DATED FEBRUARY 14, 2019 BANK ACCOUNT PLEDGE AGREEMENT between AZURRX BIOPHARMA SAS as Pledgor and ADEC PRIVATE EQUITY INVESTMENTS, LLC as Beneficiary
Exhibit
10.4
DATED FEBRUARY 14, 2019
between
AZURRX BIOPHARMA SAS
as
Pledgor
and
ADEC PRIVATE EQUITY INVESTMENTS, LLC
as
Beneficiary
TABLE OF CONTENTS
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CLAUSE
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PAGE
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1
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Definitions and Interpretation
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2
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2
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The Pledge
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3
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3
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Representations and Warranties
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4
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4
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Undertakings
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4
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5
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Enforcement
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4
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6
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Duration
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5
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7
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Expenses
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5
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8
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Retention of Security
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5
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9
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Notices
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5
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10
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Assignments
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5
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11
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Miscellaneous
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5
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12
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Governing Law – Jurisdiction
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6
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Schedule 1
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Pledged Accounts
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8
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Schedule 2
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Form of Notice of Pledge to the Account Holder
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9
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Schedule 3
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Form of Blocking Notice
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12
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Schedule 4
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Form of Unblocking Notice
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15
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1
THIS BANK ACCOUNT PLEDGE AGREEMENT
(HEREINAFTER, TOGETHER WITH ITS SCHEDULES AND AS AMENDED FROM TIME
TO TIME, THE "PLEDGE
AGREEMENT") IS MADE ON FEBRUARY 14, 2019,
BETWEEN:
1.
AZURRX BIOPHARMA SAS, a French
société par actions
simplifiée, having its registered office located at
_________________________, France
and registered under number ___________ RCS ____________,
(the
"Pledgor"),
AND
2.
ADEC PRIVATE EQUITY INVESTMENTS LLC, a
company with its registered office at _____________, registered under
number ____________,
(together with its
successors, assignees and transferees, the "Beneficiary")
WHEREAS:
(A)
Pursuant to a Note
Purchase Agreement dated 14 February 2019 entered into between
AzurRx BioPharma, Inc., a Delaware Corporation (the "Company"), and the Beneficiary as
purchaser (the "Note Purchase
Agreement"), the Company sold and issued to the Beneficiary
the Note (as defined in the Note Purchase Agreement).
(C)
In order to further
ensure repayment of the Liabilities (as defined below), the Pledgor
has agreed among other things to grant a pledge over the Pledged
Accounts (as defined below) on the terms set out
below.
IT IS AGREED AS FOLLOWS:
1.1
In this Pledge
Agreement (including the recitals):
"Account Holder" means ______________.
"Note Agreement" means the documentation
relating to the Notes (as defined in the Note Purchase Agreement)
and set out in Exhibit A and Exhibit B of the Note Purchase
Agreement.
"Enforcement Event" means an Event of
Default under the Notes.
"Event of Default" has the meaning given
to this term in the Note Agreement.
"Liabilities" means, all payment,
repayment and redemption obligations at any time due, owing or
incurred by the Pledgor as guarantor to the Beneficiary under or in
respect of the Transaction Documents, plus, in each case, all sums
due as interests, compounded interest, late payment interest,
commissions, costs, indemnities, penalties, or incidental expenses,
in each case calculated pursuant to the Transaction
Documents.
"Party" means a party to the present
Pledge Agreement.
2
"Pledge" means the first ranking security
created or expressed to be created in favour of the Beneficiary
over the Pledged Balance as described in this Pledge
Agreement.
"Pledged Accounts" means the accounts
list in Schedule 1.
"Pledged Balance" means in accordance
with article 2360 of the French Code civil, the amounts, either
provisory or final and subject to any current operations, standing
to the credit of the Pledged Accounts (including any interest and
other accessories) as at the day of enforcement of the
Pledge.
"Pledge Period" means the period
beginning on the date hereof and ending on the date on which all of
the Liabilities have been irrevocably and unconditionally
discharged in full.
"Schedule" means a schedule to this
Pledge Agreement.
"Transaction Documents" has the meaning
given to this term in the Note Purchase Agreement.
1.2
In this Pledge
Agreement, unless a contrary indication appears, terms not defined
in clause 1.1 of this Agreement have the same meaning when used
herein that the one ascribed to them in the recitals or in the
relevant Transaction Documents.
2.1
In order to further
ensure the full and punctual performance and discharge of the
Liabilities owed by it, the Pledgor hereby pledges the Pledged
Balance to the benefit of the Beneficiary, who accepts it, in
accordance with article 2355 et seq. of the French Code civil and articles L.521-1
et seq. of the French
Code de
commerce.
2.2
The Parties
hereby agree that as from the date of this Pledge Agreement, the
Pledge shall be notified (by a notice substantially in the form set
out in Schedule 2 (Form of Notice
of Pledge to the Account Holder)) by the Beneficiary, to the
Account Holder, in accordance with articles 2362 and 2363 of the
French Code
civil.
2.3
The Pledgor shall
be free to use the amounts standing to the credit of the Pledged
Account as it sees fit until the Pledged Account has been blocked
in accordance with Paragraph 2.4 below and subject to the Pledged
Accounts never showing a debit balance.
2.4
At any time
after the occurrence of an Event of Default and the notification by
the Beneficiary to the Account Holder and the Pledgor of the
occurrence of the same by way of a notice substantially in the form
set out in Schedule 3 (Form of
Blocking Notice) to this Pledge Agreement (a "Blocking Notice"), the Bank Accounts
shall be blocked until a notice (substantially in the form set out
in Schedule 4 (Form of Unblocking
Notice) to this Agreement) is sent to the Pledgor and the
Account Holder confirming that the said Event of Default has been
remedied or has been waived in accordance with the Transaction
Documents or ceased to exist for any other reason (an "Unblocking Notice") provided that the
blocking of the Pledged Accounts shall not prohibit (i) debit
transfers from the Pledged Accounts necessary to carry out the
payment of the Liabilities, and (ii) any credit transfer to the
Pledged Accounts. Upon receipt of an Unblocking Notice, the
provisions of Paragraph 2.4
shall apply.
2.5
The Pledgor will do
its best efforts to procure that on the date hereof the Account
Holder delivers to the Beneficiary the notice referred to in
Paragraph 2.2 above duly
countersigned by it for acknowledgement of receipt.
(a)
it has the power
and authority to grant the Pledge;
(b)
all of the
authorisations and consents necessary to execute this Pledge
Agreement, to perform its obligations hereunder and to give these
warranties and representations, have been obtained and remain in
force;
(c)
it has full, valid
and legal title to the Pledged Accounts and the Pledged Balance
which are not the subject of any security, attachment, escrow or
encumbrance of any nature whatsoever, other than the
Pledge;
3
(d)
the Pledge creates
a first ranking pledge over the Pledged Balance, save for any
statutory liens and privileges (privilèges
xxxxxx);
(e)
it has no bank
accounts other than the Pledged Accounts (except for any New Bank
Account pledged from time to time to the benefit of the
Beneficiary).
3.2
The representations
and warranties made pursuant to Paragraph 3.1 above shall be deemed repeated,
until the end of the Pledge Period, on the dates on which the
representations and warranties are to be repeated under the
Transaction Documents.
The
Pledgor undertakes in favour of the Beneficiary and for the
duration of the Pledge Period:
(a)
to promptly inform
the Beneficiary of the opening of any new bank account (the
"New Bank Account") other
than the Pledged Accounts;
(c)
not to close the
Pledged Accounts without the prior written consent of the
Beneficiary, if further to such closure, the Pledgor does not hold
bank accounts which are subject to any pledge created pursuant to
the provisions of Paragraph (b)
above;
(d)
not to grant or
allow to subsist any pledge, security or any rights whatsoever over
the Pledged Accounts and/or the Pledged Balance other than in
favour of the Beneficiary or with its written consent;
(e)
at its own expense,
to promptly execute and deliver all further instruments and
documents, and take all further action, that the Beneficiary may
reasonably request, in order to perfect and protect any interest to
be granted or purported to be granted hereunder or to enable the
Beneficiary to exercise and enforce its rights under this Pledge
Agreement with respect to the Pledged Accounts and the Pledged
Balance; and
(f)
not to do anything
that could affect adversely the rights of the Beneficiary under the
Pledge (in particular the validity and enforceability of the
Pledge).
5.1
General
Upon
the occurrence of an Enforcement Event, the Beneficiary may
immediately and in its absolute discretion, exercise any right
under:
(a)
applicable law;
or
(b)
Clause 5.2
(Procedure for enforcement of
Pledged Balance) of this Agreement.
to
enforce all or any part of the Pledge in any manner they see
fit.
5.2
Procedure
for enforcement – Pledged Balance
(a)
Subject to Clause
5.1 (General), the
Beneficiary may in respect of the Pledged Balance, request the
transfer of ownership of the Pledged Balance, in accordance with
the article 2365 of the French Code civil.
4
(b)
In accordance with
the provision of article 2366 of the French Code civil, the excess of the sum of
the Pledged Balance as at the date of enforcement of the Pledge
over the then outstanding amount of the Liabilities shall be
returned to the Pledgor.
6.1
This Pledge
Agreement and the Pledge shall remain in full force and effect
throughout the Pledge Period.
6.2
At the end of the
Pledge Period, the Beneficiary shall, at the request, and costs
of the Pledgor, execute and deliver all instruments to allow the
release and the termination of the Pledge.
7.1
The
Beneficiary may, at its
absolute discretion, register this Pledge Agreement with the
relevant tax administration. In that respect, all powers are
granted to the holder of an original copy of such Pledge
Agreement.
7.2
All payments which
may be made by the Pledgor under this Pledge Agreement (including
damages for its breach) shall be made in the currency of account
and to such account, with such financial institution and in such
other manner as the Beneficiary may reasonably direct.
If the
Beneficiary reasonably considers that any amount paid or credited
to it under any Transaction Documents is capable of being avoided
or otherwise set aside in the context of insolvency proceedings or
any similar event relating to the Pledgor or any other person and
for any other reason, the Beneficiary shall be entitled not to
release the Pledge and shall incur no liability in this
respect.
Each
communication to be made under or in connection with this Pledge
Agreement shall be made in accordance with the applicable
provisions of the relevant Transaction Documents, as though the
same was set out herein mutatis
mutandis.
10.1
All rights and
prerogatives of the Beneficiary under this Pledge Agreement and the
Pledge shall benefit to their respective successors and assigns in
accordance with the provisions of the Transaction
Documents.
10.2
In the event that
an assignment by the Beneficiary of its rights and/or liabilities
and/or its status as a party under the Transaction Documents
occurred or was deemed to occur by way of novation, the Beneficiary
expressly reserves and maintains its rights and prerogatives under
this Pledge Agreement and the Pledge for the benefit of its
assigns, in accordance with the provisions of article 1334 of the
French Code civil and with
the consent of Pledgor.
11.1
This Agreement and
the Pledge created hereunder are in addition and without prejudice
to any other guarantees or security interests existing or to be
created or granted either by the Pledgor or any other person
pursuant to the terms of the Transaction Documents.
11.2
Where there is any
ambiguity or conflict between the rights conferred by law and those
conferred by or pursuant to any Transaction Documents, the terms of
that Transaction Documents shall prevail to the extent legally
possible.
11.3
No failure to
exercise, nor any delay in exercising, on the part of the
Beneficiary, any right or remedy under any Transaction Documents
shall operate as a waiver, nor shall any single or partial exercise
of any right or remedy prevent any further or other exercise or the
exercise of any other right or remedy. The rights and remedies
provided in the Transaction Documents are cumulative and not
exclusive of any rights or remedies provided by law.
11.4
Where any provision
of this Pledge Agreement shall be or become illegal, invalid or
unenforceable it is agreed that the other provisions of this
agreement shall remain legal valid and enforceable against the
Parties independently of the illegal, invalid or unenforceable
provision.
5
11.5
Subject to Clause 6
(Duration), the Pledge is a
continuing security and will extend to the ultimate balance of the
Liabilities, regardless of any intermediate payment or discharge in
whole or in part.
11.6
If any payment by
the Pledgor or any discharge given by the Beneficiary (whether in
respect of the obligations of any obligor under the Transaction
Documents or any pledged interests for those obligations or
otherwise) is avoided or reduced as a result of insolvency or any
similar event:
(a)
the liability of
the Pledgor and the Pledge shall continue as if the payment,
discharge, avoidance or reduction had not occurred;
and
(b)
the Beneficiary
shall be entitled to recover the value or amount of that pledged
interest or payment from the Pledgor, as if the payment, discharge,
avoidance or reduction had not occurred,
to the
fullest extent permitted by law.
12.1
This Pledge
Agreement, the Pledge and any non-contractual obligations arising
out of or in connection with them shall be governed by, and
construed in accordance with, French law.
12.2
The Parties
irrevocably submit to the jurisdiction of the Commercial Court of
Paris (Tribunal de commerce de
Paris) for the purpose of hearing and determining at first
instance any dispute arising out of this Pledge Agreement
(including a dispute relating to the existence, validity or
termination of this Pledge Agreement or any non-contractual
obligation arising out of or in connection with this Pledge
Agreement) and for the purpose of enforcement of the
Pledge.
Executed
in Paris, on February 14,
2019, in two (2) original copies.
6
SIGNATURE PAGE
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The Pledgor
AZURRX BIOPHARMA SAS
_____________________________Name:
Title:
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The Beneficiary
ADEC
PRIVATE EQUITY INVESTMENTS LLC
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___________________________Name:
E. Xxxxx Xxxx, Jr.Title: Chairman
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7
SCHEDULE
1 PLEDGED ACCOUNTS
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Name of
The Account Holder
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Address
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Account
number (IBAN)
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8
SCHEDULE
2 FORM OF NOTICE OF PLEDGE TO THE ACCOUNT HOLDER
A :
[***]
[***]
(le
"Teneur de
Compte")
Cc :
AZURRX
BIOPHARMA SAS
[***]
[***]
France
(le "Constituant")
De :
_______________________________
[***]
[***]
(le "Bénéficiaire")
Le
[date]
Messieurs,
Nous
faisons référence à la convention de nantissement de
solde de compte bancaire intitulée en langue anglaise «
Bank Account Pledge
Agreement » en date du __ ________ 2019 (ci-après,
la "Convention de
Nantissement") conclue entre le Constituant et le
Bénéficiaire aux termes duquel le Constituant a nanti en
faveur du Bénéficiaire le solde créditeur du compte
numéro [●]
ouvert dans les livres de votre établissement (les
"Comptes
Nantis").
Les
termes et expressions commençant par une majuscule et non
expressément xxxxxxx dans la présente lettre auront
la signification qui est donnée à leur équivalent en
anglais dans la Convention de Nantissement.
Conformément
à l'Article 2.2 de la
Convention de Nantissement et à l'article 2362 du Code civil,
nous vous notifions par la présente le Nantissement
(Pledge) portant sur le
Compte Nanti.
Le
Constituant pourra librement disposer des sommes figurant au
crédit des Comptes Nantis dans le respect des termes de la
Convention de Nantissement jusqu'à réception par vous
d'une Notification de Blocage (Blocking Notice) dans les conditions
prévues par l'Article 2.4
de la Convention de Nantissement.
Les
Comptes Nantis pourront être débloqués et le
Constituant pourra à nouveau librement utiliser les sommes
figurant au crédit du Compte Nanti dans le respect des termes
de la Convention de Nantissement à compter de la
réception par vous d'une Notification de Déblocage
(Unblocking Notice) dans
les conditions prévues par l'Article 2.4 de la Convention de
Nantissement.
Nous
vous prions de bien vouloir confirmer la réception de la
présente notification en nous retournant le second original
dûment signé par vos soins.
Nous
vous prions d’agréer, Messieurs, l’expression de
nos meilleurs sentiments,
9
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Le Bénéficiaire
[INSERT NAME OF BENEFICIARY]
_____________________________
Nom :
Titre :
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Pour
accusé de réception
Le Teneur de Compte
[●]
_____________________________
Nom :
Titre :
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10
ANNEXE - CONVENTION DE NANTISSEMENT
11
SCHEDULE
3 FORM OF BLOCKING NOTICE
A :
[***]
[***]
(le
"Teneur de
Compte")
Cc :
AZURRX
BIOPHARMA SAS
[***]
[***]
France
(le "Constituant")
De :
____________________________
[***]
[***]
(le "Bénéficiaire")
Le
[date]
Messieurs,
Nous
faisons référence à la convention de nantissement de
solde de compte bancaire intitulée en langue anglaise
« Bank Account Pledge
Agreement » en date du __ _____ 2019 (ci-après, la
"Convention de
Nantissement") conclue entre le Constituant et le
Bénéficiaire, aux termes de laquelle le Constituant a
nanti en faveur du Bénéficiaire le solde créditeur
des comptes numéros [●], [●], ouverts dans les
livres de votre établissement (les "Comptes Nantis").
Les
termes et expressions commençant par une majuscule et non
expressément xxxxxxx dans la présente lettre auront
la signification qui est donnée à leur équivalent en
anglais dans la Convention de Nantissement.
Conformément
à l'Article 2.4 de la
Convention de Nantissement, nous vous informons de la survenance
d'un Cas de Défaut (Event of
Default) au titre des Documents d’Opération
(Transaction Documents) et
en conséquence, nous vous demandons de bloquer les Comptes
Nantis, de sorte qu'aucune opération de débit n'y soit
plus inscrite, dès la réception des présentes et
jusqu'à réception d'une Notification de Déblocage
(Unblocking Notice) dans
les conditions prévues par l'Article 2.4 de la Convention de
Nantissement.
Il est
entendu que le blocage des Comptes Nantis n'interdit pas (i)
l'inscription à ce compte des opérations initiées
avant la date de réception par vous de cette instruction
écrite de blocage, (ii) l'inscription au débit de ce
compte des montants nécessaires au paiement des Obligations
Garanties (Secured
Liabilities) sur notification de notre part et (iii) toute
remise au crédit de ces Comptes Nantis.
Nous
vous prions d’agréer, Messieurs, l’expression xx
xxx xxxxxxxxx xxxxxxxxxx,
00
|
Xx Xxxxxxxxxxxx
_____________________________
_____________________________
Nom :
Titre :
|
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13
ANNEXE - CONVENTION DE NANTISSEMENT
14
SCHEDULE
4 FORM OF UNBLOCKING NOTICE
A :
[***]
[***]
(le
"Teneur de
Compte")
Cc :
AZURRX
BIOPHARMA SAS
[***]
[***]
France
(le "Constituant")
De :
___________________________________
[***]
[***]
(le "Bénéficiaire")
Le
[date]
Messieurs,
Nous
faisons référence à la convention de nantissement de
solde de compte bancaire intitulée en langue anglaise
« Bank Account Pledge
Agreement » en date du __ ______ 2019 (ci-après, la
"Convention de
Nantissement") conclue entre le Constituant et le
Bénéficiaire, aux termes de laquelle le Constituant a
nanti en faveur du Bénéficiaire le solde créditeur
des comptes numéros [●], ouverts dans les
livres de votre établissement (les "Comptes Nantis").
Les
termes et expressions commençant par une majuscule et non
expressément xxxxxxx dans la présente lettre auront
la signification qui est donnée à leur équivalent en
anglais dans la Convention de Nantissement.
Conformément
à l'Article 2.4 de la
Convention de Nantissement, nous vous informons [qu'il a
été remédié au] / [que nous avons renoncé
à nous prévaloir du] / [de la disparition du] Cas de
Défaut (Event of
Default) au titre duquel nous vous avons transmis le
[●] une Notification de Blocage (Blocking Notice).
En
conséquence nous vous autorisons à débloquer les
Comptes Nantis et à permettre au Constituant d'utiliser
librement les sommes figurant au crédit des Comptes Nantis
dans le respect des termes de la Convention de Nantissement et
jusqu'à réception par vous d'une nouvelle Notification de
Blocage (Blocking Notice)
dans les conditions prévues par l'Article 2.4 de la Convention de
Nantissement.
Nous
vous prions d’agréer, Messieurs, l’expression xx
xxx xxxxxxxxx xxxxxxxxxx,
00
|
Xx Xxxxxxxxxxxx
_________________________
_____________________________
Nom :
Titre :
|
|
00
XXXXXX - XXXXXXXXXX XX XXXXXXXXXXXX
00
