Document:

Document

Exhibit 10-1
EXECUTION VERSION

WAIVER UNDER AND AMENDMENT NO. 1 TO AMENDED
AND RESTATED CREDIT AGREEMENT

WAIVER UNDER AND AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of April 29, 2022, is entered into among BIOREFERENCE HEALTH, LLC, a Delaware limited liability company and successor to BIO-REFERENCE LABORATORIES, INC., a New Jersey corporation (“Company”), GENEDX, LLC, a Delaware limited liability company and successor to GENEDX, INC., a New Jersey corporation (“GeneDx”), the other Subsidiary Borrowers party hereto (“Subsidiary Borrowers,” and together with Company and GeneDx, each a “Borrower” and, collectively, the “Borrowers”), the other Loan Parties party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as the administrative agent for the Lenders (the “Administrative Agent”).

W I T N E S S E T H :
WHEREAS, the Borrowers, the other Loan Parties party thereto, the Lenders party thereto, and the Administrative Agent have executed and delivered that certain Amended and Restated Credit Agreement dated as of August 30, 2021 (as amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, Company has notified the Administrative Agent and the Lenders that Company intends to sell all of the issued and outstanding Equity Interests of GeneDx (the “GeneDx Disposition”) by way of merger to Sema4 Holdings Corp., a Delaware corporation (“Buyer”) pursuant to the terms of that certain Agreement and Plan of Merger and Reorganization dated as of January 14, 2022 between Parent, Buyer, its two wholly owned subsidiaries, Orion Merger Sub I, Inc., a Delaware corporation, and Orion Merger Sub II, LLC, a Delaware limited liability company, GeneDx, and GeneDx Holding 2, Inc., a Delaware corporation (“Holding 2”) and wholly owned subsidiary of Parent (the “GeneDx Merger Agreement”);

WHEREAS, on March 11, 2022 and in connection with the GeneDx Merger Agreement, Company and GeneDx undertook a cashless organizational reorganization, whereby (a) the Company was reorganized as a Delaware limited liability company (by merging with and into a Delaware merger corporation, with such Delaware merger corporation surviving the merger and subsequently converting into a Delaware limited liability company) with 100% of its outstanding Equity Interests (i) indirectly owned by Parent and (ii) directly owned by GeneDx Holding 1, Inc., a Delaware corporation and (b) GeneDx was reorganized as a Delaware limited liability company (by merging with and into a Delaware merger corporation, with such Delaware merger corporation surviving the merger and subsequently converting into a Delaware limited liability company) with 100% of its outstanding Equity Interests (i) indirectly owned by Parent and (ii) directly owned by Holding 2 (the “Reorganization”); 

WHEREAS, through corporate changes undertaken in connection with the Reorganization, the Borrowers failed to comply with (i) Section 6.03(a) of the Credit Agreement, and such non-compliance constituted an Event of Default under paragraph (d) of Article VII of the Credit Agreement (the “Reorganization Default”) and (ii) Section 5.12(c) of the Credit Agreement, and such non-compliance constituted an Event of Default under paragraph (e) of Article VII of the Credit Agreement (the “Further Assurances Default”; the Further Assurances 

default, together with the Reorganization Default and any other Default or Event of Default which exists or may exist under the Loan Documents to the extent any such Default or Event of Default occurred solely because of the existence of the Reorganization Default or Further Assurances Default, collectively, the “Specified Events of Default”); and 

WHEREAS, the Borrowers have requested that the Lenders and the Administrative Agent make certain amendments to the Credit Agreement and waive the Specified Events of Default, and the Lenders party hereto, constituting all Lenders under the Credit Agreement, and the Administrative Agent have agreed to such amendments and to waive the Specified Events of Default, subject to the terms and conditions hereof.
NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, each of the Borrowers, the other Loan Parties, the Lenders and the Administrative Agent hereby covenant and agree as follows:
SECTION 1.      Definitions.  Unless otherwise specifically defined herein, each term used herein (and in the recitals above) which is defined in the Credit Agreement shall have the meaning assigned to such term in the Credit Agreement.  As of the date hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the other Loan Documents to the Credit Agreement (including, without limitation, by means of words like “thereunder,” “thereof” and words of like import), shall mean and be a reference to the Credit Agreement, as amended hereby.
SECTION 2.      Waiver.  The Lenders have agreed to and hereby do, subject to the terms hereof and subject to the satisfaction of the conditions precedent established herein, waive each of the Specified Events of Default.
SECTION 3.      Amendments to Credit Agreement.  Effective upon the satisfaction of the conditions precedent set forth in Section 4, the Credit Agreement is hereby amended as follows:
(a)      Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in the appropriate alphabetical order:
“Amendment No. 1 Effective Date” means April 29, 2022. 
“GeneDx Disposition” means the sale of GeneDx, Inc. pursuant to the GeneDx Merger Agreement.
“GeneDx Merger Agreement” means that certain Agreement and Plan of Merger and Reorganization dated as of January 14, 2022 between Parent, Sema4 Holdings Corp., a Delaware corporation, its two wholly owned subsidiaries, Orion Merger Sub I, Inc., a Delaware corporation, and Orion Merger Sub II, LLC, a Delaware limited liability company, GeneDx, Inc., a New Jersey Corporation and GeneDx Holding 2, Inc., a Delaware corporation and wholly owned subsidiary of Parent.
“Permitted Organizational Reorganization” means a cashless organizational reorganization commencing on or after the Amendment No. 1 
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Effective Date, whereby, upon consummation, (i) the Company would be reorganized as a Delaware limited liability company with 100% of its outstanding Equity Interests (a) indirectly owned by Parent and (b) directly owned by GeneDx Holding 1, Inc. and (ii) GeneDx, Inc. would be reorganized as a Delaware limited liability company with 100% of its outstanding Equity Interests (a) indirectly owned by Parent and (b) directly owned by GeneDx Holding 2, Inc., each, in a number of substantially concurrent steps.
(b)      Section 3.03 of the Credit Agreement is hereby amended so it reads, in its entirety, as follows:
Section 3.03.  Governmental Approvals; No Conflicts.  The Transactions, the Permitted Organizational Reorganization and the GeneDx Disposition (a) do not require any material consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents, (b) will not violate the charter, articles or certificate of organization or incorporation and bylaws or other organizational or governing documents of any Loan Party or any Subsidiary or any other material Requirement of Law applicable to any Loan Party or any Subsidiary, (c) will not violate or result in a default under any material indenture, agreement or other instrument binding upon any Loan Party or any Subsidiary or the assets of any Loan Party or any Subsidiary, or give rise to a right thereunder to require any payment to be made by any Loan Party or any Subsidiary, and (d) will not result in the creation or imposition of any Lien on any asset of any Loan Party or any Subsidiary, except Liens created pursuant to the Loan Documents.
(c)      Article III of the Credit Agreement is hereby amended by adding the following new Section 3.24:
    Section 3.24.  Permitted Organizational Reorganization.  The corporate and ownership structure of the Loan Parties and their Subsidiaries, both before and after giving effect to the Permitted Organizational Reorganization, complies with all laws, rules, regulations and orders of any Governmental Authority applicable to such Persons and their owners and all permits, licenses and other governmental authorizations required to be held by or applicable to such Persons.
(d)      Section 5.01(e) of the Credit Agreement is hereby amended so it reads, in its entirety, as follows:
    (e)  as soon as available but in any event no later than the end of, and no earlier than 30 days prior to the end of, each fiscal year of the Company, a copy of the plan and forecasted income statement of the Company and its Subsidiaries for each quarter of the upcoming fiscal year (the “Projections”) in form reasonably satisfactory to the Administrative Agent;
(e)      Section 5.01(i) of the Credit Agreement is hereby amended by deleting such section in its entirety, and inserting in lieu thereof “[Reserved].”.
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(f)      Section 6.03(a) of the Credit Agreement is hereby amended so it reads, in its entirety, as follows:
    (a)  No Loan Party will, nor will it permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing (i) any Subsidiary of any Borrower may merge into a Borrower in a transaction in which such Borrower is the surviving entity, (ii) any Loan Party (other than a Borrower) may merge into any other Loan Party in a transaction in which the surviving entity is a Loan Party, (iii) any Subsidiary that is not a Loan Party may liquidate or dissolve if the Borrower which owns such Subsidiary determines in good faith that such liquidation or dissolution is in the best interests of such Borrower and is not materially disadvantageous to the Lenders, provided that any such merger described in the foregoing clauses involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.04, and (iv) Parent and its Subsidiaries may consummate the GeneDx Disposition in accordance with Section 6.05(j).
(g)      Section 6.05 of the Credit Agreement is amended by deleting “; and” at the end of clause (h), and inserting in lieu thereof “;”, deleting “;” at the end of clause (i), inserting in lieu thereof “; and”, and adding the following new clause (j):
    (j)    the GeneDx Disposition so long as (i) the Loan Parties deliver true, correct, and complete copies of the final GeneDx Merger Agreement and any material documents related thereto no less than five (5) Business Days prior to the consummation of the GeneDx Disposition, (ii) as of the date of the consummation of the GeneDx Disposition, and after giving effect to such transactions, no Default or Event of Default exists, and (iii) the GeneDx Disposition shall have been consummated in accordance with the terms of the GeneDx Merger Agreement.
(h)      Section 6.08(a) of the Credit Agreement is hereby amended so it reads, in its entirety, as follows:
    (a)  No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree to declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except (i) each of Borrowers may declare and pay dividends with respect to its common stock payable solely in additional shares of its common stock, and, with respect to its preferred stock, payable solely in additional shares of such preferred stock or in shares of its common stock, (ii) Subsidiaries of the Company may declare and pay dividends ratably with respect to their Equity Interests, (iii) Specified Post Closing Dividends, and (iv) so long as there exists no Event of Default, the Borrowers may pay dividends or make distributions to their direct or indirect parent companies in an aggregate amount not greater than the amount necessary for such parent companies to pay their actual state and United States federal income tax liabilities in respect of income earned by the Borrowers after 
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deducting any unused prior losses; provided, the amount of such payments with respect to any taxable year does not exceed the amount of income taxes that the Borrowers would have paid had they paid taxes as stand-alone taxpayers (assuming that the Borrowers were taxed as corporations).
(i)      Section 8.07 of the Credit Agreement is hereby amended by adding the following new Clause (d):
    (d) In connection with the GeneDx Disposition in accordance with Section 6.05(j), each required Secured Party will deliver its signature to the Specified Release Under Amended and Restated Credit Agreement in the form attached as Exhibit A to that certain Waiver Under and Amendment No. 1 To Amended and Restated Credit Agreement dated as of the Amendment No. 1 Effective Date.
SECTION 4.      Conditions Precedent.  This Amendment shall become effective on the date the following conditions precedent shall have been satisfied:
(a)      receipt by the Administrative Agent of signatures to this Amendment from the parties listed on the signature pages hereto; 
(b)      receipt by the Administrative Agent of (x) an updated Borrowing Base Certificate, (y) a closing balance sheet for the period ended March 31, 2022 and (z) satisfactory projected income statements of the Company and its Subsidiaries on a quarterly basis, through December 31, 2022, in each case on a pro forma basis after giving effect to the GeneDx Disposition;
(c)      receipt by the Administrative Agent of all documentation reasonably requested by the Administrative Agent to reflect the Reorganization (including, without limitation, the Intermediate Holdco Pledge Agreement, an amendment to the Parent Pledge Agreement, amendments to the Loan Documents, certified organizational documents, resolutions, certificates, lien searches, legal opinions, certificated Equity Interests and UCC financing statements);
(d)      receipt by the Administrative Agent of evidence that the maximum amount of Florida documentary stamp tax or other tax related to this Amendment and all other related documents is or will be paid.
(e)      immediately after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing; and
(f)      the Administrative Agent shall have received from the Borrowers (or the Administrative Agent shall be satisfied with arrangements made for the payment thereof) all other costs, fees, and expenses owed by the Borrowers to the Administrative Agent in connection with this Amendment, including, without limitation, reasonable attorneys’ fees and expenses, in accordance with Section 9.03 of the Credit Agreement.
SECTION 5.      Pledge of Holding 2 and GeneDx.  The Loan Parties shall deliver or cause to be delivered to the Administrative Agent each of the following on or before May 6, 2022 (or 
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such later date as agreed to in writing by the Administrative Agent), unless the GeneDx Disposition has occurred prior thereto:
(a)      the certificated Equity Interests of Holding 2 and GeneDx (if any);
(b)      an amendment to that certain Non-Recourse Pledge Agreement dated on or around the date hereof by and among Holding 1 and the Administrative Agent providing for the pledge of Holding 2; and
(c)      a Non-Recourse Pledge Agreement by and among Holding 2 and the Administrative Agent providing for the pledge of GeneDx.
Failure to comply with this Section 5 shall result in an immediate Event of Default without any opportunity to cure.
SECTION 6.      Miscellaneous.
(a)      Representations and Warranties.  To induce the Administrative Agent and Lenders to enter into this Amendment, the Borrowers hereby represent and warrant to the Administrative Agent and the Lenders that all representations and warranties of the Borrowers contained in Article III of the Credit Agreement or any other Loan Document are true and correct in all material respects with the same effect as though made on and as of the date hereof (except with respect to representations and warranties made as of an expressed date, which representations and warranties are true and correct in all material respects as of such date).
(b)      No Offset.  To induce the Administrative Agent and Lenders to enter into this Amendment, the Borrowers hereby acknowledge and agree that, as of the date hereof, and after giving effect to the terms hereof, there exists no right of offset, defense, counterclaim, claim, or objection in favor of the Borrowers or arising out of or with respect to any of the loans or other obligations of the Borrowers owed by the Borrowers under the Credit Agreement or any other Loan Document.
(c)      Loan Document.  The parties hereto hereby acknowledge and agree that this Amendment is a Loan Document.
(d)      Effect of Amendment.  Except as set forth expressly herein, all terms of the Credit Agreement and the other Loan Documents shall be and remain in full force and effect, and shall constitute the legal, valid, binding, and enforceable obligations of the Borrowers, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. Any reference to the Credit Agreement contained in any document, instrument or other Loan Document executed in connection with the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified by this Amendment.
(e)      No Novation or Mutual Departure.  The Borrowers expressly acknowledge and agree that (i) this Amendment does not constitute or establish, a novation with respect to the Credit Agreement or any of the other Loan Documents, or a mutual departure from the strict terms, provisions, and conditions thereof, other than with respect to the amendments set forth in 
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Section 3 above, and (ii) nothing in this Amendment shall affect or limit the Administrative Agent’s or any Lender’s right to (x) demand payment of the Obligations under, or demand strict performance of the terms, provisions and conditions of, the Credit Agreement and the other Loan Documents (in each case, as amended), as applicable, (y) exercise any and all rights, powers, and remedies under the Credit Agreement or the other Loan Documents (in each case, as amended hereby) or at law or in equity, or (z) do any and all of the foregoing, immediately at any time during the occurrence of an Event of Default and in each case, in accordance with the terms and provisions of the Credit Agreement and the other Loan Documents (in each case, as amended hereby).  
(f)      Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall be one and the same instrument.
(g)      Electronic Transmission.  Delivery by one or more parties hereto of an executed counterpart of this Amendment via facsimile, telecopy, or other electronic method of transmission pursuant to which the signature of such party can be seen (including, without limitation, Adobe Corporation’s Portable Document Format) shall have the same force and effect as the delivery of an original executed counterpart of this Amendment.  
(h)      Recitals Incorporated Herein.  The preamble and the recitals to this Amendment are hereby incorporated herein by this reference.
(i)      Section References.  Section titles and references used in this Amendment shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto evidenced hereby.
(j)      Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws (and not the law of conflicts) of the State of New York, but giving effect to federal laws applicable to national banks.
(k)      Severability.  Any provision of this Amendment which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction.  
(l)      Reaffirmation of Loan Parties.  Each Loan Party (i) consents to the execution and delivery of this Amendment, (ii) reaffirms all of its obligations and covenants under the Loan Documents (including, without limitation, the Collateral Documents and the Loan Guaranty) to which it is a party, and (iii) agrees that, except to the extent amended hereby, none of its respective obligations and covenants under the Loan Documents shall be reduced or limited by the execution and delivery of this Amendment. 
SECTION 7.      Assumption of Company and GeneDx.  Notwithstanding the foregoing and for the avoidance of doubt, (a)  Company (i) agrees and acknowledges it is the successor to BIO-REFERENCE LABORATORIES, INC., a New Jersey corporation and (ii) assumes all Obligations under the Loan Documents (including, without limitation, the Collateral Documents and the Loan Guaranty) to which BIO-REFERENCE LABORATORIES, INC. is a party and (b) GeneDx (i) agrees and acknowledges it is the successor to GENEDX, INC., a New Jersey 
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corporation and (ii) assumes all Obligations under the Loan Documents (including, without limitation, the Collateral Documents and the Loan Guaranty) to which GENEDX, INC., a New Jersey corporation is a party.

[SIGNATURES ON FOLLOWING PAGES.]

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    IN WITNESS WHEREOF, the Borrowers, the other Loan Parties, the Administrative Agent and the Lenders have caused this Amendment to be duly executed by their respective duly authorized officers as of the day and year first above written.
BORROWERS:

BIOREFERENCE HEALTH, LLC
GENEDX, LLC
FLORIDA CLINICAL LABORATORY, INC.
MERIDIAN CLINICAL LABORATORY CORP.

By:    /s/ Jon R. Cohen                                 
    Name: Jon R. Cohen
Title:  Chairperson of BioReference Health, LLC;
Executive Chairman of each of GeneDx, LLC, Florida Clinical Laboratory, Inc., and Meridian Clinical Laboratory Corp.

OTHER LOAN PARTIES:

BRLI-GENPATH DIAGNOSTICS INC.
GENEDX MENA LLC

By:    /s/ Jon R. Cohen                                 
    Name: Jon R. Cohen
    Title: Executive Chairman of BRLI-Genpath 
Diagnostics Inc. and GeneDx MENA, LLC

[BRLI – Waiver Under and Amendment No. 1 to Amended and Restated Credit Agreement]

JPMORGAN CHASE BANK, N.A.,
individually as a Lender and as Administrative Agent, Issuing Bank and Swingline Lender

By:    Helen D. David                                      
    Name:  Helen D. Davis
    Title:  Authorized Officer

[BRLI – Waiver Under and Amendment No. 1 to Amended and Restated Credit Agreement]

EXHIBIT A
FORM OF SPECIFIED RELEASE UNDER
AMENDED AND RESTATED CREDIT AGREEMENT
This SPECIFIED RELEASE UNDER AMENDED AND RESTATED CREDIT AGREEMENT (“Release”) is dated as of [●], 2022, and entered into by and among BIOREFERENCE HEALTH, LLC, a Delaware limited liability company and successor to BIO-REFERENCE LABORATORIES, INC., a New Jersey corporation (“BRLI”), FLORIDA CLINICAL LABORATORY, INC., a Florida corporation (“Florida”), MERIDIAN CLINICAL LABORATORY CORP., a Florida corporation (“Meridian” and collectively with BRLI and Florida, the “Continuing Borrowers”, and each individually, a “Continuing Borrower”), BRLI-GENPATH DIAGNOSTICS INC, a New Jersey corporation (the “Continuing Guarantor”), GENEDX, LLC, a Delaware limited liability company and successor to GENEDX, INC., a New Jersey corporation (“GeneDx”), GENEDX MENA LLC, a New Jersey limited liability company (“MENA” and collectively with GeneDx, the “Specified Release Parties”, and each individually, a “Specified Release Party”), the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the “Administrative Agent”).
W I T N E S S E T H:
WHEREAS, the Continuing Borrowers, the Continuing Guarantor, the Specified Release Parties, the Lenders, and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement dated as of August 30, 2021 (as amended by that certain Amendment No. 1 to Amended and Restated Credit Agreement dated as of April 29, 2022 (“Amendment No. 1”), and as further amended, restated, supplemented or modified from time to time, the “Credit Agreement”; capitalized terms not otherwise defined herein have the definitions provided therefor in the Credit Agreement);
WHEREAS, pursuant to Amendment No. 1, the Administrative Agent and the Lenders have consented to the sale by BRLI of all of the issued and outstanding Equity Interests of GeneDx (the “GeneDx Disposition”) by way of merger to Sema4 Holdings Corp., a Delaware corporation (“Buyer”) pursuant to the terms of that certain Agreement and Plan of Merger and Reorganization dated as of January 14, 2022 between Parent, Buyer, its two wholly owned subsidiaries, Orion Merger Sub I, Inc., a Delaware corporation, and Orion Merger Sub II, LLC, a Delaware limited liability company, GeneDx, and GeneDx Holding 2, Inc., a Delaware corporation and wholly owned subsidiary of Parent (the “GeneDx Merger Agreement”);
WHEREAS, in connection with the GeneDx Disposition, the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties have requested that the Administrative Agent and the Lenders release the Specified Release Parties from their obligations under the Credit Agreement and each of the other Loan Documents;
NOW THEREFORE, in consideration of the mutual conditions and agreements set forth in the Credit Agreement and this Release, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.    Release.  Effective solely upon satisfaction of each of the conditions precedent set forth in Section 2 below:
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(a)    upon the consummation of the GeneDx Disposition pursuant to the GeneDx Merger Agreement, the Administrative Agent and the Lenders party hereto hereby agree that (i) each Specified Release Party shall be immediately and automatically released as a Borrower, Guarantor and a Loan Party, as applicable, under the Credit Agreement and the other Loan Documents and shall have no further obligations as a Borrower, Guarantor or a Loan Party thereunder and (ii) any liens of each Specified Release Party in favor of the Administrative Agent securing the Obligations (including without limitation under any Deposit Account Control Agreement) shall be immediately and automatically released and the Administrative Agent shall take or cause to be taken such further actions as reasonably requested by any Specified Release Party, any Continuing Borrower or the Continuing Guarantor to evidence the release of such liens; and
(b)    except for the foregoing release, nothing contained herein shall constitute or be deemed to be a waiver of, or consent to any departure from any other term or provision in the Credit Agreement or any other Loan Document, each of which shall continue unmodified and in full force and effect, nor shall the foregoing release constitute (i) a course of dealing among the parties, (ii) a modification or alteration of the terms, conditions or covenants of the Credit Agreement or any other Loan Document or (iii) a waiver, release or limitation upon the exercise by the Administrative Agent or any Lender of any of its rights, legal or equitable, thereunder.
2.    Conditions to Effectiveness.  The effectiveness of Section 1 of this Release is subject to the satisfaction of the following conditions precedent:
(a)    the Administrative Agent’s receipt of this Release, duly authorized, executed and delivered by each party hereto;
(b)    the GeneDx Disposition shall have been consummated in all material respects in accordance with the terms of the GeneDx Merger Agreement (as in effect on January 14, 2022, other than amendments or waivers that are not material and adverse to the Company or the Lenders);
(c)    immediately after giving effect to this Release, no Default or Event of Default shall have occurred and be continuing; and
(d)    the Administrative Agent shall have received from the Borrowers (or the Administrative Agent shall be satisfied with arrangements made for the payment thereof) all other costs, fees, and expenses owed by the Borrowers to the Administrative Agent in connection with this Release, including, without limitation, reasonable attorneys’ fees and expenses, in accordance with Section 9.03 of the Credit Agreement.
3.    Representations and Warranties.  To induce the Administrative Agent and the Lenders to enter into this Release, the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties represent and warrant to the Administrative Agent and the Lenders as follows:
(a)    that the execution, delivery and performance of this Release has been duly authorized by all requisite limited liability company or corporate action on the part of the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties, as 
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applicable, and that this Release has been duly executed and delivered by the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties;
(b)    this Release constitutes the legal, valid and binding obligation of the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties, as applicable, and is enforceable against the Continuing Borrowers, the Continuing Guarantor, and the Specified Release Parties, in accordance with its terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity;
(c)    immediately after giving effect to this Release and the consummation of the transactions contemplated by this Release, no Default or Event of Default has occurred and is continuing;
(d)    except as otherwise provided herein, (i) their Obligations under the Credit Agreement and the other Loan Documents, (ii) the grant to the Administrative Agent of the Liens pursuant to the Loan Documents, and (iii) that such Liens created and granted are valid and continuing and secure the Obligations in accordance with the terms thereof, in each case after giving effect to this Release; and
(e)    after giving effect to this Release, the representations and warranties set forth in the Credit Agreement, as amended hereby, and in the other Loan Documents, are true and correct in all material respects as of the date hereof, with the same effect as though made on the date hereof (except to the extent such representations and warranties (i) expressly refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date and (ii) are qualified as to “materiality”, “Material Adverse Effect” or similar language, in which case they are true and correct in all respects).
4.    Severability.  Any provision of this Release which is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction.
5.    References.  Any reference to the Credit Agreement contained in any document, instrument or other Loan Document executed in connection with the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified by this Release.
6.    Counterparts.  This Release may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall be one and the same instrument.  
7.    Electronic Transmission.  Delivery by one or more parties hereto of an executed counterpart of this Release via facsimile, telecopy, or other electronic method of transmission pursuant to which the signature of such party can be seen (including, without limitation, Adobe Corporation’s Portable Document Format) shall have the same force and effect as the delivery of an original executed counterpart of this Release.  
8.    Recitals Incorporated Herein.  The preamble and the recitals to this Release are hereby incorporated herein by this reference.
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9.    Section References.  Section titles and references used in this Release shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreements among the parties hereto evidenced hereby.
10.    Ratification.  The terms and provisions set forth in this Release shall modify and supersede all inconsistent terms and provisions of the Credit Agreement, as applicable, and shall not be deemed to be a consent to the modification or waiver of any other term or condition of the Credit Agreement, as applicable.  Except as expressly modified and superseded by this Release, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.
11.    Incorporation of Loan Agreement Provisions. The provisions contained in Section 9.03 (Expenses; Indemnity; Damage Waiver), Section 9.09 (Governing Law; Jurisdiction; Consent to Service of Process) and Section 9.10 (WAIVER OF JURY TRIAL) of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety. 
12.    Acknowledgment by Continuing Borrowers and Continuing Guarantor.  The Continuing Borrowers and the Continuing Guarantor hereby acknowledge and agree that although the Continuing Borrowers and the Continuing Guarantor have been informed of the matters set forth herein relating to the Credit Agreement and have acknowledged the same, the Continuing Borrowers and the Continuing Guarantor understand that the Administrative Agent and the Lenders have no obligation to inform the Continuing Borrowers or the Continuing Guarantor of such matters in the future or to seek any of the undersigned’s acknowledgment or agreement to future amendments, waivers or consents, and nothing herein shall create such a duty.
13.    Reaffirmation by Continuing Borrowers and Continuing Guarantor.  Except as expressly modified and superseded by this Release, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  The Continuing Borrowers and the Continuing Guarantor hereby ratify and reaffirm (a) the Obligations under the Credit Agreement and each of the other Loan Documents to which they are a party and all of the covenants, duties, indebtedness and liabilities under the Credit Agreement and the other Loan Documents to which they are a party, (b) the Liens and security interests created in favor of the Administrative Agent and the Lenders pursuant to the Credit Agreement and the other Loan Documents, which Liens and security interests shall continue in full force and effect during the term of the Credit Agreement, and shall continue to secure the Obligations, in each case, on and subject to the terms and conditions set forth in the Credit Agreement and the other Loan Documents, and nothing herein shall be construed to deem such “Obligations” paid, or to release or terminate any Lien or security interest given to secure such “Obligations” or any guarantee thereof, (c) the Guarantee of the Obligations pursuant to the Credit Agreement and (d) each of such other Loan Documents executed and delivered by or on its behalf in connection with the Credit Agreement. 
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have caused this Release to be duly executed and delivered by their respective duly authorized officers on the date first written above. 
BIOREFERENCE HEALTH, LLC, a Delaware limited liability company, as a Continuing Borrower 

By:    ____________________________________
Name:    ____________________________________
Title:    ____________________________________

FLORIDA CLINICAL LABORATORY, INC., a Florida corporation, as a Continuing Borrower 

By:    ____________________________________
Name:    ____________________________________
Title:    _____________________________________

MERIDIAN CLINICAL LABORATORY CORP., a Florida corporation, as a Continuing Borrower

By:    ____________________________________
Name:    ____________________________________
Title:    ____________________________________

BRLI-GENPATH DIAGNOSTICS INC., a New Jersey corporation, as a Continuing Guarantor

By:    ____________________________________
Name:    ____________________________________
Title:    ____________________________________

[SPECIFIED RELEASE UNDER AMENDED AND RESTATED CREDIT AGREEMENT]

GENEDX, LLC, a Delaware limited liability company, as a Specified Release Party

By:    ____________________________________    
Name:    ____________________________________
Title:    ____________________________________

GENEDX MENA LLC, a New Jersey limited liability company, as a Specified Release Party

By:    ____________________________________    
Name:    ____________________________________
Title:    ____________________________________

[SPECIFIED RELEASE UNDER AMENDED AND RESTATED CREDIT AGREEMENT]

JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent and a Lender 

By:    ____________________________________    
Name:    ____________________________________
Title:    ____________________________________

[SPECIFIED RELEASE UNDER AMENDED AND RESTATED CREDIT AGREEMENT]adpt-ex101_95.htm

Exhibit 10.1

ADAPTIVE BIOTECHNOLOGIES CORPORATION

PERFORMANCE UNITS AGREEMENT

(For U.S. Participants)

Adaptive Biotechnologies Corporation has granted to the Participant named in the Notice of Grant of Performance Units (the “Grant Notice”) to which this Performance Units Agreement (the “Agreement”) is attached an Award consisting of Performance Units (each a “Unit”) subject to the terms and conditions set forth in the Grant Notice and this Agreement.  The Award has been granted pursuant to and shall in all respects be subject to the terms and conditions of the Adaptive Biotechnologies Corporation 2019 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are incorporated herein by reference.  By signing the Grant Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Grant Notice, this Agreement, the Plan and a prospectus for the Plan prepared in connection with the registration with the Securities and Exchange Commission of the shares issuable pursuant to the Award (the “Plan Prospectus”), (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Grant Notice, this Agreement or the Plan.

1.Definitions and Construction.

1.1Definitions.  Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.

1.2Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

2.Administration.

All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any other form of agreement or other document employed by the Company in the administration of the Plan or the Award shall be determined by the Committee.  All such determinations by the Committee shall be final, binding and conclusive upon all persons having an interest in the Award, unless fraudulent or made in bad faith.  Any and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or the Award or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest in the Award.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election.

3.The Award.

3.1Grant of Units.  On the Date of Grant, the Participant shall acquire, subject to the provisions of this Agreement, the Target Number of Units set forth in the Grant Notice, 

 

 

which, depending on the Participant’s performance during the Performance Periods, may result in the Participant having the opportunity to earn as little as zero (0) Units or as many as the Maximum Number of Units set forth in the Grant Notice, subject to adjustment as provided in Section 8.  Each Unit represents a right to receive on a date determined in accordance with the Grant Notice and this Agreement one (1) share of Stock.

3.2No Monetary Payment Required.  The Participant is not required to make any monetary payment (other than applicable tax withholding, if any) as a condition to receiving the Units or shares of Stock issued upon settlement of the Units, the consideration for which shall be past services actually rendered or future services to be rendered to a Participating Company or for its benefit.  Notwithstanding the foregoing, if required by applicable law, the Participant shall furnish consideration in the form of cash or past services rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Stock issued upon settlement of the Units.

4.Vesting of Units.

Units acquired pursuant to this Agreement shall become Vested Units as provided in the Grant Notice.  For purposes of determining the number of Vested Units following an Ownership Change Event, credited Service shall include all Service with any corporation which is a Participating Company at the time the Service is rendered, whether or not such corporation is a Participating Company both before and after the Ownership Change Event.

5.Company Reacquisition Right.

5.1Grant of Company Reacquisition Right.  Except to the extent otherwise provided by the Superseding Agreement, if any, in the event that the Participant’s Service terminates for any reason or no reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Units which are not, as of the time of such termination, Vested Units (“Unvested Units”), and the Participant shall not be entitled to any payment therefor (the “Company Reacquisition Right”).

5.2Ownership Change Event, Non-Cash Dividends, Distributions and Adjustments.  Upon the occurrence of an Ownership Change Event, a dividend or distribution to the shareholders of the Company paid in shares of Stock or other property, or any other adjustment upon a change in the capital structure of the Company as described in Section 8, any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) to which the Participant is entitled by reason of the Participant’s ownership of Unvested Units shall be immediately subject to the Company Reacquisition Right and included in the terms “Units” and “Unvested Units” for all purposes of the Company Reacquisition Right with the same force and effect as the Unvested Units immediately prior to the Ownership Change Event, dividend, distribution or adjustment, as the case may be.  For purposes of determining the number of Vested Units following an Ownership Change Event, dividend, distribution or adjustment, credited Service shall include all Service with any corporation which is a Participating Company at the time the Service is rendered, whether or not such corporation is a Participating Company both before and after any such event.

 

 

6.Settlement of the Award.

6.1Issuance of Shares of Stock.  Subject to the provisions of Section 6.3, the Company shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be settled on such date one (1) share of Stock.  The Settlement Date with respect to a Unit shall be the date on which such Unit becomes a Vested Unit  as provided by the Grant Notice (an “Original Settlement Date”); provided, however, that if the tax withholding obligations of a Participating Company, if any, will not be satisfied by the share withholding method described in Section 7.3 and the Original Settlement Date would occur on a date on which a sale by the Participant of the shares to be issued in settlement of the Vested Units would violate the Trading Compliance Policy of the Company, then the Settlement Date for such Vested Units shall be deferred until the next day on which the sale of such shares would not violate the Trading Compliance Policy, but in any event on or before the 15th day of the third calendar month following calendar year of the Original Settlement Date.  Shares of Stock issued in settlement of Units shall not be subject to any restriction on transfer other than any such restriction as may be required pursuant to Section 6.3, Section 7 or the Company’s Trading Compliance Policy.

6.2Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit any or all shares acquired by the Participant pursuant to the settlement of the Award with the Company’s transfer agent, including any successor transfer agent, to be held in book entry form, or to deposit such shares for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice.  Except as provided by the foregoing, a certificate for the shares acquired by the Participant shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.

6.3Restrictions on Grant of the Award and Issuance of Shares.  The grant of the Award and issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.  No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to the Award shall relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority shall not have been obtained.  As a condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

6.4Fractional Shares.  The Company shall not be required to issue fractional shares upon the settlement of the Award.

7.Tax Withholding.

7.1In General.  At the time the Grant Notice is executed, or at any time thereafter as requested by a Participating Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax 

 

 

(including any social insurance) withholding obligations of the Participating Company, if any, which arise in connection with the Award, the vesting of Units or the issuance of shares of Stock in settlement thereof.  The Company shall have no obligation to deliver shares of Stock until the tax withholding obligations of the Participating Company have been satisfied by the Participant.

7.2Assignment of Sale Proceeds.  Subject to compliance with applicable law and the Company’s Trading Compliance Policy, if permitted by the Company, the Participant may satisfy the Participating Company’s tax withholding obligations in accordance with procedures established by the Company providing for delivery by the Participant to the Company or a broker approved by the Company of properly executed instructions, in a form approved by the Company, providing for the assignment to the Company of the proceeds of a sale with respect to some or all of the shares being acquired upon settlement of Units.

7.3Withholding in Shares.  The Company shall have the right, but not the obligation, to require the Participant to satisfy all or any portion of a Participating Company’s tax withholding obligations by deducting from the shares of Stock otherwise deliverable to the Participant in settlement of the Award a number of whole shares having a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates if required to avoid liability classification of the Award under generally accepted accounting principles in the United States.

8.Adjustments for Changes in Capital Structure.

Subject to any required action by the shareholders of the Company and the requirements of Section 409A of the Code to the extent applicable, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the shareholders of the Company in a form other than Stock (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) that has a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate adjustments shall be made in the number of Units subject to the Award and/or the number and kind of shares or other property to be issued in settlement of the Award, in order to prevent dilution or enlargement of the Participant’s rights under the Award.  For purposes of the foregoing, conversion of any convertible securities of the Company shall not be treated as “effected without receipt of consideration by the Company.”  Any and all new, substituted or additional securities or other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) to which the Participant is entitled by reason of ownership of Units acquired pursuant to this Award will be immediately subject to the provisions of this Award on the same basis as all Units originally acquired hereunder.  Any fractional Unit or share resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number.  Such adjustments shall be determined by the Committee, and its determination shall be final, binding and conclusive.

9.Rights as a Shareholder, Director, Employee or Consultant.

The Participant shall have no rights as a shareholder with respect to any shares which may be issued in settlement of this Award until the date of the issuance of such shares (as 

 

 

evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date the shares are issued, except as provided in Section 8.  If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Participant’s Service at any time.

10.Legends.

The Company may at any time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of stock issued pursuant to this Agreement.  The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant to this Award in the possession of the Participant in order to carry out the provisions of this Section.

11.Compliance with Section 409A.

It is intended that any election, payment or benefit which is made or provided pursuant to or in connection with this Award that may result in Section 409A Deferred Compensation shall comply in all respects with the applicable requirements of Section 409A (including applicable regulations or other administrative guidance thereunder, as determined by the Committee in good faith) to avoid the unfavorable tax consequences provided therein for non‐compliance.  In connection with effecting such compliance with Section 409A, the following shall apply:

11.1Separation from Service; Required Delay in Payment to Specified Employee.  Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this Agreement on account of the Participant’s termination of Service which constitutes a “deferral of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “Section 409A Regulations”) shall be paid unless and until the Participant has incurred a “separation from service” within the meaning of the Section 409A Regulations.  Furthermore, to the extent that the Participant is a “specified employee” within the meaning of the Section 409A Regulations as of the date of the Participant’s separation from service, no amount that constitutes a deferral of compensation which is payable on account of the Participant’s separation from service shall be paid to the Participant before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of the Participant’s separation from service or, if earlier, the date of the Participant’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date.

11.2Other Changes in Time of Payment.  Neither the Participant nor the Company shall take any action to accelerate or delay the payment of any benefits under this Agreement in any manner which would not be in compliance with the Section 409A Regulations.

11.3Amendments to Comply with Section 409A; Indemnification.  Notwithstanding any other provision of this Agreement to the contrary, the Company is authorized to amend this Agreement, to void or amend any election made by the Participant under this 

 

 

Agreement and/or to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by the Company, in its discretion, to be necessary or appropriate to comply with the Section 409A Regulations without prior notice to or consent of the Participant.  The Participant hereby releases and holds harmless the Company, its directors, officers and shareholders from any and all claims that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the Participant in connection with the Award, including as a result of the application of Section 409A.

11.4Advice of Independent Tax Advisor.  The Company has not obtained a tax ruling or other confirmation from the Internal Revenue Service with regard to the application of Section 409A to the Award, and the Company does not represent or warrant that this Agreement will avoid adverse tax consequences to the Participant, including as a result of the application of Section 409A to the Award.  The Participant hereby acknowledges that he or she has been advised to seek the advice of his or her own independent tax advisor prior to entering into this Agreement and is not relying upon any representations of the Company or any of its agents as to the effect of or the advisability of entering into this Agreement.

12.Miscellaneous Provisions.

12.1Termination or Amendment.  The Committee may terminate or amend the Plan or this Agreement at any time; provided, however, that except as provided in the Grant Notice, in connection with a Change in Control, no such termination or amendment may have a materially adverse effect on the Participant’s rights under this Agreement without the consent of the Participant unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited to, Section 409A.  No amendment or addition to this Agreement shall be effective unless in writing.

12.2Nontransferability of the Award.  Prior to the issuance of shares of Stock on the applicable Settlement Date, neither this Award nor any Units subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or by the laws of descent and distribution.  All rights with respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant or the Participant’s guardian or legal representative.

12.3Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

12.4Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

12.5Delivery of Documents and Notices.  Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the 

 

 

other party at the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing from time to time to the other party.

(a)Description of Electronic Delivery and Signature.  The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s shareholders, may be delivered to the Participant electronically.  In addition, if permitted by the Company, the Participant may deliver electronically the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time to time.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.  Any and all such documents and notices may be electronically signed.

(b)Consent to Electronic Delivery and Signature.  The Participant acknowledges that the Participant has read Section 12.5(a) of this Agreement and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of the Grant Notice, as described in Section 12.5(a).  The Participant agrees that any and all such documents requiring a signature may be electronically signed and that such electronic signature shall have the same effect as handwritten signature for the purposes of validity, enforceability and admissibility.  The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing.  The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  The Participant may revoke his or her consent to the electronic delivery of documents described in Section 12.5(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Section 12.5(a).

12.6Integrated Agreement.  The Grant Notice, this Agreement and the Plan, together with any Superseding Agreement and any change of control agreement, shall constitute the entire understanding and agreement of the Participant and the Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the Participating Company Group with respect to such subject matter.  To the extent contemplated herein or therein, the provisions of the Grant Notice, this Agreement and the Plan shall survive any settlement of the Award and shall remain in full force and effect.

12.7Applicable Law.  This Agreement shall be governed by the laws of the State of Washington as such laws are applied to agreements between Washington residents entered into and to be performed entirely within the State of Washington.

 

 

12.8Counterparts.  The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

ADAPTIVE BIOTECHNOLOGIES CORPORATION

NOTICE OF GRANT OF PERFORMANCE UNITS

(For U.S. Participants)

Adaptive Biotechnologies Corporation (the “Company”) has granted to the Participant an award (the “Award”) of certain Performance Units (“PSUs”) pursuant to the Adaptive Biotechnologies Corporation 2019 Equity Incentive Plan (the “Plan”). The Award is subject to all of the terms and conditions of this Performance Stock Unit Grant Notice, the Performance Goals and Vesting Criteria set forth on Attachment I to this Grant Notice, and the Performance Units Agreement (collectively, including all attachments and exhibits, the “Award Agreement”) and the Plan

 

				
	
Participant:
	
 
	
Employee ID:
	
 

	
Date of Grant:
	
 

	
Vesting Commencement Date:
	
 

 

	
Target Number of PSUs:
	
 

	
Maximum Number of PSUs:
	
 

	
Superseding Agreement:
	
None

	
Vesting Schedule:
	As provided in the Performance Goals and Vesting Criteria set forth on Attachment I.
 

	
Issuance Schedule:
	
If a PSU vests, the Company will deliver one share of Stock in settlement of each vested PSU as set forth in Section 6 of the Performance Units Agreement.

By their signatures below or by electronic acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Award is governed by this Grant Notice and by the provisions of the Award Agreement and the Plan, both of which are made a part of this document, and by the Superseding Agreement, if any.  The Participant acknowledges that copies of the Plan, the Award Agreement and the prospectus for the Plan are available on the Company’s internal web site and may be viewed and printed by the Participant for attachment to the Participant’s copy of this Grant Notice.  The Participant represents that the Participant has read and is familiar with the provisions of the Award Agreement and the Plan, and hereby accepts the Award subject to all of their terms and conditions.

 

			
	
ADAPTIVE BIOTECHNOLOGIES CORPORATION
	
PARTICIPANT

	
 
	
 

	
By: 
	
 

	
Name:
	
Signature

	
Title: 
	
 

	
 
	
Date

	
Address:
	
 
	
 

	
 
	
 
	
Address

 

ATTACHMENTS: Attachment I; Attachment II; 2019 Equity Incentive Plan, as amended to the Date of Grant; Performance Units Agreement and Plan Prospectus

 

 

 

 

Attachment I

 

Performance Goals and Vesting Criteria

 

A.    General

 

In order for any Performance Unit subject to the Award to vest and be earned, each of the Service Vesting Requirement and the Performance Goals as described herein must be satisfied. Any PSUs which may not potentially vest based on application of the Service Vesting Requirement and/or Performance Goals will be immediately forfeited. 

 

For all purposes of this Award, the following terms have the following meanings:

 

“Good Reason” means without your written consent, (i) a material reduction in your authority, duties or responsibilities with the Company relative to your authority, duties or responsibilities in effect immediately prior to such reduction; provided, however, any change immediately following a Change in Control to a functionally comparable position with the Company’s successor or within its group of controlled corporations shall not constitute Good Reason hereunder, (ii) a material reduction in the your base compensation, other than in connection with simultaneous reductions in all other senior executives at the vice president level or above of equal or greater amount in percentage terms, (iii) a material change in the geographic location at which you must perform your duties (which, for purposes of this Agreement, means a change of geographic location from which the you are principally employed to a location more than fifty (50) miles from the location of your principal employment immediately prior to the relocation); or (iv) a material breach by the Company of the terms of this Award or any other agreement between you and the Company; provided, however, that in order for your resignation to have been implemented for  “Good Reason” you must provide written notice to the Board within 30 days immediately following such events described in (i) through (iv) hereof, the Company must fail to cure such event within 30 days after receipt of such notice, and your resignation must be effective not later than 90 days after the expiration of such period to cure.

 

“Index Group” means the group of companies which are members of the S&P Biotechnology Select Industry Index as determined of the Date of Grant (each an “Index Company”), subject to modification set forth in Attachment II.

 

“Qualified Termination” means an involuntary termination of your employment by the Company without Cause or your resignation for Good Reason and which occurs no later than twelve months following a Change in Control.  A Qualified Termination does not include a termination of your employment due to death or disability.

 

“Qualified Pre-CIC Termination” means a Qualified Termination that occurs within the three-month period immediately preceding a Change in Control

 

Other capitalized terms used herein have the meanings set forth in the Plan unless otherwise defined herein.  

 

 

 

 

B.    Service Vesting Requirement

 

Except as otherwise expressly provided in Sections F and G below, vesting of any portion of your Award is generally subject to your continuous Service through [                    ] (the “Service Vesting Requirement”). If your continuous Service terminates for any reason prior to your satisfaction of the Service Vesting Requirement except as expressly provided in Sections F and G below, no portion of your Award is eligible to vest, and the PSUs subject to your Award will immediately terminate and be forfeited upon such termination of your continuous Service.

 

C.    Performance Goals

 

The number of PSUs subject to your Award that may vest will be determined by reference to the total shareholder return (“TSR”) of the Company over a three-year performance period from [                    ] through [                    ] (the “Performance Period”) as measured as a relative percentile of the TSR performance of the Index Group during the Performance Period. The number of PSUs subject to your Award that may vest will be determined by reference to the Company’s TSR Percentile Rank during the Performance Period as indicated in the chart below, with linear interpolation between the designated performance levels, subject to adjustment as provided herein (the “Performance Goals”).  For such purposes, “Company TSR Percentile Rank” means the TSR Percentile Rank of the Company relative to TSR Percentile Rank of the Index Group as determined by the Committee for the Performance Period and “TSR Percentile Rank” means the percentile performance of the Company and each member of the Index Group based on the TSR for such company as determined by the Committee for the Performance Period.

 

			
	
 
	
 
	
 

	
Company TSR Percentile Rank Compared to Index Group
	
% Multiplier*
	
Payout Level

	
[                    ]
	
[                    ]
	
0%

	
[                    ]
	
[                    ]
	
Threshold

	
[                    ]
	
[                    ]
	
Target

	
[                    ]
	
[                    ]
	
Maximum

 

*The Multiplier is applied to the Target Number of PSUs. Multiplier subject to linear interpolation between percentiles.

 

TSR will be calculated as provided in Section D below. If the Company’s TSR is negative, the maximum number of PSUs that may vest is capped at [                    ]% of the Target Number of PSUs, regardless of Company’s percentile rank compared to the Index. In all cases, the Maximum Number of PSUs that may vest is capped at [                    ]% of the Target Number of PSUs.

 

 

 

 

D.    TSR Calculation Criteria:

 

For purposes of computing TSR during the Performance Period, for Company and each Index Company, the following formula will be used, as adjusted for stock splits or similar changes in capital structure which occur during the Performance Period. 

 

 

 

	
 
	
•
	
Beginning Stock Price = Average daily closing stock price of last 20 trading days immediately preceding the start of the Performance Period 

	
 
	
•
	
Ending Stock Price = Average daily closing stock price of the last 20 trading days of the Performance Period 

	
 
	
•
	
Dividends = Reinvested dividends and dividend equivalents

 

However, if a Change in Control occurs prior to expiration of the Performance Period, TSR will instead be measured through the date of the Change in Control in calculating the portion of your Award that may vest (See Section G.1).

 

E.    Vesting Determination and Settlement Dates

 

No Stock will be issued in settlement of your Award prior to the date of the Committee’s determination of the level of attainment of the Performance Goals and the number of your PSUs that will vest. In the absence of a Change in Control, as soon as practicable within the 60-day period following completion of the Performance Period, the Committee will determine the applicable Company TSR during the Performance Period as measured versus the TSR of the Index during the Performance Period and the applicable number of your PSUs that will vest, subject to your satisfaction of the Service Vesting Requirement. The date of the Committee’s determination is the “Determination Date.” Except as specifically provided below, Stock will be issued in respect of the number of the PSUs that vest as soon as practicable within the 30-day period following such Determination Date. Any portion of the Award that does not vest on the Determination Date will immediately terminate and be forfeited on the Determination Date.

 

F.    Impact of Certain Terminations, Death or Disability

 

1.    Pro-Rata Vesting in Connection with a Certain Terminations Before Expiration of the Performance Period. Subject to Section F.2 below, following any termination of your employment by the Company due to your Disability or death that occurs prior to expiration of the Performance Period, the number of PSUs that will vest on the Determination Date will be a pro-rata portion of the number of PSUs that would have vested had you remained in Continuous Service through the last day of the Performance Period. Such pro-rata portion will be determined by taking the number of PSUs that would have vested based on the level of attainment of the Performance Goals had your remained in such continuous service through the last day of the Performance Period (the “Default Number of PSUs”) and multiplying it by the percentage determined by taking the number of calendar days of continuous Service you completed during the Performance Period prior to the such termination and dividing such number by the total number of calendar days in the 

 

 

Performance Period (the “Pro-Rata Reduction”). Any portion of the Award that does not vest on the Determination Date will immediately terminate and be forfeited on the Determination Date.

 

2.    Impact of Death or Disability Terminations Followed By Change in Control. 

 

In the event that termination of your employment by the Company due to your Disability or death is followed by a Change in Control that precedes the scheduled end of the Performance Period, the number of PSUs that will vest upon the Change in Control will be determined on a pro-rata basis as calculated in Section F.1 above, except that a number of PSUs corresponding to the Change in Control Determined Units (as defined in Section G.1) will be substituted for the Default Number of PSUs in such formula before applying the Pro-Rata Reduction. Any portion of the Award that does not vest upon the Change in Control will immediately terminate and be forfeited on such date and shares of Stock will be issued to you immediately prior to the Change in Control in settlement of the vested number of PSUs.

 

G.     Impact of Change in Control.

 

1.    Impact of Change in Control. In the event of a Change in Control that occurs before the scheduled end of the Performance Period, the number of PSUs that may potentially vest will be determined immediately by the Board as constituted immediately prior to the Change in Control based upon the Company’s TSR performance as measured versus the Index’s TSR performance during the portion of the Performance Period that precedes the effective date of the Change in Control (the “CIC Achievement Level”). For purposes of such determination, the Company’s ending stock price will be the sale price of the per share of Stock in the Change in Control and the ending stock price of each Index Company will be such Index Company’s closing stock price on the effective date of the Change in Control (such CIC Achievement Level determined number of PSUs are the “Change in Control Determined Units”). Any portion of the Award that does not vest based upon the CIC Achievement Level will immediately terminate and be forfeited upon the Change in Control.

 

In the event of termination of your employment by the Company occurs due to a Qualified Pre-CIC Termination and is followed by a Change in Control that precedes the scheduled end of the Performance Period, upon such Change in Control the PSUs will vest with respect to the applicable number of Change in Control Determined Units, and shares of Stock will be issued to you immediately prior to the Change in Control in settlement of the vested number of PSUs.

 

2.    Change in Control Continued Service Condition. 

 

In the event of a Change in Control that precedes the scheduled expiration date of the Performance Period where the surviving corporation or the acquiring corporation assumes, continues or substitutes the Award on substantially the same terms and conditions as in effect prior to the Change in Control, except as provided below, you must remain in continuous Service with the Company or an Affiliate through the scheduled expiration date of the Performance Period in order for the Change in Control Determined Units to vest (the “Change in Control Continued Service Requirement”), and the Change in Control Determined Units shall vest on the scheduled expiration date of the Performance Period. For the avoidance of doubt, in connection with any 

 

 

such assumption, continuation or substitution, the Change in Control Determined Units are automatically converted into a time-based vesting award and the performance goals shall no longer apply. 

 

Notwithstanding the foregoing, if you are terminated by the Company due to your death, Disability or a Qualified Termination upon or following the Change in Control, the Change in Control Continued Service Requirement will be waived and the Change in Control Determined Units will immediately vest on the date of such termination, and shares of Stock will be issued upon or as soon as practicable following such termination, but in all cases within 60 days following such termination (unless such issuance is not practicable within such 60 day period and a later issuance date is permitted without triggering adverse tax consequences under Section 409A of the Code). 

 

In the event of a Change in Control where the surviving corporation or the acquiring corporation will not assume, continue or substitute the Award on substantially the same terms and conditions as in effect prior to the Change in Control, the Change in Control Determined Units will vest immediately prior to the Change in Control and, subject to satisfaction of the requirements set forth in Section H below, the shares of Stock will be issued in settlement of the vested Change in Control Determined Units immediately prior to the Change in Control. For purposes of this Agreement, if the Company is the surviving corporation or the acquiring corporation, if applicable, it shall be deemed to have assumed the Award in the Change in Control unless it takes explicit action to the contrary.

 

H.    Application of Section 409A.

 

The Award is intended to be exempt from the requirements of Section 409A of the Code as providing for payment in the form of issuance of shares of Stock in settlement of any vested portion of the Award within the period permitted by the short-term deferral period exemption available under Treasury Regulations Section 1.409A-1(b)(4).  

 

To the extent the Award is not exempt from the requirements of Section 409A of the Code, the Award is intended to comply with the requirements of Section 409A of the Code, and the following provisions shall apply.  The Award is intended to comply with Section 409A as providing for payment in the form of an issuance of shares in all cases upon the earliest of the following Section 409A permitted payment dates or events: (i) the same taxable year as the scheduled expiration date of the Performance Period, (ii) if the payment acceleration exemption permitted under Treasury Regulation 1.409A-3(j)(ix)(B) is available and elected, upon a Change in Control that is also a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company as described in Code Section 409A(a)(2)(A)(iv) (a “409A CIC”), or (iii) upon a qualifying separation from service that occurs after a 409A CIC. Accordingly, the following provisions shall apply and shall supersede anything to the contrary set forth herein, in the Agreement and in the Plan to the extent an exemption from the requirements of Section 409A of the Code is not available and as required for the Award to comply with the requirements of Section 409A of the Code in order to avoid application of its adverse tax consequences to you:

 

 

 

 

	
 
	
•
	
If you are a “specified employee” within the meaning of Section 409A of the Code at the time of your separation from service, then to the extent required to be delayed pursuant to Section 409A(a)(2)(B) of the Code, the shares will not be issued to you in connection with your separation from service until 6 months and 1 day following the date of your separation from service. 

 

	
 
	
•
	
In a Change in Control the Award must be assumed, continued or substituted by the surviving corporation or the acquiring corporation and any shares of Stock scheduled to be issued upon the scheduled expiration date of the Performance Period may not be earlier issued in settlement of any Change in Control Determined Units upon the Change in Control unless the Change in Control is a 409A CIC and an exemption is available and elected under Treasury Regulation 1.409A-3(j)(ix)(B) or such earlier issuance of the shares of Stock is otherwise permitted by Section 409A of the Code. 

 

	
 
	
•
	
“Disability” must also constitute a “disability” as set forth in Treasury Regulations Section 1.409A-3(i)(4). 

 

In all cases, the Company retains the right to provide for earlier issuance of shares of Stock in settlement of any vested portion of the Award to the extent permitted by Section 409A of the Code.

 

 

 

 

Attachment II

 

TREATMENT OF INDEX COMPANIES DURING PERFORMANCE PERIOD

 

The companies comprising the Index Group is determined as of the Grant Date, and, if applicable, whether a company is an Index Company and such Index Company’s TSR for the Performance Period, will only be modified during the Performance Period as follows:

 

	
 
	
•
	
An Index Company that becomes bankrupt during the Performance Period will remain an Index Company, but its TSR for the Performance Period will be deemed to equal negative 100% and it will be placed at the bottom of the benchmark set.

	
 
	
•
	
An Index Company that is acquired, ceases to be the surviving company in a merger, or ceases to be publicly traded for a reason other than bankruptcy during the Performance Period will in each case be excluded from the Index.

	
 
	
•
	
An Index Company that distributes a portion of its business in a spin-off transaction during the Performance Period and that remains publicly traded will be retained in the Index, but the company that is spun off will not be included in the Index.

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