Document:

Waiver and Second Amendment to Credit Agreement

 Exhibit 10.1 
 WAIVER AND SECOND AMENDMENT TO CREDIT AGREEMENT 
 This WAIVER AND
SECOND AMENDMENT TO CREDIT AGREEMENT (“Agreement”), dated as of May 9, 2011, is entered into by and among GREAT AMERICAN GROUP ENERGY EQUIPMENT, LLC, a California limited liability company (“Borrower”), the
Lenders party hereto and GARRISON LOAN AGENCY SERVICES LLC, as Administrative Agent for the Lenders (“Administrative Agent”) and is made with reference to that certain CREDIT AGREEMENT, dated as of May 29, 2008 (as amended by
that certain Amendment to Credit Agreement dated as of December 18, 2009, the “Credit Agreement”) by and among the Borrower, the Lenders from time to time party thereto and the Administrative Agent. Unless otherwise stated,
capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement. 

RECITALS: 

WHEREAS, on September 26, 2009 the Maturity Date occurred and Borrower failed to repay the principal amount of all outstanding
Loans, due and unpaid interest and all other Obligations under the Credit Agreement and the other Loan Documents, notwithstanding that such Obligations have become due and payable in full, and such Obligations remain due and payable and unpaid (the
“Payment Defaults”); 
 WHEREAS, certain non-payment defaults specified on Schedule A hereto (the
“Non-Payment Defaults”) have occurred and are continuing under the Credit Agreement none of which has been cured or waived (together with the Payment Defaults, the “Waived Defaults”); 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders agree to waive the Waived Defaults on a permanent
basis, extend the Maturity Date of the Credit Agreement and amend certain terms and provisions set forth in the Credit Agreement in order to permit the Borrower to effectuate a sale of the Borrower’s assets; and 

WHEREAS, the Administrative Agent and the Lenders are willing to extend the Maturity Date and amend the Credit Agreement on the terms and
subject to the conditions specified herein. 
 NOW, THEREFORE, in consideration of the mutual agreements contained in the Credit
Agreement and the other Loan Documents and herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Confirmation of Obligations. The Borrower represents, warrants, acknowledges and agrees that as of the date hereof, the
aggregate principal balance plus interest of the outstanding Obligations under the Credit Agreement is not less than $[11,705,379]. The foregoing amount does not include any of the fees, costs, and expenses to which Administrative
Agent and Lenders are entitled under the Credit Agreement or other Loan Documents. All of the foregoing Obligations are outstanding, and the Borrower agrees and acknowledges that Borrower is solely liable for the Obligations and Borrower has no
right of offset, defense, or counterclaim with respect to any of the Obligations or Liens securing same, and any such offset, defense, or counterclaim is hereby waived. 

  
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 2. Representations, Warranties and Acknowledgments by Borrower. To induce the
Administrative Agent, Collateral Agent and Lenders to execute this Agreement, Borrower hereby acknowledges, stipulates, represents, warrants and agrees as follows (as of the date hereof): 

(a) After giving effect to this Agreement, no Defaults or Events of Default have occurred and are continuing as of the
date hereof. 
 (b) Borrower has the full power, authority and legal right to enter into this Agreement and all
documents, acknowledgments and instruments delivered in connection herewith, and this Agreement and such other documents, acknowledgments and instruments have been duly authorized by the board of directors or other governing body of the Borrower.

 (c) The Borrower has no claims against the Administrative Agent, Collateral Agent, Lenders or any Indemnitee
and confirms that the Lenders have no further commitment or other obligation under the Credit Agreement or the other Loan Documents. 
 (d) This Agreement, all documents, acknowledgments and instruments delivered in connection herewith, the Credit Agreement, and the other Loan Documents constitute the legal, valid and binding obligations
of the Borrower and are enforceable against the Borrower in accordance with their respective terms. 
 (e)
Neither the execution, delivery and performance of this Agreement and all documents, acknowledgments and instruments delivered in connection herewith nor the consummation of the transactions contemplated hereby or thereby does or shall contravene,
result in a breach of, or otherwise violate (i) any provision of the Borrower’s corporate charter or bylaws or other Organizational Documents or governing documents, and (ii) any law or regulation, any order or decree of any court or
government instrumentality, or any agreement or document by which such party is bound, except in the case of clause (ii) to the extent as such conflict, breach or violation could not reasonably be expected to result in a Material Adverse
Effect. 
 (f) The Liens of the Administrative Agent and each Lender in and on the Collateral are and continue to
be valid, binding, perfected and enforceable first priority Liens (other than as may be permitted in the Loan Documents) which secure the Obligations, and, to the best of Borrower’s knowledge, no tax or judgment liens are currently of record
against the Borrower or any of its Assets. The Obligations constitute the valid and enforceable obligations of the Borrower and the Borrower has no right of setoff, counterclaim or any other deduction on account of such Obligations. 

(g) Borrower, in an effort to repay the Obligations, has determined that it is in the best interests of the Borrower and
the Borrower’s creditors, to effectuate a sale of the Borrower’s assets, and that each such determination is, in the opinion of Borrower, commercially reasonable. 

  
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 3. Amendments to Credit Agreement. Upon the Effective Date (as defined below), the
Credit Agreement is hereby amended as follows: 
 (a) Section 1.01. Section 1.01 of the Credit
Agreement is hereby amended by: 
 (i) inserting the following new defined terms in their proper alphabetical
order: 
 “2009 and 2010 Auction, Operating and Tax Expenses” means expenses incurred by Borrower for which
Borrower is entitled to reimbursement pursuant to the terms hereof, including tax payments in the amount of $312,909.08 to Blaine and Kingfisher Counties, auction expenses incurred in 2009 of $163,025.15, 2009 and 2010 Operating Expenses of
$190,468.25 less 2010 cash collections of $194,645.46 for a net reimbursement of $471,757.02. 
 “2011 Operating
Expenses” has the meaning given such term in Section 5.01(l). 
 “2011 Operating Expenses
Forecast” means the 2011 Operating Expenses Forecast attached as Exhibit B to the Second Amendment. 
 “Asset
Sale” means a sale, sales or other dispositions of the Borrower’s assets. 
 “Extended Maturity
Period” means the period commencing on November 19, 2010 and ending on the Maturity Date. 
 “Forbearance
Agreement” means that certain Amendment to Credit Agreement dated as of December 18, 2009. 
 “Guarantor
Reimbursement List” means the Guarantor Reimbursement List attached as Exhibit C to the Second Amendment. 

“Second Amendment” means that certain Waiver and Second Amendment To Credit Agreement dated as of May 9, 2011, by
and among the Borrower, the Administrative Agent and the Lenders. 
 (ii) deleting the definition “Maturity
Date” appearing therein and inserting the following definitions in lieu thereof: 
 “Maturity Date” means
the earlier of (i) December 31, 2011 and (ii) the date on which any Event of Default (giving effect to any applicable grace period and not including the Waived Defaults) occurs. 

(iii) deleting the definition “Payment Date” appearing therein and inserting the following definitions in lieu
thereof: 

  
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 “Payment Date” means the 10th day of each calendar month after the Closing Date; provided,
however, with respect to $164,476.66 of the amount payable pursuant to Section 2.09(d)(i) hereof, “Payment Date” shall mean a date no later than the fifth business day after execution of the Second Amendment; provided,
however, further, with respect to other amounts amount payable pursuant to Section 2.09(d)(i) hereof and amounts payable pursuant to Sections 2.09(d)(ii) and (iii) hereof, “Payment Date” shall mean a date no later
than the tenth business day after receipt of funds in the Collection Account; provided, however, further, that to the extent that any 10th day is not a Business Day, then the “Payment Date” shall be the first Business Day thereafter. 

(b) Section 2.05. Section 2.05 of the Credit Agreement is hereby amended by adding the following clause
(c) as a new paragraph immediately succeeding clause (b) thereof: 
 (c) During the Extended Maturity
Period, the applicable interest rate shall be 0%. 
 (c) Section 2.09. Section 2.09 of the
Credit Agreement is hereby amended by adding the following clause (d) as a new paragraph immediately succeeding clause (c) thereof: 
 “(d) Notwithstanding the foregoing clauses (a), (b) or (c) of this Section 2.09, during the Extended Maturity Period, no later than the applicable Payment Date, the Administrative
Agent shall apply or distribute proceeds available in the Collection Account from any Asset Sale or other disposition, or other proceeds generated in connection with the Assets (“Available Proceeds Amount”) in the following order,
in each case to the extent of the Available Proceeds Amount: 
 (i) first, payment to Guarantor in an
amount not to exceed $471,757.25 in the aggregate, for reimbursement to Guarantor for its payment of remaining 2009 and 2010 Auction, Operating and Tax Expenses (collectively, the “Guarantor Reimbursement”); 

(ii) second, payment to “2011 Get Ready Expenses”, defined as any get ready expenses agreed to in
writing by Borrower and the Administrative Agent relative to future sales or leases of Collateral; 
 (iii)
third, to the extent the Aggregate Proceeds Amount exceed the Guarantor Reimbursement and the 2011 Get Ready Expenses, if any, up to $583,000 (such incremental amount being referred to as the “Tier 1 Proceeds”), in equal
payments to Administrative Agent for application to the Obligations and Guarantor to reimburse 2011 Operating Expenses; provided, however, Guarantor shall receive Tier 1 Proceeds solely to the

  
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extent such 2011 Operating Expenses actually have been incurred by Borrower and paid by Guarantor and, in no event, more than the amount of 2011 Operating Expenses projected in the 2011 Operating
Expenses Forecast to have been incurred through the date of such payment; 
 (iv) fourth, any Aggregate
Proceeds Amount greater than the Guarantor Reimbursement, 2011 Get Ready Expenses and Tier 1 Proceeds, up to $12,542,742 (such incremental amount being referred to as the “Tier 2 Proceeds”), for payment to (i) Administrative
Agent in an amount equal to 91% of such Tier 2 Proceeds for application to the Obligations and (ii) Guarantor in an amount equal to 9% of such Tier 2 Proceeds; 

(v) fifth, any Aggregate Proceeds Amount greater than the Guarantor Reimbursement, Get Ready Expenses, Tier 1
Proceeds, and Tier 2 Proceeds, up to $3,000,000 greater than the Tier 2 Proceeds (such incremental amount being referred to as the “Tier 3 Proceeds”), for payment to (i) Administrative Agent in an amount equal to 40% of such
Tier 3 Proceeds and (ii) Guarantor in an amount equal to 60% of such Tier 3 Proceeds; and 
 (vi)
sixth, any Aggregate Proceeds Amount greater than the Guarantor Reimbursement, Get Ready Expenses, Tier 1 Proceeds, and Tier 2 Proceeds, and Tier 3 Proceeds (such incremental amount being referred to as the “Tier 4
Proceeds”), for payment to (i) Administrative Agent in an amount equal to 20% of such Tier 4 Proceeds and (ii) Guarantor in an amount equal to 80% of such Tier 4 Proceeds.” 

For the purposes of clarity, the Agent has no obligation to disburse any of the foregoing amounts except to the extent of proceeds on
deposit in the Collection Account. 
 (d) Section 5.01. Section 5.01 of the Credit Agreement is
hereby amended by adding the following new clauses immediately succeeding clause (k) therein: 
 “(l)
Payment of Certain Costs. During the Extended Maturity Period, provided that the Administrative Agent has not defaulted on its payment obligations pursuant to Section 2.09(d) hereof, the Borrower shall cause Guarantor to provide funding
to Borrower in amounts necessary to cover ongoing operating costs of the Borrower up to the amounts set forth in the 2011 Operating Expenses Forecast (or such other amounts with the prior written consent of the Administrative Agent, Guarantor and
Borrower) (including, but not limited to, the payment of all premium payments in connection with all of Borrower’s insurance policies in order to maintain, or cause Borrower to maintain, all such insurance policies in effect and the
preservation and marketing of the Collateral); provided, that any such costs exceeding $15,000 shall require the prior written consent of 

  
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the Administrative Agent (the “2011 Operating Expenses”). Notwithstanding the foregoing, Guarantor shall have no obligation to fund 2011 Operating Expenses in excess of the
amounts set forth in the 2011 Operating Expenses Forecast and shall have no obligation to fund 2011 Operating Expenses in the event that the Administrative Agent fails to make a payment when due pursuant to Section 2.09(d) hereof. 

(m) Sale Process. The Borrower shall use its best efforts to consummate one or more Asset Sales with respect to all
of its assets and cause the proceeds from each such disposition to be remitted by buyers of such assets to the Collection Account or as otherwise directed by the Administrative Agent for application in accordance with the terms hereof. To the extent
received by Borrower, 100% of the proceeds from any Asset Sale shall be deemed to be held in trust for the Administrative Agent and Borrower shall immediately upon receipt thereof cause such proceeds to be deposited in the Collection Account.

 (n) Other. Promptly following any such request, Borrower shall provide all other available financial
and operational information of Borrower that is reasonably requested by the Administrative Agent. 
 (o)
General Cooperation from Borrower. Borrower shall, and shall cause its officers, other members of senior management and advisors to, cooperate fully with Administrative Agent, Collateral Agent and/or the Lenders and any of its or their
respective advisors in furnishing information as and when reasonably requested by any of them regarding the matters described in this Agreement, the Collateral or Borrower’s financial affairs, finances, financial condition, business and
operations. Borrower authorizes Administrative Agent, Collateral Agent and/or the Lenders and any of its or their respective advisors to meet and/or have discussions with any of their officers, other members of senior management and advisors from
time to time as reasonably requested by Administrative Agent, Collateral Agent and/or the Lenders or any of its or their respective advisors to discuss any matters regarding the matters described in this Agreement, the Collateral or Borrower’s
financial affairs, finances, financial condition, business and operations, and shall direct and authorize all such persons and entities to fully disclose to Administrative Agent, Collateral Agent, any of the Lenders and any of its or their
respective advisors all information reasonably requested by any of them regarding the foregoing.” 
 (e)
Section 7.01. Section 7.01 of the Credit Agreement is hereby amended by inserting the following clause (n) immediately following clause (m) appearing therein: 

“or (n) the Borrower shall incur costs and expenses in excess of the costs and expenses set forth on the 2011 Operating Expenses
Forecast without prior written consent of the Lender or Administrative Agent;”. 
 4. Waiver. Upon the Effective
Date, the Lenders hereby waive the Waived Defaults. 

  
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 5. Conditions Precedent. This Agreement shall be effective on the date when each of
the following conditions precedent shall have been satisfied (such date, the “Effective Date”): 

(a) The Administrative Agent shall have received (i) a counterpart signature page of this Agreement duly executed by
the Borrower and (ii) a counterpart signature page of this Agreement duly executed by the Lenders. 
 (b)
The Administrative Agent shall have received all fees and other amounts due and payable to the Administrative Agent on or prior to the date hereof, including to the extent invoiced, reimbursement or other payment of all out-of-pocket expenses
(including legal expenses) required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document. 
 (c) The Borrower shall have caused the Guarantor to acknowledge that during the Extended Maturity Period it agrees to provide funding to the Borrower as required by the terms of Section 5.01(l)
(after giving effect to this Agreement). 
 6. Limited Effect of Agreement. Except as expressly provided in this
Agreement, the Credit Agreement, the Forbearance Agreement and each other Loan Document shall continue to be, and shall remain, in full force and effect. This Agreement shall not be deemed or otherwise construed to be a commitment or any other
undertaking or expression of any willingness to engage in any further discussion with Borrower or any other person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or any other Loan Document, or any
rights or remedies arising in favor of the Administrative Agent and the Lenders under or with respect to any such documents. Any failure by the Borrower to comply with the terms hereof within the time period specified shall constitute an immediate
Event of Default under the Credit Agreement (with any purported grace periods or notice requirements hereby waived by the Borrower). 
 7. Guarantor Reimbursement Detail. Attached as Exhibit C hereto is the list of expenses for 2009 & 2010 which Guarantor has incurred and for which as of the Effective Date pursuant
to the terms hereof is entitled to reimbursement. 
 8. 2011 Operating Expenses Forecast. Attached as Exhibit B
hereto is the 12-month Operating Expenses forecast for the period from January 1, 2011 through December 31, 2011. 

9. Amendment. No term of this Agreement (or the exhibits and schedules attached hereto) may be waived, modified or amended except
in a writing signed by the Administrative Agent, the Lenders and the Borrower. 
 10. No Waiver. Except as expressly
provided to the contrary in this Agreement, all the terms, conditions and provisions of the Credit Agreement and other Loan Documents shall continue in full force and effect. 
 11. Release of Obligations. The Borrower hereby waives, releases, remises and forever discharges the Administrative Agent, Collateral Agent, Lenders and each other Indemnitee from any and all
actions, causes of action, suits or other claims of any kind or character, known or unknown, which Borrower ever had, now has or might hereafter have 

  
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against the Administrative Agent, any Lender or any other Indemnitee which relate, directly or indirectly, to any acts or omissions of the Administrative Agent, any Lender or any other Indemnitee
on or prior to the date hereof arising out of, in connection with, or otherwise relating to, the Loan Documents or any matter in connection therewith. 
 12. Ratification of Liability. Borrower, as debtor, grantor, pledgor, assignor, or in other similar capacities in which such parties grant liens or security interests in their properties or
otherwise act as accommodation parties, as the case may be, under the Loan Documents, hereby ratifies and reaffirms all of its payment and performance obligations and obligations to indemnify, contingent or otherwise, under each of such Loan
Documents to which such party is a party, and such party hereby ratifies and reaffirms its grant of liens on or security interests in its properties pursuant to such Loan Documents to which it is a party as security for the Obligations under or with
respect to the Credit Agreement and confirms and agrees that such liens and security interests hereafter secure all of the Obligations, including, without limitation, all additional Obligations hereafter arising or incurred pursuant to or in
connection with this Agreement, the Credit Agreement or any other Loan Document. Borrower further agrees and reaffirms that the Loan Documents to which it is a party now apply to all Obligations as defined in the Credit Agreement, as modified hereby
(including, without limitation, all additional Obligations hereafter arising or incurred pursuant to or in connection with this Agreement, the Credit Agreement or any other Loan Document). Such party (i) further acknowledges receipt of a copy
of this Agreement and all other agreements, documents, and instruments executed and/or delivered in connection herewith, (ii) consents to the terms and conditions of same, and (iii) agrees and acknowledges that each of the Loan Documents,
as modified hereby, remains in full force and effect and is hereby ratified and confirmed. Except as expressly provided herein, the execution of this Agreement shall not operate as a waiver of any right, power or remedy of any Lender, nor constitute
a waiver of any provision of any of the Loan Documents nor constitute a novation of any of the Obligations under the Credit Agreement or other Loan Documents. 
 13. WAIVER OF JURY TRIAL. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 14. Severability. Wherever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 15. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 16. Survival. All representations, warranties, covenants
and agreements made herein shall survive the execution, delivery and consummation of this Agreement. 

  
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 17. Section Headings. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other purposes. 
 18. Counterparts;
Electronic Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement. Delivery of an executed counterpart of this Agreement by electronic or facsimile transmission shall be as effective as delivery of a manually executed counterpart of this Agreement. 

19. Administrative Agent. The Lenders hereby authorize the Administrative Agent to execute this Agreement. 

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the date first above written. 
  

					
	GREAT AMERICAN GROUP ENERGY EQUIPMENT, LLC, as Borrower	 	
			
	By:	 	/s/ Harvey M. Yellen	 	 
	Name: Harvey M. Yellen	 	
	Title: Member	 	
		
	 GARRISON LOAN AGENCY SERVICES, LLC
 as Administrative Agent and Collateral Agent
	 	
			
	By:	 	/s/ Brian Chase	 	 
	Name: Brian Chase	 	
	Title: Chief Financial Officer	 	
		
	G FML I LLC	 	,
	as Lender	 	
			
	By:	 	/s/ Brian Chase	 	 
	Name: Brian Chase	 	
	Title: Chief Financial Officer	 	
			
	 	 	 	 	,
	as Lender	 	
			
	By:	 	 	 	 
	Name:	 	
	Title:	 	

 [Signature Page to Second Amendment to Credit Agreement] 

 Subject to the terms of the Credit Agreement as amended, provided that the Administrative
Agent has not defaulted in their payment pursuant to Section 2.09(d), the undersigned, as Guarantor, hereby acknowledges and agrees that, during the Extended Maturity Period, it shall provide funding to the Borrower as required by the terms of
Section 5.01(l) of the Credit Agreement (after giving effect to this Agreement), in an amount necessary to cover ongoing operating costs of the Borrower up to the amounts set forth in the 2011 Operating Expenses Forecast (or such other amounts
with the prior written consent of the Administrative Agent, Guarantor and Borrower) (including, but not limited to, the payment of all premium payments in connection with all of Borrower’s insurance policies in order to maintain, or cause
Borrower to maintain, all such insurance policies in effect and the preservation and marketing of the Collateral) 
  

			
	 GREAT AMERICAN GROUP, LLC, as
 Guarantor

		
	By:	 	/s/ Mark P. Naughton
	Name: Mark P. Naughton
	Title: Senior VP/ General Counsel

 [Signature Page to Second Amendment to Credit Agreement] 

 SCHEDULE A – NON PAYMENT DEFAULTS 

(i) the Defaults and Events of Defaults asserted by the Administrative Agent and expressly referred to in that certain letter dated as of
December 10, 2008 from the Administrative Agent to Borrower, 
 (ii) the Event of Default arising directly as a result of
the existence of the Tax Lien defined in the first amendment of the Credit Agreement and 
 (iii) the Event of Default arising
directly as a result of the non-payment of 2010 Kingfisher County Property Taxes currently due and payable, and which will be paid upon execution of this agreement.Pay-Off Letter Dated March 31, 2011

 Exhibit 10.42 

 

 

 March 31, 2011 
 Yuichi Iwaki, M.D., Ph.D. 
 President, CEO and Founder 

MediciNova, Inc./Avigen, Inc. 
 4350 La Jolla
Village Drive, Suite 950 
 San Diego, CA 92122 
 Dear Dr. Iwaki: 
 We refer to the Loan and Security Agreement dated as of May 10, 2010
(as the same may from time to time have been amended, restated, or otherwise modified, the “Loan Agreement”) among Oxford Finance Corporation (“Oxford”), as collateral agent (in such capacity, the “Collateral Agent”)
and as a Lender, the Lenders listed on Schedule 1.1 thereof or otherwise a party thereto (each a “Lender” and collectively, the “Lenders”), MediciNova, Inc. (“Borrower”) and Avigen, Inc. (“Guarantor”).
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement. 
 Borrower has advised Lender
that it intends to repay all amounts due and owing under the Loan Agreement and has requested that Lender provide Borrower with appropriate pay-off amounts for the principal, interest, other amounts and Obligations (as defined in the Loan Agreement)
owing by Borrower and Guarantor to Lender under the Loan Documents (as defined below). Lender has agreed that the Term Loan shall mature and become payable on April 1, 2011 and, provided that the Pay-Off Date occurs on April 1, 2011, an
Event of Default pursuant to Section 6.12 of the Loan Agreement shall not be deemed to have occurred as of March 31, 2011. The pay-off amounts due to Lender from Borrower as of April 1, 2011 (the “Computation Date”) under
the Loan Documents are as follows (collectively, together with any additional interest accruing after the Computation Date that must be repaid by Borrower, the “Pay-Off Amount”): 

 

					
	 Pay-Off Amount:
	  			
		
	 Secured Promissory Note dated 5/11/2010
	  			
		
	 Principal
	  	$	14,573,477.83	  
	 Interest (per diem $5,210.02)
	  	$	156,300.55	  
	 Deferred Interest Fee
	  	$	450,000.00	  
	 Legal Fees
	  	$	3,963.60	  
		  	 	 	 
	 Sub-Total Amount Owing
	  	$	15,183,741.98	  
		
	 Total Pay-Off Amount as of 4/1/11
	  	$	15,183,741.98	  
		  	 	 	 

 From and after the Computation Date and until the Pay-Off Date (as defined below), interest shall continue to accrue on the
unpaid principal amount at the rate set forth in the Loan Agreement. Borrower agrees that the Pay-Off Date (as defined below) shall not occur prior to April 1, 2011. Upon request of Borrower, Lender shall provide Borrower with a revised figure
for the amount of interest to be paid as a part of the Pay-Off Amount. The foregoing accrued interest amount assumes no change in the operative interest rates after the date hereof. The foregoing principal balance assumes no additional credit
extensions under the Loan Agreement. Borrower agrees to indemnify Lender for any and all checks or drafts returned to Lender by its banks as having been dishonored, for whatever reason. Promptly following receipt by Lender of any dishonored checks
or drafts, regarding the Borrower, Lender will forward copies of the same to Borrower, and Borrower will, within five (5) business days, make payment of the amount of said checks or drafts to Lender. 

 This letter agreement confirms that Borrower has waived the right to seek any such additional credit
extensions, and the Lender shall not be obligated to make, and the Lender shall not make, any further credit extensions or other financial accommodations under the Loan Agreement to or for the benefit of Borrower. The letter agreement confirms that
Lender has waived the right to seek a Prepayment Fee (as defined in the Loan Agreement) from Borrower or Guarantor in connection with the repayment of all amounts due and owing under the Loan Documents as of the Pay-Off Date. The outstanding
principal amount of the Obligations under the Share Pledge Agreement between Lender, Borrower and Medicinova Japan Inc. (“Medicinova Japan”) dated July 21, 2010 (the “Share Pledge Agreement”) shall be fixed at the Pay-Off
Amount as of March 31, 2011, pursuant to section 5.2 of the Share Pledge Agreement. In addition, the outstanding amount of secured obligations secured by the Charge Over Shares between Lender and Borrower dated June 9, 2010, concerning the
shares of Medicinova (Europe) Limited (the “Charge Over Shares”) shall be the Pay-Off Amount as of March 31, 2011. 
 The Pay-Off
Amount shall be wired to Lender as follows: 
  

			
	Bank name:	  	Bank of America
	Address:	  	Concord, CA
	ABA#:	  	026009593
	Acct#:	  	81881-07882
	Acct name:	  	Oxford Finance Corporation
	Reference:	  	Medicinova Payoff

 Effective immediately upon Lender’s
receipt of payment in full in cash of the Pay-Off Amount (the date of Lender’s receipt of the Pay-Off Amount being the “Pay-Off Date”), without further action on the part of the parties hereto (i) all indebtedness and obligations
of Borrower and Guarantor to the Lender, including but not limited to such indebtedness and obligations under the Loan Agreement and any other related loan and collateral security documents, (collectively, the “Loan Documents”) shall be
paid and discharged in full; provided, however that the same shall not include the Warrants, and the Warrants, before and after giving effect to the repayment in full of the Obligations, shall remain in full force and effect in accordance
with its terms; (ii) all unfunded commitments of Lender to make credit extensions or financial accommodations to Borrower under the Loan Agreement and the Loan Documents shall be terminated; (iii) all security interests and other liens of
every type at any time granted to or held by Lender as security for such indebtedness including but not limited to the pledge over the Collateral defined in the Share Pledge Agreement, shall be terminated, and (iv) all other obligations of
Borrower and Guarantor under the Loan Documents shall be deemed terminated; provided, however, those that are expressly specified in any Loan Document as surviving that respective agreement’s termination, including without limitation,
Borrower’s and Guarantor’s indemnity obligations set forth in the Loan Documents; and provided, further, that to the extent that any payments or proceeds (or any portion thereof) received by Lender shall be subsequently invalidated,
declared to be fraudulent or a fraudulent conveyance or preferential, set aside or required to be repaid to a trustee, receiver, debtor-in-possession or any other party under any bankruptcy law, state or federal law, common law or equitable cause,
then to the extent that the payment or proceeds is rescinded or must otherwise be restored by Lender, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, the Obligations or part thereof which were intended to be
satisfied shall be revived and continue to be in full force and effect, as if the payment or proceeds had never been received by Lender, and this letter shall in no way impair the claims of Lender with respect to the revived Obligations.
Notwithstanding the foregoing, should Lender receive payment of the Pay-Off Amount in the form of a check made payable to Lender, the Pay-Off Date shall be the date that is ten (10) Business Days following Lender’s receipt of such check.

 Within 5 business days of the Pay-Off Date, Lender (i) shall (1) file a UCC-3 Termination Statement to terminate the UCC Financing
Statement in Lender’s favor with respect to Borrower and any of Borrower’s property or assets and any third party and any of its property or assets that guarantied the Obligations or provided collateral security therefore and
(2) complete, execute and file other discharges, releases or any other necessary documents relating to any security interest granted to Lender in any jurisdiction with respect to Borrower and any of Borrower’s property or assets and any
third party and any of its property or assets that guarantied the Obligations or provided collateral security therefore; and (ii) shall deliver notices to terminate any deposit or 

 
securities account control agreements relating to any assets in which Borrower or any other party has pledged a security interest to Lender to secure the obligations arising under the Loan
Documents. In addition, Lender shall provide Borrower with commercially reasonable assistance to remove the registration of the Pledge established under the Share Pledge Agreement from the shareholders’ registry of Medicinova Japan and take any
necessary action to release its security interest over shares of Medicinova (Europe) Limited under the Charge Over Shares. All such agreements, documents, and instruments which are requested by Borrower and Guarantor to be delivered or filed by
Lender, and any assistance provided by Lender with respect to termination of the Share Pledge Agreement and the Charge Over Shares, on or after the Pay-Off Date shall be prepared at no cost or expense to Lender; provided, that any costs or
expenses incurred by Lender with respect to such items (including all reasonable attorneys’ fees) shall be reimbursed promptly by Borrower and Guarantor on demand. 
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 This letter agreement shall be governed by the laws of the State of New York and shall become effective only
when signed by the Lender and accepted by Borrower and Guarantor by their due execution in the space provided below. 
  

			
	Very truly yours,
	
	OXFORD FINANCE CORPORATION
		
	By:	 	
 

	Name:	 	 John G. Henderson

	Title:	 	 Vice President & General Counsel

	
	Acknowledged by:
	
	MEDICINOVA, INC.
		
	By:	 	
 

	Name:	 	 Michael D. Coffee

	Title:	 	 Chief Business Officer

		 	Interior Chief Financial Officer
	
	AVIGEN, INC.
		
	By:	 	
 

	Name:	 	 Michael D. Coffee

	Title:	 	 Chief Business Officer

		 	Interior Chief Financial Officer

[Signature Page to Payoff Letter]

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