Document:

box-ex103_111.htm

 

Exhibit 10.3

 

EXECUTION VERSION 

 

	

	
 
	
WELLS FARGO BANK, NATIONAL ASSOCIATION

	
 
	
 
	
 

	
 
	
 
	
April 17, 2020

 

 

Box, Inc. 

900 Jefferson Ave. 

Redwood City, CA 94063 

Attention: Chief Financial Officer 

 

Re: Amendment No. 3 to Credit Agreement.   

 

Ladies and Gentlemen: 

 

Reference is made to that certain Credit Agreement, dated as of November 27, 2017 (as amended by that certain Amendment No. 1 dated as of July 12, 2019, that certain letter agreement dated as of September 27, 2019 and as otherwise amended, restated or otherwise modified and in effect immediately prior to the date hereof, the “Credit Agreement”), by and between BOX, INC. (“Borrower”) and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Lender”).  Capitalized terms not defined in this letter agreement (this “Amendment No. 3”) are used herein as defined in the Credit Agreement. 

 

The Borrower has requested certain amendments to the Credit Agreement as set forth herein. Upon effectiveness of this Amendment No. 3, the Lender and the Borrower hereby agree that:  

 

(i) Section 6.02(b)(xvi) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

 

“(xvi) “Purchase Obligations” of the type described in the “Contractual Obligations and Commitments” section of the “Liquidity and Capital Resources” disclosure set forth in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of the Borrower’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020 (the “2020 Form 10-K”) incurred in the ordinary course of business; provided that the aggregate principal amount of such “Purchase Obligations” due within three years (as denoted by the columns “Less than 1 Year” and “1-3 Years” in the 2020 Form 10-K), measured as of the date of each Form 10-K or Form 10-Q filed during the term of this Agreement, shall not exceed $120,000,000; and”.   

 

 

 

 

(ii)  Exhibit B (Compliance Certificate) of the Credit Agreement is hereby amended and restated in its entirety with Exhibit B attached hereto in Annex A.   

 

The provisions of this Amendment No. 3 shall be effective upon the date of the Lender’s receipt of counterparts of this Amendment No. 3 executed by the Lender and the Borrower, and Lender shall confirm such effectiveness to Borrower via email.  Upon such effectiveness, all references to the Credit Agreement in the Loan Documents shall refer to the Credit Agreement as amended by this Amendment No. 3. 

 

The Borrower hereby confirms that (i) the representations and warranties contained in Article V of the Credit Agreement and in the other Loan Documents are true, correct and complete in all material respects (or, in the case of any such representation or warranty already qualified by materiality or reference to Material Adverse Effect, in all respects) on and as of the date hereof as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true, correct and complete in all material respects (or, in the case of any such representation or warranty already qualified by materiality or reference to Material Adverse Effect, in all respects) on and as of such earlier date and (ii) no Event of Default or Potential Event of Default has occurred and is continuing. 

 

Except as specifically modified herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed by the Borrower in all respects.  This Amendment No. 3 may be executed in any number of identical counterparts, any set of which signed by all the parties hereto shall be deemed to constitute a complete, executed original for all purposes.  Transmission by facsimile, “pdf” or similar electronic copy of an executed counterpart of this letter agreement shall be deemed to constitute due and sufficient delivery of such counterpart.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Amendment No. 3 or any document to be signed in connection with this Amendment No. 3 and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transactions Act, or any other state laws based on the Uniform Electronic Transactions Act, and the parties to this Amendment No. 3 consent to conduct the transactions contemplated hereunder by electronic means.  This Amendment No. 3 shall be governed by, construed and enforced in accordance with, the laws of the State of California without giving effect to its choice of law principles which would result in the application of the law of another jurisdiction. 

 

[This Space Intentionally Left Blank]

 

 

2

 

This letter agreement is a Loan Document as defined in the Credit Agreement, and the expense reimbursement, indemnification, waiver of jury trial, consent to jurisdiction and other provisions of the Credit Agreement generally applicable to Loan Documents are applicable hereto and incorporated herein by this reference and this letter agreement shall be interpreted, construed and enforced as if all such provisions were set forth in full in this letter agreement. 

 

	
Sincerely,

	
WELLS FARGO BANK, NATIONAL

	
ASSOCIATION, as Lender

	
By:
	
 
	
/s/Wendy Wong

	
Name:
	
 
	
Wendy Wong

	
Title:
	
 
	
Director, Relationship Manager

 

[Signature Page to Letter Agreement – Amendment No. 3]

 

 

	
Accepted and agreed to:

	
BOX, INC.,

	
a Delaware corporation

	
By:
	
 
	
/s/Dylan Smith

	
Name:
	
 
	
Dylan Smith

	
Title:
	
 
	
CFO

 

 

 

[Signature Page to Letter Agreement – Amendment No. 3]

 

ANNEX A

 

(see attached)

 

 

 

 

 

 EXHIBIT B

 

COMPLIANCE CERTIFICATE

 

_____________ ___, 202__

 

THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

 

	
 
	
1.
	
I am the Chief Financial Officer of BOX, INC. (the “Borrower”). 

 

	
 
	
2.
	
Reference is made to that certain Credit Agreement dated as of November 27, 2017 (as supplemented, amended, modified, amended and restated or replaced in writing from time to time, the “Credit Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined), by and between BOX, INC., a Delaware corporation (the “Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (the “Lender”). All terms used but not otherwise defined herein shall have the meanings set forth in the Credit Agreement. 

 

	
 
	
3.
	
[No Potential Event of Default or Event of Default is continuing as of the date of delivery of this Compliance Certificate.]

 

[OR]

 

[A Potential Default or Event of Default is continuing as of the date of delivery of this

Compliance Certificate. The nature of such Potential Default or Event of Default is ____________________.  The action that the Borrower proposes to take with respect thereto is ______________________.]

 

	
 
	
4.
	
Attached hereto as Annex A are the calculations used in determining the financial covenants set forth in Section 6.03(a), Section 6.03(b) and Section 6.02(b)(xvi) of the Credit Agreement, in each case, as of the date of this Compliance Certificate.

 

The foregoing certifications, together with the computations set forth in Annex A hereto are made and delivered as of the date first set forth above pursuant to the Credit Agreement.  

 

	
BOX, INC.

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

 

 
 

 

ANNEX A

 

To Compliance Certificate

 

		
	
I.Section 6.03(a) – Minimum Liquidity
	
 

	
a.Liquidity
	
 

	
i.Amount without duplication of Eligible Accounts Receivable of the Borrower (on a consolidated basis) at such time:
	
$

	
ii.Amount of Unrestricted Cash of the Borrower and any other Loan Part at such time:
	
$

	
1.Unrestricted cash, plus
	
$

	
2.unrestricted Cash Equivalents, in each case, of the Borrower and any other Loan Party in deposit or securities accounts (or any combination thereof) held with the Lender or any of its Affiliates, or with any other financial institution, with respect to which the Lender has received an account control agreement over such account
	
$

	
b.The sum of Line I.a.i and Line I.a.ii
	
$

	
c.Minimum required at all times:
	
$ 150,000,000

	
II.Section 6.03(b) – Leverage Ratio
	
 

	
a.Borrower and Subsidiaries’ total Debt
	
 

	
i.Outstanding Letters of Credit issued under the Agreement (including all outstanding unreimbursed amounts under Letters of Credit)
	
$

	
ii.Debt outstanding under the Agreement
	
$

	
iii.Capital Leases 
	
$

	
iv.Without duplication, Line II.a.i plus Line II.a.ii plus Line II.a.iii 
	
$

	
b.EBITDA:
	
 

	
i.Consolidated Net Income:
	
$

	
ii.Add-backs:
	
 

	
1.Depreciation and amortization:
	
$

	
2.Provision (benefits) for income tax
	
$

	
3.Consolidated Total Interest Expense
	
$

	
4.Non-cash expenses, losses and charges, including, without limitation, non-cash compensation-based expenses:
	
$

	
5.Extraordinary, unusual or non-recurring expenses, losses and charges, including, without limitation, restructuring charges and costs, fees and expenses incurred by Borrower or its Subsidiaries in connection with any Permitted Acquisition
	
$

	
6.Other expenses, losses or charges agreed to by the Lender:
	
$

	
7.Total adjustments (sum of Line II.b.ii.1 through Line II.b.ii.6)
	
$

 

 

		
	
iii.Average Deferred Revenue Change

iv.Adjusted EBITDA (Line II.b.i plus Line II.b.ii.7 plus Line II.b.iii)
	
$

	
c.Line II.a.iv divided by Line II.b.iv:
	
_____ : 1.00

 

	
d.Maximum permitted Leverage Ratio:
	
2.50:1.00

	
III.Section 6.02(b)(xvi) – Purchase Obligations
	
 

	
a.Purchase Obligations due Less Than 1 Year:
	
$

	
b.Purchase Obligations due Year 1 – Year 3:
	
$

	
c.The sum of Line III.a and Line III.b:
	
$

	
d.Maximum permitted:
	
$120,000,000box-ex104_154.htm

 

Exhibit 10.4 

FIRST AMENDMENT TO OFFICE LEASE 

This FIRST AMENDMENT TO OFFICE LEASE (“First Amendment”) is made and entered into as of the 17th day of March, 2015, by and between REDWOOD CITY PARTNERS, LLC, a Delaware limited company (“Landlord”), and BOX, INC., a Delaware corporation (“Tenant”). 

R E C I T A L S : 

A.     Landlord and Tenant entered into that certain Office Lease dated September 15, 2014 (the “Lease”), whereby Landlord leases to Tenant and Tenant leases from Landlord those certain premises (the “Premises”) consisting of a total of 334,212 rentable square feet of space, to be located within those certain office buildings (the “Buildings”) located 900 Jefferson Avenue, Redwood City, California and 900 Middlefield Avenue, Redwood City, California. 

B.     Landlord and Tenant desire amend the Lease as hereinafter provided. 

A G R E E M E N T : 

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

1.     Capitalized Terms. All capitalized terms when used herein shall have the same meaning as is given such terms in the Lease unless expressly superseded by the terms of this First Amendment. 

2.     Outlines of Premises; Retail Space; Project Management Office. Landlord has elected to modify the location of the service corridor serving the Retail Space on the ground floor level of the Project. In connection with the foregoing, notwithstanding anything to the contrary set forth in the Lease, effective as of the date of this First Amendment, (i) the first page of “Exhibit A-1” attached to the Lease, depicting the ground floor of the Project, is hereby deleted and replaced with the page attached hereto as “Exhibit A-1”, (ii) the Retail Space is deemed to contain a stipulated total of 5,455 rentable square feet, (iii) Building B is deemed to contain a stipulated total of 113,790 rentable square feet, (iv) the Project is deemed to contain a stipulated total of 339,987 rentable square feet, (v) at all times Landlord shall be entitled to maintain a management office on the ground floor level of the Project consisting of 320 rentable square feet, and accordingly the phrase “; provided that as long as the Office Space Leasing Requirement is satisfied, any such management office space shall not be located in the Project, and, in any event, the size of any such management office space shall be comparable to the size of the management offices of the landlords of the Comparable Buildings, with adjustment where appropriate for the size of the applicable project” set forth in Section 4.2.4(vii) of the Lease is hereby deleted and of no further force or effect), and (vi) at all times, Landlord and the other Landlord Parties shall have the right to enter the Building B Lobby in order to obtain access to the management office. 

3.     Disbursement of Improvement Allowance. Notwithstanding any provision to the contrary contained in the Lease, effective as of the date of this First Amendment, rather than disbursing the Improvement Allowance directly to the Contractor and/or Tenant’s Agents, Landlord shall disburse the Improvement Allowance directly to Tenant following receipt of executed, unconditional mechanic’s lien releases, which comply with the appropriate provisions, as reasonably determined by Landlord, of California Civil Code Sections 8134 and/or 8138 and provided that Tenant otherwise complies with the other terms and provisions of the Work Letter and disbursement requirements set forth therein. 

4.     Delivery Date and Lease Commencement Date. Landlord and Tenant acknowledge and agree that Landlord satisfied the “Delivery Condition” (as defined in Section 1.2 of the Work Letter attached to the Lease as Exhibit B) with respect to Building A and Building B on March 5, 2015, and that for all purposes under the Lease, such date shall each be a “Delivery Date.” Accordingly, subject to the occurrence of the Final Condition Date (as defined in Section 1.3 of the Work Letter), the Building A Lease Commencement Date shall occur on September 6, 2015, and the Building B Lease Commencement Date shall occur on January 1, 2017. Notwithstanding the foregoing, pursuant to the terms of Section 2.1 of the Lease, Tenant shall have the right to occupy the Premises prior to the commencement of the applicable Lease Commencement Date for the conduct of its business, on a floor-by-floor basis, subject to, and in accordance with the terms of Section 2.1 of the Lease, including the obligation to pay Base Rent (at the amount otherwise due with respect to such portion of the Premises as of the applicable Lease Commencement Date), Tenant’s Share of Direct Expenses, and all other Additional Rent. The foregoing right to occupy the Premises shall apply to any Transferees occupying the Premises, subject to Article 14 of the Lease. Tenant’s Transferees entry in to the Premises or portion thereof for purposes of designing, constructing and installing improvements or installing and testing furniture, fixtures and equipment in the Premises shall not constitute the conduct of 

-1-

business by Tenant or by Tenant’s Transferees for the purpose of any Tenant obligation to pay Landlord any (i) Base Rent, (ii) annual Direct Expenses, and (iii) Additional Rent, due under the Lease as the same is modified and amended by this First Amendment. 

5.     Broker. Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this First Amendment (the ‘‘Broker”), and that they know of no other real estate broker or agent who is entitled to a commission in connection with this First Amendment. Each party agrees to indemnify and defend the other party against and hold the other party harmless from and against any and all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of the indemnifying party’s dealings with any real estate broker or agent, other than the Broker. The terms of this Section 5 shall survive the expiration or earlier termination of the term of the Lease, as hereby amended. 

6.     Conflict; No Further Modification. In the event of any conflict between the terms and provisions of the Lease and the terms and provisions of this First Amendment, the terms and provisions of this First Amendment shall prevail. Except as specifically set forth in this First Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect. 

[signatures follow on next page] 

-2-

 IN WITNESS WHEREOF, Landlord and Tenant have caused this First Amendment to be executed the day and date first above written. 

 

					
	
 
	
 
	
 
	
 
	
 

	
“LANDLORD”:

 

REDWOOD CITY PARTNERS, LLC

a Delaware limited liability company

	
 
	
 

	
  By:    
	
KR Redwood City Member, LLC,

	
 
	
a Delaware limited liability company,

	
 
	
Its: Managing Member

	
 
	
 
	
 

	
 
	
By:    
	
Kilroy Realty, L.P.,

	
 
	
 
	
a Delaware limited partnership

	
 
	
 
	
Its: Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
By:    
	
Kilroy Realty Corporation

a Maryland corporation

Its: General Partner

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
/s/Jeffrey C. Hawken

 

	
 
	
 
	
 
	
Name:
	
 Jeffrey C. Hawken

	
 
	
 
	
 
	
Its:
	
 Executive Vice President Chief Operating Officer

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
/s/Richard Buziak

	
 
	
 
	
 
	
Name:
	
 Richard Buziak

	
 
	
 
	
 
	
Its:
	
 Senior Vice President

Asset Management

 

					
	
 
	
 
	
 
	
 

	
“TENANT”:

	
 

	
BOX, INC.,

a Delaware corporation

	
 
	
 
	
 

	
By:
	
 
	
/s/Peter McGoff

 

	
Name:
	
 
	
Peter McGoff

	
Its:
	
 
	
SVP, GC & Corporate Secretary

	
 
	
 
	
 

	
By:
	
 
	
/s/Evan Wittenberg

 

	
Name:
	
 
	
Evan Wittenberg

	
Its:
	
 
	
SVP, People

 

 

-3-

EXHIBIT A-1 

CROSSING/900 

OUTLINE OF PREMISES 

Ground Floor 

 

EXHIBIT A-1

-1-

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