Document:

Exhibit 10.18

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES AND MAY NOT BE OFFERED, SOLD, MORTGAGED OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE IRA (AS DEFINED BELOW), THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT BY THE HOLDER AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE.

 

THE SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THIS WARRANT AND THE SECURITIES ISSUABLE HEREUNDER IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN AMENDED AND RESTATED NOTE AND WARRANT PURCHASE AGREEMENT BY AND BETWEEN THE HOLDER, THE COMPANY AND OTHER PARTIES NAMED THEREIN.

 

SENSORS FOR MEDICINE AND SCIENCE, INC.

 

WARRANT TO PURCHASE PREFERRED STOCK

 

	
No. PSW-
    	
                    
    

 

Void After                         

 

THIS CERTIFIES THAT, for value received,                      , with its principal office at                          , or assigns (the “Holder”), is entitled to subscribe for and purchase at the Exercise Price (defined below) from SENSORS FOR MEDICINE AND SCIENCE, INC., a Delaware corporation (the “Company”), that number of Exercise Shares (as defined below) as set forth herein, during the Exercise Period (as defined below).

 

This Warrant is being issued pursuant to the terms of the Amended and Restated Note and Warrant Purchase Agreement, dated as of [     ], by and among the Company and the Purchasers listed on the Schedules of Purchasers attached thereto (the “Purchase Agreement”).  Capitalized terms used and not otherwise defined herein shall have the meanings given them in the Purchase Agreement.

 

1.                                      DEFINITIONS.  As used herein, the following terms shall have the following respective meanings:

 

(a)                                 “Exercise Period” shall mean the period commencing on the date hereof and ending on             .

 

(b)                                 “Exercise Price” shall mean (i) in the event this Warrant is exercised for Qualified Financing Shares (as defined in the Notes), the price per share of Qualified Financing Shares in the Qualified Financing (as defined in the Notes), (ii) in the event this Warrant is

 

 

exercised for Series C Preferred Stock, $4.00, or (iii) if the Exercise Shares are Non-Qualified Financing Stock (as defined below), the price per share for which such Non-Qualified Financing Stock is purchased in such non-Qualified Financing.

 

(c)                                  “Exercise Shares” shall mean (i) after the closing of a Qualified Financing, that number of fully paid and non-assessable shares of Qualified Financing Shares, (ii) after the conversion of the Notes pursuant to Section 5.2(a) of the Notes, that number of fully paid and non-assessable shares of Series C Preferred Stock or (iii) after the conversion of the Notes pursuant to Section 5.2(b) of the Notes, that number of fully paid and non-assessable shares of the class and series of stock issued in such financing that is not a Qualified Financing (“Non-Qualified Financing Stock”), each as determined in accordance with Section 2 and calculated in accordance with the following formula:

 

	
Exercise Shares
    	
 
    	
=
    	
A / B
    
	
 
    	
 
    	
 
    	
 
    
	
               where:
    	
A
    	
=
    	
the Principal Amount
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
B
    	
=
    	
(i) if the   Exercise Shares are Qualified Financing Shares, the price per share of   Qualified Financing Shares (as defined in the Notes), (ii) if the   Exercise Shares are Series C Preferred Stock, $4.00, or (iii) if   the Exercise Shares are Non-Qualified Financing Stock, the price per share   for which such Non-Qualified Financing Stock is purchased in such   non-Qualified Financing.
    

 

2.                                      EXERCISE OF WARRANT.  The rights represented by this Warrant may be exercised in whole or in part at any time during the Exercise Period, by delivery of the following to the Company at its address set forth above (or at such other address as it may designate by notice in writing to the Holder):

 

(a)                                 An executed Notice of Exercise in the form attached hereto;

 

(b)                                 payment of the Exercise Price either (i) in cash or by check, or (ii) by cancellation of indebtedness; and

 

(c)                                  this Warrant.

 

In the event this Warrant is exercised in connection with, or after the closing of, a Qualified Financing, Exercise Shares shall be Qualified Financing Shares.  In the event the Notes are repaid pursuant to Section 3 or Section 4 of the Notes, Exercise Shares shall be Series C Preferred Stock.

 

Upon the exercise of the rights represented by this Warrant, a certificate or certificates for the Exercise Shares so purchased, registered in the name of the Holder or persons affiliated with the Holder, if the Holder so designates, shall be issued and delivered to the Holder within a reasonable time after the rights represented by this Warrant shall have been so exercised.   In case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Exercise Shares equal to 

 

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the number of such Exercise Shares called for on the face of this Warrant minus the number of Exercise Shares purchased by the Holder upon all exercises made in accordance with this Section 2.

 

The person in whose name any certificate or certificates for Exercise Shares are to be issued upon exercise of this Warrant shall be deemed to have become the holder of record of such shares on the date on which this Warrant was surrendered and payment of the Exercise Price was made, irrespective of the date of delivery of such certificate or certificates, except that, if the date of such surrender and payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open.

 

2.1                               Net Exercise.  Notwithstanding any provisions herein to the contrary, if the fair market value of one share of the Exercise Shares is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to receive 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 Notice of Exercise in which event the Company shall issue to the Holder a number of shares of Exercise Shares computed using the following formula:

 

X = Y (A-B)

A

 

	
Where
    	
X =
    	
the number of shares of   Exercise Shares to be issued to the Holder
    
	
 
    	
 
    	
 
    
	
 
    	
Y =
    	
the number of shares of   Exercise 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 share of the Company’s Exercise Shares (at the date of such   calculation)
    
	
 
    	
 
    	
 
    
	
 
    	
B =
    	
Exercise Price (as   adjusted to the date of such calculation)
    

 

For purposes of the above calculation, the fair market value of one share of the Exercise Shares shall be determined by the Company’s Board of Directors in good faith; provided, however, that in the event that this Warrant is exercised pursuant to this Section 2.1 in connection with the Company’s initial public offering of its Common Stock, the fair market value per share of Exercise Shares shall be the per share offering price to the public of the Company’s initial public offering.

 

2.2                               Automatic Exercise.  Notwithstanding the provisions of Section 2 if the Holder has not exercised this Warrant prior to the closing of a Company Sale (as defined in the Notes) or an initial public offering, this Warrant shall automatically be deemed to be exercised in full in the manner set forth in Section 2.1, without any further action on behalf of the Holder, immediately prior to such closing.

 

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3.                                      COVENANTS OF THE COMPANY.

 

3.1                               Covenants as to Exercise Shares.  The Company covenants and agrees that all Exercise Shares that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof.  The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of its (a) Preferred Stock to provide for the exercise of the rights represented by this Warrant and (b) Common Stock to provide for the conversion of such shares of Preferred Stock.  If at any time during the Exercise Period the number of authorized but unissued shares of (x) Preferred Stock shall not be sufficient to permit exercise of this Warrant or (y) Common Stock shall not be sufficient to permit the conversion of such shares of Preferred Stock, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Preferred Stock or Common Stock, as applicable, to such number of shares as shall be sufficient for such purposes.

 

3.2                               No Impairment.  Except and to the extent as waived or consented to by the Holder, the Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be necessary or appropriate in order to protect the exercise rights of the Holder against impairment.

 

3.3                               Notices of Record Date.  In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or other distribution, the Company shall mail to the Holder, at least ten (10) days prior to the date specified herein, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

 

4.                                      REPRESENTATIONS OF HOLDER.

 

4.1                               Acquisition of Warrant for Personal Account.  The Holder represents and warrants that it is acquiring the Warrant and the Exercise Shares solely for its account for investment and not with a view to or for sale or distribution of said Warrant or Exercise Shares or any part thereof.  The Holder also represents that the entire legal and beneficial interests of the Warrant and Exercise Shares the Holder is acquiring is being acquired for, and will be held for, its account only.

 

4.2                               Securities Are Not Registered; Shareholder Agreements.

 

(a)                                 The Holder understands that the Warrant and the Exercise Shares have not been registered under the Securities Act of 1933, as amended (the “Act”) on the basis that no distribution or public offering of the stock of the Company is to be effected.  The Holder

 

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realizes that the basis for the exemption may not be present if, notwithstanding its representations, the Holder has a present intention of acquiring the securities for a fixed or determinable period in the future, selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the securities.

 

(b)                                 The Holder recognizes that the Warrant and the Exercise Shares must be held indefinitely unless they are subsequently registered under the Act or an exemption from such registration is available.  The Holder recognizes that the Company has no obligation to register the Warrant or the Exercise Shares of the Company, or to comply with any exemption from such registration.

 

(c)                                  The Holder is aware that neither the Warrant nor the Exercise Shares may be sold pursuant to Rule 144 adopted under the Act unless certain conditions are met, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale following the required holding period under Rule 144 and the number of shares being sold during any three month period not exceeding specified limitations.  Holder is aware that the conditions for resale set forth in Rule 144 have not been satisfied and that the Company presently has no plans to satisfy these conditions in the foreseeable future.

 

(d)                                 The parties acknowledge and agree that the Company and its stockholders have entered into certain agreements that, among other things, set forth certain rights, obligations and responsibilities of each party in connection with the stockholders’ ownership of the capital stock of the Company (the “Stockholder Agreements”), including, but not limited to, that certain Amended and Restated Investor Rights Agreement, as amended, by and between the Company and the stockholders identified therein (the “IRA”).  Holder agrees that it shall enter into each Stockholder Agreement, including, but not limited to, the IRA promptly upon exercise of this Warrant pursuant to Section 2 hereof.

 

5.                                      ADJUSTMENT OF EXERCISE PRICE.  In the event of changes in the outstanding Preferred Stock of the Company by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares, separations, reorganizations, liquidations, or the like, the number and class of shares available under the Warrant in the aggregate and the Exercise Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same aggregate Exercise Price, the total number, class, and kind of shares as the Holder would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment.  The form of this Warrant need not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant.

 

6.                                      FRACTIONAL SHARES.  No fractional shares shall be issued upon the exercise of this Warrant as a consequence of any adjustment pursuant hereto.  All Exercise Shares (including fractions) issuable upon exercise of this Warrant may be aggregated for purposes of determining whether the exercise would result in the issuance of any fractional share.  If, after aggregation, the exercise would result in the issuance of a fractional share, the Company shall, in lieu of issuance of any fractional share, pay the Holder otherwise entitled to such fraction a sum in cash 

 

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equal to the product resulting from multiplying the then-current fair market value of an Exercise Share by such fraction.

 

7.                                      NO STOCKHOLDER RIGHTS.  This Warrant in and of itself shall not entitle the Holder to any voting rights or other rights as a stockholder of the Company.

 

8.                                      MODIFICATION; WAIVER.  Any provision of this Warrant may be amended or waived by the written consent of the Company and the Holder or by the Company and the Requisite Holders; provided that, the written consent of the Holder shall be required to amend or waive Sections 1(b) and 1(c).  Notwithstanding the foregoing, this Warrant may not be amended and the observance of any term may not be waived with respect to any Holder without the written consent of such Holder unless such amendment or waiver applies to all similarly situated Holders in the same manner.

 

9.                                      TRANSFER OF WARRANT.  The Company may elect not to permit a transfer of the Warrant if it has not obtained reasonably satisfactory assurance that such transfer has complied with the terms of the IRA with transfer of this Warrant deemed to constitute a “transfer of Preferred Shares or Conversion Shares” as described in Section 1 of the IRA and for such purpose thereunder.

 

10.                               LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.  If this Warrant is lost, stolen, mutilated or destroyed, the Company shall, on such terms as to indemnity or otherwise as it may reasonably impose upon the advice of counsel (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated or destroyed.  Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by anyone.

 

11.                               ASSIGNMENT.  Except as otherwise provided herein, the terms and conditions of this Warrant shall inure to the benefit of and be binding upon the respective successors and assigns of the parties, provided, however, that the Company may not assign its obligations under this Warrant without the written consent of the Requisite Holders

 

12.                               SEVERABILITY.  If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

13.                               NOTICES, ETC.  All notices required or permitted hereunder shall be in writing and shall be deemed effectively given if delivered in accordance with the Purchase Agreement.

 

14.                               ACCEPTANCE.  Receipt of this Warrant by the Holder shall constitute acceptance of and agreement to all of the terms and conditions contained herein.

 

15.                               GOVERNING LAW.  This Warrant and all rights, obligations and liabilities hereunder shall be governed by the laws of the State of Delaware.

 

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16.                               LEGENDS.  Exercise Shares (and the securities issuable, directly or indirectly, upon conversion of the Exercise Shares) shall be imprinted with a legend in substantially the form set forth in the IRA.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly authorized officer as of the date first written above.

 

	
 
    	
SENSORS FOR MEDICINE AND   SCIENCE, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TIMOTHY GOODNOW
    
	
 
    	
President and CEO
    
	
 
    	
 
    
	
 
    	
Address:
    	
20451 Seneca Meadows   Parkway
    
	
 
    	
 
    	
Germantown, Maryland   20876
    

 

	
Acknowledged and Accepted:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    
	
Address:
    	
 
    

 

[SIGNATURE PAGE TO WARRANT TO PURCHASE PREFERRED STOCK]

 

 

NOTICE OF EXERCISE

 

TO:  SENSORS FOR MEDICINE AND SCIENCE, INC.

 

(1)           o            The undersigned hereby elects to purchase          shares of the  Preferred Stock of Sensors for Medicine and Science, Inc. (the “Company”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

o            The undersigned hereby elects to purchase          shares of the  Preferred Stock of Sensors for Medicine and Science, Inc. (the “Company”) pursuant to the terms of the net exercise provisions set forth in Section 2.1 of the attached Warrant, and shall tender payment of all applicable transfer taxes, if any.

 

(2)           Please issue a certificate or certificates representing said shares of Preferred Stock in the name of the undersigned or in such other name as is specified below:

 

 

(Name)

 

 

(Address)

 

(3)           The undersigned represents that (i) the aforesaid shares of  Preferred Stock are being acquired for the account of the undersigned for investment and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares; (ii) the undersigned is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision regarding its investment in the Company; (iii) the undersigned is experienced in making investments of this type and has such knowledge and background in financial and business matters that the undersigned is capable of evaluating the merits and risks of this investment and protecting the undersigned’s own interests; (iv) the undersigned understands that the shares of  Preferred Stock issuable upon exercise of this Warrant have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), by reason of a specific exemption from the registration provisions of the Securities Act, which exemption depends upon, among other things, the bona fide nature of the investment intent as expressed herein, and, because such securities have not been registered under the Securities Act, they must be held indefinitely unless subsequently registered under the Securities Act or an exemption from such registration is available; (v) the undersigned is aware that the aforesaid shares of  Preferred Stock may not be sold pursuant to Rule 144 adopted under the Securities Act unless certain conditions are met and until the undersigned has held the shares for the number of years prescribed by Rule 144, that among the conditions for use of the Rule is the availability of current information to the public about the Company and the Company has not made such information available and has no present plans to do so; and (vi) the undersigned agrees not to make any disposition of all or any part of the aforesaid shares of  Preferred Stock unless and until there is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with said registration 

 

 

statement, or the undersigned has provided the Company with an opinion of counsel satisfactory to the Company, stating that such registration is not required.

 

	
 
    	
 
    	
 
    
	
(Date)
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(Print name)
    

 

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute this form and supply required information.  Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
Name:
    	
 
    
	
(Please Print)
    
	
 
    
	
Address:
    	
 
    
	
 
    	
(Please Print)
    
	
 
    
	
Dated:             , 20
    
	
 
    
	
Holder’s
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
 
    
	
Holder’s
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
					

 

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatever.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.19

 

[EXECUTION VERSION]

 

COMMON STOCK REPURCHASE AGREEMENT

 

This COMMON STOCK REPURCHASE AGREEMENT (this “Agreement”) is made as of December 4, 2015, by and between ASN Technologies, Inc., a Nevada corporation (“Parent”), and the undersigned shareholder, Laura Magrone, a Florida resident (the “Shareholder”).

 

WHEREAS, simultaneously with the execution and delivery of this Agreement, Parent entered into that certain Agreement and Plan of Merger and Reorganization (the “Merger Agreement”), among Parent, SMSI Merger Sub, Inc., a Delaware corporation (“Merger Sub”), and Senseonics, Incorporated, a Delaware corporation (“Senseonics”), pursuant to which, among other things, Merger Sub will merge with and into Senseonics and Senseonics will become a direct, wholly-owned subsidiary of Parent (the “Merger”).

 

WHEREAS, the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby are required in connection with the Merger Agreement.

 

WHEREAS, the Shareholder desires to sell to Parent, and Parent desires to repurchase from the Shareholder, an aggregate of 119,979,892 shares of common stock, par value of $0.001 per share, of Parent (the “Shares”).

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE 1

REPURCHASE OF SHARES

 

1.1                               Purchase and Sale.  At the Closing, the Shareholder shall sell, convey and deliver to Parent the Shares, free and clear of any and all claims, liens, pledges, options, charges, security interests, encumbrances or other rights of third parties, and Parent shall purchase and accept such Shares from the Shareholder for $0.0001 per share, or an aggregate purchase price of Eleven Thousand Nine Hundred Ninety-seven and 98/100 ($11,997.98) (the “Purchase Price”).

 

1.2                               Closing; Delivery.  The closing of the purchase and sale of the Shares pursuant to this Agreement (the “Closing”) shall occur immediately after the Effective Time (as defined in the Merger Agreement) (i.e., immediately after the time of the closing of the Merger).  At the Closing, (i) the Shareholder shall deliver to Parent the Shares in certificate form, and (ii) Parent shall deliver the Purchase Price to the Shareholder, by check or wire transfer, as designated by the Shareholder. Each of Parent’s and the Shareholder’s obligation to consummate the transactions contemplated hereby at the Closing is independent, absolute and irrevocable and not subject to any condition precedent.  Upon the consummation of the Closing, the Shares shall be canceled and returned to the authorized but unissued shares of the Company.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDER

 

In connection with the purchase and sale of the Shares, the Shareholder makes the following representations and warranties for the benefit of Parent:

 

 

2.1                               Authorization.  The Shareholder has the legal capacity and full power and authority to execute and deliver this Agreement and to perform the Shareholder’s obligations hereunder, and has taken or shall take, as applicable, all actions necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement.

 

2.2                               Due Execution and Delivery.  The Shareholder represents that this Agreement has been duly executed and delivered by her and constitutes the legal, valid and binding obligation of the Shareholder enforceable in accordance with the terms hereof (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles).

 

2.3                               Title to Shares.  The Shareholder owns all right, title and interest (legal and beneficial) in and to the Shares, free and clear of all Liens other than restrictions under federal and state securities laws; provided that none of such restrictions under federal or state securities laws in any manner restrict or otherwise impede the Shareholder’s ability to sell the Shares to Parent as contemplated hereby.  Upon delivery of the Shares to Parent and payment to the Shareholder of the Purchase Price, Parent will acquire good, valid and marketable title to such Shares free and clear of all Liens other than (i) restrictions under federal and state securities laws, and (ii) any Liens created by Parent.  For the purposes of this Agreement, “Lien” shall mean any lien, pledge, claim, security interest, encumbrance, charge, restriction or limitation of any kind, whether arising by agreement, operation of law or otherwise.  The Shares represent approximately 86.96% of the outstanding shares of capital stock in Parent, on a fully-diluted basis, as calculated immediately prior to the closing of the Merger Agreement.

 

2.4                               No Conflicts.  The execution and delivery of this Agreement and the performance by the Shareholder hereunder does not and will not result in the breach or violation of any of the terms or provisions of, or constitute a default under, or accelerate the performance required by the terms of any indenture, mortgage, deed of trust, loan agreement or any other agreement or instrument to which she is a party or by which she is bound, nor will any such action result in any violation of the provisions of, or in any way conflict with, any law, statute or other legal requirement or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Shareholder or her property.

 

2.5                               Litigation.  There is not pending, threatened in writing or, to the Shareholder’s knowledge, otherwise threatened against the Shareholder (or any affiliate or related person thereof) any action, suit or proceeding at law or in equity before any court, tribunal, governmental body, agency or official or any arbitrator relating to the Shares or that might affect the legality, validity or enforceability against the Shareholder of this Agreement or the Shareholder’s ability to perform her obligations hereunder.  There is no lawsuit, proceeding or investigation pending or threatened against the Shareholder that would, if adversely determined, prevent or delay the consummation of the transactions contemplated hereby.

 

2.6                               Information Regarding the Shares.  The Shareholder has been furnished with such documents, materials and information as the Shareholder deems necessary or appropriate for evaluating the financial condition of Parent, including information regarding the Merger and a copy of the Merger Agreement, and has had the opportunity to ask questions of, and receive answers from, the officers of Parent, concerning Parent and the terms and conditions of the Merger.  The Shareholder acknowledges and explicitly agrees that although she has received certain information from Parent as to its financial condition and other matters and the Merger, the Shareholder understands that, upon completion of the Merger, the Shares will be worth more than the Purchase Price to be paid to the Shareholder but that the Shareholder is desirous for her own reasons to pursue the sale of the Shares at the Purchase Price to be paid to Shareholder by Parent. Further, the Shareholder acknowledges that, in the months following the

 

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Merger, Parent may attempt to consummate a public offering, which public offering may be at a price substantially higher than the price per share of the Shares.

 

2.7                               No Broker.  The Shareholder has not, directly or indirectly, dealt with anyone acting in the capacity of a finder or broker, nor has the Shareholder incurred any obligations for any finder’s or broker’s fee or commission, in connection with the transactions contemplated by this Agreement.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF PARENT

 

In connection with the purchase and sale of the Shares, Parent makes the following representations and warranties for the benefit of the Shareholder:

 

3.1                               Authorization.  Parent represents that, as of the date hereof, it is duly incorporated, validly existing and in good standing under the laws of Nevada and has all necessary power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement, without the consent, waiver, approval or authorization of, or filing with, any other person or entity or under any applicable law, and has taken all actions necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement.

 

3.2                               Due Execution and Delivery.  Parent represents that this Agreement has been duly executed and delivered by it and constitutes the legal, valid and binding obligation of Parent enforceable in accordance with the terms hereof (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles).

 

ARTICLE 4

MISCELLANEOUS

 

4.1                               Release.  As a material inducement to Parent to enter into this Agreement, and in consideration of the Purchase Price and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Shareholder, on behalf of herself and her current and former affiliates, related persons, partners, fiduciaries, heirs, agents, representatives, attorneys and all persons acting by, through, under or in concert with any of them, hereby irrevocably and unconditionally release, acquit, and forever discharge Parent, Senseonics, Merger Sub and each of their respective current, present and future predecessors, parents, subsidiaries, affiliates, divisions, any related entity, successors and assigns, and all of their past, current and former agents, officers, directors, equity holders, partners, employees, members, trustees, fiduciaries, representatives, attorneys and all persons acting by, through, under or in concert with any of them (collectively, the “Released Parties”) from any and all claims, suits, charges, complaints, liabilities, obligations, promises, agreements, damages, causes of action, demands, losses, debts, attorneys fees and expenses of any nature whatsoever, known or unknown which the Shareholder has, had, claims to have or ever may have against any Released Party up to and including the date the Shareholder signs this Agreement, or any other matter related to the Shareholder’s ownership of the Shares or otherwise related to the Shareholder being a stakeholder of Parent, except for obligations of Parent arising hereunder to pay the Purchase Price, and the Shareholder shall reimburse, indemnify and hold harmless each Released Party in connection with the foregoing or any breach of this Agreement by the Shareholder.  At the Closing, the Shareholder shall be deemed to have reaffirmed this Section 4.1 as of the Closing.

 

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4.2                               Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of the parties hereto. No person or entity other than the parties hereto and their successors and permitted assigns is intended to be a beneficiary of this Agreement, except as set forth in Section 4.1. No party hereto may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other party hereto.

 

4.3                               Notices. All notices, requests and other communications to any party hereunder shall be in writing and shall be deemed given (a) when delivered or sent if delivered in person, (b) on the third (3rd) Business Day after dispatch by registered certified mail, (c) on the next Business Day if transmitted by national overnight courier or (d) on the date delivered if sent by email (provided confirmation of email receipt is obtained other than by an automatically-generated reply), in each case as follows:

 

(a)                                 If, after the Closing, to Parent:

 

Senseonics Holdings, Inc.
 20451 Seneca Meadows Pkwy
 Germantown, MD 20876
 Attn: R. Don Elsey
 E-Mail: Don.Elsey@senseonics.com

 

With a copy to:

 

Cooley LLP
 One Freedom Square
 11951 Freedom Drive, 15th Floor
 Reston, VA 20190
 Attn: Christian E. Plaza and Marc A. Samuel

 

(b)                                 If to the Shareholder:

 

Laura Magrone
 12435 Mossy Oak Drive

Orlando, FL 32832
 E-Mail: lauraemily11@gmail.com

 

4.4                               Amendment and Waiver.  No failure or delay on the part of Parent or the Shareholder in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to Parent or the Shareholder at law, in equity or otherwise (including that each party hereto shall be entitled to specific performance in the event the other party fails to perform any of its obligations hereunder).  Any amendment, supplement or modification of or to any provision of this Agreement and any waiver of any provision of this Agreement shall be effective only if it is made or given in writing and signed by Parent and the Shareholder.

 

4.5                               Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto and supersedes any and all prior negotiations, correspondence, understandings and agreements between the parties hereto with respect to the subject matter hereof.

 

4.6                               Governing Law; Jurisdiction and Venue.  This agreement, and any matter or dispute arising hereunder or in connection with this Agreement, will be governed by and construed in accordance

 

4

 

with the laws of Delaware without giving effect to conflict of laws or principles thereof.  Each party hereto irrevocably consents to the exclusive jurisdiction of any state courts of the state of Delaware and any federal court located in Delaware, as well as to the jurisdiction of all courts to which an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding arising out of, or in connection with, this agreement or any of the transactions contemplated hereby.  Each party hereby expressly waives any and all rights to bring any suit, action or other proceeding in or before any court or tribunal other than those located in Delaware.  In addition, each party consents to the service of process by personal service or any other manner in which notices may be delivered hereunder in accordance with this agreement.

 

4.7                               Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect and such term or other provision shall be adjusted rather than voided, if possible, in order to achieve the intent of the parties to the extent possible.  If any event, all other provisions of this Agreement shall be deemed valid and enforceable to the fullest extent practicable.

 

4.8                               Headings.  The headings appearing at the beginning of sections contained herein have been inserted for the convenience of the parties hereto and shall not be used to determine the construction or interpretation of this Agreement.

 

4.9                               Counterparts.  This Agreement may be executed and delivered (including by facsimile or other electronic transmission) in counterparts, all of which will be considered one and the same agreement.

 

4.10                        Further Assurances. Each of the parties shall execute such documents and perform such further acts (including, without limitation, obtaining any consents, exemptions, authorizations, or other actions by, or giving any notices to, or making any filings with, any governmental authority or any other person or entity) as may be reasonably required or desirable to carry out or to perform the provisions of this Agreement.

 

[Signature Page Follows]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set forth above.

 

 

	
 
    	
ASN   TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel Davis
    
	
 
    	
 
    	
Daniel Davis
    
	
 
    	
 
    	
Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SHAREHOLDER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Laura Magrone
    
	
 
    	
Laura Magrone
    
	
 
    	
 
    
	
 
    	
 
    
	
This   Agreement is hereby ratified and
    	
 
    	
 
    
	
confirmed   as of December 7, 2015
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SENSEONIC HOLDINGS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Timothy T. Goodnow
    	
 
    	
 
    
	
 
    	
Timothy   T. Goodnow
    	
 
    	
 
    
	
 
    	
Chief   Executive Officer and President
    	
 
    	
 
    

 

[Signature Page to Common Stock Repurchase Agreement]

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