On December 28, 2017 AVEO Pharmaceuticals, Inc. entered into an amended and restated loan and security agreement with Hercules Funding III, LLC and Hercules Capital, Inc., as agent, amending and restating that certain Loan and Security Agreement dated as of May 28, 2010, by and among the company, the Agent, Hercules Technology III, L.P. and the several banks and financial institutions from time to time parties thereto, as amended to date. Pursuant to the loan agreement, the company refinanced its outstanding principal and interest of approximately $20.0 million under the Existing Loan Agreement and converted such obligations into a new term loan in the aggregate principal amount of $20.0 million on the closing date. The new term loan bears per annum interest at a floating rate equal to the greater of (i) 9.45% and (ii) an amount equal to 9.45% plus the prime rate of interest as reported in the Wall Street Journal minus 4.75%; provided that the per annum interest rate shall not exceed 15.0% unless a default has occurred. Pursuant to the loan agreement, interest payments on the New Term Loan are due beginning on the first business day of the month following the Closing Date. The company is not required to pay principal on the new term loan during the period from the closing date until February 1, 2019. The loan agreement also contains a second optional interest-only period through February 1, 2020, if specified additional conditions related to tivozanib development are met by June 28, 2019.