.1.1(d) (Payment) is amended in its entirety and replaced with the following:

“(d) Payment.  Prior to the 2014 Term Loan Amortization Date, Borrower will pay interest on the 2014 Term Loan Advance on the first (1st) business day of each month, beginning the month after the applicable Advance Date.  Commencing on the 2014 Term Loan Amortization Date, and continuing on the first (1st) business day of each month thereafter, Borrower shall repay the aggregate principal balance of the 2014 Term Loan Advance that is outstanding on the day immediately preceding the 2014 Term Loan Amortization Date in equal monthly installments of principal and interest (mortgage style) based on an amortization schedule equal to thirty (30) consecutive months.  After any change in the effective rate hereunder, Lender shall recalculate future payments of principal and interest to fully amortize the outstanding principal amount over the remaining scheduled monthly payments hereunder prior to the 2014 Term Loan Maturity Date (and Lender will provide subsequent notice to Borrower of any such recalculations).  The entire 2014 Term Loan Advance unpaid principal balance and all accrued but unpaid interest hereunder, and all other Secured Obligations with respect to the 2014 Term Loan Advance, shall be due and payable on the 2014 Term Loan Maturity Date. Borrower shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. Lender will initiate debit entries to the Borrower’s account as authorized on the ACH Authorization on each payment date of all periodic obligations payable to Lender under the 2014 Term Loan Advance.  Once repaid, the 2014 Term Loan Advance or any portion thereof may not be reborrowed.”

(e) The Loan Agreement is amended by inserting immediately after Section 2.1.1 the following new provision to appear as Section 2.1.2 (2016 Term Loan) thereof:

“2.1.2 2016 Term Loan.

3

 

(a) Advance.  Subject to the terms and conditions of this Agreement, on the date that the 2016 Term Loan A Funding Event occurs, Borrower shall request and Lender will make, in an amount not to exceed its respective 2016 Term Loan Commitment, one (1) 2016 Term A Loan Advance in an amount of Five Million Dollars ($5,000,000).  Subject to the terms and conditions of this Agreement, during the Draw Period, Borrower shall request and Lender will make in an amount not to exceed its respective 2016 Term Loan Commitment, one (1) 2016 Term B Loan Advance in an amount of Five Million Dollars ($5,000,000).  

(b) Advance Request.  To obtain a 2016 Term Loan Advance, Borrower shall complete, sign and deliver to Lender an Advance Request.  Lender shall fund the 2016 Term Loan Advance in the manner requested by the Advance Request provided that each of the conditions precedent applicable to such 2016 Term Loan Advance is satisfied as of the requested Advance Date.

(c) Interest.  The principal balance of each 2016 Term Loan Advance shall bear interest thereon from such Advance Date at the 2016 Term Loan Interest Rate based on a year consisting of 360 days, with interest computed daily based on the actual number of days elapsed.  The 2016 Term Loan Interest Rate will float and change on the day the Prime Rate changes from time to time. 

(d) Payment.  Prior to the 2016 Term Loan Amortization Date, Borrower will pay interest on the aggregate principal balance of the 2016 Term Loan Advances on the first (1st) business day of each month, beginning the month after the applicable Advance Date.  Commencing on the 2016 Term Loan Amortization Date, and continuing on the first (1st) business day of each month thereafter, Borrower shall repay the aggregate principal balance of the 2016 Term Loan Advances that are outstanding on the day immediately preceding the 2016 Term Loan Amortization Date in equal monthly installments of principal and interest (mortgage style) based on an amortization schedule equal to thirty (30) consecutive months.  After any change in the effective rate hereunder, Lender shall recalculate future payments of principal and interest to fully amortize the outstanding principal amount over the remaining scheduled monthly payments hereunder prior to the 2016 Term Loan Maturity Date (and Lender will provide subsequent notice to Borrower of any such recalculations).  The entire principal balance of the 2016 Term Loan Advances and all accrued but unpaid interest hereunder, and all other outstanding Secured Obligations with respect to the 2016 Term Loan Advances, shall be due and payable on 2016 Term Loan Maturity Date. Borrower shall make all payments under this Agreement without setoff, recoupment or deduction and regardless of any counterclaim or defense. Lender will initiate debit entries to the Borrower’s account as authorized on the ACH Authorization on each payment date of all periodic obligations payable to Lender under each 2016 Term Loan Advance.  Once repaid, a 2016 Term Loan Advance or any portion thereof may not be reborrowed.”

(f) The last two sentences set forth in Section 2.3 (Default Interest) are amended in their entirety and replaced with the following: 

“In addition, upon the occurrence and during the continuation of an Event of Default hereunder, all Secured Obligations, including principal, interest, compounded interest, and professional fees, shall bear interest at a rate per annum equal to the rate set forth in Section 2.1(c), 2.1.1(c), or 2.1.2(c), as applicable, plus five percent (5%) per annum.  In the event any interest is not paid when due hereunder, delinquent interest shall be added to principal and shall bear interest on interest, compounded at the rate set forth in Section 2.1(c), 2.1.1(c), 2.1.2(c), or Section 2.3, as applicable.”

4

 

(g) Section 2.4 (Prepayment) is amended in its entirety and replaced with the following:

“2.4 Prepayment.  

(a) At its option upon at least seven (7) business days prior notice to Lender, Borrower may prepay all, but not less than all, of the outstanding 2014 Term Loan Advance by paying the entire principal balance, all accrued and unpaid interest, all unpaid Lender’s fees and expenses accrued to the date of the prepayment (including the 2014 End of Term Charge), together with a prepayment charge equal to the following percentage of the principal 2014 Term Loan Advance amount being prepaid: if such 2014 Term Loan Advance is prepaid in any of the first twelve (12) months following the 2014 Closing Date, three percent (3.00%); after twelve (12) months following the 2014 Closing Date but prior to twenty four (24) months following the 2014 Closing Date, two percent (2.00%); and thereafter but prior to the 2014 Term Loan Maturity Date, one percent (1.00%) (each, a “Prepayment Charge”).  

(b) In addition, at its option upon at least seven (7) business days prior notice to Lender, Borrower may prepay all, but not less than all, of the outstanding 2016 Term Loan Advance(s) by paying the entire principal balance, all accrued and unpaid interest, all unpaid Lender’s fees and expenses accrued to the date of the prepayment (including the 2016 End of Term Charge), together with a prepayment charge equal to the following percentage of the principal 2016 Term Loan Advances being prepaid: if such 2016 Term Loan Advance(s) is prepaid in any of the first twelve (12) months following the 2016 Closing Date, three percent (3.00%); after twelve (12) months following the 2016 Closing Date but prior to twenty four (24) months following the 2016 Closing Date, two percent (2.00%); and thereafter but prior to the 2016 Term Loan Maturity Date, one percent (1.00%) (each, a “2016 Prepayment Charge”).  

(c) Borrower agrees that each of the Prepayment Charge and 2016 Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early repayment of the 2014 Term Loan Advance and/or 2016 Term Loan Advances.  Upon the occurrence of a Change in Control, Borrower shall prepay the outstanding amount of all principal and accrued interest through the prepayment date and all unpaid Lender’s fees and out-of-pocket expenses under the Loan Documents accrued to the date of the repayment (including the 2014 End of Term Charge and the 2016 End of Term Charge) together with the applicable Prepayment Charge and/or 2016 Prepayment Charge.”

(h) Section 2.5 (End of Term Charge) is amended in its entirety and replaced with the following: 

“2.5 End of Term Charges.  On the earliest to occur of (i) January 1, 2018, (ii) the date that Borrower prepays the outstanding 2014 Term Loan Advances, or (iii) the date that the 2014 Term Loan Advances become due and payable, Borrower shall pay Lender a charge equal to Five Hundred Forty Thousand Three Hundred Sixty-Three Dollars and Sixty Cents ($540,363.60) (the “2014 End of Term Charge”).   Notwithstanding the required payment date of such charge, the 2014 End of Term Charge shall have been deemed to have been earned by Lender as of the 2014 Closing Date.  In addition, on the earliest to occur of (i) the 2016 Term Loan Maturity Date, (ii) the date that Borrower prepays the outstanding 2016 Term Loan Advances in full, or (iii) the date that the 2016 Term Loan Advances become due and payable, Borrower shall pay Lender a charge equal to three percent (3.0%) of the aggregate original principal amount of all 2016 Term Loan Advances extended by Lender (the “2016 End of Term Charge”).  Notwithstanding the required payment date of such charge, the 2016 End of Term Charge shall be deemed to have been earned by Lender as of the 2016 Closing Date.”

5

 

(i) Section 3 (Security Interests) of the Loan Agreement is amended by deleting subsection (ii)(D) appearing in the first sentence of Section 3.1 in its entirety and replacing it with the following:

“(D) [Reserved] and”  

(j) Section 7.13 (Deposit Accounts) is amended in its entirety and replaced with the following:

“7.13 Deposit Accounts.  The Borrower shall not maintain any Deposit Accounts, or accounts holding Investment Property, except (i) with respect to which Agent has an Account Control Agreement and (ii) a deposit account maintained in the United Kingdom for funding payroll obligations with a balance not to exceed $2,000,000 at any time).”

(k) Section 7.20 (Financial Covenant) is amended in its entirety and replaced with the following:

“7.20 Financial Covenant.  Borrower shall maintain at all times, commencing on the 2016 Closing Date and continuing through the date on which the Agent confirms that the US Phase III (Tivo) has been completed with results satisfactory to Agent, in its reasonable discretion, unrestricted Cash equal to or greater than Ten Million Dollars ($10,000,000)”

(l) Section 12 (Agency).  The Loan Agreement is amended by inserting the following new Section 12 thereof:

“12. AGENCY.   Lender hereby irrevocably appoints Hercules Capital, Inc. to act on its behalf as the administrative agent for itself and the Lender (in such capacity, the “Agent”) hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.”

(m) Exhibit A (Advance Request) is amended in its entirety and replaced with the Advance Request appearing as Schedule 1 attached hereto.

(n) The Loan Agreement shall be amended by inserting a new Exhibit B-4 (2016 Term Loan Advance Promissory Note) appearing as Schedule 2 attached hereto.

(o) Exhibit F (Compliance Certificate) is amended in its entirety and replaced with the Compliance Certificate appearing as Schedule 3 attached hereto.  

(p) The Loan Agreement shall be amended by inserting a new Schedule 1.1 (Term Commitments) appearing as Schedule 4 attached hereto. 

3. Post-Closing Deliverables.  Borrower shall deliver to Agent, on or before thirty (30) days after the Effective Date (the “Post-Closing Delivery Date”): (i) endorsements to the Borrower’s property and liability policies, which endorsements shall name Agent as lender loss payee and additional insured, and (ii) an Account Control Agreement with each of (x) Comerica Bank and (y) State Street Bank and Trust Company, in form and substance acceptable to Agent ((i) and (ii) herein collectively, the “Post-Closing Deliverables”).  Failure of Borrower to deliver the Post-Closing Deliverables on or before the Post-Closing Delivery Date shall result in an immediate Event of Default for which there shall be no grace or cure period.

4. Waiver of Default.  Agent hereby waives Borrower’s existing default under the Loan Agreement by virtue of Borrower’s failure to comply with the negative covenant (Deposit Accounts) set forth in Section 7.13 thereof for the period commencing on September 24, 2014, through and including the Post-Closing Delivery Date.  Agent’s waiver of Borrower’s compliance of said negative covenant shall apply only to the foregoing specific period.

6

 

5. Conditions to Effectiveness.  Lender and Borrower agree that this Amendment shall become effective upon the satisfaction of the following conditions precedent, each in form and substance satisfactory to Lender:

(a) Lender shall have received a fully-executed counterpart of this Amendment signed by Borrower;

(b) Lender shall have received certified resolutions of Borrower’s board of directors evidencing approval of this Amendment;

(c) Borrower shall have paid to Lender, for the account of Lender, the Due Diligence Fee and the 2016 Facility Fee; and

(d) Lender shall have received payment for all fees and expenses incurred by Lender in connection with this Amendment, including, but not limited to, all legal fees and expenses. 

6. Representations and Warranties.  The Borrower hereby represents and warrants to Lender as follows:

(a) Representations and Warranties in the Agreement.  The representations and warranties of Borrower set forth in Section 5 of the Loan Agreement are true and correct in all material respects on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date.

(b) Authority, Etc.  The execution and delivery by Borrower of this Amendment and the performance by Borrower of all of its agreements and obligations under the Loan Agreement and the other Loan Documents, as amended hereby, are within the corporate authority of Borrower and have been duly authorized by all necessary corporate action on the part of Borrower.  With respect to Borrower, the execution and delivery by Borrower of this Amendment does not and will not require any registration with, consent or approval of, or notice to any Person (including any governmental authority).

(c) Enforceability of Obligations.  This Amendment, the Loan Agreement and the other Loan Documents, as amended hereby, constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium, general equitable principles or other laws relating to or affecting generally the enforcement of, creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

(d) No Default.  Before and after giving effect to this Amendment (i) no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default, and (ii) no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing.

(e) Event of Default.  By its signature below, Borrower hereby agrees that it shall constitute an Event of Default if any representation or warranty made herein should be false or misleading in any material respect when made.

7. Reaffirmations.  Except as expressly provided in this Amendment, all of the terms and conditions of the Loan Agreement and the other Loan Documents remain in full force and effect.  Nothing contained in this Amendment shall in any way prejudice, impair or effect any rights or remedies of Lender under the Loan Agreement and the other Loan Documents.  Except as specifically amended hereby, Borrower hereby ratifies, confirms, and reaffirms all covenants contained in the Loan Agreement and the other Loan Documents.  The Loan Agreement, together with this Amendment, shall be read and construed as a single agreement.  All references in the Loan Documents to the Loan Agreement or any other Loan Document shall hereafter refer to the Loan Agreement or any other Loan Document as amended hereby.  

7

 

8. Execution in Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but which together shall constitute one instrument.

9. Miscellaneous.  

(a) THIS AMENDMENT 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.  

(b) The captions in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.

(c) This Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

(d) Any determination that any provision of this Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Amendment.

 

 

[Remainder of this page intentionally left blank]

 

8

 

 

IN WITNESS WHEREOF, Borrower and Lender have duly executed and delivered this Amendment as of the day and year first above written.

 

	
 
	
BORROWER:

	
 
	
AVEO PHARMACEUTICALS, INC.

	
 
	
 

	
 
	
By: 
	
/s/ Keith Ehrlich

	
 
	
Name: 
	
Keith Ehrlich

	
 
	
Its: 
	
Chief Financial Officer

	
 
	
 
	
 

	
Accepted in Palo Alto, California:
	
LENDER:

	
 
	
 
	
 

	
 
	
HERCULES CAPITAL, INC. f/k/a HERCULES TECHNOLOGY GROWTH CAPITAL, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Jennifer Choe

	
 
	
Name:
	
Jennifer Choe

	
 
	
Its:
	
Assistant General Counsel

	
 
	
 
	
 

	
 
	
HERCULES TECHNOLOGY III, L.P.,

a Delaware limited partnership

	
 
	
 
	
 

	
 
	
By:
	
Hercules Technology SBIC

	
 
	
 
	
Management, LLC, its General Partner

	
 
	
 
	
 

	
 
	
By:
	
Hercules Capital, Inc., its Manager

	
 
	
 
	
 

	
 
	
By:
	
/s/ Jennifer Choe

	
 
	
Name:
	
Jennifer Choe

	
 
	
Its:
	
Assistant General Counsel

 

 

 

Schedule 1

EXHIBIT A

ADVANCE REQUEST

	
To: 
	
Lender:
	
 
	
Date:
	
__________, 20__

	
 
	
Hercules Capital, Inc. 
	
 
	
 
	
 

	
 
	
Hercules Technology III, L.P.
	
 
	
 
	
 

	
 
	
400 Hamilton Avenue, Suite 310
	
 
	
 
	
 

	
 
	
Palo Alto, CA 94301
	
 
	
 
	
 

	
 
	
Facsimile:  650-473-9194
	
 
	
 
	
 

	
 
	
Attn: Bryan Jadot
	
 
	
 
	
 

AVEO Pharmaceuticals, Inc. (“Borrower”) hereby requests from Hercules Capital, Inc., f/k/a Hercules Technology Growth Capital, Inc., and Hercules Technology III, L.P. (collectively, “Lender”) a 2016 Term Loan Advance in the amount of _____________________ Dollars ($________________) on ______________, _____ (the “Advance Date”) pursuant to the Loan and Security Agreement between Borrower and Lender (as amended, the “Agreement”). Capitalized words and other terms used but not otherwise defined herein are used with the same meanings as defined in the Agreement.

Please:

 

	
 
	
(a)
	
Issue a check payable to Borrower
	
 
	
 

	
 
	
 
	
or
	
 
	
 

	
 
	
(b)
	
Wire Funds to Borrower’s account
	
 
	
 

	
 
	
 
	
Bank:
	
 
	
 

	
 
	
 
	
Address:
	
 
	
 

	
 
	
 
	
ABA Number:
	
 
	
 

	
 
	
 
	
Account Number:
	
 
	
 

	
 
	
 
	
Account Name:
	
 
	
 

Borrower represents that the conditions precedent to the 2016 Term [A/B] Loan Advance set forth in the Agreement are satisfied and shall be satisfied upon the making of such 2016 Term [A/B] Loan Advance, including but not limited to:  (i) that the representations and warranties set forth in the Agreement are and shall be true and correct in all material respects on and as of the Advance Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date; (ii) that Borrower is in compliance in all material respects with all the terms and provisions set forth in each Loan Document on its part to be observed or performed; and (iii) that as of the Advance Date, no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default under the Loan Documents.  Borrower understands and acknowledges that Lender has the right to review the financial information supporting this representation and, based upon such review in its sole discretion, Lender may decline to fund the requested 2016 Term Loan Advance.

Borrower hereby represents that Borrower’s corporate status and locations have not changed since the date of the Agreement or, if the Attachment to this Advance Request is completed, are as set forth in the Attachment to this Advance Request.

Borrower agrees to notify Lender promptly before the funding of the 2016 Term [A/B] Loan Advance if any of the matters which have been represented above shall not be true and correct on the Advance Date, and if Lender has received no such notice before the Advance Date then the statements set forth above shall be deemed to have been made and shall be deemed to be true and correct as of the Advance Date.

 

 

 

	
Executed as of the date first written above.
	
 
	
 

	
 
	
BORROWER:

	
 
	
 
	
 

	
 
	
AVEO PHARMACEUTICALS, INC.

	
 
	
 
	
 

	
 
	
SIGNATURE:
	
 

	
 
	
TITLE:
	
 

	
 
	
PRINT NAME:
	
 

 

 

ATTACHMENT TO ADVANCE REQUEST

Dated: _______________________

Borrower hereby represents and warrants to Lender that Borrower’s current name and organizational status is as follows:

 

	
 
	
Name:
	
AVEO Pharmaceuticals, Inc.
	
 

	
 
	
Type of organization:
	
Corporation
	
 

	
 
	
State of organization:
	
Delaware 
	
 

	
 
	
Organization file number:
	
3444819
	
 

Borrower hereby represents and warrants to Lender that the street addresses, cities, states and postal codes of its current locations are as follows:

 

 

Schedule 2

EXHIBIT B-4

2016 Term [A/B] Loan Advance PROMISSORY NOTE

	
$[  ],000,000
	
Advance Date:  ___ __, 20[  ]

	
 
	
Maturity Date:  _____ ___, 20[ ]

FOR VALUE RECEIVED, AVEO Pharmaceuticals, Inc., a Delaware corporation, for itself and each of its Subsidiaries which executes and delivers a Joinder Agreement (the “Borrower”) hereby promises to pay to the order of Hercules Capital, Inc., f/k/a Hercules Technology Growth Capital, Inc., Hercules Technology III, L.P, or the holder of this Note (the “Lender”) at 400 Hamilton Avenue, Suite 310, Palo Alto, CA 94301 or such other place of payment as the holder of this 2016 Term Loan Advance Promissory Note (this “Promissory Note”) may specify from time to time in writing, in lawful money of the United States of America, the principal amount of [  ] Million Dollars ($[  ],000,000) or such other principal amount as Lender has advanced to Borrower, together with interest at a floating per annum rate equal to the 2016 Term Loan Interest Rate (as defined in the Loan Agreement (as defined below)).  

This Promissory Note is the Note referred to in, and is executed and delivered in connection with, that certain Loan and Security Agreement dated May 28, 2010, by and between Borrower and Lender (as the same may from time to time be amended, modified or supplemented in accordance with its terms, the “Loan Agreement”), and is entitled to the benefit and security of the Loan Agreement and the other Loan Documents (as defined in the Loan Agreement), to which reference is made for a statement of all of the terms and conditions thereof.  All payments shall be made in accordance with the Loan Agreement.  All terms defined in the Loan Agreement shall have the same definitions when used herein, unless otherwise defined herein.  An Event of Default under the Loan Agreement shall constitute a default under this Promissory Note.  

Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of protest under the UCC or any applicable law.   Borrower agrees to make all payments under this Promissory Note without setoff, recoupment or deduction and regardless of any counterclaim or defense.  This Promissory Note has been negotiated and delivered to Lender and is payable in the State of California.  This Promissory Note shall be governed by and construed and enforced in accordance with, the laws of the State of California, excluding any conflicts of law rules or principles that would cause the application of the laws of any other jurisdiction.

BORROWER FOR ITSELF AND
ON BEHALF OF ITS SUBSIDIARIES:

(if such subsidiary executes and delivers a Joinder Agreement)

 

	
 
	
AVEO PHARMACEUTICALS, INC.

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Title:
	
 

 

 

Schedule 3

EXHIBIT F

COMPLIANCE CERTIFICATE

Hercules Capital, Inc.
Hercules Technology III, L.P.

400 Hamilton Avenue, Suite 310
Palo Alto, CA 94301

Facsimile: 650-473-9194

Attn: Bryan Jadot

 

Reference is made to that certain Loan and Security Agreement dated May 28, 2010 and all ancillary documents entered into in connection with such Loan and Security Agreement all as may be amended from time to time, (hereinafter referred to collectively as the “Loan Agreement”) between Hercules Capital, Inc., f/k/a Hercules Technology Growth Capital, Inc., and Hercules Technology III, L.P. (collectively, the “Lender”) on the one hand, and AVEO Pharmaceuticals, Inc. (the “Company”) as Borrower, on the other hand. All capitalized terms not defined herein shall have the same meaning as defined in the Loan Agreement.

The undersigned is an officer of the Borrower, knowledgeable of all Borrower financial matters, and is authorized to provide certification of information regarding the Borrower; hereby certifies, in such capacity as set forth below, that as of the date hereof and in accordance with the terms and conditions of the Loan Agreement, the Borrower is in compliance in all material respects for the period ending ___________ of all covenants, conditions and terms and hereby reaffirms that all representations and warranties contained therein are true and correct on and as of the date of this Compliance Certificate with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, after giving effect in all cases to any standard(s) of materiality contained in the Loan Agreement as to such representations and warranties.  Attached are the required documents supporting the above certification.  The undersigned further certifies, in such capacity as set forth below, that these are prepared in accordance with GAAP (except for the absence of footnotes with respect to unaudited financial statement and subject to normal year-end adjustments) and are consistent from one period to the next except as explained below.

 

	
REPORTING REQUIREMENT
	
REQUIRED
	
CHECK IF ATTACHED

	
Interim Financial Statements 
	
Monthly within 30 days
	
_______

	
Interim Financial Statements 
	
Quarterly within 30 days
	
_______

	
Audited Financial Statements 
	
FYE within 90 days
	
_______

	
Intellectual Property on Exhibit D 
	
Quarterly within 30 days
	
_______

 

	
FINANCIAL COVENANT
	
REQUIRED
	
ACTUAL
	
COMPLIES (YES/NO)

	
Unrestricted Cash
	
$10,000,000
	
_______
	
_______

 

 

BANK ACCOUNTS

Has Borrower opened any new bank accounts 

(since the submission of the prior Compliance Certificate)?   (YES/NO)

If yes, please provide the following information below:

 

	
Name of Bank
	
Account Number
	
Purpose of Account

	
 
	
 
	
 

	
1.
	
 
	
 

	
 
	
 
	
 

	
2.
	
 
	
 

 

	
 
	
Very Truly Yours,

	
 
	
 

	
 
	
AVEO PHARMACEUTICALS, INC.

	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Its:
	
 

 

 

 

Schedule 4

SCHEDULE 1.1

COMMITMENTS

 

	
LENDER
	
2014 TERM COMMITMENT 

(2014 Term Loan Advances)

	
Hercules Capital, Inc.
	
$10,000,000

	
TOTAL COMMITMENTS
	
$10,000,000

 

	
LENDER
	
2016 TERM COMMITMENT 

(2016 Term Loan A Advance)

	
Hercules Capital, Inc.
	
$5,000,000

	
 
	
(2016 Term Loan B Advance)

	
Hercules Capital, Inc.
	
$5,000,000

	
 
	
 

	
TOTAL COMMITMENTS
	
$10,000,000

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