Document:

Exhibit 10.20.3

 

SECOND AMENDMENT TO LEASE

 

This Second Amendment to Lease (“Amendment”) is made effective as of September 23, 2015, by and between GIJV MA 2, LLC, a Delaware limited liability company (“Landlord”) and AUSHON BIOSYSTEMS, INC., a Delaware corporation (“Tenant”) with reference to the following facts and circumstances.

 

A.                                    Landlord is the owner of that certain building located at 43 Manning Road, Billerica, Massachusetts (the “Building”).

 

B.                                    RAR2 Boston Industrial QRS — MA, Inc., a Maryland corporation, predecessor in interest to Landlord, and Tenant entered into that certain Lease dated September 24, 2007, as amended by that certain First Amendment to Lease dated October 28, 2009 (collectively, the “Lease”) for certain premises containing approximately 21,500 rentable square feet (the “Premises”) located in the Building.

 

C.                                    Landlord and Tenant desire to amend the Lease upon terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the foregoing facts and circumstances, the mutual covenants and promises contained herein and after good and valuable consideration, the receipt and sufficiency of which is acknowledged by each of the parties, the parties do hereby agree to the following:

 

1.                                      Definitions.  Each capitalized term used in this Amendment shall have the same meaning as is ascribed to such capitalized term in the Lease, unless otherwise provided for herein.

 

2.                                      Term.  The term of the Lease is hereby extended for a term commencing on December 1, 2015 and ending on February 28, 2021 (the “Extended Term”).  Except as specifically set forth in Section 5 below, Tenant shall have no option to renew the Lease following the expiration of the Extended Term and as of the full execution of this Amendment the renewal option set forth in Section 36 of the Lease is hereby deleted and of no further force and effect.

 

3.                                      Annual Rent.  Annual Rent for the Extended Term shall be as follows:

 

	
Months
    	
 
    	
Monthly Installment
    	
 
    	
Annual
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
12/1/2015 — 2/28/2017
    	
 
    	
$
    	
15,677.08
    	
*
    	
$
    	
188,125.00
    	
*
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3/1/2017 — 2/28/2018
    	
 
    	
$
    	
16,125.00
    	
 
    	
$
    	
193,500.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3/1/2018 — 2/28/2019
    	
 
    	
$
    	
16,572.92
    	
 
    	
$
    	
198,875.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3/1/2019 — 2/29/2020
    	
 
    	
$
    	
17,020.83
    	
 
    	
$
    	
204,250.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3/1/2020 — 2/28/2021
    	
 
    	
$
    	
17,468.75
    	
 
    	
$
    	
209,625.00
    	
 
    

 

 

*Provided that no Event of Default has occurred under the Lease which remains uncured beyond applicable notice and cure periods, Landlord agrees to abate Tenant’s obligation to pay Annual Rent for the months of December 2015 and January and February 2016 (the “Conditional Rent”).  Upon Landlord’s termination of the Lease as a result of the occurrence of an Event of a Default at any time during the Extended Term which remains uncured beyond applicable notice and cure periods, in addition to any other remedies to which Landlord may be entitled, Landlord shall be entitled to recover the unamortized portion of the Conditional Rent, amortized on a straight line basis over the final sixty (60) months of the Extended Term (i.e., the Conditional Rent shall not be deemed to have been abated, but the unamortized portion thereof shall become immediately due and payable as unpaid rent earned, but due at the time of such Event of Default).

 

4.                                      Landlord’s Work.  Landlord shall, at Landlord’s sole cost, complete the following items of work to the HVAC system serving the Premises: (i) install 13 new fan powered boxes; (ii) install 8 new VAV boxes; (iii) install new controls; (iv) install new time controls for the rooftop HVAC units; and (v) install new heater stacks for the rooftop HVAC units (collectively, the “Landlord’s Work”).  Tenant hereby acknowledges that the Landlord’s Work may be performed while Tenant is occupying the Premises.  Tenant hereby acknowledges and agrees that Landlord shall not be liable for any inconvenience to Tenant or for interference with Tenant’s business or use of the Premises during the performance of the Landlord’s Work, provided that Landlord shall utilize commercially reasonable efforts not to disrupt the operation of Tenant’s business.  Tenant and its employees, invitees, agents and contractors may use the Premises during the performance of the Landlord’s Work at their own risk, and Landlord shall not be responsible for injury or damage to property occasioned by the performance of the Landlord’s Work unless same is due to Landlord’s negligence or willful misconduct.  The provisions of Section 7.5 of the Lease (other than the first two sentences) shall apply to the Landlord’s Work as though all references therein to the HVAC Replacement Units were to the Landlord’s Work as defined above.  Landlord shall commence the Landlord’s Work within fifteen (15) days following the full execution of this Amendment and shall make commercially reasonable efforts to complete the Landlord’s Work by the date which is ninety (90) days following the full execution of this Amendment.  In addition, Landlord shall construct the Tenant Improvements in accordance with Exhibit A attached hereto.

 

5.                                      Renewal Option.  Tenant shall have a personal and non-transferable option (other than to an Affiliate) to renew the term of the Lease for one (1) term of five (5) years.  Such renewal term shall begin the first day following the expiration of the Extended Term.  Tenant shall have the right to exercise the renewal option conferred herein by giving Landlord notice at least three hundred (300) days prior to the expiration of the Extended Term; provided that, at the time of exercise and as of the commencement of the renewal term (a) no Event of Default is then existing; (b) Tenant has not assigned this Lease (other than to an Affiliate) or (c) Tenant has not sublet more than 8,600 rentable square feet of the Premises (other than to an Affiliate).

 

The renewal option shall be subject to all of the terms and conditions contained in the Lease, except that Annual Rent during the renewal term shall be at Market Rent, but in no event less than the Annual Rent in effect immediately preceding the renewal term.  “Market Rent” shall be the anticipated rate in effect for the Premises as of the commencement of the renewal term, together with any market rate increases during the renewal term, based upon the rents generally in effect for leases of space in the area in which the Building is located of equivalent quality, size, utility and location, and taking into account all relevant factors.  Landlord shall lease the Premises to

 

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Tenant in their then-current condition, and Landlord shall not provide to Tenant any allowances (e.g., moving allowance, construction allowance, free rent or the like) or other tenant inducements and such shall be taken into account in determining Market Rent.  In the event that Tenant shall exercise an option to renew the Lease, then the parties shall endeavor to agree upon Market Rent at least ninety (90) days prior to the expiration of the Extended Term.  If the parties are able to agree on an amount of Market Rent that is mutually satisfactory, then such agreements shall be placed in writing and shall be signed by the parties hereto and shall thereupon become a part of the Lease.

 

If the parties hereto are unable to agree upon the Market Rent at least ninety (90) days prior to the expiration of the Extended Term, then the disagreement shall be promptly submitted to arbitration.  In such event, each party shall select an independent arbitrator having not less than ten (10) years’ actual experience in the commercial real estate brokerage business at least sixty (60) days prior to the expiration of the Extended Term, and the arbitrators so selected shall immediately meet for the purpose of determining Market Rent for the renewal option.  If the two arbitrators selected agree on Market Rent, their decision shall be binding on both parties.  If the two arbitrators selected cannot agree on the Market Rent within ten (10) business days after appointment (the “Initial Review Period”), but the rates differ by less than five percent (5%), the Market Rent shall be the average of the two rates.  If the rates differ by more than five percent (5%), no later than five (5) business days following the expiration of the Initial Review Period, the two arbitrators shall select a third arbitrator with qualifications similar to their own.  Within ten (10) business days following appointment, the third arbitrator shall select one of the two rental rates promulgated by the first two arbitrators which such third arbitrator believes most accurately reflects the Market Rent.  If the arbitrators cannot agree on the third arbitrator, they shall request the Boston Bar Association (or such organization as may succeed to the Boston Bar Association) to designate the third arbitrator willing so to act and the arbitrator so appointed shall, for all purposes, have the same standing and powers as though he or she had been seasonably appointed by the brokers first appointed.  The decision of the third arbitrator shall be binding on both parties.  Landlord and Tenant shall each be responsible to pay their respective arbitrators and will share equally the cost of the third arbitrator.

 

Failure of Tenant to properly exercise the rights herein granted in this Section 5 shall be construed as a waiver of the rights herein granted in this Section 5, and the Lease shall then terminate at the expiration of the Extended Term.

 

6.                                      Termination Option.  Provided no Event of Default exists at the time of such election, Tenant shall have a one-time right to terminate the Lease effective as of September 1, 2019.  To exercise such option:

 

(a)                                 Tenant must deliver Landlord written notice no later than September 1, 2018 stating that Tenant elects to exercise the Termination Option (“Tenant’s Termination Notice”); and

 

(b)                                 Not later than July 1, 2019, Tenant shall pay to Landlord a termination fee equal to $75,933.00 (the “Termination Fee”), such amount representing the unamortized portion of $221,475.00 (the “Landlord’s Second Amendment Costs”) as of August 31, 2019 for costs incurred by Landlord with respect to this Amendment for the Allowance ($100,000.00) and

 

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commissions paid to the Brokers ($121,475.00), which amortization is based upon a sixty (60) month term at an annual rate of interest of eight percent (8%).  In the event the entire Allowance is not used for Tenant Improvements or a credit against Annual Rent, as set forth in the Work Letter attached hereto as Exhibit A, Landlord’s Second Amendment Costs shall be recalculated using the actual amount of the Allowance so used and the $121,475.00 paid as commissions to the Brokers and the Termination Fee shall be recalculated based on the amortization of such recalculated Landlord’s Second Amendment Costs over a term of sixty (60) months using an annual rate of interest of eight percent (8%).

 

7.                                      Security Deposit.  Section 5 of the Lease shall expressly remain in full force and effect with regard to the Extended Term (and any renewal term), except that (i) the term End Date, as defined in Section 5.2.3 of the Lease shall mean the date which is three (3) months following the expiration of the Extended Term (or any renewal term), and (ii) the Security Deposit shall be reduced to $31,354.16.  Landlord shall reasonably cooperate, at no cost to Landlord, with Tenant and the issuer of the letter of credit presently held by Landlord in amending such letter of credit to reflect the amount of the Security Deposit as reduced hereby.

 

8.                                      No Defenses.  Tenant affirms that, as of the date of execution of this Amendment: (a) all tenant improvements to be constructed by Landlord prior to the date of this Amendment, if any, are complete and Tenant has accepted the Premises in “as is, where is” condition as of the date of this Amendment; and (b) Landlord has fully funded or Tenant has waived any unfunded tenant improvement allowances payable under the Lease.

 

9.                                      Broker.  (a) Tenant represents to Landlord that except for CBRE, Inc.  representing Landlord and Cushman & Wakefield representing Tenant (collectively, the “Brokers”), Tenant has not dealt with any real estate broker, salesperson or finder in connection with this Amendment, and no other such person initiated or participated in the negotiation of this Amendment or is entitled to any commission in connection herewith.  Tenant hereby agrees to indemnify, defend and hold Landlord, its property manager and their respective employees harmless from and against any and all liabilities, claims, demands, actions, damages, costs and expenses (including attorneys fees) arising from either (a) a claim for a fee or commission made by any broker, other than the Brokers, claiming to have acted by or on behalf of Tenant in connection with this Amendment, or (b) a claim of, or right to lien under the statutes of the state in which the Premises are located relating to real estate broker liens with respect to any such broker retained by Tenant (other than the Brokers).

 

(b)                                 Landlord represents to Tenant that except for the Brokers, Landlord has not dealt with any real estate broker, salesperson or finder in connection with this Amendment, and no other such person initiated or participated in the negotiation of this Amendment or is entitled to any commission in connection herewith.  Landlord hereby agrees to indemnify, defend and hold Tenant and its respective employees harmless from and against any and all liabilities, claims, demands, actions, damages, costs and expenses (including attorneys’ fees) arising from either (a) a claim for a fee or commission made by any broker, other than the Brokers, claiming to have acted by or on behalf of Landlord in connection with this Amendment, or (b) a claim of, or right to lien under the statutes of the state in which the Premises are located relating to real estate broker liens with respect to any such broker retained by Landlord.  Landlord shall be responsible for fees and commissions due to the Brokers in connection with this Amendment.

 

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10.                               Submission.  Submission of this Amendment by Landlord to Tenant for examination and/or execution shall not in any manner bind Landlord and no obligations on Landlord shall arise under this Amendment unless and until this Amendment is fully signed and delivered by Landlord and Tenant; provided, however, the execution and delivery by Tenant of this Amendment to Landlord shall constitute an irrevocable offer by Tenant of the terms and conditions herein contained, which offer may not be revoked for ten (10) days after such delivery.

 

11.                               Signage.  Tenant shall be permitted, at Tenant’s expense, to erect one (1) exterior  sign on the front façade of the Building containing Tenant’s name and/or logo subject to Landlord’s prior approval of size, location, design and method of installation, which approval shall not be unreasonably withheld, conditioned or delayed.  Such right shall be non-exclusive.  Tenant shall be responsible for obtaining all necessary permits and approvals therefor, and Landlord agrees to reasonably cooperate with Tenant’s efforts in seeking the same, at no cost to Landlord.  Upon the expiration or earlier termination of the term of the Lease, Tenant shall, at its sole cost and expense, remove such façade signage and repair any damage caused by such removal.

 

12.                               Miscellaneous.

 

(a)                                 Time of Essence.  Time is of the essence of this Amendment and each and every term and provision hereof.

 

(b)                                 Modification.  A modification of any provision herein contained, or any other amendment to this Amendment, shall be effective only if the modification or amendment is in writing and signed by both Landlord and Tenant.

 

(c)                                  Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

(d)                                 Number and Gender.  As used in this Amendment, the neuter includes masculine and feminine, and the singular includes the plural.

 

(e)                                  Construction.  Headings at the beginning of each Section and subsection are solely for the convenience of the parties and are not a part of this Amendment.  Except as otherwise provided in this Amendment, all exhibits referred to herein are attached hereto and are incorporated herein by this reference.  Unless otherwise indicated, all references herein to Articles, Section, subsections, paragraphs, subparagraphs or provisions are to those in this Amendment.  Any reference to a paragraph or Section herein includes all subparagraphs or subsections thereof.  This Amendment shall not be construed as if it had been prepared by only Landlord or Tenant, but rather as if both Landlord and Tenant had prepared the same.  In the event any portion of this Amendment shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed from this Amendment, and the remaining parts hereof shall remain in full force and effect, as fully as though such invalid, illegal or unenforceable portion had never been part of this Amendment.

 

(f)                                   Integration of Other Agreements.  This Amendment, the Lease and prior amendments set forth the entire agreement and understanding of the parties with respect to the matters set forth herein and supersedes all previous written or oral understandings, agreements,

 

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contracts, correspondence and documentation with respect thereto.  Any oral representation or modifications concerning this Amendment shall be of no force or effect.

 

(g)                                  Duplicate Originals; Counterparts.  This Amendment may be executed in any number of duplicate originals, all of which shall be of equal legal force and effect.  Additionally, this Amendment may be executed in counterparts, but shall become effective only after a counterpart hereof has been executed by each party; all said counterparts shall, when taken together, constitute the entire single agreement between parties.

 

(h)                                 No Waiver.  No failure or delay of either party in the exercise of any right given to such party hereunder shall constitute a waiver thereof unless the time specified herein for exercise of such right has expired, nor shall any single or partial exercise of any right preclude other or further exercise thereof or of any other right.  No waiver by any party hereto of any breach or default shall be considered to be a waiver of any other breach or default.  The waiver of any condition shall not constitute a waiver of any breach or default with respect to any covenant, representation or warranty.

 

(i)                                     Further Assurances.  Landlord and Tenant each agree to execute any and all other documents and to take any further actions reasonably necessary to consummate the transactions contemplated hereby.

 

(j)                                    No Third Party Beneficiaries.  Except as otherwise provided herein, no person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Amendment, (either expressed or implied) is intended to confer upon any person or entity, other than Landlord and/or Tenant (and their respective nominees, successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Amendment.

 

(k)                                 Full Force and Effect.  The Lease, as amended hereby, shall continue in full force and effect, subject to the terms and provisions thereof and hereof.  In the event of any conflict between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall control.

 

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IN WITNESS WHEREOF, this Amendment is executed as of the day and year aforesaid.

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
GIJV MA 2, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Barry P. Marcus, Senior Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
AUSHON BIOSYSTEMS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Printed Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    
					

 

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EXHIBIT A

 

WORK LETTER

 

This Work Letter (this “Work Letter”) is attached to and made a part of that certain Second Amendment to Lease (the “Amendment”), between GIJV MA 2, LLC (“Landlord”), and AUSHON BIOSYSTEMS, INC. (“Tenant”).  The terms used in this Work Letter that are defined in the Amendment shall have the same meanings as provided in the Amendment.

 

1.                                      Definitions.

 

(a)                                 “Allowance” shall mean a one-time tenant improvement allowance in an amount not to exceed $100,000.00.

 

(b)                                 “Approved Working Drawings” shall mean the plans attached hereto as Exhibit A-1.

 

(c)                                  “Excess Costs” shall mean the Total Construction Costs (as defined below) in excess of the Allowance.

 

(d)                                 “Substantial Completion” of the Premises shall occur upon the completion of construction of the Tenant Improvements in the Premises pursuant to the Approved Working Drawings, with the exception of any punchlist items and any tenant fixtures, work-stations, built-in furniture, or equipment to be installed by Tenant.  Substantial Completion shall have occurred even though (a) minor details of construction, decoration, landscaping or mechanical adjustments remain to be completed and/or b) there is a delay in the Substantial Completion of the Premises due to a “Tenant Delay” as defined below.

 

(e)                                  “Tenant Delay” shall mean each day of delay in the performance of the work that occurs because of (i) Tenant’s failure to timely deliver or approve any required documentation; (ii) any change by Tenant to the Approved Working Drawings; (iii) any specification by Tenant of materials or installations in addition to or other than Landlord’s standard finish-out materials or Tenant’s requirement for materials, components, finishes or improvements that are not available in a commercially reasonable time; (iv) postponement of any work at the request of Tenant; (v) the failure by Tenant’s architect, space planner or other agent or contractor, to timely prepare plans, pull permits, provide approvals or perform any other act required hereunder; (vi) the failure of Tenant to pay, when due, any amounts required to be paid by Tenant; (vii) Tenant’s failure to attend any meeting with Landlord, any architect, design professional, or any contractor, or their respective employees or representatives, as may be required or scheduled hereunder or otherwise necessary in connection with the preparation or completion of any construction documents, such as the Approved Working Drawings, or in connection with the performance of any work; (viii) a breach by Tenant of this Exhibit or the Lease; (ix) changes in any of the Approved Working Drawings because the same do not comply with Laws (if the same were prepared by Tenant); and (x) any other acts or omissions of Tenant.

 

(f)                                   “Tenant Improvements” shall mean the improvements to the Premises shown on Exhibit A-1 and described on Exhibit A-2, as well as the Bathroom Work, if any, as described below.

 

 

(g)                                  “Tenant’s Representative” shall mean Susan Keefe, who Tenant has appointed as its representative with full power and authority to bind Tenant for all actions taken with regard to the Tenant Improvements.  Tenant hereby ratifies all actions and decisions with regard to the Tenant Improvements that the Tenant’s Representative may have taken or made prior to the execution of this Work Letter.  Landlord shall not be obligated to respond to or act upon any plan, drawing, change order or approval or other matter relating to the Tenant Improvements until it has been executed by Tenant’s Representative or a senior officer of Tenant.  Neither Tenant nor Tenant’s Representative shall be authorized to direct Landlord’s general contractor with respect to the Tenant Improvements, unless otherwise agreed to in writing by Landlord.

 

(h)                                 “Total Construction Costs” shall mean the entire cost of constructing the Tenant Improvements, including space planning and preparation of the Approved Working Drawings, labor and materials, electrical and other utility usage during construction, additional janitorial services, trash removal, general tenant signage, related taxes and insurance costs, the fees of any construction managers and an administrative fee to Landlord in the amount of 3% of Total Construction Costs.  If applicable, the costs of the Bathroom Work shall be included in Total Construction Costs.

 

2.                                      Allowance and Excess Costs Deposit.

 

(a)                                 Provided no Event of Default has occurred, Landlord shall provide an amount up to the Allowance to be applied toward Total Construction Costs.  The Allowance must be used within fifteen (15) months following the date of full execution of this Amendment or shall be deemed forfeited with no further obligation by Landlord with respect thereto.  All Tenant Improvements for which the Allowance has been made available shall be deemed Landlord’s property.  Tenant shall not be entitled to use any portion of the Allowance for anything other than Tenant Improvements, except that Tenant may apply an unused portion of the Allowance up to $20,000.00 as a credit against Annual Rent, as such amount come due.

 

(b)                                 In no event shall Landlord be obligated to make disbursements with respect to the Tenant Improvements in an amount that exceeds the Allowance.  The Allowance shall not be disbursed to Tenant, but shall be applied by Landlord to the payment of the Total Construction Costs, if, as, and when the cost of the Tenant Improvements is actually incurred.

 

(c)                                  To the extent the Excess Costs have been determined and approved as provided herein, then within fifteen (15) days after Landlord notifies Tenant that the entire Allowance has been disbursed, Tenant shall deliver to Landlord cash in the amount equal the Excess Costs (the “Excess Costs Deposit”).  In the event that after such deposit by Tenant, any revisions, changes, or substitutions shall be made to the Tenant Improvements at the request of Tenant (“Tenant Change Orders”), Tenant shall pay any additional costs that arise in connection with such revisions, changes or substitutions to Landlord within ten (10) days of Landlord’s request as an addition to the Excess Costs Deposit.  Landlord may not use the Excess Costs Deposit for any purpose other than funding the Excess Costs.

 

(d)                                 Landlord shall disburse the Allowance prior to the Excess Costs Deposit.

 

 

3.                                      Punchlist.  Landlord will notify Tenant when Landlord considers Substantial Completion to have occurred.  Within three (3) business days thereafter, Landlord’s representative and Tenant’s representative shall conduct a walk-through of the Premises and identify any necessary touch-up work, repairs and minor completion items that are necessary for final completion of the Tenant Improvements (the “Punchlist Items”).  Neither Landlord’s representative nor Tenant’s representative shall unreasonably withhold his or her agreement on Punchlist Items.  Landlord shall use reasonable efforts to complete all Punchlist Items within thirty (30) days after agreement thereon; however, Landlord shall not be obligated to engage overtime labor in order to complete such items.  Landlord hereby acknowledges and agree that Landlord shall be responsible, at its sole cost and expense, for the repair or replacement of any defects in the original construction of the Landlord’s Work, the Tenant Improvements or the Bathroom Work which are discovered within one (1) year of the Substantial Completion of such respective work.

 

4.                                      Miscellaneous.

 

(a)                                 Unless otherwise indicated, all references herein to a “number of days” shall mean and refer to calendar days.  If any item requiring approval is timely disapproved by Landlord, the procedure for preparation of the document and approval thereof shall be repeated until Landlord approves the document.

 

(b)                                 Notwithstanding any provision to the contrary contained in this Amendment, if an Event of Default has occurred at any time prior to Substantial Completion, then (i) in addition to all other rights and remedies granted to Landlord pursuant to the Lease, Landlord shall have the right to cause the contractor to cease the construction of the Premises (in which case, Tenant shall be responsible for any delay in Substantial Completion caused by such work stoppage); and (ii) all other obligations of Landlord under the terms of this Exhibit shall be suspended until such time, if any, as such Event of Default may be cured.

 

5.                                      Bathroom Work.

 

(a)                                 Landlord agrees to perform certain cosmetic improvements to the bathrooms serving the Premises (the “Bathroom Work”) as requested by Tenant, at Tenant’s sole cost and expense (but subject to application of any remaining portion of the Allowance).

 

6.                                      Cost Proposal.  Landlord shall provide Tenant with a reasonably detailed cost proposal in accordance with the Approved Working Drawings, which cost proposal shall include, as nearly as possible, the cost of the Total Construction Costs to be incurred in connection with the Tenant Improvements (“Cost Proposal”).  Tenant shall notify Landlord whether it approves the Cost Proposal within seven (7) business days after Landlord’s submission thereof.  If Tenant disapproves of the Cost Proposal, then Tenant shall notify Landlord thereof specifying in reasonable detail the revisions to the Approved Working Drawings to achieve the necessary cost savings.  If Tenant fails to notify Landlord that it disapproves of the Cost Proposal within seven (7) business days after the submission thereof, then Tenant shall be deemed to have approved the Cost Proposal as submitted.

 

7.                                      Construction.  Landlord shall construct the Tenant Improvements in accordance with the Approved Working Drawings and in compliance with all applicable laws, ordinances and

 

 

regulations.  Landlord shall use commercially reasonable efforts to achieve Substantial Completion of the Tenant Improvements and the Bathroom Work within ninety (90) days of the date of this Amendment.  Tenant shall have no obligation to remove the Tenant Improvements at the expiration of the Term of the Lease.  In the event Landlord fails to substantially complete the Landlord’s Work, Tenant Improvements and the Bathroom Work by the date which is one hundred twenty (120) days following the date of full execution of this Amendment (the “Outside Date”) and such delay is not caused by Tenant Delay or an event of force majeure, Tenant shall be entitled to have one (1) day of 50% abatement of daily Annual Rent for each day between the Outside Date and the date upon which the Landlord Work, Tenant Improvements and Bathroom Work are substantially completed.  Such abatement shall commence after the expiration of the period for which the Conditional Rent is applicable (December 1, 2015 through February 29, 2016).

 

8.                                      Occupancy During Tenant Improvements.  Tenant hereby acknowledges that the Tenant Improvements may be performed while Tenant is occupying the Premises.  Tenant hereby acknowledges and agrees that Landlord shall not be liable for any inconvenience to Tenant or for interference with Tenant’s business or use of the Premises during the performance of the Tenant Improvements, provided that Landlord shall utilize commercially reasonable efforts not to disrupt the operation of Tenant’s business.  Landlord shall provide reasonable advance notice of the date of performance of any elements of the Tenant Improvement requiring Tenant to temporarily vacate a portion of the Premises and the expected duration of such temporary vacation.  Landlord shall coordinate and schedule the performance of the Tenant Improvements with the input of Tenant so as to minimize the disruption of Tenant’s business operations, provided that in no event shall Landlord be required to perform the Tenant Improvements outside of normal business hours.  Tenant and its employees, invitees, agents and contractors may use the Premises during the performance of the Tenant Improvement at their own risk, and Landlord shall not be responsible for injury or damage to property occasioned by the performance of the Tenant Improvements unless same is due to Landlord’s negligence or willful misconduct.  During the performance of the Bathroom Work, Landlord shall endeavor to maintain at least one men’s restroom and one’s women’s restroom in full operating condition.

 

 

EXHIBIT A-1

 

 

 

EXHIBIT A-2

 

 

Note — all cubicles in the Premises are to remain places during the performance of the Tenant Improvements.sail-ex103_325.htm

Exhibit 10.3

 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

 

This SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this “Agreement”) is made and entered into as of November 21, 2017, by and among SAILPOINT TECHNOLOGIES, INC., a Delaware corporation, as Company, SAILPOINT TECHNOLOGIES INTERMEDIATE HOLDINGS, LLC, a Delaware limited liability company, as a Guarantor, the other Credit Parties party hereto, the Lenders party hereto and GOLDMAN SACHS BANK USA (“GSB”), as Administrative Agent (in such capacity, “Administrative Agent”).

WHEREAS, Company, the other Credit Parties party thereto from time to time, the Lenders party thereto from time to time and GSB, as Administrative Agent, Collateral Agent and Lead Arranger, are party to that certain Amended and Restated Credit and Guaranty Agreement, dated as of November 2, 2016 (as amended by that certain First Amendment to Amended and Restated Credit and Guaranty Agreement, dated as of June 28, 2017, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), whereby Lenders have extended to Company certain credit facilities pursuant to the Credit Agreement and the other Credit Documents;

WHEREAS, Company has requested that Administrative Agent and Lenders make certain amendments to the Credit Agreement; and

WHEREAS, Administrative Agent and the Lenders are willing to make such amendments subject to the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.Definitions. All capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Credit Agreement, after giving effect to this Agreement.

2.Amendments. Subject to the terms and conditions set forth herein, and in reliance on the representations, warranties, covenants and agreements contained in this Agreement:

	
(a)
	
Section 1.1 of the Credit Agreement is hereby amended by deleting the defined terms “Applicable Margin”, “Change of Control”, “Fee Letter” and “Subject Transaction” in their entirety and inserting the following in lieu thereof in the proper alphabetical order:
	
 

“Applicable Margin” means (a) for any applicable periods prior to the First Amendment Effective Date, the Applicable Margin (as defined in this Agreement prior to the First Amendment Effective Date), (b) for the period beginning on the First Amendment Effective Date and ending on, but not including, the Second Amendment Effective Date, (i) seven percent (7.00%) for LIBOR Rate Loans and (ii) six and one-half percent (6.50%) for Base Rate Loans and (c) for the period from and after the Second Amendment Effective Date, (i) four and one- half percent (4.50%) for LIBOR Rate Loans and (ii) four percent (4.00%) for Base Rate Loans.

 

 

 

“Change of Control” means, at any time, (a) any Person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) other than the Permitted Investors (I) shall have acquired beneficial ownership of twenty-five percent (25%) or more on a fully diluted basis of the, direct or indirect, voting and/or economic interest in the Capital Stock of Parent or Holdings or (II) shall have obtained the power (whether or not exercised) to elect a majority of the members of the board of directors (or similar governing body) of Parent or Holdings; (b) Holdings shall cease to beneficially own and control, directly or indirectly, 100% on a fully diluted basis of the economic and voting interest in the Capital Stock of Company; or (c) except pursuant to a transaction permitted by Section 6.9, Company shall cease to beneficially own and control, directly or indirectly, 100% on a fully diluted basis of the economic and voting interests in the Capital Stock of its Subsidiaries.

“Fee Letter” means the second amended and restated letter agreement regarding certain fees and dated as of the Second Amendment Effective Date between Company and Administrative Agent.

“Subject Transaction” as defined in Section 6.8(f).

	
(b)
	
Section 1.1 of the Credit Agreement is hereby further amended by inserting the new defined terms “Auditor”, “Qualified IPO” and “Second Amendment Effective Date” in the proper alphabetical order as follows:
	
 

“Auditor” as defined in Section 5.1(c).

“Qualified IPO” means an initial public offering by Parent of its Capital Stock pursuant to a registration statement filed with the Securities and Exchange Commission in accordance with the Securities Act and other applicable law, the total net cash proceeds received by Parent as a result of which are at least $100,000,000.

“Second Amendment Effective Date” means November 21, 2017.

	
(c)
	
Section 1.1 of the Credit Agreement is hereby further amended by deleting each of the following terms: “Fixed Charge Coverage Ratio” and “RNR”.
	
 

	
(d)
	
Section 1.1 of the Credit Agreement is hereby further amended by (i) deleting the brackets and words “[intentionally reserved]” in clause (a)(ix) of the definition of the term “Consolidated Adjusted EBITDA” and (ii) inserting in lieu thereof the following:
	
 

(ix) payments actually made to or on behalf of Holdings or Parent for (A) out- of-pocket legal, accounting, filing costs and other overhead expenses, in any case under this clause (A), to the extent (I) actually incurred in the ordinary course of business and paid to non-Affiliates for the benefit of Company and its Subsidiaries or otherwise actually related to Holdings’ or Parent’s ownership of Company and its Subsidiaries, and (II) not exceeding $250,000 in the aggregate in any trailing twelve month period, and (B) director fees, expenses and indemnities actually incurred in the ordinary course of business and paid to directors of Holdings or Parent, to the extent not exceeding $350,000 in the aggregate in any trailing twelve month period;

 

 

 

	
(e)
	
Section 2.13(i) of the Credit Agreement is hereby amended by deleting the existing text of such Section in its entirety and by inserting, in lieu thereof, the following text:
	
 

	
 
	
(i)
	
Receipt of IPO Proceeds. On the date of receipt by Parent, any Credit Party or any of their respective Subsidiaries of any net proceeds of an initial public offering of Parent, any such Credit Party or any of their respective Subsidiaries, including, for clarity, from a Qualified IPO, Company shall prepay the Loans and/or the Revolving Commitments shall be permanently reduced as set forth in Section 2.14(b) in the amount equal to one hundred percent (100%) of such proceeds. Notwithstanding anything to the contrary set forth in the Credit Documents (including, without limitation, the immediately preceding sentence and Section 2.14(b)), the Company shall prepay with the proceeds of the Qualified IPO the Loans and certain other Obligations on the Second Amendment Effective Date, as follows:
	
 

 

first, the Company shall pay all fees and all expenses due and payable to the Agents as specified in Section 10.2, to the full extent thereof; and

 

second, the Company shall pay (i) to each Lender holding a Term Loan (other than Goldman Sachs Bank USA) or any outstanding Revolving Loans (other than Goldman Sachs Bank USA), an amount equal to the sum of (A) 100% of the aggregate outstanding principal amount of, and accrued interest and any premium on, the Term Loan and the outstanding Revolving Loans held by each such Lender (without a corresponding reduction of any Revolving Commitments with respect thereto), and (B) any and all other Obligations due and payable to each such Lender and (ii) to Goldman Sachs Bank USA, solely in its capacity as a Lender holding a Term Loan, an amount equal to the sum of (A) the amount necessary to reduce the aggregate outstanding principal amount of its Term Loan to $70,000,000, (B) all accrued interest and any premium due and payable on the principal amount required to be prepaid pursuant to clause (ii)(A) and (C) all other Obligations due and payable as a result of such prepayment. For clarity, any remaining proceeds of the applicable Qualified IPO, after the payments referenced above are made, shall be retained by the Credit Parties.

 

	
(f)
	
Section 5.1(b) of the Credit Agreement is hereby amended by deleting the existing text of such Section in its entirety and by inserting, in lieu thereof, the following text:
	
 

 

(b) Quarterly Financial Statements. (i) If  Holdings is required to file a Form 10-Q under the Exchange Act, a copy of the Form 10-Q of Holdings, within 2 Business Days after the date on which Holdings files or is required to file its Form 10-Q under the Exchange Act (after giving effect to any extension pursuant to Rule 12b-25 under the Exchange Act (or any successor rule)) and, unless otherwise included in such Form 10-Q, comparative form figures for the preceding Fiscal Year or (ii) if Holdings is not required to file a Form 10-Q under the Exchange Act, within forty-five (45) days after the end of each Fiscal Quarter of each Fiscal Year (including the fourth Fiscal Quarter), the unaudited consolidated and consolidating balance sheets of Holdings and its Subsidiaries as at the end of such Fiscal Quarter and the related consolidated (and with respect to

 

 

 

statements of income, consolidating) statements of income, stockholders’ equity and cash flows of Holdings and its Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal Quarter, setting forth in each case in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year and the corresponding figures from the Financial Plan for the current Fiscal Year, all in reasonable detail and in Microsoft Excel format, together with a Financial Officer Certification;

 

(g)Section 5.1(c) of the Credit Agreement is hereby amended by deleting the existing text of such Section in its entirety and by inserting, in lieu thereof, the following text:

 

(c)     Annual Financial Statements.  (i) If Holdings is required to file a Form 10- K under the Exchange Act, a copy of the Form 10-K of Holdings, within 2 Business Days after the date on which Holdings files or is required to file its Form 10-K under the Exchange Act (after giving effect to any extension pursuant to Rule 12b-25 under the Exchange Act (or any successor rule)) and, unless the audit report and opinion of an Auditor (as defined below) in such Form 10-K satisfies the requirements of clauses (b)(I) and (II) of Section 5.1(c)(ii) below, a report and opinion of an Auditor which satisfies such requirements or (ii) if Holdings is not required to file a Form 10-K under the Exchange Act, within one hundred twenty (120) days after the end of each Fiscal Year, (a) the consolidated and consolidating balance sheets of Holdings and its Subsidiaries as at the end of such Fiscal Year and the related consolidated (and with respect to statements of income, consolidating) statements of income, stockholders’ equity and cash flows of Holdings and its Subsidiaries for such Fiscal Year, setting forth in each case in comparative form the corresponding figures for the previous Fiscal Year and the corresponding figures from the Financial Plan for the Fiscal Year covered by such financial statements, in reasonable detail and in Microsoft Excel format, together with a Financial Officer Certification with respect thereto; and (b) with respect to such consolidated financial statements a report thereon of Grant Thornton LLP or other independent certified public accountants of recognized national standing selected by Holdings and reasonably satisfactory to Administrative Agent; it being agreed that any “Big Four” accounting firm shall be reasonably acceptable to the Administrative Agent (such auditor, the “Auditor”), which report (I) shall be unqualified as to going concern and scope of audit (other than with respect to an upcoming maturity date of any Loan), and (II) shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of Holdings and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements) and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards;

 

	
(h)
	
Section 6.5 of the Credit Agreement is hereby amended by adding the following new clause (i) thereto (immediately following the end of clause (h) thereof):
	
 

 

 

 

; and (i) from and after the consummation of a Qualified IPO, the payment of any Restricted Junior Payment (including the consummation of any irrevocable redemption) within sixty (60) days after the date of the declaration of such Restricted Junior Payment (or the giving of the applicable redemption notice, as the case may be), as long as at the date of such declaration or notice, as the case may be, the Restricted Junior Payment would have been permitted under this Agreement.

 

	
(i)
	
Section 6.8(b) of the Credit Agreement is hereby amended by deleting the existing text of such Section in its entirety and by inserting, in lieu thereof, the following text:
	
 

 

(b) Leverage Ratio Holdings shall not permit the Leverage Ratio as of the last day of any Fiscal Quarter, beginning with the first Fiscal Quarter ending after the Second Amendment Effective Date, to exceed the correlative ratio indicated:

 

		
	
Fiscal Quarter
	
Leverage Ratio

	
For each of such Fiscal Quarters ending on or

before December 31, 2018
	
3.00:1.00

	
For each oftheFiscal Quarters ending

thereafter
	
2.50:1.00

 

	
(j)
	
Sections 6.8(a), 6.8(c), 6.8(d) and 6.8(e) to the Credit Agreement are hereby deleted in their entirety and replaced, in each case, with “[Intentionally Reserved]”.
	
 

 

	
(k)
	
Section 6.8(f) of the Credit Agreement is hereby amended by deleting the existing text of such Section in its entirety and by inserting, in lieu thereof, the following text:
	
 

 

(f) Certain Calculations. With respect to any period during which a Permitted Acquisition or an Asset Sale has occurred (each, a “Subject Transaction”), for purposes of determining compliance with the financial covenant set forth in this Section 6.8, Consolidated Adjusted EBITDA (and, as applicable, Cash EBITDA) shall be calculated with respect to such period on a pro forma basis (including pro forma adjustments approved by Administrative Agent in its sole discretion) using the historical audited financial statements for the fiscal year then most recently ended of any business so acquired or to be acquired or sold or to be sold and the consolidated financial statements of Holdings and its Subsidiaries which shall be reformulated as if such Subject Transaction, and any Indebtedness incurred or repaid in connection therewith, had been consummated or incurred or repaid at  the beginning of such period (and assuming that such Indebtedness bears interest during any portion of the applicable measurement period prior to the relevant acquisition at the weighted average of the interest rates applicable to outstanding Loans incurred during such period).

3.Delivery. On the date hereof, the Company shall deliver to the Administrative Agent a revised Schedule 4.2 reflecting the capital structure of the Company and Holdings after giving effect to the Qualified IPO.

 

 

 

4.Consent; Assignment. For the avoidance of doubt, each Lender hereby consents to the order and manner (including, without limitation, the non-pro rata application of payments) in which the Loans and other Obligations will be paid on the Second Amendment Effective Date as a result of the consummation by Parent of a Qualified IPO as set forth in the second sentence of Section 2.13(i) of the Credit Agreement (as amended hereby). In addition, each Lender (other than Goldman Sachs Bank USA) with a Revolving Commitment agrees that, on and as of the Second Amendment Effective Date, after receipt of the amounts owing to such Lender under Section 2.13(i) (including payment in full of all Term Loans and Revolving Loans owing to such Lender as of such date), such Lender shall execute an Assignment Agreement in accordance with Section 10.6 of the Credit Agreement in favor of Goldman Sachs Bank USA transferring such Lender’s Revolving Commitment as of such date to Goldman Sachs Bank USA. Each Lender further agrees that the provisions of this Section 4 shall be binding on any successor or assignee to such Lender.

5.Acknowledgements and Agreements. The Credit Parties, as a material inducement to Administrative Agent and the Lenders to enter into this Agreement, hereby reaffirm and ratify the Credit Documents. This Agreement is not intended, and shall not be construed as an amendment of, or any kind of extension, consent or waiver related to any transaction under, the Credit Agreement or any other Credit Document, other than as expressly set forth herein in accordance with the express terms hereof, and Agents, Lenders and Issuing Bank accordingly reserve all of their respective rights under the Credit Agreement and the other Credit Documents. Administrative Agent’s and Lenders’ making the amendments contained herein does not and shall not create (nor shall Company or any other Credit Party rely on the existence of or claim or assert that there exists) any obligation of any Agent, Lender or Issuing Bank to consider or agree to any further waivers, consents or amendments and, in the event that Agents, Lenders or Issuing Bank subsequently agree to consider any further waivers, consents or amendments, neither this Agreement nor any other conduct of any Agent, Lender or Issuing Bank shall be of any force or effect on any Agent’s, Lender’s or Issuing Bank’s consideration or decision with respect thereto, and Agents, Lenders and Issuing Bank shall have no obligation whatsoever to consider or agree to any further waivers, consents or amendments.

6.Representations, Warranties, Covenants and Acknowledgments. To induce Administrative Agent and the Lenders to enter into this Agreement, each Credit Party does hereby:

	
(a)
	
represent and warrant to Administrative Agent and the Lenders that (i) as of the date hereof, after giving effect to this Agreement, all of the representations and warranties made or deemed to be made under the Credit Documents are true and correct in all material respects, except to the extent that such representations and warranties specifically relate to an earlier date (in which case, such representations and warranties shall have been true and correct in all material respects as of such earlier date); (ii) as of the date hereof, there exists no Default or Event of Default under the Credit Agreement or any other Credit Document or would result from this Agreement becoming effective in accordance with its terms; (iii) each Credit Party has the power and is duly authorized to execute, deliver and perform this Agreement and perform under the Credit Agreement as amended by this Agreement; and (iv) each of this Agreement and the Credit Agreement, as amended by this Agreement, is the legal, valid and binding obligation of such Credit Party enforceable against such Credit Party in accordance with its terms, except as
	
 

 

 

 

may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability; and

	
(b)
	
reaffirm each of the agreements, covenants, indemnities and undertakings of such Credit Party set forth in the Credit Agreement and each other Credit Document to which it is a party and executed in connection therewith or pursuant thereto as if such Credit Party were making such agreements, covenants, indemnities and undertakings on the Second Amendment Effective Date; and
	
 

	
(c)
	
acknowledge and agree that no right of offset, defense, counterclaim, claim, cause of action or objection in favor of such Credit Party against any Agent, Issuing Bank or any Lender exists arising out of or with respect to (i) this Agreement, the Credit Agreement or any other Credit Document to which it is a party, or (ii) any other documents to which it is a party now or heretofore evidencing, securing or in any way relating to the foregoing; and
	
 

	
(d)
	
acknowledge and agree that this Agreement shall be deemed a “Credit Document” for all purposes under the Credit Agreement; and
	
 

	
(e)
	
neither this Agreement nor any document executed in connection hereof shall be deemed to constitute a refinancing, substitution or novation of the Credit Agreement, any Credit Document, the Obligations or any other obligations and liabilities thereunder.
	
 

7.Conditions Precedent to this Agreement.  The effectiveness of this Agreement is subject to the following conditions precedent:

 

	
(a)
	
Documents. Administrative Agent and the Lenders shall have received executed counterparts of the following, in each case, in form and substance reasonably satisfactory to Administrative Agent and the Lenders: (i) this Agreement; (ii) an Acknowledgement and Consent from Thoma Bravo, LLC, in the form attached hereto, (iii) the Fee Letter (as defined after giving effect to this Agreement), (iv) the Schedule required to be delivered under Section 3 above and (v) the Assignment Agreements from each applicable Lender, as set forth under Section 4 above (which, for clarity, may be delivered in escrow by such Lenders subject to receipt of the applicable payments under clause (c) below).
	
 

	
(b)
	
Expenses. Company shall pay Administrative Agent and the Lenders all of their reasonable and documented out of pocket costs and expenses in connection with this Agreement in accordance with the Credit Agreement (including, without limitation, all reasonable and documented out of pocket fees, expenses and disbursements of outside counsel to Administrative Agent and the Lenders).
	
 

	
(c)
	
Payoff.

(i)Each Lender (other than Goldman Sachs Bank USA) shall have received in cash the full amount of Obligations (including, without limitation, principal, interest, the Second Amendment Prepayment Premium (as defined in the Fee Letter (as defined after giving effect to this Agreement)), fees, expenses and other Obligations (other than un-asserted contingent indemnification obligations) owing to such Lender as of the Second Amendment Effective Date), as set forth in a written notice to Company delivered to Company one (1) Business Day prior to the Second Amendment Effective Date; and

 

 

 

(ii)Goldman Sachs Bank USA shall have received in cash the amount of Obligations (including, without limitation, principal, interest, the Second Amendment Prepayment Premium (as defined in the Fee Letter (as defined after giving effect to this Agreement)), fees, expenses and other Obligations) owing to Goldman Sachs Bank USA under the second sentence of Section 2.13(i) of the Credit Agreement on the Second Amendment Effective Date.

 

8.Effect; Relationship of Parties. Except as expressly modified hereby, the Credit Agreement and each other Credit Document shall be and remain in full force and effect, and shall constitute the legal, valid, binding and enforceable obligations of each Credit Party to Agents, Issuing Bank and Lenders, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability. The relationship of Agents, Issuing Bank and Lenders, on the one hand, and each Credit Party, on the other hand, has been and shall continue to be, at all times, that of creditor and debtor and not as joint venturers or partners. Nothing contained in this Agreement (or any instrument, document or agreement delivered in connection herewith), the Credit Agreement or any other Credit Document shall be deemed or construed to create a fiduciary relationship between or among the parties.

9.Release. In further consideration of Administrative Agent’s and Lenders’ execution of this Agreement, each Credit Party, individually and on behalf of its successors (including, without limitation, any trustees acting on behalf of such Credit Party and any debtor-in-possession with respect to such Credit Party), assigns, subsidiaries and Affiliates (collectively, the “Releasors”), hereby forever releases each Agent, each Issuing Bank and each Lender and their respective successors, assigns, parents, subsidiaries, Affiliates, officers, employees, directors, agents and attorneys (collectively, the “Releasees”) from any and all debts, claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of actions (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, whether known or unknown, whether matured or unmatured, whether fixed or contingent that such Releasor has or may have against the Releasees, or any of them, which arise from or relate to any actions which the Releasees, or any of them, have or may have taken or omitted to take in connection with the Credit Agreement or the other Credit Documents prior to the date hereof (including, without limitation, with respect to the Obligations, any Collateral, the Credit Agreement, any other Credit Document) and any third parties liable in whole or in part for the Obligations. This provision shall survive and continue in full force and effect whether or not each Credit Party shall satisfy all other provisions of this Agreement or the other Credit Documents, including payment in full of all Obligations. Each Releasor understands, acknowledges and agrees that the foregoing 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. Each Credit Party hereby agrees to indemnify and hold  the  Releasees, or any of them, harmless with respect to any and all liabilities, obligations, losses, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever incurred by the Releasees, or any of them, whether direct, indirect or consequential, as a result of, arising from or relating to any proceeding by or on behalf of any Person, including, without limitation, officers, directors, agents, trustees, creditors, partners or shareholders of any Credit Party or any parent, subsidiary or Affiliate of any Credit Party, whether threatened or

 

 

 

initiated, asserting any claim for legal or equitable remedy under any statutes, regulation, common law principle or otherwise arising from or in connection with any matter which is the subject of the release set forth in this Section 9. The foregoing indemnity shall survive the payment in full of the Obligations and the termination of this Agreement and the other Credit Documents.

10.Miscellaneous. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts (any of which may be delivered via facsimile or electronic mail in portable document format), each of which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, when taken together, shall constitute one and the same Agreement. The exchange of copies of this Agreement and of signature pages hereto (and of the other documents required to be delivered hereunder) by facsimile or electronic mail in portable document format shall constitute effective execution and delivery of this Agreement (and such other documents) and may be used in lieu of the original Agreement (or in lieu of the original of such other documents) for all purposes. Signatures of the parties transmitted by facsimile or electronic mail in portable document format shall be deemed to be the parties’ original signatures for all purposes. This Agreement shall be binding upon and inure to the benefit of the successors and permitted assigns of the parties hereto. This Agreement shall be governed by, and construed and enforced according to, the laws of the State of New York without regard to conflict of law principles (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law) thereof. Each of the parties hereto accepts the non- exclusive jurisdiction of any state or federal court of competent jurisdiction in the State, County and City of New York for any judicial proceeding arising under or relating to this Agreement, to the full extent set forth in Section 10.15 of the Credit Agreement. Each of the parties hereto hereby agrees to waive its respective rights to a jury trial of any claim or cause of action based upon or arising under this Agreement, to the full extent set forth in Section 10.16 of the Credit Agreement. This Agreement embodies the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written negotiations, agreements and understandings of the parties with respect to the subject matter hereof.

 

[Remainder of Page Intentionally Blank]

 

 

 

IN WITNESS WHEREOF, the Credit Parties, Administrative Agent and the Lenders have caused this Agreement to be duly executed by their respective duly authorized representatives as of the date first set forth above.

 

SAILPOINT TECHNOLOGIES INC., as

Company

 

By: /s/J. Cameron McMartin_ Name: J. Cameron McMartin

Title: Chief Financial Officer

 

SAILPOINT TECHNOLOGIES INTERMEDIATE HOLDINGS, LLC, as a

Guarantor

 

By: /s/J. Cameron McMartin_ Name: J. Cameron McMartin

Title:Chief Financial Officer

 

SAILPOINT INTERNATIONAL, INC., as a

Guarantor

 

By: /s/J. Cameron McMartin_  Name: J. Cameron McMartin

Title:Treasurer

 

GOLDMAN SACHS BANK USA,
as Administrative Agent, a Lender and Issuing Bank

 

By: /s/Greg Watts
Name: Greg Watts

Title:Authorized Signatory

 

TPG SPECIALTY LENDING, INC.,
as a Lender 

 

By: /s/Robert Stanley
Name: Robert Stanley

Title:President

 

 

 

 

 

 

 

 

 

OAKTREE STRATEGIC INCOME CORPORATION,

as a Lender

 

By: Oaktree Capital Management, L.P. Its: Investment Adviser

By: /s/Mary Gallegly
Name: Mary Gallegly
Title: Vice President, Legal

By: /s/Martin Boskovich
Name: Martin Boskovich
Title: Managing Director

 

FS SENIOR FUNDING II LLC,

as a Lender

 

By: Oaktree Strategic Income Corporation Its: Designated Manager

 

By: Oaktree Capital Management, L.P. 
Its: Investment Adviser

By: /s/Mary Gallegly
Name: Mary Gallegly
Title: Vice President, Legal

By: /s/Martin Boskovich
Name: Martin Boskovich
Title: Managing Director

 

 

 

 

OAKTREE SPECIALTY LENDING CORPORATION,

as a Lender

 

By: Oaktree Capital Management, L.P. Its: Investment Adviser

By: /s/Mary Gallegly
Name: Mary Gallegly
Title: Vice President, Legal

By: /s/Martin Boskovich
Name: Martin Boskovich
Title: Managing Director

 

FS SENIOR FUNDING LTD.,

as a Lender

 

By: Oaktree Strategic Income Corporation Its: Manager

 

By: Oaktree Capital Management, L.P. Its: Investment Adviser

By: /s/Mary Gallegly
Name: Mary Gallegly
Title: Vice President, Legal

By: /s/Martin Boskovich
Name: Martin Boskovich
Title: Managing Director

 

 

 

 

J

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACKNOWLEDGEMENT AND CONSENT

 

The undersigned hereby acknowledges and consents to the foregoing Second Amendment to Amended and Restated Credit and Guaranty Agreement.

 

IN WITNESS WHEREOF , the undersigned has executed this Acknowledgement and Consent as of this 21st  day ofNovember, 2017.

 

THOMA BRAVO, LLC, as Subordinated Lender

By: /s/Seth J. Boro
Name: Seth J. Boro
Title: Managing Partner

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