Document:

exv10w1

 

Exhibit 10.1

 

 

EIGHTH AMENDMENT

TO

AMENDED AND RESTATED CREDIT AGREEMENT

dated as of

November 30, 2007

among

GOODRICH PETROLEUM COMPANY, L.L.C.,

as Borrower,

BNP PARIBAS,

as Administrative Agent,

and

The Lenders Party Hereto

 

 

 

 

EIGHTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

     THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Eighth
Amendment”) dated as of November 30, 2007, is among GOODRICH PETROLEUM COMPANY, L.L.C.,
a Louisiana limited liability company (“Borrower”); each of the undersigned Guarantors
(collectively, the “Guarantors”); BNP PARIBAS, as administrative agent (in such capacity,
together with its successors in such capacity, “Administrative Agent”) for the lenders
party to the Credit Agreement referred to below (collectively, the “Lenders”); and the
undersigned Lenders.

R E C I T A L S

     A. Borrower, Administrative Agent and the Lenders are parties to that certain Amended and
Restated Credit Agreement dated as of November 17, 2005, as amended by the First Amendment to
Amended and Restated Credit Agreement, dated December 14, 2005, the Second Amendment to Amended and
Restated Credit Agreement, dated June 21, 2006, the Third Amendment to Amended and Restated Credit
Agreement, dated August 30, 2006, the Fourth Amendment to Amended and Restated Credit Agreement,
dated November 30, 2006, the Fifth Amendment to Amended and Restated Credit Agreement, dated August
7, 2007, the Sixth Amendment to Amended and Restated Credit Agreement, dated September 17, 2007 and
the Seventh Amendment to Amended and Restated Credit Agreement, dated September 25, 2007 (as
amended, the “Credit Agreement”), pursuant to which the Lenders have made certain loans to
and other extensions of credit on behalf of Borrower.

     B. Borrower has requested, and the Lenders have agreed, to amend certain provisions of the
Credit Agreement.

     C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

     Section 1. Defined Terms. Each capitalized term used herein but not otherwise
defined herein has the meaning given such term in the Credit Agreement. Unless otherwise
indicated, all article and section references in this Eighth Amendment refer to articles
and sections of the Credit Agreement.

     Section 2. Amendments to Credit Agreement.

     2.1 Definitions.

     (a) Section 1.1 is hereby amended by amending and restating or adding the following
definitions:

“Agreement” means this Amended and Restated Credit Agreement, as amended by
the First Amendment to Amended and Restated Credit Agreement, dated December 14,
2005, the Second Amendment to Amended and Restated Credit Agreement, dated June 21,
2006, the Third Amendment to Amended and Restated

 

 

Credit Agreement, dated August 30, 2006, the Fourth Amendment to Amended and
Restated Credit Agreement, dated November 30, 2006, the Fifth Amendment to Amended
and Restated Credit Agreement, dated August 7, 2007, the Sixth Amendment to Amended
and Restated Credit Agreement, dated September 17, 2007, the Seventh Amendment to
Amended and Restated Credit Agreement, dated September 25, 2007 and the Eighth
Amendment to Amended and Restated Credit Agreement, dated November 30, 2007.

“Disqualified Capital Stock” means any Equity Interest that, by its terms
(or by the terms of any security into which it is convertible or for which it is
exchangeable) or upon the happening of any event, matures or is mandatorily
redeemable for any consideration other than other Equity Interests (which would not
constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or
otherwise, or is convertible or exchangeable for Debt or redeemable for any
consideration other than other Equity Interests (which would not constitute
Disqualified Capital Stock) at the option of the holder thereof, in whole or in
part, on or prior to the date that is one year after the Termination Date.

“Eighth Amendment Effective Date” means November 30, 2007.

“Intercreditor Agreement” means that certain Intercreditor Agreement entered
into on the effective date of the Second Lien Term Loan Agreement by and among the
Administrative Agent, Borrower and the administrative agent of the Second Lien Term
Loan Agreement, on substantially the terms and conditions set forth in the Summary
of Terms and Conditions dated November 27, 2007, as the same may from time to time
be amended, modified, supplemented or restated.

“PD PV” means the PV of Proved Developed Reserves of Borrower and the other
Companies as described in the most recently delivered Reserve Report.

“Proved Reserves” means “Proved Reserves” as defined in the Definitions for
Oil and Gas Reserves (in this paragraph, the “Definitions”) promulgated by the
Society of Petroleum Engineers (or any generally recognized successor) as in effect
at the time in question. “Proved Developed Producing Reserves” means Proved
Reserves which are categorized as both “Developed” and “Producing” in the
Definitions, “Proved Developed Nonproducing Reserves” means Proved Reserves
which are categorized as both “Developed” and “Nonproducing” in the Definitions, and
“Proved Developed Reserves” means Proved Reserves which are either Proved
Developed Producing Reserves or Proved Developed Nonproducing Reserves.

“PV” means, with respect to any Proved Reserves expected to be produced
from any Mineral Interests, the net present value, discounted at 10% per annum, of
the future net revenues expected to accrue to Borrower’s and the other Companies’
collective interests in such reserves during the remaining expected economic lives
of such reserves. Each calculation of such expected future net revenues shall be
made in accordance with the then existing standards of the Society of Petroleum

2

 

Engineers, provided that in any event (a) appropriate deductions shall be made for
severance and ad valorem taxes, and for operating, gathering, transportation and
marketing costs required for the production and sale of such reserves, (b)
appropriate adjustments shall be made to reflect the economic impact and cash flows
of Swap Agreements, provided that Swap Agreements with non-investment grade
counterparties shall not be taken into account to the extent that such Swap
Agreements improve the position of or otherwise benefit Borrower or any other
Company, (c) the pricing assumptions used in determining PV for any particular
reserves shall be based upon the following price decks: (i) for natural gas, (A)
the forward price quotation for deliveries of natural gas for each of the first five
calendar years from the New York Mercantile Exchange for Henry Hub and (B) with
respect to quotations for calendar years after the fifth calendar year, the
quotation for the fifth calendar year shall be applied and (ii) for crude oil, (A)
the forward price quotation for deliveries of West Texas Intermediate crude oil for
each of the first five calendar years from the New York Mercantile Exchange for
Cushing, Oklahoma and (B) with respect to quotations for calendar years after the
fifth calendar year, the quotation for the fifth calendar year shall be applied and
(d) the cash-flows derived from the pricing assumptions set forth in clause (c)
above shall be further adjusted to account for the historical basis differentials
for each month during the preceding 12-month period calculated by comparing realized
crude oil and natural gas prices to Cushing, Oklahoma and Henry Hub NYMEX prices for
each month during such period.

“Second Lien Notes” means the Notes issued pursuant to the Second Lien Term
Loan Agreement, together with all amendments, modifications, replacements,
extensions and rearrangements thereof permitted by Section 9.9(b).

“Second Lien Term Loan Agreement” means a Second Lien Term Loan Credit
Agreement entered into on or before December 31, 2007, among Borrower, BNP Paribas,
as Administrative Agent, and the lenders party thereto, on substantially the terms
and conditions set forth in the Summary of Terms and Conditions dated as of November
27, 2007, and together with all amendments, modifications and supplements thereto
permitted by Section 9.9(b).

“Total PV” means at any time the PV attributable to Proved Reserves as most
recently determined and certified to the Lenders in accordance with Section 2.6, as
the same may be adjusted from time to time pursuant to Section 8.18(c) and Section
9.10(e) and further adjusted, if necessary, to exclude a portion of reserves other
than Proved Developed Reserves such that not less than 60% of Total PV is
attributable to PD PV.

     2.2 Section 3.2(c)(v)(A). Section 3.2(c)(v)(A) is hereby amended and restated in
its entirety as follows:

“(A) 100% of the Net Cash Proceeds of any Debt incurred by any Restricted Company
and 100% of the Net Cash Proceeds less the purchase price of any call

3

 

spread option permitted by Section 9.9(a) of the sale or issuance of any Equity
Interests of any Restricted Company. Such prepayment shall be made no later than
five Business Days after the receipt of such proceeds and”

     2.3 Section 9.9(a). Section 9.9(a) is hereby amended and restated in its entirety
as follows:

“(a) Distributions. No Restricted Company may declare, make, or pay any
Distribution except Distributions paid in the form of additional common stock, and
distributions to any other Restricted Company; provided, however, that, so
long as no Potential Default or Borrowing Base Deficiency exists or would result
therefrom, (i) Goodrich may make regularly scheduled interest payments, in cash, on
the Convertible Notes, (ii) Goodrich may pay regularly scheduled dividends, in cash,
on the Existing Preferred Stock and (iii) on or before December 31, 2008, Goodrich
may purchase one or more call spread options on shares of its Equity Interests with
the proceeds of one or more substantially contemporaneous offerings of its Equity
Interests (other than Disqualified Capital Stock), and Goodrich may thereafter
exercise such call spread options and settle such call spread options in cash or in
kind, provided that (A) such call spread options shall have a call premium in an
aggregate amount not to exceed the lesser of 20% of the gross proceeds raised via
such offerings and $35,000,000 and (B) the gross proceeds of such offerings shall be
no less than $60,000,000 in the aggregate.”

     2.4 Section 9.9(b). Section 9.9(b) is hereby amended and restated in its entirety
as follows:

“(b) Redemption of Second Lien Notes; Amendment of Second Lien Term Loan
Documents. Borrower will not, and will not permit any Restricted Company to:
(i) prior to the date that is ninety-one (91) days after the Stated-Termination
Date, call, make or offer to make any optional or voluntary Redemption of or
otherwise optionally or voluntarily Redeem (whether in whole or in part) the Second
Lien Notes, provided that Borrower may optionally prepay the Second Lien Notes,
including refinancings thereof, if (A) no Potential Default or Default has occurred
and is continuing or would exist after giving effect to such prepayment or
refinancing, and (B) after giving effect to such prepayment or refinancing, Borrower
would have at least $25,000,000 of unused availability under the then effective
Borrowing Base, or (ii) amend, modify, waive or otherwise change, consent or agree
to any amendment, modification, waiver or other change to, any of the terms of any
Second Lien Term Loan Document if (A) the effect thereof would be to shorten the
maturity of the Second Lien Notes or shorten the average life or increase the amount
of any payment of principal thereof or increase the rate or add call or pre-payment
premiums or shorten any period for payment of interest thereon, (B) such action
requires the payment of a consent fee (howsoever described), (C) such action adds
additional Property as collateral to secure the Second Lien Notes unless Borrower
complies with Section 5.6 or (D) such action adds any covenants or defaults without
this agreement

4

 

being contemporaneously amended to add substantially similar
covenants or defaults, provided that the foregoing shall not prohibit the execution of
supplemental agreements to add guarantors if required by the terms thereof provided
that any such guarantor also guarantees the Obligation pursuant to a written
guaranty in form and substance satisfactory to Administrative Agent and each of
Borrower and such guarantor otherwise complies with Section 5.1.”

     2.5 Article X. Article X is hereby amended by adding a Section 10.4 to read as
follows:

“Section 10.4 Asset Coverage Ratio. During the period that any of the
Second Lien Notes are outstanding, as of any date of determination, the ratio of
Total PV then in effect to Total Debt (excluding the Convertible Notes) as of such
day shall not be less than 1.5 to 1.0.”

     2.6 Section 10.3. Section 10.3 is hereby amended and restated in its entirety as
follows:

“Section 10.3 Total Debt to EBITDAX Ratio. The ratio of Total Debt of the
Companies as of any day to EBITDAX for the four fiscal quarters ending on the last
day of the fiscal quarter immediately preceding the date of determination for which
financial statements are available to be greater than (a) 4.25 to 1.0, for all
fiscal quarters beginning with the fiscal quarter ending June 30, 2007 and ending
with the fiscal quarter ending December 31, 2007 and (b) 3.5 to 1.0, commencing with
the fiscal quarter ending March 31, 2008 and thereafter; provided, however,
if Borrower enters into the Second Lien Term Loan Agreement, the ratio of Total Debt
(excluding the Convertible Notes) as of any day to EBITDAX for the four fiscal
quarters ending on the last day of the fiscal quarter immediately preceding the date
of determination for which financial statements are available to be greater than 3.0
to 1.0, commencing with the fiscal quarter in which Borrower enters into the Second
Lien Term Loan Agreement and thereafter.”

     2.7 Section 11.12. Section 11.12 is hereby amended and restated in its entirety as
follows:

“The Intercreditor Agreement, after delivery thereof shall for any reason, except to
the extent permitted by the terms thereof, cease to be in full force and effect and
valid, binding and enforceable in accordance with its terms against Borrower or any
party thereto or holder of any Second Lien Notes or shall be repudiated by any of
them, or cause the Liens of the Second Lien Term Loan Documents to be senior or
pari passu in right to the Liens of this agreement, or any payment
by Borrower or any guarantor in violation of the terms of the Intercreditor
Agreement.”

     2.8 Schedule 9.2. Item #8 on Schedule 9.2 is hereby amended and restated as follows:

5

 

“8. Debt under the Second Lien Notes and any guarantees thereof, the
principal amount of which Debt does not exceed $100,000,000 in the aggregate, and
any refinancing or replacement thereof, subject to the Intercreditor Agreement.”.

     2.9 Schedule 9.8. Schedule 9.8 is hereby amended by adding the following item #13:

“13. Payment of the purchase price for any call spread option permitted by Section
9.9(a).”

          Section 3. Interim Redetermination of the Borrowing Base and Conforming Borrowing
Base. The Borrowing Base in effect as of the date hereof is acknowledged by Borrower,
Administrative Agent and the Lenders party hereto to be $170,000,000. The Conforming Borrowing
Base in effect as of the date hereof is acknowledged by Borrower, Administrative Agent and the
Lenders party hereto to be $150,000,000. Notwithstanding the foregoing, if Borrower enters into
the Second Lien Term Loan Agreement prior to the date of the next scheduled redetermination
pursuant to Section 2.6(b), then (i) upon receipt by Borrower of the initial advance under the
Second Lien Term Loan Agreement, the Borrowing Base and the Conforming Borrowing Base shall be
$150,000,000 and at such time, the Conforming Borrowing Base shall no longer be in effect, and (ii)
to the extent the outstanding principal balance of the Second Lien Notes exceeds $50,000,000, then
the Borrowing Base then in effect shall be further reduced by an amount equal to 0.30 multiplied by
the outstanding principal balance of the Second Lien Notes in excess of $50,000,000. Such
calculation shall exclude any original issue discount. In each case, the Borrowing Base as so
reduced shall become the new Borrowing Base immediately upon the date such loans are made,
effective and applicable to Borrower, the Administrative Agent, the Issuing Lenders and the Lenders
on such date until the next redetermination or modification thereof hereunder. The Borrowing Base
may be subject to further adjustments from time to time pursuant to Section 8.18(c) or Section
9.10(e).

          Section 4. Conditions Precedent. This Eighth Amendment shall not become effective
until the date on which each of the following conditions is satisfied (or waived in accordance with
Section 14.8 of the Credit Agreement) (the “Effective Date”):

     4.1 The Administrative Agent shall have received from the Determining Lenders, Borrower and
the Guarantors, counterparts (in such number as may be requested by Administrative Agent) of this
Eighth Amendment signed on behalf of such Persons.

     4.2 No Default shall have occurred and be continuing, after giving effect to the terms of this
Eighth Amendment

     4.3 The Administrative Agent shall have received such other documents as Administrative Agent
or special counsel to Administrative Agent may reasonably request.

6

 

          Section 5. Miscellaneous.

     5.1 Confirmation. The provisions of the Credit Agreement, as amended by this Eighth
Amendment, shall remain in full force and effect following the effectiveness of this Eighth
Amendment.

     5.2 Second Lien Term Loan Proceeds. Borrower and each Guarantor hereby covenants and
agrees that all of the proceeds of any loans made pursuant to the Second Lien Term Loan Agreement
will be used, upon receipt of such loan proceeds, to prepay Principal Debt and accrued and unpaid
interest up to the date of prepayment according to the terms of the Credit Agreement without a
termination of any of the Commitments.

     5.3 Ratification and Affirmation; Representations and Warranties. Borrower and each
Guarantor hereby (a) acknowledges the terms of this Eighth Amendment; (b) ratifies and affirms its
obligations under, and acknowledges, renews and extends its continued liability under, each Loan
Document to which it is a party and agrees that each Loan Document to which it is a party remains
in full force and effect, except as expressly amended or modified hereby, notwithstanding the
amendments and modifications contained herein and (c) represents and warrants to the Lenders that
as of the date hereof, after giving effect to the terms of this Eighth Amendment: (i) all of the
representations and warranties contained in each Loan Document to which it is a party are true and
correct, except to the extent any such representations and warranties are expressly limited to an
earlier date, in which case, such representations and warranties shall continue to be true and
correct as of such specified earlier date, (ii) no Default has occurred and is continuing and (iii)
since November 17, 2005, there has been no event, development or circumstance that has had or could
reasonably be expected to have a Material Adverse Event. 

     5.4 Loan Document. This Eighth Amendment is a “Loan Document” as defined and
described in the Credit Agreement and all of the terms and provisions of the Credit Agreement
relating to Loan Documents shall apply hereto.

     5.5 Counterparts. This Eighth Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. Delivery of this Eighth Amendment by facsimile
transmission shall be effective as delivery of a manually executed counterpart hereof.

     5.6 NO ORAL AGREEMENT. THIS EIGHTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

     5.7 GOVERNING LAW. THIS EIGHTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY
AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF TEXAS.

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[SIGNATURES BEGIN NEXT PAGE]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Eighth Amendment to be duly
executed as of the date first written above.

	 	 	 	 	 
	BORROWER:	 	GOODRICH PETROLEUM COMPANY, L.L.C.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David R. Looney
	 

	 	 	 	 
	 

	 	Name:
	 	David R. Looney
	 

	 	Title:
	 	Executive Vice President
	 

	 	 	 	& Chief Financial Officer
	 
	 	 	 	 
	GUARANTOR:	 	GOODRICH PETROLEUM CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David R. Looney
	 

	 	 	 	 
	 

	 	Name:
	 	David R. Looney
	 

	 	Title:
	 	Executive Vice President
	 

	 	 	 	& Chief Financial Officer

S-1
Signature Page to Eighth
Amendment to A&R Credit Agreement

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	BNP Paribas, as a Lender and as Administrative Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Betsy Jocher
	 

	 	 	 	 
	 

	 	Name:
	 	Betsy Jocher
	 

	 	Title:
	 	Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Polly Schott
	 

	 	 	 	 
	 

	 	Name:
	 	Polly Schott
	 

	 	Title:
	 	Vice President

S-2
Signature Page to Eighth
Amendment to A&R Credit Agreement

 

	 	 	 	 	 
	LENDER:	 	Comerica Bank, as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Josh Strong
	 

	 	 	 	 
	 

	 	Name:
	 	Josh Strong
	 

	 	Title:
	 	Assistant Vice President

S-3
Signature Page to Eighth
Amendment to A&R Credit Agreement

 

	 	 	 	 	 
	LENDER:	 	BMO Capital Markets Financing, Inc. (formerly known as Harris Nesbitt
Financing, Inc.), as Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ James Whitmore
	 

	 	 	 	 
	 

	 	Name:
	 	James Whitmore
	 

	 	Title:
	 	Managing Director

S-4
Signature Page to Eighth
Amendment to A&R Credit Agreement

 

	 	 	 	 	 
	LENDER:	 	Deutsche Bank Trust Company Americas, as

Lender
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Dusan Lazarov
	 

	 	 	 	 
	 

	 	Name:
	 	Dusan Lazarov
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Omayra Laucella
	 

	 	 	 	 
	 

	 	Name:
	 	Omayra Laucella
	 

	 	Title:
	 	Vice President

S-5
Signature Page to Eighth
Amendment to A&R Credit Agreementexv10w1

 

Exhibit 10.1

SANGAMO BIOSCIENCES, INC.

RESTRICTED STOCK UNIT ISSUANCE AGREEMENT

RECITALS

   
  A. The Board has adopted the Plan for the purpose of retaining the services of selected
Employees, non-employee members of the Board (or the board of directors of any Parent or
Subsidiary) and consultants and other independent advisors who provide services to the Corporation
(or any Parent or Subsidiary).

     B. Participant is to render valuable services to the Corporation (or a Subsidiary), and this
Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in
connection with the Corporation’s issuance of shares of Common Stock to the Participant under the
Stock Issuance Program.

     C. All capitalized terms in this Agreement shall have the meaning assigned to them in the
attached Appendix A.

NOW, THEREFORE, it is hereby agreed as follows:

   
  1. Grant of Restricted Stock Units. The Corporation hereby awards to the Participant,
as of the Award Date, Restricted Stock Units under the Plan. Each Restricted Stock Unit represents
the right to receive one share of Common Stock on the specified issuance date following the vesting
of that unit. The number of shares of Common Stock subject to the awarded Restricted Stock Units,
the applicable vesting schedule for those shares, the date on which those vested shares shall
become issuable to Participant and the remaining terms and conditions governing the award (the
“Award”) shall be as set forth in this Agreement.

AWARD SUMMARY

	 	 	 
	Award Date:

	 	      
            
           
           , 200 
    
	 
	 	 
	Number of Shares

	 	        
             shares of Common Stock (the “Shares”)
	Subject to Award:
	 	 
	 
	 	 
	Vesting Schedule:

	 	The Shares shall vest in a series of installments
over the Participant’s continued Service as follows:
	 

	 	(i) twenty-five percent (25%) of the Shares shall
vest upon the Participant’s completion of one (1)
year of Service measured from the Award Date and
(ii) the balance of the Shares shall vest in a
series of thirty-six (36) successive equal monthly
installments upon the Participant’s completion of
each additional month of Service over the thirty-six
(36)-month period measured from the first
anniversary of the Award Date. However, one or more
Shares may be subject to accelerated vesting in
accordance with the provisions of Paragraph 5 of
this Agreement.

 

 

	 	 	 
	Issuance Schedule:

	 	Each Share in which the Participant vests in
accordance with the foregoing Vesting Schedule shall
be issued on the last business day of the calendar
quarter in which that Share vests or as soon as
practicable thereafter, but in no event later than
the later of (i) the close of the calendar year in
which that Share vests or (ii) the fifteenth (15th)
day of the third (3rd) calendar month following such
vesting date (the “Issue Date”). The issuance of
the Shares shall be subject to the Corporation’s
collection of all applicable Withholding Taxes. The
procedures pursuant to which the applicable
Withholding Taxes are to be collected are set forth
in Paragraph 7 of this Agreement.

     2. Limited Transferability. Prior to the actual issuance of the Shares which vest
hereunder, the Participant may not transfer any interest in the Award or the underlying Shares;
provided, however, any Shares which vest hereunder but which otherwise remain unissued at the time
of the Participant’s death may be transferred pursuant to the provisions of the Participant’s will
or the laws of inheritance or to the Participant’s designated beneficiary or beneficiaries of this
Award. The Participant may also direct the Corporation to issue stock certificates for any Shares
which in fact vest and become issuable hereunder to one or more designated Family Members or a
trust established for the Participant and/or his or her Family Members. The Participant may make a
beneficiary designation or certificate directive for this Award at any time by filing the
appropriate form with the Plan Administrator or its designee.

     3. Cessation of Service. Except as otherwise provided in Paragraph 5 below, should the
Participant cease Service for any reason prior to vesting in one or more Shares subject to this
Award, then the Award will be immediately cancelled with respect to those unvested Shares, and the
number of Restricted Stock Units will be reduced accordingly. The Participant shall thereupon
cease to have any right or entitlement to receive any Shares under those cancelled units.

     4. Stockholder Rights. The holder of this Award shall not have any stockholder
rights, including voting or dividend rights, with respect to the Shares subject to the Award until
the Participant becomes the record holder of those Shares following their actual issuance upon the
Corporation’s collection of the applicable Withholding Taxes.

     5. Change in Control.

          (a) Any Restricted Stock Units subject to this Award at the time of a Change in Control may be
assumed by the successor entity or otherwise continued in full force and effect. In the event of
such assumption or continuation of the Award, no accelerated vesting of the Restricted Stock Units
shall occur at the time of the Change in Control.

          (b) In the event the Award is assumed or otherwise continued in effect, the Restricted Stock
Units subject to the Award shall be adjusted immediately after the consummation of the Change in
Control so as to apply to the number and class of securities into which the Shares subject to those
units immediately prior to the Change in Control would have been converted in consummation of that
Change in Control had those Shares actually been issued and outstanding at that time.

-2-

 

          (c) If the Restricted Stock Units subject to this Award at the time of the Change in Control
are not assumed or otherwise continued in effect in accordance with Paragraph 5(a), then those
units will vest immediately upon the closing of the Change in Control. The Shares subject to those
vested units will be issued immediately at that time or as soon as administratively practicable
thereafter, but in no event more than fifteen (15) business days after such closing, or will
otherwise be converted into the right to receive the same consideration per share of Common Stock
payable to the other shareholders of the Corporation in consummation of the Change in Control and
distributed at the same time as such stockholder payments, but the distribution to the Participant
shall in no event be made later than the later of (i) the close of the calendar year in which the
Change in Control is effected or (ii) the fifteenth (15th) day of the third (3rd) calendar month
following the effective date of such Change in Control.

          (d) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

     6. Adjustment in Shares. Should any change be made to the outstanding Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Corporation’s
receipt of consideration, then appropriate adjustments shall be made to the total number and/or
class of securities issuable pursuant to this Award in such manner as the Plan Administrator deems
appropriate in order to reflect such change and thereby prevent the dilution or enlargement of
benefits hereunder.

     7. Collection of Withholding Taxes.

          (a) Upon the applicable Issue Date, the Corporation shall issue to or on behalf of the
Participant a certificate (which may be in electronic form) for the applicable number of underlying
shares of Common Stock, subject, however, to the Corporation’s collection of the applicable
Withholding Taxes.

          (b) Until such time as the Corporation provides the Participant with written or electronic
notice to the contrary, the Corporation shall collect the Withholding Taxes required to be withheld
with respect to the issuance of the vested Shares hereunder through an automatic share withholding
procedure pursuant to which the Corporation will withhold, at the time of such issuance, a portion
of the Shares with a Fair Market Value (measured as of the issuance date) equal to the amount of
those taxes (the “Share Withholding Method”); provided, however, that the amount of any Shares so
withheld shall not exceed the amount necessary to satisfy the Corporation’s required tax
withholding obligations using the minimum statutory withholding rates for federal and state tax
purposes that are applicable to supplemental taxable income. The Participant shall be notified in
writing or electronically in the event such Share Withholding Method is no longer available.

          (c) Should any Shares be distributed at a time that the Share Withholding Method is not
available, then the Withholding Taxes required to be withheld with

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respect to those Shares shall be collected from the Participant through either of the
following alternatives:

     - the Participant’s delivery of his or her separate check payable to the
Corporation in the amount of such taxes, or

     - the use of the proceeds from a next-day sale of the Shares issued to the
Participant, provided and only if (i) such a sale is permissible under the Corporation’s
trading policies governing the sale of Common Stock, (ii) the Participant makes an
irrevocable commitment, on or before the Issue Date for those Shares, to effect such sale of
the Shares and (iii) the transaction is not otherwise deemed to constitute a prohibited loan
under Section 402 of the Sarbanes-Oxley Act of 2002.

          (d) Notwithstanding the provisions of subparagraphs (a) and (b) of this Paragraph 7, the
employee portion of the federal, state and local employment taxes required to be withheld by the
Corporation in connection with the vesting of the Shares (the “Employment Taxes”) shall in all
events be collected from the Participant no later than the last business day of the calendar year
in which the Shares vest hereunder. Accordingly, to the extent the Issue Date for one or more
vested Shares is to occur in a year subsequent to the calendar year in which those Shares vest, the
Participant shall, on or before the last business day of the calendar year in which the Shares
vest, deliver to the Corporation a check payable to its order in the dollar amount equal to the
Employment Taxes required to be withheld with respect to those Shares.

          (e) Except as otherwise provided in Paragraph 5, the settlement of all Restricted Stock Units
which vest under the Award shall be made solely in shares of Common Stock. In no event, however,
shall any fractional shares be issued. Accordingly, the total number of shares of Common Stock to
be issued pursuant to the Award shall, to the extent necessary, be rounded down to the next whole
share in order to avoid the issuance of a fractional share.

     8. Compliance with Laws and Regulations. The issuance of shares of Common Stock
pursuant to the Award shall be subject to compliance by the Corporation and the Participant with
all applicable requirements of law relating thereto and with all applicable regulations of any
stock exchange on which the Common Stock may be listed for trading at the time of such issuance.

     9. Notices. Any notice required to be given or delivered to the Corporation under the
terms of this Agreement shall be in writing and addressed to the Corporation at its principal
corporate offices. Except to the extent electronic notice is expressly authorized hereunder, any
notice required to be given or delivered to the Participant shall be in writing and addressed to
the Participant at the address indicated below the Participant’s signature line on this Agreement.
All notices shall be deemed effective upon personal delivery (or electronic delivery to the extent
authorized hereunder) or upon deposit in the U.S. mail, postage prepaid and properly addressed to
the party to be notified.

     10. Successors and Assigns. Except to the extent otherwise provided in this
Agreement, the provisions of this Agreement shall inure to the benefit of, and be binding upon,

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the Corporation and its successors and assigns and the Participant, the Participant’s assigns,
the legal representatives, heirs and legatees of the Participant’s estate and any beneficiaries of
the Award designated by the Participant.

     11. Construction. This Agreement and the Award evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. All
decisions of the Committee with respect to any question or issue arising under the Plan or this
Agreement shall be conclusive and binding on all persons having an interest in the Award.

     12. Governing Law. The interpretation, performance and enforcement of this Agreement
shall be governed by the laws of the State of California without resort to that State’s
conflict-of-laws rules.

     13. Employment at Will. Nothing in this Agreement or in the Plan shall confer upon
the Participant any right to continue in Service for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary
employing or retaining the Participant) or of the Participant, which rights are hereby expressly
reserved by each, to terminate the Participant’s Service at any time for any reason, with or
without cause.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first
indicated above.

	 	 	 	 	 	 	 
	 	 	SANGAMO BIOSCIENCES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	, PARTICIPANT
	 

	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

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APPENDIX A

DEFINITIONS

     The following definitions shall be in effect under the Agreement:

     A. Agreement shall mean this Restricted Stock Unit Issuance Agreement.

     B. Award shall mean the award of Restricted Stock Units made to the Participant
pursuant to the terms of this Agreement.

     C. Award Date shall mean the date the Restricted Stock Units are awarded to
Participant pursuant to the Agreement and shall be the date indicated in Paragraph 1 of the
Agreement.

     D. Board shall mean the Corporation’s Board of Directors.

     E. Change in Control shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

     (i) a merger, consolidation or other reorganization approved by the
Corporation’s stockholders, unless securities representing more than fifty percent
(50%) of the total combined voting power of the voting securities of the successor
corporation are immediately thereafter beneficially owned, directly or indirectly
and in substantially the same proportion, by the persons who beneficially owned the
Corporation’s outstanding voting securities immediately prior to such transaction,
or

     (ii) a stockholder-approved sale, transfer or other disposition of all or
substantially all of the Corporation’s assets, or

     (iii) the closing of any transaction or series of related transactions pursuant
to which any person or any group of persons comprising a “group” within the meaning
of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that,
prior to such transaction or series of related transactions, directly or indirectly
controls, is controlled by or is under common control with, the Corporation) becomes
directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the
1934 Act) of securities possessing (or convertible into or exercisable for
securities possessing) more than fifty percent (50%) of the total combined voting
power of the Corporation’s securities (as measured in terms of the power to vote
with respect to the election of Board members) outstanding immediately after the
consummation of such transaction or series of related transactions, whether such
transaction involves a direct issuance from the Corporation or the acquisition of
outstanding securities held by one or more of the Corporation’s existing
stockholders.

     F. Code shall mean the Internal Revenue Code of 1986, as amended.

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     G. Corporation shall mean Sangamo Biosciences, Inc., a Delaware corporation, and any
successor corporate successor to all or substantially all of the assets or voting stock of Sangamo
Biosciences, Inc. which shall by appropriate action adopt the Plan.

     H. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

     I. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

     (i) If the Common Stock is at the time traded on the Nasdaq National Market,
then the Fair Market Value shall be the closing selling price per share of Common
Stock on the date in question, as such price is reported by the National Association
of Securities Dealers on the Nasdaq National Market and published in The Wall Street
Journal. If there is no closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

     (ii) If the Common Stock is at the time listed on any Stock Exchange, then the
Fair Market Value shall be the closing selling price per share of Common Stock on
the date in question on the Stock Exchange determined by the Plan Administrator to
be the primary market for the Common Stock, as such price is officially quoted in
the composite tape of transactions on such exchange and published in The Wall Street
Journal. If there is no closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists.

     J. Family Member shall mean any of the following members of the Participant’s family;
any child, stepchild, grandchild, grandparent, parent, stepparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law.

     K. 1934 Act shall mean the Securities Exchange Act of 1934, as amended from time to
time.

     L. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one or more of the other
corporations in such chain.

     M. Participant shall mean the person to whom the Award is made pursuant to the
Agreement.

     N. Plan shall mean the Corporation’s 2004 Stock Incentive Plan.

A-2

 

     O. Plan Administrator shall mean either the Board or a committee of the Board acting
in its capacity as administrator of the Plan.

     P. Service shall mean the Participant’s performance of services for the Corporation
(or any Parent or Subsidiary) in the capacity of an Employee, a non-employee member of the board of
directors or a consultant or independent advisor. Service shall not be deemed to cease during a
period of military leave, sick leave or other personal leave approved by the Corporation; provided,
however, that except to the extent otherwise required by law or expressly authorized by the Plan
Administrator or by the Corporation’s written policy on leaves of absence, no Service credit shall
be given for vesting purposes for any period the Participant is on a leave of absence.

     Q. Stock Exchange shall mean either the American Stock Exchange or the New York Stock
Exchange.

     R. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

     S. Withholding Taxes shall mean the federal, state and local income and employment
taxes required to be withheld by the Corporation in connection with the vesting and concurrent
issuance of the shares of Common Stock under the Award.

A-3

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