Document:

United State Securities and Exchange Commission Edgar Filing

Exhibit 10.15

THE ISSUANCE OF THE SECURITIES EVIDENCED HEREBY HAS NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES COMMISSION OF ANY STATE UNDER ANY STATE SECURITIES LAW.  THE SECURITIES WERE ISSUED PURSUANT TO A SAFE HARBOR FROM REGISTRATION UNDER REGULATION S ("REGULATION S") PROMULGATED UNDER THE ACT.  THE SECURITIES MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED UNLESS SUCH OFFERS, SALES, AND TRANSFERS ARE REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, ARE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS, OR ARE MADE IN ACCORDANCE WITH REGULATION S PROMULGATED UNDER THE ACT.  FURTHERMORE, HEDGING TRANSACTIONS INVOLVING THE SECURITIES  MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

		
	$4,500,000.00

	Bothell, Washington

	 
	January 11, 2008

	 
	(as amended October

	 
	20, 2008)

BIOLIFE SOLUTIONS, INC.

SECURED CONVERTIBLE MULTI-DRAW TERM LOAN NOTE

BioLife Solutions, Inc., a Delaware corporation (the “Maker”), for value received, hereby promises to pay to Walter Villiger (the “Holder”), the principal amount of Four Million Five Hundred Thousand Dollars ($4,500,000) or such lesser amount as shall equal the aggregate unpaid principal amount of Advances made to the Company by the Holder under the Secured Convertible Multi-Draw Term Loan Facility Agreement (as defined below), together with interest on the unpaid amount thereof from the date hereof until paid or converted in accordance with the terms hereof.  

1.

Secured Convertible Multi-Draw Term Loan Note (“Note”).

1.1

Interest Rate.  The rate of interest hereunder (“Interest Rate”) shall equal seven percent (7%) per annum and shall be computed on the basis of a 365 day year for the actual number of days elapsed; provided that in no event shall the interest rate be less than the minimum rate of interest required in order to avoid the imputation of interest for federal income tax purposes.

1.2

Payment.  Subject to the provisions of Section 2 hereof regarding the payment of this note upon the occurrence of an Acquisition (as defined therein) and  Section 4 hereof regarding the conversion of this Note upon a Financing (as defined therein), the Advances plus all accrued interest thereon shall become due and payable in one lump sum on the earlier of 

(a) January 11, 2010 (the “Due Date”) or (b) an Event of Default (as defined below).  The Maker may at any time prepay in whole or in part the principal and interest accrued under this Note.  Any payment will be applied first to the payment of any and all accrued and unpaid interest through the payment date and second to the payment of principal remaining due hereunder.  Payment shall be made at the offices or residence of the Holder, or at such other place as the Holder shall have designated to the Maker in writing, in lawful money of the United States of America.

1.3

Secured  Convertible Multi-Draw Term Loan Facility Agreement.  This Note is one of the Secured Convertible Multi-Draw Term Notes issued pursuant to a Secured Convertible Multi-Draw Term Loan Facility Agreement, dated as of the 11th day of January, 2008 and as amended as of the 20th day of October, 2008, by and between Maker, Holder and Thomas Girschweiler (the “Agreement”) and is subject and entitled to the terms, conditions, covenants, protections, benefits and agreements contained therein and the Security Agreement referenced to therein.  Reference is hereby made to the Agreement for a statement of all of the terms and conditions under which the Advances evidenced hereby are to be made and are to be repaid.  Any capitalized terms not otherwise defined herein shall have the meaning ascribe ed to such terms in the Agreement.

2

Acquisition.   In the event the Maker is to be acquired, whether by means of a merger, sale of all or substantially all of the assets of the Maker, sale of securities representing more than fifty percent (50%) of the equity interests in Maker, or otherwise, prior to the Due Date (an “Acquisition”), then the Issue Price plus all accrued but previously unpaid interest thereon shall become due and payable in one lump sum immediately upon the closing of such Acquisition.

3.

Events of Default.  The Advances and accrued interest on this Note shall, at the option of the Holder, become due and payable, subject to applicable law, upon the happening of any one of the following specified events:

(a)

a decree or order of a court having jurisdiction is entered adjudging the Maker a bankrupt or insolvent, or issuing sequestration or process of execution against, or against any substantial part of, the property of the Maker, or appointing a receiver of the Maker or any substantial part of its property, or ordering the winding-up or liquidation of its affairs, unless the Maker actively and diligently contests in good faith such decree or order and has such decree or order stayed on or before 60 days after the issue of such decree or order by a court;

(b)

an order is made or a resolution is passed for the winding-up or liquidation of the Maker, or the Maker institutes proceedings to be adjudicated a bankrupt or insolvent, or consents to the institution of bankruptcy or insolvency proceedings against it, or consents to the filing of any such petition or to the appointment of a receiver of the Maker or any substantial part of its property, or makes a general assignment for the benefit of creditors, or admits in writing its inability to pay its debts generally as they become due, or takes corporate action in furtherance of any of the aforesaid purposes;

2

(c)

the Maker defaults in observing or performing any material covenant or condition of this Note or the Secured Convertible Multi-Draw Term Loan Facility Agreement on its part to be observed or performed, and such default continues for a period of fifteen (15) days after notice in writing has been given to the Maker by the Holder specifying such default and requiring the Maker to rectify the same;

(d)

an encumbrancer takes possession of all or substantially all of the property of the Maker, or any process of execution is levied or enforced upon or against all or substantially all of the property of the Maker and remains unsatisfied for such period as would permit any such property to be sold thereunder, unless the Maker actively and diligently contests in good faith such process, but in that event the Maker shall, if the Holder so requires, give security which, in the discretion of the holder, is sufficient to pay in full the amount thereby claimed in case the claim is held to be valid.

4.

Conversion.

4.1

Conversion.   If this Note is outstanding at the time of any bona fide equity financing of the Maker of at least Two Million Dollars ($2,000,000), excluding conversion of this Note or any other notes issued by Maker to Holder (a “Financing”), then, concurrently with the consummation of the Financing, Holder shall have the right (but not the obligation) (“Conversion Right”) to convert this Note, plus all accrued and unpaid interest thereon (the “Conversion Amount”) into that number of fully paid and non-assessable shares or units of the equity security(ies) of the Maker sold in the Financing (the “New Equity Securities”) as is equal to the Conversion Amount divided by 85% of the per share or per unit purchase price of the New Equity Securities.  The date of the consummation of the Financing is hereinafter referred to as the “Closing Conversion Date”).

4.2

Conversion Procedure.  

(a)

The Maker shall provide the Holder written notice of the Financing at least fifteen (15) days prior to the Closing Date.

(b)

In order to exercise the Conversion Right, Holder shall provide the Maker at least five (5) days prior to the Closing Date written notice that the Holder elects to convert the Note on the Closing Date.

4.3

Termination of Rights Upon Conversion.  Upon the Closing Date, subject to the completion of the Financing, the Holder of this Note shall have no further rights under this Note, whether or not this Note is surrendered.

4.4

Fractional Shares. No fractional shares or units of New Equity Securities of the Maker will be issued in connection with any conversion hereunder but rather any such fractional shares or units shall be rounded up to the nearest whole share or unit.

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4.5

Delivery of Stock Certificates.  As promptly as practicable after the Closing Date, (a) the Maker shall give notice to the Holder of the conversion of this Note into the New Equity Securities, (b) the Holder shall return this Note to the Maker, and (c) the Maker, at its expense, shall issue and deliver to the Holder of this Note a certificate or certificates evidencing the number of full New Equity Securities issuable to the Holder upon such conversion.

5.

Miscellaneous.

5.1

Transfer of Note.  This Note shall not be transferable or assignable in any manner and no interest shall be pledged or otherwise encumbered by the Holder without the consent of the Maker, which consent shall not be unreasonably withheld.

5.2

Titles and Subtitles.  The titles and subtitles used in this Note are for convenience only and are not to be considered in construing or interpreting this Note.

5.3

Attorneys’ Fees.  If any action at law or in equity is necessary to enforce or interpret the terms of this Note, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be entitled.

5.4

Amendments and Waivers.  This Note may be amended and the observance of any other term of this Note may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Maker and the Holder.  The Maker waives presentment, demand for performance, notice of nonperformance, protest, notice of protest, and notice of dishonor.  No delay on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right under this Note.

5.5

Severability.  If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of the Note shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

5.6

Governing Law.  This Note shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without giving effect to its conflicts of laws principles.

5.7

Counterparts. This Note may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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Executed as of the date first written above.

				
	 
	 
	MAKER:

	 
	 
	BIOLIFE SOLUTIONS, INC.

	 
	 
	a Delaware corporation

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	By:

	/s/Michael Rice

	 
	 
	Title:

	CEO, President

	 
	 
	Name:

	Michael Rice

	 
	 
	Address:

	3303 Monte Villa Parkway

	 
	 
	 
	Suite 310

	 
	 
	 
	Bothell, WA 98021

	 
	 
	 
	 

	 
	 
	HOLDER:

	 
	 
	 
	 

	 
	 
	/s/ Walter Villiger

	 
	 
	 
	Walter Villiger

5United State Securities and Exchange Commission Edgar Filing

EXHIBIT 10.16

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE (the “Amendment”) dated this 4th of November, 2008 amends that certain Lease dated July 24, 2007 by and between BIOLIFE SOLUTIONS, INC. (“Tenant”) and MONTE VILLA FARMS LLC (“Landlord”) (the “Lease”) in the project known as “Monte Villa Farms” located in Bothell, Washington.

RECITALS

WHEREAS, Tenant is desirous of leasing additional agreed square footage as follows:  approximately 5,798 rentable square feet described and outlined on Exhibit C.1 attached hereto ("Clean Room Premises"), and Landlord is desirous of leasing the Clean Room Premises to Tenant on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the above recitals and good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the parties hereto, Landlord and Tenant agree to amend the Lease as follows:

1.

The fifth Whereas paragraph shall be amended to read as follows:  

“WHEREAS, Tenant has leased approximately 4,366 rentable square feet of office space described and outlined on Exhibit C attached hereto (the "Office Premises") and Tenant is desirous of leasing additional agreed square footage as follows: approximately 5,798 rentable square feet of the first floor of the Production Building as shown on Exhibit C.1 attached hereto ("Clean Room Premises"), and Landlord is desirous of leasing the Clean Room Premises to Tenant on the terms and conditions set forth herein.  The Office Premises and the Clean Room Premises shall be collectively known as the “Demised Premises”.  The revised total rentable square footage of leased space shall be approximately 10,164 square feet, or as otherwise measured according to BOMA standard.

2.

Paragraph 1.1.(a) shall be revised to read as follows: 

“The “Commencement Date” for the Office Premises shall be July 31, 2007. The “Commencement Date” of the Clean Room Premises shall be upon completion of the remediation work described in Paragraph 13 herein.”

3.

 Paragraph 1.2, line 4, insert “and “C1” after “C”.

4.

Paragraph 1.2, line 5, after “4,366 rentable square feet” add “in the Office Premises (Exhibit C) and 5,798 rentable square feet in the Clean Room Premises (Exhibit C1)”.

5.

Paragraph 1.3, line 14, delete “thirteen (13)” and insert “twenty (20)”.

1

6.

Paragraph 1.4, line 2, delete “July 31, 2011” and insert “the last day of the sixtieth full calendar month following the Commencement Date for the Clean Room Premises”.

7.

Paragraph 2.6 (a) line 3, delete “4,366” and insert “10,164”.

8.

Paragraph 2.6. (a) line 5, delete “1.54%” and insert “3.59%”.  

9.

Tennant may occupy the Clean Room Premises anytime after execution of this Amendment, so long as Tenant’s occupancy does not interfere with other tenants’ or Landlord’s contractors.

10.

Landlord shall provide Tenant up to 150 square feet of powered storage space for equipment until the completion of the Tenant Improvements.

11.

Exhibit B shall be replaced by Exhibit B.1.

12.

Exhibit D shall be replaced by Exhibit D.1.

13.

At Landlord’s sole expense, Landlord shall replace the floor and remediate the conditions in the walls forming and within the Clean Room Premises.  Tenant’s consultant has approved of the scope of work for the remediation.  During the remediation period, Landlord shall keep Tenant apprised of its progress and method used, and Tenant will be allowed to visually inspect work by giving proper notice to access the Clean Room Premises.

a.

 All remediation work must be completed by February 11, 2009 or Tenant may terminate this First Amendment with no penalty and with 100% of the Security deposit refunded to Tenant.

b.

If at any time during the term of the Lease, the floor in the Clean Room Premises exhibits moisture ingress, all repairs needed to return the floor to usable condition will be completed by the Landlord at its sole expense.  Such repairs shall be completed within 60 days from the date Tenant of Landlord notices the other party of such moisture ingress, or Tenant shall be awarded an appropriate abatement of rent.

14.

Tenant shall have two (2) five (5) year renewal options for the Demised Premises, according to the terms specified in Paragraph 35 of the Lease. Tenant does hereby exercise its renewal option on its Premises at 3303 Monte Villa Parkway, Suite 310, Bothell, WA (“Office Premises”) and the parties agree that the Office Premises and the Clean Room Premises will be coterminous  with a revised termination date of the last day of the sixtieth full calendar month following the Commencement Date for the Clean Room Premises.  

15.

Landlord shall make available 100 kW of continuous standby power from a standby generator on Property, to back up HVAC system, sump pumps and Tenant’s equipment.  Cost of wiring and connecting the generator to the electrical panel(s) and switches servicing or needed by the Clean Room Premises and sump pumps shall be the responsibility of the Tenant, which is approximated to cost $54,000.00, with the work contracted by the Landlord.  Landlord’s responsibility 

2

for connecting the backup generator to the electrical panel servicing the Clean Room Premises and sump pumps must be completed by March 3, 2009.  Failure to do so shall constitute a breach of this Lease and shall entitle Tenant to an appropriate abatement of Rent.  Tenant will pay its proportionate share of fuel and maintenance cost for the generator.  Landlord may make reasonable modifications, replacements or repairs to the generators or the Property upon prior notice to Tenant.  Landlord shall use commercially reasonable efforts to minimize disruption to Tenant’s use of the Clean Room Premises.

16.

Landlord may require Tenant to separately meter its electricity and natural gas usage for the Clean Room Premises  In this case, Tenant’s Operating Expenses for the Clean Room Premises will be reduced accordingly.

17.

Paragraph 21.1, line 5, add the sentence, “Landlord shall provide standard building signage on the lobby directory and outside the Premises.”

18.

Paragraph 34, at the end of the first sentence, add “for the Office Premises, and three months Rent and Operating Expenses for the Clean Room Premises.  From the Security Deposit for the Clean Room Premises, Rent and Operating Expenses for the Clean Room Premises shall be applied for April 2009 and May 2009.”

19.

At its sole expense, Landlord shall maintain the HVAC and other utilities servicing the Clean Room Premises.  If Landlord requests Tenant to perform such tests, Tenant shall be awarded an appropriate abatement of rent.  At its sole expense, Landlord shall replace all HEPA filters in the HVAC system servicing the Clean Room Premises by March 10, 2009.  After that date, Tenant shall replace all HEPA filters servicing the Clean Room Premises at its sole expense.  At the end of the Term, Tenant shall replace HEPA filters servicing the Clean Room Premises.

 

20.

At its sole expense, Landlord shall perform quarterly testing of the backup generator system and sump pumps and notify Tenant of the results.  If Landlord requests Tenant to perform such tests, Tenant shall be awarded an appropriate abatement of rent.

Other than set forth above, all terms and conditions of the lease remain in full force and effect. The parties hereby reaffirm and confirm such terms and conditions.  This agreement may be executed in several counterparts, each of which shall be an original, but all of which shall constitute one and the same instrument.

		
	TENANT

BIOLIFE SOLUTIONS, INC.

a Delaware corporation

	LANDLORD

MONTE VILLA FARMS LLC, 

A Washington limited liability company

	

By:  /s/Michael P. Rice

	

By:  /s/Robert E. Hibbs

	Name: 

Michael P. Rice

Its: CEO

	Name: Robert E. Hibbs

Its: Managing Member

3

		
	 

      )

)ss:

COUNTY OF SNOHOMISH

)

I certify that I know or have satisfactory evidence that Robert E. Hibbs is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he/she was authorized to execute this instrument and acknowledged it as the managing member of MONTE VILLA FARMS LLC, a Washington limited liability company, to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument.

DATED: November 4, 2009.

												
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	/s/L. Holly Jones

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Print Name:

	L. Holly Jones

	 
	 
	 
	 
	 
	 
	 
	 
	 
	NOTARY PUBLIC in and for the State of

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Washington, residing at 

	Lynnwood

	 
	 
	 
	 
	 
	 
	 
	 
	 
	My Appointment expires:

	  7/19/10

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

STATE OF WASHINGTON

)

)ss:

COUNTY OF Snohomish

      )

I certify that I know or have satisfactory evidence that Michael Rice is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he/she was authorized to execute this instrument and acknowledged it as the CEO of BIOLIFE SOLUTIONS, a Delaware corporation, to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument.

DATED: November 4, 2009.

												
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	/s/Laurie Smedley Mace

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Print Name:

	Laurie Smedley Mace

	 
	 
	 
	 
	 
	 
	 
	 
	 
	NOTARY PUBLIC in and for the State of

	 
	 
	 
	 
	 
	 
	 
	 
	 
	Washington, residing at

	Mill Creek

	 
	 
	 
	 
	 
	 
	 
	 
	 
	My Appointment expires:

	  8/23/12

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

4

EXHIBIT B.1

BASIC ANNUAL RENT

Office Premises:

The initial Basic Annual Rent shall be $17.50 per rentable square foot per year.  Basic Annual Rent shall be increased by four percent (4%) per annum.

Clean Room Premises:

The initial Basic Annual Rent shall be $30.00 per rentable square foot per year.  Basic Annual Rent shall be increased by four percent (4%) per annum.  For months 1 – 3 following the Commencement Date, there shall be no Basic Annual Rent due on the Clean Room Premises.

Landlord has the right to create up to 50,000 sq ft of additional space on the Property (the “Additional Space”). The creation of the Additional Space will reduce the Operating Expenses for the Premises (the “Additional Space Expense Reduction”). Tenant agrees that should Landlord create the Additional Space then the Rent shall be increased (effective as of the date of the inclusion of the Additional Space) by the amount of any Additional Space Expense Reduction.  Such a reduction shall be computed (within six months of the inclusion of Additional Space) by subtracting (i) the Tenant’s Proportionate Share of the Operating Expenses and Taxes computed after the inclusion of the Additional Space in the square footage calculations from (ii) Tenant’s Proportionate Share of the Operating Expenses and Taxes computed before the inclusion of the Additional Space in the square footage calculations.  Landlord shall provide Tenant with such computations for Tenant’s review.

5

EXHIBIT C

OFFICE PREMISES

6

EXHIBIT C.1

CLEAN ROOM PREMISES

7

EXHIBIT D.1

TENANT IMPROVEMENTS

Landlord, at its sole cost and expense except as provided below, shall perform the improvements listed on this Exhibit D.1 to Demised Premises.  

·

The Office Premises shall be leased as-is.  For the area on the west side of the corridor (1329 USF), Landlord shall provide an improvement allowance of $10.00 per square foot.  

·

The furniture that is currently in the office space is available for Tenant’s use at no cost.

For the Clean Room Premises, Landlord shall reimburse Tenant with a Tenant Improvement Allowance of $25.00 per rentable square foot.  Tenant shall have the right to use the allowance for consulting related to, and actual permanent and modular fixtures to the building, standby generator connection, or electrical, mechanical or cabling additions.  Any equipment purchased with Tenant Improvement Allowance funds shall remain the property of Landlord at Lease termination.  All improvements shall be subject to Landlord approval, which shall not be unreasonably withheld.  As-builts shall be provided to Landlord for all improvement work.

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