On December 29, 2017, Zafgen, Inc., as borrower, and Silicon Valley Bank (the Bank), as lender, entered into a Loan and Security Agreement providing for a term loan with a principal amount of $20,000,000. The maturity date for the Term Loan is December 1, 2021. The interest rate for the Term Loan is a floating per annum rate equal to 1.25% above the Wall Street Journal Prime Rate. The Loan Agreement requires the company to make monthly interest only payments through March 29, 2019. Thereafter, the Term Loan shall be repaid in thirty three equal monthly installments of principal plus accrued interest. The company’s final payment on the Term Loan, due on the maturity date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan, plus a final payment equal to the original aggregate principal amount of the Term Loan multiplied by 8%. Once repaid, amounts borrowed under the Term Loan may not be reborrowed. The company may prepay the Term Loan, subject to paying the prepayment fee and the final payment. The Prepayment Fee is equal to 2% of the principal amount of the Term Loan prepaid if the prepayment occurs on or prior to the one year anniversary of the effective date for the Term Loan, 1% of the principal amount of the Term Loan prepaid if the prepayment occurs after such one year anniversary through and including the two year anniversary of the effective date for the Term Loan, and 0.5% of the principal amount of the Term Loan prepaid if the prepayment occurs after the two year but prior to the three year anniversary of the effective date for the Term Loan, and 0% thereafter.