Document:

FS Energy & Power Fund 8-K

 

Exhibit 10.1

 

EXECUTION VERSION

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Amendment”) dated as of October 15, 2019, by and among GLAWDYNE FUNDING, LLC, as borrower (the “Borrower”); GOLDMAN SACHS BANK USA (“GS Bank”), as sole lead arranger (the “Arranger”), as sole lender (the “Lender”) and as administrative agent (the “Administrative Agent”); FS ENERGY AND POWER FUND, as equity holder and investment manager (the “Investment Manager”); VIRTUS GROUP, LP, as collateral administrator (the “Collateral Administrator”); and CITIBANK, N.A., as collateral agent (the “Collateral Agent”).

 

The Borrower, the Arranger, the Lenders, the Administrative Agent, the Collateral Administrator and the Collateral Agent are parties to the Credit Agreement dated as of April 19, 2017 (as amended by Amendment No. 1 dated as of September 6, 2019 and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).

 

The parties hereto wish now to amend the Credit Agreement in certain respects.  Accordingly, the parties hereto hereby agree as follows:

 

Section 1.  Definitions.  Except as otherwise defined in this Amendment, terms defined in the Credit Agreement are used herein as defined therein.  This Amendment shall constitute a Transaction Document for all purposes of the Credit Agreement and the other Transaction Documents.

 

Section 2.  Credit Agreement Amendments.  Subject to the satisfaction of the conditions precedent specified in Section 3 below and Section 11.5 of the Credit Agreement, but effective as of the date hereof, the Credit Agreement is hereby amended by restating the definition of “Maturity Date” to read in its entirety as follows:

 

““Maturity Date” means, the earlier of (a) November 15, 2019 and (b) the date on which all Loans shall become due and payable in full hereunder, whether by acceleration or otherwise.”

 

Section 3.  Representations and Warranties.  The Borrower represents and warrants to the Lenders and the Administrative Agent that (a) the representations and warranties set forth in Section 4 of the Credit Agreement, and in each of the other Transaction Documents, are true and complete on the date hereof as if made on and as of the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, such representation or warranty shall be true and correct as of such specific date), and as if each reference in said Section 4 to “this Agreement” included reference to this Amendment (it being agreed that it shall be deemed to be an Event of Default under the Credit Agreement if any of the foregoing representations and warranties shall prove to have been incorrect in any material respect when made) and (b) no Default or Event of Default has occurred and is continuing.

 

Section 4.  Conditions Precedent.  The amendments set forth in Section 2 hereof shall become effective, as of the date hereof, upon the Administrative Agent’s receipt of counterparts of this Amendment executed by the parties hereto.

 

Section 5.  Confirmation of Collateral Documents.  The Borrower (a) confirms its obligations under the Collateral Documents, (b) confirms that its obligations under the Credit Agreement as amended hereby are entitled to the benefits of the pledges and guarantees, as applicable, set forth in the Collateral Documents, (c) confirms that its obligations under the Credit Agreement as amended hereby constitute “Secured Obligations” (as defined in the Collateral Documents) and (d) agrees that the Credit Agreement as amended hereby is the Credit Agreement under and for all purposes of the Collateral Documents.  Each party, by its execution of this Amendment, hereby confirms that the Secured Obligations shall remain in full force and effect, and such Secured Obligations shall continue to be entitled to the benefits of the grant set forth in the Collateral Documents.

 

 

 

Section 6. Limited Amendment.  The amendments set forth in Section 2 hereof shall be effective only in the specific instances described herein and nothing herein shall be deemed to limit or bar any rights or remedies of any Lender, the Administrative Agent or any other Secured Party or to constitute an amendment or waiver of any other term, provision or condition of any of the Transaction Documents in any other instance than as expressly set forth herein or prejudice any right or remedy that any Lender, the Administrative Agent or any other Secured Party may now have or may in the future have under any of the Transaction Documents.  For the avoidance of doubt and without limiting the generality of the foregoing, the parties agree that no other change, amendment or consent with respect to the terms and provisions of any of the Transaction Documents (including without limitation the Appendices, Exhibits and Schedules thereto) is intended or contemplated hereby (which terms and provisions remain unchanged and in full force and effect).

 

Section 7.  Miscellaneous.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same amendatory instrument and any of the parties hereto may execute this Amendment by signing any such counterpart.  Delivery of a counterpart by electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  This Amendment and any right, remedy, obligation, claim, controversy, dispute or cause of action (whether in contract, tort or otherwise) based upon, arising out of or relating to this Amendment shall be governed by, and construed in accordance with, the law of the State of New York without regard to conflicts of law principles that would lead to the application of laws other than the law of the State of New York.  GS Bank, as Administrative Agent and the sole Lender, hereby directs the Collateral Agent and the Collateral Administrator to execute and deliver this Amendment.

 

[Signature pages follow.]

 

- 2 -

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

	
 

	
 

	
 

	
 

	
GLADWYNE FUNDING LLC, as Borrower

	
 

	
 

	
 

	
 

	
By:

	
/s/ Edward T. Gallivan, Jr.

	
 

	
 

	
Name:

	
Edward T. Gallivan, Jr.

	
 

	
Title:

	
Chief Financial Officer

 

[Amendment to Credit Agreement]

 
 

 

	
 

	
GOLDMAN SACHS BANK USA, as Administrative Agent

	
 

	
 

	
 

	
 

	
By:

	
/s/ Thomas Tormey

	
 

	
 

	
Name:

	
Thomas Tormey

	
 

	
Title:

	
Managing Director

	
 

	
 

	
 

	
 

	
GOLDMAN SACHS BANK USA, as Lender

	
 

	
 

	
 

	
 

	
By:

	
/s/ Thomas Tormey

	
 

	
 

	
Name:

	
Thomas Tormey

	
 

	
Title:

	
Managing Director

 

[Amendment to Credit Agreement]

 
 

 

	
 

	
 

	
 

	
FS ENERGY AND POWER FUND, as Equity Holder and Investment Manager

	
 

	
 

	
 

	
 

	
By:

	
/s/ Edward T. Gallivan, Jr.

	
 

	
 

	
Name:

	
Edward T. Gallivan, Jr.

	
 

	
Title:

	
Chief Financial Officer

	 	 	 
	
[Amendment to Credit Agreement]

 

 

	
 

	
VIRTUS GROUP, LP, as the Collateral Administrator

	
 

	
 

	
 

	
 

	
By:

	
/s/ C. Kelly Faykus

	
 

	
 

	
Name:

	
C. Kelly Faykus

	
 

	
Title:

	
CEO

	 	 	 
	[Amendment to Credit Agreement]

 
 

 

 

	
 

	
CITIBANK, N.A., as the Collateral Agent

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Thomas Varcados

	
 

	
 

	
 

	
Name:

	
Thomas Varcados

	
 

	
 

	
Title:

	
Senior Trust Officer

	
 

	
 

	
 

	
 

	
 

 [Amendment to Credit Agreement]EX-10.1

 Exhibit 10.1 

AKCEA THERAPEUTICS, INC. 

October 11, 2019 
 Mike MacLean 

Akcea Therapeutics, Inc. 
 22 Boston Wharf Road, 9th Floor 
 Boston, MA 02210 

This will confirm our understanding regarding the offer by Akcea Therapeutics, Inc. (the “Company”) to provide you with the retention and enhanced
severance terms set forth in this letter agreement under the circumstances described below. The Company is entering into this letter agreement with you to further the economic interests of the Company and its shareholders and recognize your
continued importance to the Company’s long-term strategy. 
 You and the Company are parties to a Severance and Equity Award Vesting Acceleration
Letter dated November 28, 2017 (the “Severance Letter”). All capitalized terms used in this letter agreement without definition or reference, have the meanings set forth in the Severance Letter. 

In addition to the terms of the Severance Letter: 

(a) If you terminate your Continuous Service for any reason other than a Good Reason after December 31, 2019 and prior to
December 31, 2020 (the “Retention Period”), you will be entitled to the severance benefits described in Sections 1(a) and (b) of the Severance Letter, provided that (i) the Severance Period shall mean 6 months instead of 12
months; and 
 (b) If you terminate your Continuous Service for any reason other than a Good Reason following providing a written notice
period of 90 days given by you to the Company subsequent to December 31, 2019 and prior to December 31, 2020, you will be entitled to the severance benefits described in Section 1 of the Severance Letter for the Severance Period
(which Severance Period will be 12 months). 
 Payment of the severance benefits described above will be paid at the times set forth in Section 1 of
the Severance Letter and will be conditioned on the delivery of a Separation Agreement and Release as required under Section 3 of the Severance Letter, and any provisions with respect to the conditions of, and timing and form of, payments, and
including without limitation Sections 6, 7 and 8 of the Severance Letter, will continue to apply, remain in full force and effect, and are incorporated in this letter agreement by reference. Further, for purposes of clarity, the Company agrees to
provide you with your Full Target Bonus for 2019 when normally paid to employees, and no later than March 15, 2020, if you terminate your employment pursuant to this letter agreement and/or if you do not terminate your employment under this
letter agreement. If you terminate your employment under this letter agreement in December 2020, you are also entitled to your 2020 bonus, when it is paid to other employees, and no later than March 15, 2021, even if you are not employed at the
time of payment. There is no obligation to sign a release of claims to receive your bonus payments for 2019 and 2020. For purposes of clarity, an employee’s employment will not, under any circumstances, be interrupted due to a maternity leave.

 Mike MacLean 

Page 2 
 As an additional retention incentive, the Company has
granted you 20,000 restricted stock units (the “RSUs”). The RSUs will be issued under, and subject to, the terms of the Akcea equity incentive plan. The RSUs will initially be unvested; 50% of the RSUs will vest on March 19, 2020 and
the remaining 50% will vest on September 19, 2020, contingent on your Continuous Service with the Company. 
 The Severance Letter will remain in full
force and effect. For purposes of clarity, if your Continuous Service terminates as a result of a Qualifying Termination, as defined in the Severance Letter, you will be eligible for the severance benefits set forth in the Severance Letter and not
the severance benefits described in this letter agreement. 
 For purposes of clarity, any outstanding options or other Equity Awards you hold will continue
to vest in accordance with their terms until a termination of your Continuous Service. 
 Except as may be expressly provided otherwise in this letter
agreement, your employment will continue to be subject to the policies and procedures set forth in the Company’s employee handbook as presently constituted or as it may be modified by the Company in the future. This means that in accordance
with our standard policies, your employment will continue to be at-will and may be terminated at any time either by you or by the Company. In addition, the provisions of your Employee Confidential Information,
Inventions Assignment, Non-Competition and Non-Solicitation Agreement with the Company dated November 28, 2017, that contains certain restrictive covenants,
including a non-competition and non-solicitation covenant and a covenant against the disclosure of confidential information of the Company, will continue to apply. 

You may not assign any of your rights or obligations under this letter agreement and any assignment or attempted assignment of your rights, and any delegation
or attempted delegation of your duties, is null and void. In all other respects, this letter agreement shall be binding upon and shall inure to the benefit of you and the Company and your and its respective heirs, beneficiaries, personal
representatives, successors, assigns, officers and directors. 
 The Company’s offer to you of the opportunity to receive the retention and enhanced
severance benefits described in this letter agreement is made with the express understanding that you will maintain the terms and existence of this letter agreement in strictest confidence and that you will not disclose the terms or the existence of
this letter agreement to any person other than your spouse, Kathleen Gallagher, your legal and/or financial advisor(s), the office of unemployment, taxing authorities and bank personnel. You may also share this letter agreement if required to do so
by law or by subpoena. 
 This letter agreement will be governed by the laws of the Commonwealth of Massachusetts without regard to its or any other
state’s conflict of law rules. This letter agreement constitutes our entire agreement concerning the subject matter. It may not be modified, altered or amended except in written instrument signed by you and the Company. 

[Remainder of Page Intentionally Left Blank] 

 Mike MacLean 

Page 3 
 To confirm your agreement to the above, please sign and
return to me one of the enclosed original copies of this letter agreement. 
 Sincerely, 

 

			
	AKCEA THERAPEUTICS, INC.
		
	By:	 	 /s/ Sandford D. Smith

		 	Name: Sandford D. Smith
		 	Title:   Compensation Committee Chairman

  

					
	ACCEPTED AND AGREED TO:	 		  	
			
	 /s/ Mike MacLean
	 	            	  	 October 11, 2019

	Mike MacLean	 		  	Date

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