Document:

ex_102220.htm

Exhibit 10.1

 

STANDSTILL AGREEMENT

 

This Standstill Agreement, dated as of December 17, 2017 (this “Agreement”), is entered into by and among Sun BioPharma, Inc., a Delaware corporation (the “Company”) and Ryan R. Gilbertson (“Stockholder”).

 

WHEREAS, the Company and Stockholder have determined that the interests of the Company and its stockholders would be best served by entering into this Agreement in order to facilitate certain pending and future transactions involving the Company, among other matters.

 

NOW, THEREFORE, in consideration of the foregoing premises and the respective representations, warranties, covenants, agreements and conditions hereinafter set forth, and, intending to be legally bound hereby, the parties hereby agree as follows: 

 

	
			1.

				
			Ownership. Stockholder represents and warrants with respect to himself that: 

			

 

	 	
			(a)

				
			Stockholder is the beneficial owner of the Common Stock (as defined herein) and other Company securities reported in the Amendment No. 1 to Schedule 13D filed by Stockholder with the Securities and Exchange Commission (the “SEC”) on April 14, 2017 (the “Schedule 13D”) and the aggregate number of shares of Common Stock and other Company securities acquired after that date as reported in reports filed by Stockholder pursuant to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the SEC after that date. Except for (i) Northern Capital Partners I, L.P. and (ii) Total Depth Foundation, no other Affiliate (as defined herein) or Associate (as defined herein) of Stockholder beneficially owns any shares of Common Stock.

			

 

	 	
			(b)

				
			The execution, delivery and performance of this Agreement by Stockholder does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to him or it, or (ii) result in any breach or violation of or constitute a default (or an event that with notice or lapse of time or both could become a default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which Stockholder is a party or by which he is bound. 

			

 

	
			2.

				
			Definitions. For purposes of this Agreement: 

			

 

	 	
			(a)

				
			The terms “Affiliate” and “Associate” have the respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”);

			

 

	 	
			(b)

				
			The terms “beneficial owner” and “beneficial ownership” have the respective meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; 

			

 

	 	
			(c)

				
			“Board” means the Board of Directors of the Company. 

			

 

	 	
			(d)

				
			“Common Stock” means the Common Stock of the Company, $0.001 par value. 

			

 

	 	
			(e)

				
			The terms “person” or “persons” mean any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization or other entity of any kind or nature.

			

 

 

 

 

	 	
			(f)

				
			“Securities Exchange” means any securities exchange that is then-recognized as a “national securities exchange” by the SEC.

			

 

	 	
			(g)

				
			“Standstill Period” means the period from the date of this Agreement until the earliest of:

			

 

	 	
			(i)

				
			the date, if any, that the Company, after a class of its securities has commenced trading on a Securities Exchange, ceases to have a class of its securities listed on a Securities Exchange on an irrevocable and non-appealable basis;

			

 

	 	
			(ii)

				
			the date, if any, that Stockholder’s beneficial ownership of Common Stock has remained below five percent (5.0%) of the then outstanding shares of Common Stock for ninety (90) consecutive calendar days; and

			

 

	 	
			(iii)

				
			March 31, 2018, provided, however, that if the Company has obtained approval for the listing of a class of its equity securities on a Securities Exchange on or before March 31, 2018, and has commenced trading on such Securities Exchange, then this clause (iii) shall have no force or effect.

			

 

	
			3.

				
			Standstill. Stockholder agrees that, during the Standstill Period, he will not, and he will cause each of his Affiliates or agents or other persons acting on his behalf not to, and will use reasonable best efforts to cause his Associates not to, whether acting alone, or in concert with any other person:

			

 

	 	
			(a)

				
			acquire, offer, seek or agree to acquire, directly or indirectly, by purchase or otherwise (collectively, “Acquire”), securities of the Company that would result in Stockholder having ownership (beneficial or otherwise) of greater than 16.4% of the outstanding common stock of the Company or any of its subsidiaries, including any direct or indirect rights or options to acquire such ownership whether or not subject to vesting or contingent upon any other future event;

			

 

	 	
			(b)

				
			other than pursuant to rights existing as of the date of this Agreement, participate or seek to participate in any future financing involving the Company, including but not limited to any credit facility or offering of debt or equity securities;

			

 

	 	
			(c)

				
			encourage or assist any other person to undertake any actions that would result in a breach of clause (a) or clause (b) above.

			

 

	
			4.

				
			Specific Performance. Stockholder acknowledges and agrees, on behalf of himself and his Affiliates, that irreparable harm would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Company will be entitled to specific relief hereunder, including, without limitation, an injunction or injunctions to prevent and enjoin breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any state or federal court in the State of Minnesota, in addition to any other remedy to which they may be entitled at law or in equity. Any requirements for the securing or posting of any bond with such remedy are hereby waived. 

			

 

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			5.

				
			Jurisdiction. Each party hereto agrees, on behalf of itself and its Affiliates, that any actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby will be brought solely and exclusively in any state or federal court in the State of Minnesota (and the parties agree not to commence any action, suit or proceeding relating thereto except in such courts), and further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 10 of this Agreement will be effective service of process for any such action, suit or proceeding brought against any party in any such court. Each party, on behalf of itself and its Affiliates, irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement or the transactions contemplated hereby, in the state or federal courts in the State of Minnesota, and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an improper or inconvenient forum. 

			

 

	
			6.

				
			Applicable Law. This agreement shall be governed in all respects, including validity, interpretation and effect, by the laws of the State of Minnesota applicable to contracts executed and to be performed wholly within such state, without giving effect to the choice of law principles of such state. 

			

 

	
			7.

				
			Counterparts. This Agreement may be executed in two or more counterparts which together shall constitute a single agreement. 

			

 

	
			8.

				
			Severability. In the event that any portion of this Agreement may be held to be invalid or unenforceable for any reason, it is hereby agreed that such invalidity or unenforceability shall not affect the other portions of this Agreement and that the remaining covenants, terms and conditions or portions hereof shall remain in full force and effect, and any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable and enforceable.

			

 

	
			9.

				
			Entire Agreement; Amendment and Waiver; Successors and Assigns. This Agreement contains the entire understanding of the parties hereto with respect to, and supersedes all prior agreements relating to, its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings among the parties other than those expressly set forth herein. This Agreement may be amended only by a written instrument duly executed by the parties hereto or their respective successors or assigns. No failure on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective successors, heirs, executors, legal representatives, and assigns. 

			

 

3

 

 

	
			10.

				
			Notices. All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, when actually received during normal business hours at the physical address specified in this Section 10, or at such other physical address as is provided by a party to this Agreement to the other party pursuant to notice given in accordance with the provisions of this Section, or when actually received by electronic mail at the applicable electronic mail address below or at such other electronic mail address as is provided by a party to this Agreement to the other party pursuant to notice given in accordance with the provisions of this Section: 

			

 

if to the Company:

 

Sun BioPharma, Inc.

712 Vista Blvd, Suite 305

Waconia, Minnesota 55387

Attention: President and Chief Executive Officer

Email: dkaysen@sunbiopharma.com

 

with a copy (which shall not constitute notice) to: 

 

Faegre Baker Daniels LLP

2200 Wells Fargo Center

90 South Seventh Street

Minneapolis, MN 55402-3901

Attention: W. Morgan Burns

Email: morgan.burns@faegrebd.com

 

if to Stockholder, then to the most recent physical or electronic mail address provided by Stockholder to the Company.

 

	
			11.

				
			No Third-Party Beneficiaries. Nothing in this Agreement is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

			

 

[Signature Pages Follow]

 

4

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized signatory of the undersigned as of the date first written above. 

 

	
			 

				
			SUN BIOPHARMA, INC. 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ David B. Kaysen

				
			 

			
	
			 

				
			 

				David B. Kaysen	
			 

			
	
			 

				
			 

				President and Chief Executive Officer	
			 

			

 

[Signature Page to Standstill Agreement]

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the undersigned as of the date first written above. 

 

	
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				 	
			/s/ Ryan R. Gilbertson

				
			 

			
	
			 

				
			 

				
			RYAN R. GILBERTSON 

				
			 

			

 

 

[Signature Page to Standstill Agreement]Exhibit

Exhibit 10.1

SIXTH AMENDMENT TO
AMENDED AND RESTATED LOAN AND SERVICING AGREEMENT 
(Golub Capital BDC Funding LLC)
THIS SIXTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SERVICING AGREEMENT, dated as of December 14, 2017 (this “Amendment”), is entered into by and among GOLUB CAPITAL BDC Funding LLC, as the Borrower (the “Borrower”), GOLUB CAPITAL BDC, INC., as the Transferor and the Servicer, the Institutional Lenders identified on the signature pages hereto, WELLS FARGO BANK, N.A., as the Swingline Lender, WELLS FARGO BANK, N.A., as the Collateral Agent, the Account Bank and the Collateral Custodian, and WELLS FARGO BANK, N.A., as the Administrative Agent (in such capacity, the “Administrative Agent”). 
R E C I T A L S
WHEREAS, the above-named parties have entered into that certain Amended and Restated Loan and Servicing Agreement, dated as of December 18, 2014 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), by and among the Borrower, the Transferor, the Servicer, each of the Conduit Lenders and Institutional Lenders from time to time party thereto, each of the Lender Agents from time to time party thereto, the Administrative Agent, the Swingline Lender, and the Collateral Agent, the Account Bank and the Collateral Custodian; and
WHEREAS, pursuant to and in accordance with Section 11.01 of the Agreement, the parties hereto desire to amend the Agreement in certain respects as provided herein.
NOW, THEREFORE, based upon the above Recitals, the mutual premises and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned, intending to be legally bound, hereby agree as follows:
SECTION 1.     Definitions.
Each capitalized term used but not defined herein has the meaning ascribed thereto in the Agreement.

SECTION 2.     Amendments.
2.1    The definition of “Applicable Spread” in Section 1.01 of the Agreement shall be amended and restated in its entirety as follows:
“Applicable Spread” means (a) prior to (and excluding) the Fifth Amendment Date, 2.25% per annum and (b) on and after the Fifth Amendment Date, a percentage determined in accordance with the following formula (and solely with respect to such calculation, for the Remittance Period on the Fifth Amendment Date, the first day of such Remittance Period shall be deemed to be the Fifth Amendment Date):

Exhibit 10.1

	
			
	Applicable Spread = (PFRMML x PercentageMML) + (PFRBSL x PercentageBSL)

	Where:
	 
	 

	 
	PFRMML  
	= 2.15%

	 
	PFRBSL
	= 1.75%

	 
	ARFLL
	= 65%

	 
	ARFLLOL
	= 40%

	 
	PercentageMML
	= Average ABMML / Average ABAgg

	 
	Average ABMML
	= (Beginning ABMML  + Ending ABMML)/2

	 
	Beginning ABMML 
	= (ARFLL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Loans that are not Broadly Syndicated Loan Assets on the first day of the related Remittance Period) + (ARFLLOL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Last Out Loans on the first day of the related Remittance Period)

	 
	Ending ABMML
	= (ARFLL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Loans that are not Broadly Syndicated Loan Assets on the last day of the related Remittance Period) + (ARFLLOL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Last Out Loans on the last day of the related Remittance Period)

	 
	PercentageBSL
	= Average ABBSL / Average ABAgg

	 
	Average ABBSL
	= (Beginning ABBSL  + Ending ABBSL)/2

	 
	Beginning ABBSL 
	= ARFLL x aggregate Adjusted Borrowing Value related to Broadly Syndicated Loan Assets on the first day of the related Remittance Period

	 
	Ending ABBSL
	= ARFLL x aggregate Adjusted Borrowing Value related to Broadly Syndicated Loan Assets on the last day of the related Remittance Period)

	 
	Average ABAgg
	= (Beginning ABAgg + Ending ABAgg)/2

	 
	Beginning ABAgg
	= (ARFLL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Loans on the first day of the related Remittance Period) + (ARFLLOL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Last Out Loans on the first day of the related Remittance Period)

	 
	Ending ABAgg
	= (ARFLL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Loans on the last day of the related Remittance Period) + (ARFLLOL x aggregate Adjusted Borrowing Value related to Loan Assets that constitute First Lien Last Out Loans on the last day of the related Remittance Period)

provided that, at any time after the occurrence of an Event of Default, the Applicable Spread shall be increased by 2.00% per annum.  For the avoidance of doubt, any references to Adjusted Borrowing Value above shall exclude any portion included in the Excess Concentration Amount.
2.2    The definition of “Broadly Syndicated Loan Asset” in Section 1.01 of the Agreement shall be amended by adding the following immediately after the phrase “is denominated in United States dollars.”:
Notwithstanding anything herein to the contrary, any Eligible Loan Asset that qualifies as a Broadly Syndicated Loan Asset may be classified as a non-Broadly Syndicated Loan Asset on the Cut-Off Date upon the request of the Servicer and the acceptance by the Administrative Agent (in its sole discretion); provided that, such designation may be reverted back to the designation of a Broadly Syndicated Loan Asset in the sole discretion of the Servicer, any time the BSL Limit has not been exceeded, subject to (a) notice to the Administrative Agent of such reclassification, (b) after giving effect to the reclassification, the BSL Limit shall not be exceeded and (c) the delivery to the Administrative Agent of a Borrowing Base Certificate.

Exhibit 10.1

2.3    The following new definitions shall be added to Section 1.01 of the Agreement as alphabetically appropriate as follows:
“BSL Limit” has the meaning assigned to that term in Schedule III.
“Fifth Amendment Date” means November 22, 2017.
2.4    Section 2.09 of the Agreement shall be amended by adding the following directly after the phrase “as calculated above.”:
Notwithstanding anything in this Agreement to the contrary, for the first sixth months following the Fifth Amendment Date, the Borrower shall only be required to pay a Non-Usage Fee in an amount equal to 0.50% per annum on any Unused Portion.
2.5    Section 11.01(b) of the Agreement shall be amended by adding the following immediately after the phrase “clause (i) of the definition of “Reinvestment Period””:
provided that the Administrative Agent may increase the BSL Limit in its sole discretion.
2.6    Clause 39 of Schedule III to the Agreement shall be amended and restated in its entirety as follows:
39.    After giving effect to such purchase or reclassification, the aggregate Adjusted Borrowing Value of all Eligible Loan Assets included in the Collateral Portfolio that are Broadly Syndicated Loan Assets shall not exceed 30.0% of the aggregate Adjusted Borrowing Value of all Eligible Loan Assets (the “BSL Limit”); provided that the BSL Limit may be increased in the sole discretion of the Administrative Agent.
2.7    Schedule IV to the Agreement shall be amended by deleting the row containing the phrase “Total Net Leverage Ratio as of the applicable Cut-Off Date for such Loan Asset and for the most recent Relevant Test Period” in its entirety.
2.8    Clause (e) of Schedule V to the Agreement shall be amended and restated in its entirety as follows:
(e)    Calculation of the Total Net Leverage Ratio for such Loan Asset as of the most recent Relevant Test Period
SECTION 3.     Agreement in Full Force and Effect as Amended.
Except as specifically amended hereby, all provisions of the Agreement shall remain in full force and effect. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the Agreement other than as expressly set forth herein and shall not constitute a novation of the Agreement.
SECTION 4.    Representations and Warranties.
The Borrower hereby represents and warrants as of the date of this Amendment as follows:
(a)this Amendment has been duly executed and delivered by it;

Exhibit 10.1

(b)this Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity; and
(c)there is no Event of Default, Unmatured Event of Default (to the knowledge of the Borrower), or Servicer Termination Event that is continuing or would result from entering into this Amendment.

SECTION 5.    Conditions to Effectiveness.
The effectiveness of this Amendment is subject to receipt by the Administrative Agent of executed counterparts (or other evidence of execution, including facsimile signatures, satisfactory to the Administrative Agent) of (a) this Amendment and (b) a Borrowing Base Certificate.
SECTION 6. Miscellaneous.
(a)This Amendment may be executed in any number of counterparts (including by facsimile), and by the different parties hereto on the same or separate counterparts, each of which shall be deemed to be an original instrument but all of which together shall constitute one and the same agreement.  Delivery by facsimile or electronic mail of an executed signature page of this Amendment shall be effective as delivery of an executed counterpart hereof.
(b)The descriptive headings of the various sections of this Amendment are inserted for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.
(c)This Amendment may not be amended or otherwise modified except as provided in the Agreement.
(d)The failure or unenforceability of any provision hereof shall not affect the other provisions of this Amendment.
(e)Whenever the context and construction so require, all words used in the singular number herein shall be deemed to have been used in the plural, and vice versa, and the masculine gender shall include the feminine and neuter and the neuter shall include the masculine and feminine.
(f)This Amendment represents the final agreement between the parties only with respect to the subject matter expressly covered hereby and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements between the parties. There are no unwritten oral agreements between the parties.
(g)THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signature Pages Follow]

Exhibit 10.1

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.
	
		
	BORROWER:
	GOLUB CAPITAL BDC FUNDING LLC

	 
	By: Golub Capital BDC, Inc.,

	 
	its designated manager

	 
	 

	 
	By: /s/ Ross Teune

	 
	Name: Ross Teune

	 
	Title: Chief Financial Officer

	 
	 

	THE TRANSFEROR AND SERVICER:
	GOLUB CAPITAL BDC, INC.

	 
	By: /s/ Ross Teune

	 
	Name: Ross Teune

	 
	Title: Chief Financial Officer

	 
	 

	THE COLLATERAL AGENT, ACCOUNT BANK AND COLLATERAL CUSTODIAN:
	WELLS FARGO BANK, N.A.

	 
	By: /s/ Philip Dean

	 
	Name: Philip Dean

	 
	Title: Vice President

[Signatures Continue on the Following Page]

Exhibit 10.1

	
		
	ADMINISTRATIVE AGENT:
	WELLS FARGO BANK, N.A.

	 
	By: /s/ Matt Jensen

	 
	Name: Matt Jensen

	 
	Title: Director

	 
	 

	INSTITUTIONAL LENDER AND SWINGLINE LENDER:
	WELLS FARGO BANK, N.A.

	 
	By: /s/ Ben Love

	 
	Name: Ben Love

	 
	Title: Vice President

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