Document:

Exhibit 10.1

 

LOAN AND SECURITY MODIFICATION AGREEMENT

 

This Loan and Security Modification Agreement (this “Amendment”), is entered into as of December 31, 2018, by and among (i) CAREKINESIS, INC., a Delaware corporation (“CareKinesis”), TABULA RASA HEALTHCARE, INC., a Delaware corporation (“Parent”), CAREVENTIONS, INC., a Delaware corporation (“Careventions”), CAPSTONE PERFORMANCE SYSTEMS, LLC, a Delaware limited liability company (“Capstone”), J. A. ROBERTSON, INC., a California corporation (“Robertson”), MEDLIANCE LLC, an Arizona limited liability company (“Medliance”), CK SOLUTIONS, LLC, a Delaware limited liability company (“CK Solutions”), TRSHC HOLDINGS, LLC, a Delaware limited liability company (“TRSHC”), SINFONIARX, INC., an Arizona corporation (“SinfoniaRX”), TRHC MEC HOLDINGS, LLC, a Delaware limited liability company (“TRHC”), MEDITURE LLC, a Minnesota limited liability company (“Mediture”), ECLUSIVE L.L.C., a Minnesota limited liability company (“eClusive”), and COGNIFY, LLC, a Delaware limited liability company (“Cognify”; Parent, CareKinesis, Careventions, Capstone, Robertson, Medliance, CK Solutions, TRSHC, SinfoniaRX, TRHC, Mediture, and eClusive are each referred to herein as a “Borrower”, and collectively, as the “Borrowers”), (ii) the several banks and other financial institutions or entities party hereto (each a “Lender” and, collectively, the “Lenders”), and (iii) WESTERN ALLIANCE BANK, an Arizona corporation (“Bank”), as a Lender and as administrative agent and collateral agent for the Lenders (in such capacities, the “Administrative Agent”).

 

1.                                      DESCRIPTION OF EXISTING INDEBTEDNESS:  Among other indebtedness which may be owing by the Borrowers to Bank, the Borrowers are indebted to Bank pursuant to, among other documents, an Amended and Restated Loan and Security Agreement, dated September 6, 2017 by and among the Borrowers, the Lenders and the Administrative Agent, as may be amended from time to time (the “Loan and Security Agreement”).  Capitalized terms used without definition herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

The Loan and Security Agreement and any and all other documents executed by the Borrowers in favor of the Lenders and/or the Administrative Agent shall be hereinafter referred to as the “Existing Documents.”

 

2.                                      DESCRIPTION OF CHANGE IN TERMS.

 

A.                                    Modification(s) to Loan and Security Agreement:

 

1)                                     The following defined terms in Section 1.1 of the Loan and Security Agreement are hereby amended and restated in their entirety as follows:

 

“‘EBITDA’ means, for any period, the sum of (a) net income (or net loss) attributable to the Borrowers, but excluding net income (or net loss) attributable to non-controlling interests (calculated before extraordinary items) during such period, plus (b) the result of the following, in each case (unless otherwise indicated) to the extent included in determining such net income (or net loss):  (i) interest expense (including that portion attributable to capital leases in accordance with GAAP and capitalized interest) during such period; plus (ii) income taxes accruing, paid or payable during such period; plus (iii) depreciation and amortization expense; plus (iv) non-cash stock-compensation based expenses; plus (v) change in the fair value related to Permitted Acquisition related consideration expenses; plus (vi) without duplication, EBITDA attributable to entities and/or assets acquired pursuant to the Sinfonia Acquisition, the Peak PACE Acquisition, the Mediture Acquisition, the Cognify Acquisition, and the DoseMe Acquisition, for such period, to the extent not already included in such calculation.”

 

“‘Permitted Acquisition’ means (i) any Acquisition approved in writing by the Administrative Agent in its sole discretion (including the Sinfonia Acquisition, the Peak PACE Acquisition, the Mediture Acquisition, the Cognify Acquisition, and the DoseMe Acquisition), or (ii) any Acquisitions in an aggregate amount not to exceed $15,000,000 in any fiscal year; provided, in each case, that (a) no default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition, (b) the Target is in the same, similar or complimentary line of business as any of the Borrowers, (c) EBITDA of the Target is greater than $0 as of the date of the most recent financial statements for the fiscal quarter ending immediately prior to the Acquisition delivered by the Target, (d) the proposed Acquisition is consensual, (e) no Indebtedness will be incurred, assumed or would exist with respect to Parent and its Subsidiaries (including the Target) as a result of such Acquisition, other than Permitted Indebtedness, and no Liens will be incurred, assumed, or would exist with respect to the assets of Parent and its Subsidiaries (including the Target) as a result of such Acquisition other than Permitted Liens, (f) the Borrowers will

 

 

be in compliance with the financial covenants in Section 6.10 on a pro forma basis, (g) the Administrative Agent shall have received (i) at least 30 days prior to the consummation of the intended Acquisition, a description of the proposed Acquisition, (ii) at least 20 days prior to the consummation of the intended Acquisition Agreement, pro forma consolidated projections with respect to the proposed Acquisition, historical financial information for the Target, due diligence materials prepared for any Borrower, a quality of earnings report (if obtained) and drafts of the acquisition agreement (together with all exhibits and schedules thereto and, to the extent required in the acquisition agreement, all required regulatory and third party approvals) and (iii) on or prior to the date the Acquisition is consummated, a certificate of a Responsible Officer of the Borrowers with reasonably detailed calculations of item (f) and attaching the executed acquisition agreement, (h) the Target is not organized or domiciled in any jurisdiction outside of the United States and (i) all actions required of the Target and the Borrowers by Section 6.12 shall be completed substantially concurrently with the consummation of the Acquisition.”

 

“‘Obligations’ means all debt, principal, interest, Success Fee, Administrative Agent Expenses and other amounts owed to Administrative Agent and the Lenders by Borrowers pursuant to this Agreement or any other Loan Document, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing from Borrowers to others that Administrative Agent or any Lender may have obtained by assignment or otherwise.”

 

“‘Prime Rate’ means the greater of five and one half percent (5.5%) or the Prime Rate published in the Money Rates section of the Western Edition of The Wall Street Journal, or such other rate of interest publicly announced from time to time by Administrative Agent as its Prime Rate.

 

“‘Revolving Line’ means a credit extension of up to Sixty Million Dollars ($60,000,000).”

 

2)                                     The following defined terms are hereby added to Section 1.1 of the Loan and Security Agreement in alphabetical order therein:

 

“DoseMe Acquisition” means the Acquisition by DM Acquisition Pty Ltd (a subsidiary of TRHC DM Holdings, LLC) of all of the issued and outstanding stock of DoseMe Holdings Pty Ltd pursuant to the DoseMe Purchase Agreement.

 

“DoseMe Purchase Agreement” means that certain Share Purchase Deed dated as of November 30, 2018 by and among Parent, DM Acquisition Pty Ltd, DoseMe Holdings Pty Ltd, the Sellers (as defined therein), and Charles Cornish, as Seller Representative.

 

3)                                     The last sentence in Section 2.1(a)(i) of the Loan and Security Agreement is hereby amendedand restated in its entirety as follows:

 

“Borrowers may prepay any Advances without penalty or premium (other than the Success Fee).”

 

4)                                     Section 2.1(d) of the Loan and Security Agreement is hereby amended and restated in its entirety as follows:

 

“(d)                           [Reserved].”

 

5)                                     Sections 2.1(h) and (i) of the Loan and Security Agreement is hereby amended and restated in its entirety as follows:

 

“(h)                           Reserved.”

 

“(h)                           Reserved.”

 

6)                                     Section 2.5(a) of the Loan and Security Agreement is hereby amended and restated in its entirety as follows:

 

 

“(c)                            Facility Fees.  On each of the Closing Date and on each anniversary of the Closing Date, a fee payable to each Lender with respect to the Revolving Facility equal to 0.25% of the amount of such Lender’s Revolving Commitment under such Revolving Facility; and”

 

7)                                     Section 2.5 of the Loan and Security Agreement is hereby amended by adding the following clause (c) in its entirety immediately following clause (b) contained therein:

 

“(c)                            Success Fee.  A fully earned, non-refundable success fee equal to $200,000.00 (the “Success Fee”), which Success Fee shall be fully earned, due and payable upon the earliest to occur of the following: (i) the Revolving Maturity Date, (ii) the acceleration of the Revolving Line, and (iii) the prepayment of the Revolving Line and termination of Bank’s commitments under the Revolving Line pursuant to Section 2.6.”

 

8)                                     Section 6.10(a) of the Loan and Security Agreement is hereby amended and restated in its entirety as follows:

 

“(a)                           Minimum Liquidity.  The amount of Borrowers’ unrestricted cash balances in its accounts at Bank plus amounts available for draw under the Revolving Facility shall be at least $1,500,000 at all times thereafter.”

 

9)                                     Notwithstanding the provisions of Section 6.12 of the Loan and Security Agreement, TRHC DM Holdings, LLC shall provide the Administrative Agent with duly executed joinder to the Loan and Security Agreement and Guaranty and Indemnity Agreement, Security Deed Over Shares and General Security Deed and all other security documents required by Administrative Agent in connection therewith as soon as reasonably practicable following Administrative Agent’s written request.

 

3.                                      CONSISTENT CHANGES.  The Existing Documents are each hereby amended wherever necessary to reflect the changes described above.

 

4.                                      PAYMENT OF ADDITIONAL FACILITY FEE.  Borrower shall pay Bank a fee in the amount of $50,000.00 (“Additional Facility Fee”) in connection with the increase of the Revolving Line, plus all reasonable out-of-pocket expenses.

 

5.                                      NO DEFENSES OF THE BORROWERS/GENERAL RELEASE.  Each Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts under the Existing Documents.  Each Borrower (each, a “Releasing Party”) acknowledges that the Lenders and the Administrative Agent would not enter into this Amendment without Releasing Party’s assurance that it has no claims against the Lenders and the Administrative Agent or any of the Lenders’ and the Administrative Agent’s officers, directors, employees or agents.  Except for the obligations arising hereafter under this Amendment, each Releasing Party releases the Lenders and the Administrative Agent, and each of the Lenders’ and the Administrative Agent’s officers, directors and employees from any known or unknown claims that Releasing Party now has against any Lender and/or the Administrative Agent of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the Loan and Security Agreement or the transactions contemplated thereby.  Each Releasing Party waives the provisions of California Civil Code section 1542, which states:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders, agents, employees, assigns and successors in interest.  The provisions, waivers and releases of this section shall inure to the benefit of the Lenders and the Administrative Agent and their respective agents, employees,

 

 

officers, directors, assigns and successors in interest.  The provisions of this section shall survive payment in full of the Obligations, full performance of all the terms of this Amendment and the Loan and Security Agreement, and/or any Lender’s and/or the Administrative Agent’s actions to exercise any remedy available under the Loan and Security Agreement or otherwise.

 

6.                                      CONTINUING VALIDITY.  Each Borrower understands and agrees that in modifying the Existing Documents, the Lenders and the Administrative Agent are relying upon such Borrower’s representations, warranties, and agreements, as set forth in the Existing Documents.  Except as expressly modified pursuant to this Amendment, the terms of the Existing Documents remain unchanged and in full force and effect.  The Lenders’ and the Administrative Agent’s agreement to modifications to the Existing Documents pursuant to this Amendment in no way shall obligate any Lender and/or the Administrative Agent to make any future modifications to the Existing Documents.  Nothing in this Amendment shall constitute a satisfaction of the Obligations.  It is the intention of the Lenders, the Administrative Agent and the Borrowers to retain as liable parties all makers and endorsers of Existing Documents, unless the party is expressly released by the Lenders and the Administrative Agent in writing.  No maker, endorser, or guarantor will be released by virtue of this Amendment.  The terms of this paragraph apply not only to this Amendment, but also to any subsequent loan and security modification agreements.

 

7.                                      CONDITIONS.  The effectiveness of this Loan and Security Modification Agreement is conditioned upon payment of the Additional Facility Fee.

 

8.                                      NOTICE OF FINAL AGREEMENT.  BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:  (A) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (C) THIS WRITTEN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

9.                                      COUNTERSIGNATURE.  This Amendment shall become effective only when executed by the Lenders, the Administrative Agent and the Borrowers.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    
	
 
    	
TABULA   RASA HEALTHCARE, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
CAREKINESIS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
CAREVENTIONS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
CAPSTONE   PERFORMANCE SYSTEMS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
J.   A. ROBERTSON, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
MEDLIANCE   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

 

	
 
    	
CK   SOLUTIONS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
TRSHC   HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
SINFONIARX, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
TRHC   MEC HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
MEDITURE   LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
ECLUSIVE   L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
COGNIFY,   L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian W. Adams
    
	
 
    	
Name:
    	
Brian   W. Adams
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

 

	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    
	
 
    	
WESTERN   ALLIANCE BANK, an   Arizona corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian McCabe
    
	
 
    	
Title:
    	
Vice   President
    

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above written.

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
WESTERN   ALLIANCE BANK, an   Arizona corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brian McCabe
    
	
 
    	
Title:
    	
Vice   PresidentEX-4.4

 Exhibit 4.4 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 WARRANT TO PURCHASE COMMON STOCK OF 

STATE BANK FINANCIAL CORPORATION 

This warrant agreement (the “Warrant”), effective as of [•] (the “Effective Date”),
certifies that [•] or his assigns (each individually, the “Holder”), for value received, is entitled to purchase from STATE BANK FINANCIAL CORPORATION, a Georgia corporation (the
“Company”), fully-paid and nonassessable Common Shares of the Company (the “Common Shares”) on the terms and subject to the conditions set forth herein. 

1. GENERAL. 
 1.1
Purchase of Warrant. This Warrant is issued in connection with that certain Subscription Agreement dated [•], entered into between the Holder and the Company. 

1.2 Type of Shares Subject to Warrant. This Warrant shall be exercisable for Common Shares, as adjusted pursuant to the other provisions
of this Warrant. 
 1.3 Per Share Exercise Price of Warrant. The per share exercise price of this Warrant shall be $11.21, subject to
adjustment pursuant to the other provisions of this Warrant (the “Purchase Price”). 
 1.4 Number of Shares
Subject to Warrant. The number of Common Shares issuable upon full exercise of this Warrant shall initially be [•], subject to adjustment pursuant to the other provisions of this warrant. 

1.5 Term. This Warrant may be exercised at any time or from time to time until 5:00 p.m. Eastern Time on the tenth anniversary of the
Effective Date (the “Expiration Date”). 
 2. EXERCISE; ISSUANCE OF
CERTIFICATES; PAYMENT FOR COMMON SHARES. 
 2.1 General.
This Warrant shall be exercised by surrender to the Company at its principal office (or at such other location as the Company may advise the Holder in writing) of this Warrant properly endorsed with the Form of Subscription/Exercise attached
hereto as Exhibit A duly filled in and signed and, if applicable, upon payment in cash or by check of the aggregate Purchase Price for the number of Common Shares for which this Warrant is being exercised determined in accordance with
the provisions hereof (or by payment as provided in Section 2.2 below). The Common Shares purchased under this Warrant shall be and are deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on
the date on which this Warrant shall have been surrendered, properly endorsed, the completed, executed Form of Subscription delivered and payment made for such Common Shares. In case of a purchase of fewer than all the Common Shares that may be
purchased under this 

 
Warrant, the Company shall execute and deliver a new Warrant or Warrants of like tenor for the balance of the Common Shares purchasable under the Warrant surrendered upon such purchase to the
Holder within a reasonable time and in any event within 10 days after the rights represented by this Warrant have been so exercised. 

2.2 Net Issue Exercise. Notwithstanding any provisions herein to the contrary, if the fair market value of one Common Share is greater
than the Purchase Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect to receive Common Shares equal to the value (as determined below) of this Warrant (or the portion thereof
being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Form of Subscription and notice of such election in which event the Company shall issue to the Holder a number of Common Shares
computed using the following formula: 
 X = Y (A-B) 

A 
  

					
		 	Where	  	X = the number of Common Shares to be issued to the Holder
			
		 		  	Y = the number of Common Shares purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)
			
		 		  	A = the fair market value of one Common Share (at the date of such calculation)
			
		 		  	B = Purchase Price (as adjusted to the date of such calculation)

 For purposes of the above calculation, fair market value of one Common Share shall be determined by the Company’s Board
of Directors in good faith; provided, however, that if (a) this Warrant is exercised pursuant to this Section 2.2 in connection with the Company’s initial public offering of its Common Stock, the fair market value per share shall be
the per share offering price to the public of the Company’s initial public offering; and (b) this Warrant is exercised after the Company’s initial public offering of its Common Shares, the fair market value per share shall be the
average closing price of the Company’s Common Shares over the five trading days immediately preceding the time of exercise. 
 2.3
Restrictive Legend. Each certificate for Common Shares issued upon exercise of this Warrant shall be endorsed with a legend, in addition to any other legends required by this Warrant or any other agreement to which the Common Shares are subject,
substantially as follows: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A REPURCHASE AGREEMENT AND TO THE RESTRICTIONS
CONTAINED THEREIN, INCLUDING RESTRICTIONS UPON TRANSFER. A COPY OF THE AGREEMENT WILL BE FURNISHED TO ANY INTERESTED PARTY UPON WRITTEN REQUEST, WITHOUT CHARGE. 

  
 2 

 3. SHARES TO BE FULLY PAID;
ISSUANCE OF COMMON SHARES. 
 3.1 Shares to be Fully Paid. The
Company covenants and agrees that all Common Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be duly authorized, validly issued, fully paid and nonassessable and free from all preemptive
rights of any shareholder and free of all taxes, liens and charges with respect to the issue thereof. 
 3.2 Issuance of Common
Shares. Upon receipt of the items required in Section 2, and subject to the terms hereof, the Company shall cause to be delivered to the Holder one or more stock certificates for the number of shares specified in the Form of
Subscription/Exercise attached hereto as Exhibit A, such share or shares to be registered under the name of the Holder. Notwithstanding the foregoing, the Company shall not be required to issue or deliver any certificate for Common Shares
purchased upon exercise of this Warrant or any portion thereof prior to the fulfillment of the following conditions: 
 (a) the
admission of such shares for listing on all stock exchanges on which the Common Shares are listed; 
 (b) the completion of any
registration or other qualification of such Common Shares which the Company shall deem necessary or advisable under any federal or state law or under the rulings or regulations of the Securities and Exchange Commission or any other governmental
regulatory body; 
 (c) the obtaining of any approval or other clearance from any federal or state governmental agency or body, which
the Company shall determine to be necessary or advisable; or 
 (d) the lapse of such reasonable period of time following the exercise
of this Warrant as the Company from time to time may establish for reasons of administrative convenience. 
 4. ADJUSTMENT
OF PURCHASE PRICE AND NUMBER OF COMMON SHARES. 

The Purchase Price and the number of Common Shares purchasable upon the exercise of this Warrant shall be subject to adjustment from time to
time upon the occurrence of certain events described in this Section 4. Upon each adjustment of the Purchase Price, the Holder shall thereafter be entitled to purchase, at the Purchase Price resulting from such adjustment, the number of Common
Shares obtained by multiplying the Purchase Price in effect immediately prior to such adjustment by the number of Common Shares purchasable pursuant hereto immediately prior to such adjustment, and dividing the product thereof by the Purchase Price
resulting from such adjustment. 
 4.1 Subdivision or Combination of Common Shares. In case the Company shall at any time subdivide
its outstanding Common Shares into a greater number of shares, the Purchase Price in effect immediately prior to such subdivision shall be proportionately reduced, and conversely, in case the outstanding Common Shares shall be combined into a
smaller number of shares, the Purchase Price in effect immediately prior to such combination shall be proportionately increased. 

  
 3 

 4.2 Dividends in Common Shares, Other Shares, Property, Reclassification. If at any
time or from time to time the holders of the class and series of shares for which this Warrant is then exercisable (or any other securities at the time receivable upon the exercise of this Warrant), shall have received or become entitled to receive,
without payment therefor, 
 (a) Common Shares or any other securities that are at any time directly or indirectly convertible into or
exchangeable for Common Shares of the Company, or any rights or options to subscribe for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution, 

(b) any cash paid or payable (other than as a cash dividend or distribution), or 

(c) Common Shares or any other securities or property (including cash) by way of spinoff,
split-up, reclassification, combination of shares or similar corporate rearrangement (other than Common Shares issued as a stock split or adjustments in respect of which shall be covered by the terms of
Section 4.1 above), 
 then and in each such case, the Holder shall, upon the exercise of this Warrant, be entitled to receive, in addition to the
number of shares receivable thereupon, and without payment of any additional consideration therefor, the amount of shares and other securities and property (including cash in the cases referred to in clause (b) above) that such Holder would
hold on the date of such exercise had it been the holder of record of such Common Shares as of the date on which holders of Common Shares received or became entitled to receive such shares or all other additional shares and other securities and
property. 
 4.3 Reorganization, Consolidation, Merger or Sale. If any recapitalization, reclassification or reorganization of the
capital stock of the Company, or any consolidation or merger of the Company with another entity, or the sale of all or substantially all of its assets or other transaction shall be effected in such a way that holders of the class and series of
capital stock for which this Warrant is then exercisable shall be entitled to receive stock, securities, or other assets or property (an “Corporate Change”), then, as a condition of such Corporate Change, lawful and adequate
provisions shall be made by the Company whereby the Holder hereof shall thereafter have the right to purchase and receive (in lieu of the Common Shares of the Company immediately theretofore purchasable and receivable upon the exercise of the rights
represented hereby) such shares, securities or other assets or property as may be issued or payable with respect to or in exchange for a number of outstanding shares equal to the number of Common Shares immediately theretofore purchasable and
receivable upon the exercise of this Warrant. In the event of any Corporate Change, appropriate provision shall be made by the Company with respect to the rights and interests of the Holder of this Warrant to the end that the provisions hereof
(including, without limitation, provisions for adjustments of the Purchase Price and of the number of shares purchasable and receivable upon the exercise of this Warrant) shall thereafter be applicable, in relation to any shares, securities or
assets thereafter deliverable upon the exercise of this Warrant. The Company will not effect any such consolidation, merger or sale unless, prior to the consummation thereof, the successor corporation (if other than the Company) resulting from such
consolidation or the corporation purchasing such assets shall assume by reasonable written instrument, executed and mailed or delivered to the Holder at the last address of such Holder appearing on the books of the Company, the obligation to
deliver to such Holder such shares, securities or assets as, in accordance with the foregoing provisions, such Holder may be entitled to purchase. 

  
 4 

 4.4 Certain Events. If any change in the outstanding class and series of shares for
which this Warrant is exercisable or any other event occurs as to which the other provisions of this Section 4 are not strictly applicable or if strictly applicable would not fairly protect the purchase rights of the Holder in accordance with
such provisions, then the Company shall make an adjustment in the number and class of shares available under this Warrant, the Purchase Price or the application of such provisions, so as to protect the purchase rights of the Holder. The adjustment
shall give the Holder of this Warrant upon exercise for the same aggregate Purchase Price the total number, class and kind of shares as the Holder would have owned had this Warrant been exercised prior to the event and had the Holder continued to
hold such shares until after the event requiring adjustment. 
 4.5 Notices of Change. 

(a) Immediately upon any adjustment in the number or class of shares subject to this Warrant and of the Purchase Price, the Company
shall give written notice thereof to the Holder, setting forth in reasonable detail and certifying the calculation of such adjustment. 

(b) The Company shall give written notice to the Holder at least 10 days prior to the date on which the Company closes its books or
takes a record for determining rights to receive any dividends or distributions. 
 (c) The Company shall also give written notice to
the Holder at least 20 days prior to the date on which a Corporate Change, Change of Control or initial public offering of Common Stock shall take place. “Change of Control” shall mean (x) a sale, lease or disposition of all of
substantially all of the assets of the Company or (y) any consolidation or merger of the Company with or into any other entity, or any other corporate reorganization, in which the Company’s shareholders immediately prior to such
consolidation, merger or reorganization own less than 50% of the surviving entity’s or its parent’s voting power immediately after such consolidation, merger or reorganization. 

5. NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF
LIABILITY. 
 Except as expressly set forth herein, nothing contained in this Warrant shall be construed as conferring
upon the Holder the right to vote or to consent or to receive notice as a shareholder of the Company or any other matters or any rights whatsoever as a shareholder of the Company. No dividends or interest shall be payable or accrued in respect of
this Warrant or the shares purchasable hereunder until, and only to the extent that, this Warrant shall have been exercised. No provisions hereof, in the absence of affirmative action by the Holder to purchase Common Shares of the Company shall give
rise to any liability of the Holder for the Purchase Price or as a shareholder of the Company, whether such liability is asserted by the Company or by its creditors. 

6. TRANSFER AND ASSIGNMENT. 

6.1 Transfer and Assignment. This Warrant and any rights hereunder shall be exercisable only by the Holder (or by the
Holder’s guardian or legal representative should one be appointed). Except for assignments or transfers made by will or under the laws of descent and distribution, this Warrant and an rights hereunder may not be assigned, transferred, pledged
or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of this Warrant, except as
provided in this Section 6, shall be null void and without legal effect. 

  
 5 

 6.2 Transfer of Common Shares Underlying the Warrant. Common Shares acquired by
exercise of this Warrant may not be transferred or sold unless the transfer is exempt from further regulatory approval or otherwise permissible under applicable law, including state and federal securities laws. Stock certificates for such Common
Shares may, if such legend is required or advisable under applicable law in the opinion of the Company when this warrant is exercised, bear a legend to this effect. 

7. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

7.1 Authority. The execution and delivery by the Company of this Warrant and the performance of all obligations of the Company
hereunder, including the issuance to Holder of the right to acquire Common Shares hereunder, have been duly authorized by all necessary corporate action on the part of the Company, and this Warrant is consistent with the Company’s articles of
incorporation and bylaws and constitutes a legal, valid and binding agreement of the Company, enforceable in accordance with its terms. 

7.2 Consents and Approvals. No consent or approval of, giving notice to, registration with, or taking of any other action in respect of
any state, Federal or other governmental authority or agency is required with respect to the execution, delivery and performance by the Company of its obligations under this Warrant, except for any filing which may be required by applicable Federal
and state securities laws. 
 8. MODIFICATION AND WAIVER. 

This Warrant and any provision hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party
against which enforcement of is sought. 
 9. NOTICES. 

Any notice, request or other document required or permitted to be given or delivered to the holder hereof or the Company shall be delivered or
shall be sent by certified mail, postage prepaid, to Holder at Holder’s address as shown on the books of the Company and to the Company at the address for the Company shown on Exhibit A or to such other address as either may from time to
time provide to the other. 
 10. BINDING EFFECT ON SUCCESSORS. 

This Warrant shall be binding upon any corporation succeeding the Company by merger, consolidation or acquisition of all or substantially all
of the Company’s assets. 
 11. DESCRIPTIVE HEADINGS AND GOVERNING LAW.

 The description headings of the several sections and paragraphs of this Warrant are inserted for convenience only and do not
constitute a part of this Warrant. This Warrant shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the State of Georgia. 

  
 6 

 12. FRACTIONAL SHARES. 

No fractional shares shall be issued upon exercise of this Warrant. The Company shall, in lieu of issuing any fractional share, pay the holder
entitled to such fraction a sum in cash equal to such fraction multiplied by the then effective Purchase Price. 

[SIGNATURES ON FOLLOWING PAGE] 

 

  
 7 

 The parties hereto have caused this Warrant to be duly executed effective as of the
Effective Date. 
  

			
	STATE BANK FINANCIAL CORPORATION
		
	By:	 	
                    
                                 

	Name:
	Title:
	
	HOLDER
	
	  

	[•]	 	

 EXHIBIT A 

SUBSCRIPTION/EXERCISE FORM 

Date:                 ,
20         
 State Bank Financial Corporation 

415 East Paces Ferry Road, NE 
 Suite 200 

Atlanta, Georgia 30305 
 Attn: Chief Executive Officer 

Ladies and Gentlemen: 
  

	☐	 The undersigned hereby elects to exercise the warrant issued to it by State Bank Financial Corporation (the
“Company”) and dated                 , (the “Warrant”) to purchase
                     shares of common stock of the Company (the “Common Shares”) at a purchase price of $11.21 per share for
an aggregate purchase price of $                             (the “Purchase Price”).
Pursuant to the terms of the Warrant, the undersigned has delivered the Purchase Price herewith in full in cash or by certified check or wire transfer. 

  

	☐	 The undersigned hereby elects to convert
                     shares issuable pursuant to this Warrant pursuant to the provisions of Section 2 of the Warrant in a cashless exercise for
a total number of Common Shares to be received of                     . 

 

			
	Very truly yours,
	
	  

		
	By:	 	  

		
	Title:

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