Document:

ex10-54.htm

Exhibit 10.54

 

LETTER AGREEMENT

January [  ], 2016

 

MabVax Therapeutics Holdings, Inc.

11588 Sorrento Valley Rd., Suite 20

San Diego, CA 92121

Phone: (858) 259-9405

Attn: J. David Hansen, President and Chief Executive Officer

 

Dear Mr. Hansen,

This Letter Agreement supersedes and replaces in its entirety that certain Letter Agreement by and between MabVax Therapeutics Holdings, Inc. and Southern Biotech, Inc. dated January 6, 2016.

MabVax Therapeutics Holdings, Inc. (the “Company”) and Southern Biotech, Inc. (“Southern Bio”) hereby agree (this “Letter Agreement”) that:

Those certain rights under Sections 8a and 8b of each of that certain Exchange Agreement, dated March 25, 2015, between the Company and Southern Bio with respect to the exchange of the Company’s Series A-1 Preferred Stock and Series A-1 Warrants held by Southern Bio for shares of the Company’s common stock and Series D Convertible Preferred Stock (such agreement, the “A Exchange Agreement”), and the Exchange Agreement, dated March 25, 2015, between the Company and Southern Bio with respect to the exchange of the Company’s Series B Preferred Stock and Series B Warrants held by Southern Bio for shares of the Company’s common stock and Series D Convertible Preferred Stock (such agreement, the “B Exchange Agreement” and, collectively including both the A and B Exchange Agreements, referred to as the “Exchange Agreement Rights”) are hereby replaced, clarified and modified in their entirety as follows:

8a. Limitation on Issuances and Financings.

	
  

	
(i)

	
For a period beginning on the date of this letter agreement and ending on the first to occur of (a) April 1, 2017; (b) the date on which the Company has entered into agreement(s) for an equity raise that totals at least $10 million and has closed the financing; (c) the date on which the Company has closed one or more licensing agreements with corporate partners pursuant to which the Company is entitled to receive in total a minimum of  $10,000,000 in initial licensing or equity investments under such agreements; and (d) the date on which shares of the Company’s common stock (the “Common Stock”) are listed on any of The New York Stock Exchange, Inc., the NYSE MKT LLC, The NASDAQ Global Select Market, The NASDAQ Global Market, The NASDAQ Capital Market or any similar national exchange (the “Prohibited Period”), the Company shall not, without the prior consent of Southern Bio, issue any Common Stock or securities convertible into or exercisable for shares of Common Stock (or modify any of the foregoing which may be outstanding) to any person or entity or incur any financing debt, other than with respect to an Excepted Issuance.

 

	
  

	
(ii)

	
For purposes hereof, “Excepted Issuance” shall be defined as

	
  

	
a.

	
The issuance of shares of Common Stock or options to purchase Common Stock issued to directors, officers or employees of the Company of up to 7,631,021 shares of Common Stock or Convertible Securities convertible into that number of shares of Common Stock during the Prohibited Period (as adjusted for stock splits, combinations and similar transactions) under the Second Amended and Restated MabVax Therapeutics Holdings, Inc. 2014 Employee, Director and Consultant Equity Incentive Plan; and

	
  

	
b.

	
The issuance of warrants in connection with the Financing contemplated with Oxford Finance LLC or in connection with any debt financing or debt refinancing under clause (c) below.

	
  

	
c.

	
Any debt financing involving Oxford Finance LLC or any of its affiliates in its or any such affiliate’s capacity as a lender, agent, arranger or otherwise, and any debt refinancing of all or any portion of any of the foregoing.

 

  

  

  

 

	
  

	
(iii)

	
In addition to the restrictions set forth in (i) above, during the Prohibited Period, the Company will not, without the prior consent of Southern Bio, enter into any Equity or debt financing, other than (a) lease financing arrangements for equipment being used by the Company or (b) any Excepted Issuance.

	
  

	
(iv)

	
In addition to the restrictions set forth in (i) above, during the Prohibited Period, the Company will not, without the prior consent of Southern Bio, sell any development product assets currently held by the Company.

	
  

	
(v)

	
In addition to the restrictions set forth in (i) above, during the Prohibited Period, the Company will provide Barry Honig with five (5) days' notice prior to the consummation of any financing and secure his consent for such financing, other than in connection with any Excepted Issuance.

8b. No Assignment.

The rights in Section 8a above are specific to Southern Bio, and may only be exercised by the managing partner/president of Southern Bio, which is Barry Honig.  Such rights shall not be assigned or transferred to or assumed by any other party or individual, voluntarily or by operation of law, and any such purported assignment, transfer or assumption shall be void and of no force or effect.  Any transfer or purported transfer of the Exchange Agreement shall immediately terminate all rights under Section 8a above.  Further, Southern Bio acknowledges and agrees that no rights pursuant to sections 8a or 8b of the Exchange Agreements were transferred or assigned to or assumed by any other party or individual, prior to the date of this Letter Agreement.

As conditions precedent to the effectiveness of this Letter Agreement Southern Bio shall have provided its consent to Oxford Finance LLC’s proposed debt financing of $10 million and associated transactions (the “Financing”) in a separate letter to Oxford Finance LLC that contains language acceptable to Oxford Finance LLC to proceed with closing of the Financing with the Company, and such Financing shall have been consummated.

Southern Bio represents, warrants and covenants that the execution, delivery and performance of the Loan and Security Agreement by and between the Company and Oxford Finance LLC (the “LSA”) and all other Loan Documents (as defined in the LSA) and the transactions contemplated thereby does not violate or result in a breach of any agreement, instrument or document among the Company and Southern Bio or any of its affiliates.

 

This Letter Agreement shall be governed by the laws of the state of New York, without giving effect to any conflict of laws provision, and may not be amended other than through a written agreement executed by the Company and Southern Bio.

 

 

Southern Biotech, Inc.

 

By:  ___________________

Name:  Barry Honig

Title:  President

 

MabVax Therapeutics Holdings, Inc.

 

 

By: ________________________

Name: J. David Hansen

Title:  President and Chief Executive OfficerEX-10.1

 EXHIBIT 10.1 

CONSENT AND FIFTH AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 

THIS CONSENT AND FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of
March 10, 2016, by and among WELLS FARGO BANK, NATIONAL ASSOCIATION, as agent (“Agent”) for the Lenders (as defined in the Credit Agreement referred to below), the Lenders party hereto, and NUVERRA ENVIRONMENTAL SOLUTIONS,
INC., a Delaware corporation (“Borrower”). 
 WHEREAS, Borrower, Agent, and Lenders are parties to that certain Amended and
Restated Credit Agreement dated as of February 3, 2014 (as amended, restated, modified or supplemented from time to time, the “Credit Agreement”); 

WHEREAS, pursuant to Section 5.1 of the Credit Agreement, Borrower is required to deliver to Agent on or prior to March 31, 2016, the
consolidated and consolidating financial statements of Borrower and its Subsidiaries for the fiscal year ending December 31, 2015, audited by independent certified public accountants reasonably acceptable to Agent and certified, without any
qualifications (including any (A) “going concern” or like qualification or exception, (B) qualification or exception as to the scope of such audit, or (C) qualification which relates to the treatment or classification of any
item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of Section 7 of the Credit Agreement), by such
accountants to have been prepared in accordance with GAAP (such audited financial statements to include a balance sheet, income statement, statement of cash flow, and statement of shareholder’s equity, and, if prepared, such accountants’
letter to management) (collectively, the “2015 Audited Financials”); 
 WHEREAS, Borrower has informed Agent and Lenders
that the 2015 Audited Financials will contain a “going concern” or like qualification or exception, which absent consent of the Agent and Lenders, would be prohibited by Section 5.1 of the Credit Agreement, and Agent and Lenders are each
willing to consent to the inclusion of a “going concern” or like qualification or exception in the 2015 Audited Financials on the terms as set forth herein; and 

WHEREAS, Agent, Lenders and Borrower have agreed to amend the Credit Agreement in certain respects. 

NOW THEREFORE, in consideration of the premises and mutual agreements herein contained, the parties hereto agree as follows: 

1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein and not otherwise defined shall have the meanings
ascribed to such terms in the Credit Agreement. 
 2. Consent. In reliance upon the representations and warranties of Borrower
set forth in Section 7 below and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, Agent and Lenders consent to the inclusion of a “going concern” or like qualification or exception
in the 2015 Audited Financials. This consent is a limited consent and 

 
shall not be deemed to constitute a consent with respect to any other current or future departure from the requirements of any provision of the Credit Agreement or any other Loan Documents. 

3. Amendments to Credit Agreement. In reliance upon the representations and warranties of Borrower set forth in
Section 7 below, and subject to the satisfaction of the conditions to effectiveness set forth in Section 6 below, the Credit Agreement is hereby amended as follows: 

(a) Article III of the Credit Agreement is hereby amended to add a new Section 3.7 to the end thereof to read as follows: 

3.7 Excess Borrowing. Borrower hereby agrees not to request a Revolving Loan if after giving effect to
such Revolving Loan and the contemporaneous uses of the proceeds thereof, the Loan Parties’ cash and Cash Equivalents would exceed $1,000,000. 

(b) Section 8(a) of the Credit Agreement is hereby amended to insert “3.7,” immediately following the phrase
“Sections 3.6,” in clause (i) thereof. 
 (c) Schedule 1.1 to the Credit Agreement is hereby amended by amending and
restating the defined term “Solvent” in its entirety to read as follows: 
 “Solvent” means, with
respect to any Person as of any date of determination, that (a) such Person is not engaged or about to engage in a business or transaction for which the remaining assets of such Person are unreasonably small in relation to the business or
transaction or for which the property remaining with such Person is an unreasonably small capital, and (b) such Person has not incurred and does not intend to incur, or reasonably believe that it will incur, debts beyond its ability to pay such
debts as they become due (whether at maturity or otherwise), and (c) such Person is “solvent” or not “insolvent”, as applicable within the meaning given those terms and similar terms under applicable laws relating to
fraudulent transfers and conveyances (provided, that this clause (c) shall exclude any definition of “solvent” or “insolvent” which is defined as at fair valuations, the sum of such Person’s debts and liabilities (including
contingent liabilities) is less than all of such Person’s assets). For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard
No. 5). 
 4. Effectiveness of the Amendment; Continuing Effect. Except as expressly set forth in
Sections 2 and 3 of this Amendment, nothing in this Amendment shall constitute a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document, or a waiver of any other
terms or provisions thereof, and the Credit 

  
 -2- 

 
Agreement and the other Loan Documents shall remain unchanged and shall continue in full force and effect, in each case as amended hereby. This Amendment is a Loan Document. 

5. Reaffirmation and Confirmation. Borrower hereby ratifies, affirms, acknowledges and agrees that the Credit Agreement and the
other Loan Documents to which it is a party represent the valid, enforceable and collectible obligations of Borrower, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with
respect to the Credit Agreement or any other Loan Document. Borrower hereby agrees that this Amendment in no way acts as a release or relinquishment of the Liens and rights securing payments of the Obligations. The Liens and rights
securing payment of the Obligations are hereby ratified and confirmed by Borrower in all respects. 
 6. Conditions to
Effectiveness. This Amendment shall become effective upon the satisfaction of each of the following conditions precedent, in each case satisfactory to Agent in all respects: 

(a) Agent shall have received a copy of this Amendment executed and delivered by Agent, the Required Lenders, and the Loan Parties; 

(b) Agent shall have received an executed copy of an amendment to the Guaranty and Security Agreement in form and substance satisfactory to
Agent; 
 (c) Borrower shall have swept to Agent’s Account all amounts in excess of $1,000,000 in the aggregate for all such accounts
in any Collection Account, Deposit Account and Securities Account (each, as defined in the Guaranty and Security Agreement (as amended as of the date hereof)), other than any Excluded Account, of each Loan Party; and 

(d) no Default or Event of Default shall have occurred and be continuing on the date hereof or as of the date of the effectiveness of this
Amendment. 
 7. Representations and Warranties. In order to induce Agent and Lenders to enter into this Amendment, Borrower
hereby represents and warrants to Agent and Lenders that: 
 (a) after giving effect to this Amendment, all representations and warranties
contained in the Loan Documents to which Borrower is a party are true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof) on and as of the date of this Amendment, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such
representations and warranties shall be true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof) on and as of such earlier date); 
 (b) no Default or Event of Default has occurred and is continuing; and 

(c) this Amendment and the Loan Documents, as amended hereby, constitute legal, valid and binding obligations of Borrower and are enforceable
against Borrower in 

  
 -3- 

 
accordance with their respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
limiting creditors’ rights generally. 
 8. Post-Closing Covenant. Within fifteen (15) days (or such later date as Agent
may agree to in writing in its sole discretion) of the date hereof, Borrower shall deliver to Agent a Control Agreement for each Collection Account, Deposit Account and Securities Account (each, as defined in the Guaranty and Security Agreement (as
amended as of the date hereof)) of each Loan Party other than Excluded Accounts, which Control Agreement shall comply with the provisions of Section 7(k) of the Guaranty and Security Agreement (as amended as of the date hereof). Failure to
comply with the provisions of this Section 8 shall constitute an immediate Event of Default. The Loan Parties each hereby acknowledge that Agent shall exercise control on the date hereof on each of the Collection Accounts of each Loan
Party subject to a Control Agreement in favor of Agent as of the date hereof. 
 9. Miscellaneous. 

(a) Expenses. Borrower agrees to pay on demand all reasonable documented out-of-pocket costs and expenses of Agent (including
reasonable attorneys’ fees) incurred in connection with the preparation, negotiation, execution, delivery and administration of this Amendment and all other instruments or documents provided for herein or delivered or to be delivered hereunder
or in connection herewith. All obligations provided herein shall survive any termination of this Amendment and the Credit Agreement as amended hereby. 

(b) Choice of Law and Venue; Jury Trial Waiver; Reference Provision. Without limiting the applicability of any other provision of
the Credit Agreement or any other Loan Document, the terms and provisions set forth in Section 12 of the Credit Agreement are expressly incorporated herein by reference. 

(c) Counterparts. This Amendment may be executed in any number of counterparts, and by the parties hereto on the same or separate
counterparts, and each such counterpart, when executed and delivered, shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Amendment. Delivery of an executed counterpart of this Amendment
by telefacsimile or other electronic method of transmission shall be equally effective as delivery of an original executed counterpart of this Agreement. 

(d) Severability. Each provision of this Amendment shall be severable from every other provision of this Amendment for the purpose
of determining the legal enforceability of any specific provision. 
 10. Release. 

(a) In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, each of Borrower and each Guarantor that executes a Consent and Reaffirmation to this Amendment, on behalf of itself and its successors, assigns, and other legal representatives (Borrower, each Guarantor
and all such other Persons being hereinafter referred to collectively as the “Releasors” and individually as a “Releasor”), hereby absolutely, unconditionally and 

  
 -4- 

 
irrevocably releases, remises and forever discharges Agent, Issuing Bank and Lenders, and their successors and assigns, and their present and former shareholders, Affiliates, subsidiaries,
divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Issuing Bank, each Lender and all such other Persons being hereinafter referred to collectively as the “Releasees” and
individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims,
counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown,
suspected or unsuspected, both at law and in equity, which any Releasor may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which
arises at any time on or prior to the day and date of this Amendment, in any way related to or in connection with the Credit Agreement, or any of the other Loan Documents or transactions thereunder or related thereto. 

(b) Each of Borrower and each Guarantor that executes a Consent and Reaffirmation to this Amendment understands, acknowledges and agrees that
the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release. 
 (c) Each of Borrower and each Guarantor that executes a Consent and Reaffirmation to this Amendment agrees that no fact, event,
circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above. 

[Signature Page Follows] 

  
 -5- 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized and delivered as of the date first above written. 
  

			
	NUVERRA ENVIRONMENTAL SOLUTIONS, INC., as Borrower
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Agent and as a Lender
		
	By:	 	 /s/ Zachary S. Buchanan

	Name:	 	Zachary S. Buchanan
	Title:	 	AVP

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 
			
	BANK OF AMERICA, N.A., as a Lender
		
	By:	 	 /s/ Lauren Trussell

	Name:	 	Lauren Trussell
	Title:	 	Vice President

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 
			
	CITIZENS BANK OF PENNSYLVANIA, as a Lender
		
	By:	 	 /s/ Josh Bailey

	Name:	 	Josh Bailey
	Title:	 	Vice President

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 
			
	CIT FINANCE LLC, as a Lender
		
	By:	 	 /s/ John Feeley

	Name:	 	John Feeley
	Title:	 	Director

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 CONSENT AND REAFFIRMATION 

Each of the undersigned (each a “Guarantor”) hereby (i) acknowledges receipt of a copy of the foregoing Consent and
Fifth Amendment to Amended and Restated Credit Agreement (terms defined therein and used, but not otherwise defined, herein shall have the meanings assigned to them therein); (ii) consents to Borrower’s execution and delivery thereof;
(iii) agrees to be bound thereby, including Section 10 of the foregoing Consent and Fifth Amendment to Amended and Restated Credit Agreement; and (iv) affirms that nothing contained therein shall modify in any
respect whatsoever any Loan Documents to which the undersigned is a party and reaffirms that each such Loan Document is and shall continue to remain in full force and effect. Although each Guarantor has been informed of the matters set forth
herein and has acknowledged and agreed to same, each Guarantor understands that Agent and Lenders have no obligation to inform such Guarantor of such matters in the future or to seek such Guarantor’s acknowledgment or agreement to future
consents, amendments or waivers, and nothing herein shall create such a duty. 
  

			
	HECKMANN WATER RESOURCES CORPORATION
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	HECKMANN WATER RESOURCES (CVR), INC.
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	1960 WELL SERVICES, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO

 
			
	HEK WATER SOLUTIONS, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	APPALACHIAN WATER SERVICES, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	BADLANDS POWER FUELS, LLC, a Delaware limited liability company
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	BADLANDS POWER FUELS, LLC, a North Dakota limited liability company
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	LANDTECH ENTERPRISES, L.L.C.
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement 

 
			
	BADLANDS LEASING, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	IDEAL OILFIELD DISPOSAL, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	NUVERRA TOTAL SOLUTIONS, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	NES WATER SOLUTIONS, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO
	
	HECKMANN WOODS CROSS, LLC
		
	By:	 	 /s/ Mark Johnsrud

	Name:	 	Mark Johnsrud
	Title:	 	CEO

  
 Signature Page to Consent and Fifth
Amendment to Amended and Restated Credit Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]