Document:

Exhibit 10.2

 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN SECTIONS 5.3 AND 5.4 BELOW, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE COMPANY, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

WARRANT TO PURCHASE STOCK

 

	
Company:
    	
 
    	
Senseonics Holdings, Inc., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Number of Shares:
    	
 
    	
[        ](1)
    
	
 
    	
 
    	
 
    
	
Type/Series of Stock:
    	
 
    	
Common Stock of the Company
    
	
 
    	
 
    	
 
    
	
Warrant Price:
    	
 
    	
$[    ](2) per share
    
	
 
    	
 
    	
 
    
	
Issue Date:
    	
 
    	
July [ · ],   2019
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
July [ · ],   2029 (See also Section 5.1(b))
    
	
 
    	
 
    	
 
    
	
Credit Facility:
    	
 
    	
This Warrant to Purchase Stock (“Warrant”) is   issued in connection with that certain Loan and Security Agreement, dated as   of July [  ], 2019 among Solar Capital Ltd., a Maryland   corporation with an office located at 500 Park Avenue, 3rd Floor, New York,   NY (“Solar”), as collateral agent, the lenders party thereto from time   to time including Solar in its capacity as a lender, the Company, and   Senseonics, Incorporated, a Delaware corporation (as amended, restated,   or otherwise modified from time to time, the “Loan Agreement”).
    

 

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, Solar (together with any successor or permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”) is entitled to purchase the number of fully paid and non-assessable shares (the “Shares”) of the above-stated Type/Series of Stock (the “Class”) of the above-named company (the “Company”) at the above-stated Warrant Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant.

 

(1)  NTD: To be equal to 3.0% of $45,000,000, divided by the exercise price.

(2)  NTD: To be equal to the lowest of (1) 10-day trailing average of the common stock price, as of the close of business on the business day immediately prior to the Effective Date, (2) 10-day trailing average of the common stock price, as of the close of business on the business day immediately prior to the Funding Date, (3) the common stock price as of the close of business on the business day immediately prior to the Effective Date, and (4) the common stock price as of the close of business on the business day immediately prior to the Funding Date.

 

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SECTION 1                               EXERCISE.

 

1.1                               Method of Exercise. Holder may at any time and from time to time through the Expiration Date exercise this Warrant, in whole or in part, by delivering to the Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased.

 

1.2                               Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the value of this Warrant, or portion hereof as to which this Warrant is being exercised. Thereupon, the Company shall issue to the Holder such number of fully paid and non-assessable Shares as are computed using the following formula:

 

X = Y(A-B)/A

 

where:

 

X =                             the number of Shares to be issued to the Holder;

 

Y =                             the number of Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);

 

A =                             the Fair Market Value (as determined pursuant to Section 1.3 below) of one Share; and

 

B =                             the Warrant Price.

 

1.3                               Fair Market Value. If the Company’s common stock is then traded or quoted on a nationally recognized securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”) and the Class is common stock, the fair market value of a Share shall be the closing price or last sale price of a share of common stock reported for the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the Company’s common stock is then traded in a Trading Market and the Class is a series of the Company’s convertible preferred stock, the fair market value of a Share shall be the closing price or last sale price of a share of the Company’s common stock reported for the Business Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company multiplied by the number of shares of the Company’s common stock into which a Share is then convertible. If the Company’s common stock is not traded in a Trading Market, the Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment.

 

1.4                               Delivery of Certificate and New Warrant. Promptly after Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise and, if this Warrant has not been fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired.

 

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1.5                               Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant of like tenor and amount.

 

1.6                               Treatment of Warrant Upon Acquisition of Company.

 

(a)                                 Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or series of related transactions involving: (i) the sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company; (ii) any merger or consolidation of the Company into or with another person or entity (other than a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the stockholders of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power. For the avoidance of any doubt, an Acquisition shall not include any transaction or series of transactions principally for bona fide equity financing purposes.

 

(b)                                 Treatment of Warrant at Acquisition. In the event of an Acquisition in which the consideration to be received by the Company’s stockholders consists solely of cash, solely of Marketable Securities or a combination of cash and Marketable Securities (a “Cash/Public Acquisition”), and the fair market value of one Share as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date immediately prior to such Cash/Public Acquisition, and Holder has not exercised this Warrant pursuant to Section 1.1 above as to all Shares, then this Warrant shall automatically be deemed to be Cashless Exercised pursuant to Section 1.2 above as to all Shares effective immediately prior to and contingent upon the consummation of a Cash/Public Acquisition. In connection with such Cashless Exercise, Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as the date thereof and the Company shall promptly notify the Holder of the number of Shares (or such other securities) issued upon exercise. In the event of a Cash/Public Acquisition where the fair market value of one Share as determined in accordance with Section 1.3 above would be less than the Warrant Price in effect immediately prior to such Cash/Public Acquisition, then this Warrant will expire immediately prior to the consummation of such Cash/Public Acquisition and shall no longer be exercisable.

 

(c)                                  Upon the closing of any Acquisition other than a Cash/Public Acquisition defined above, the acquiring, surviving or successor entity shall assume the obligations of this Warrant, and this Warrant shall thereafter be exercisable for the same securities and/or other property as would have been paid for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on and as of the closing of such Acquisition, subject to further adjustment from time to time in accordance with the provisions of this Warrant.

 

(d)                                 As used in this Warrant, “Marketable Securities” means securities meeting all of the following requirements: (i) the issuer thereof is then subject to the reporting requirements of Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and is then current in its filing of all required reports and other information under the Securities Act of 1933, as amended (the “Act”) and the Exchange Act; (ii) the class and series of shares or other security 

 

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of the issuer that would be received by Holder in connection with the Acquisition were Holder to exercise this Warrant on or prior to the closing thereof is then traded in Trading Market; and (iii) Holder would be able to publicly re-sell, within six (6) months following the closing of such Acquisition, all of the issuer’s shares and/or other securities that would be received by Holder in such Acquisition were Holder to exercise this Warrant in full on or prior to the closing of such Acquisition, except to the extent that any such restriction (x) arises solely under federal or state securities laws, rules or regulations, and (y) does not extend beyond six (6) months from the closing of such Acquisition.

 

SECTION 2                               ADJUSTMENTS TO THE SHARES AND WARRANT PRICE.

 

2.1                               Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the Class payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased and the Warrant Price shall be proportionately decreased, provided the aggregate purchase price shall remain the same. If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased and the number of Shares shall be proportionately decreased, provided the aggregate purchase price shall remain the same.

 

2.2                               Reclassification, Exchange, Combinations or Substitution. Upon any event whereby all of the outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, provided the aggregate purchase price shall remain the same and subject to further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations, substitutions, replacements or other similar events.

 

2.3                               No Fractional Share. No fractional Share shall be issuable upon exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share interest by paying Holder in cash the amount computed by multiplying the fractional interest by (a) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (b) the then-effective Warrant Price.

 

2.4                               Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of Shares, the Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based. The Company shall, upon written request from Holder, furnish Holder with a certificate of its Chief Executive Officer or Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in effect upon the date of such adjustment.

 

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SECTION 3                               REPRESENTATIONS AND COVENANTS OF THE COMPANY.

 

3.1                               Representations and Warranties. The Company represents and warrants to, and agrees with, the Holder as follows:

 

(a)                                 This Warrant is, and all Shares which may be issued upon the exercise of this Warrant, all securities, if any, issuable upon conversion of the Shares and any warrants issued in substitution for or replacement of this Warrant shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any taxes, liens, charges and encumbrances except for restrictions on transfer provided for herein or under applicable federal and state securities laws. The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant and the conversion of the Shares into common stock or such other securities.

 

(b)                                 The Company’s capitalization as disclosed in its filings with the Commission is true and complete, in all material respects, as of the Issue Date.

 

(c)                                  The Company (i) has been duly incorporated and is validly existing as a corporation in good standing under the laws of Delaware, with full corporate power and authority to own or lease, as the case may be, and to operate its properties and conduct its business as presently conducted, and (ii) is duly qualified to do business as a foreign corporation and is in good standing under the laws of each jurisdiction which requires such qualification, except in the case of clause (ii) above, to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to result in (i) a material adverse effect on the validity or enforceability of this Warrant, (ii) a material adverse effect on the condition (financial or otherwise), earnings, business or properties of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect its obligations under this Warrant (any of (i), (ii) or (iii)) (a “Material Adverse Effect”).

 

(d)                                 The Company has all requisite corporate power and authority, and has taken all requisite corporate action, to execute and deliver this Warrant, sell and issue the Shares and carry out and perform all of its obligations under this Warrant, and without limiting the foregoing, the Company hereby agrees that the Company shall all times have authorized and reserved the number of Shares needed to provide for the exercise of the rights then represented by this Warrant. If at any time the Company does not have a sufficient number of Shares authorized and available, then the Company shall call and hold a special meeting of its stockholders within 60 days of that time for the sole purpose of increasing the number of authorized Shares to a sufficient number. This Warrant constitutes the legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) as limited by equitable principles generally, including any specific performance.

 

(e)                                  No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any federal, state, or local governmental authority on the part of the Company is required in connection with the consummation of the transactions contemplated by this Warrant except for the filing of a Form D with the Securities and Exchange Commission (the “Commission”) under the Securities Act and compliance with the securities and blue sky laws in the states and other jurisdictions in which shares of Common Stock are offered and/or sold, which compliance will be effected in accordance with such laws, (b) the approval by the NYSE 

 

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American of the listing of the Shares and (c) the filing of one or more registration statements and all amendments thereto with the Commission.

 

(f)                                   Neither the execution, delivery or performance of this Warrant by the Company nor the consummation of any of the transactions contemplated thereby (including, without limitation, the issuance and sale by the Company of the Shares) will conflict with, result in a breach or violation of, or imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant to, (i) the charter or by-laws of the Company, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company is a party or bound or to which its or their property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to the Company of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its properties, except in the case of clauses (ii) and (iii) above, for any conflict, breach or violation of, or imposition that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(g)                                  Neither the Company nor any Person acting on its behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D promulgated under the Securities Act) in connection with the offer or sale of this Warrant.

 

(h)                                 Neither of the Company or any Person acting on its behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any Company security, under circumstances that would adversely affect reliance by the Company on Section 4(a)(2) of the Securities Act or require registration of this Warrant under the Securities Act or cause this Warrant to be integrated with prior offerings by the Company for purposes of the Securities Act.

 

(i)                                     The Company is in compliance with applicable NYSE American continued listing requirements. There are no proceedings pending or, to the Company’s knowledge, threatened against the Company relating to the continued listing of the Shares on NYSE American and the Company has not received any notice of, nor to the Company’s knowledge is there any reasonable basis for, the delisting of the Shares from NYSE American.

 

(j)                                    The Company has not taken, directly or indirectly, any action designed to cause or result in, or that has constituted or that might reasonably be expected to constitute the stabilization or manipulation of the price of any securities of the Company in the fifteen days prior to the issuance of this Warrant.

 

3.2                               Notice of Certain Events. If the Company proposes at any time to:

 

(a)                                 declare any dividend or distribution upon the outstanding shares of the Class or common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend;

 

(b)                                 offer for subscription or sale pro rata to the holders of the outstanding shares of the Class any additional shares of any class or series of the Company’s stock (other than pursuant to contractual pre-emptive rights);

 

(c)                                  effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of the outstanding shares of the Class; or

 

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(d)                                 effect an Acquisition or to liquidate, dissolve or wind up.

 

then, in connection with each such event, the Company shall give Holder:

 

(1)                                 at least seven (7) Business Days prior written notice of the date on which a record will be taken for such dividend, distribution, or subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above; and

 

(2)                                 in the case of the matters referred to in (c) and (d) above at least seven (7) Business Days prior written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other property deliverable upon the occurrence of such event).

 

Company will also provide information requested by Holder that is reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements.

 

SECTION 4                               REPRESENTATIONS AND WARRANTIES OF THE HOLDER.

 

The Holder represents and warrants to the Company as follows:

 

4.1                               Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by Holder are being acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares.

 

4.2                               Disclosure of Information. Holder is aware of the Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

 

4.3                               Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons.

 

4.4                               Accredited Investor Status. Holder is an “accredited investor” within the meaning of Regulation D promulgated under the Act.

 

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4.5                               The Act. Holder understands that this Warrant and the Shares issuable upon exercise hereof have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein. Holder understands that this Warrant and the Shares issued upon any exercise hereof must be held indefinitely unless subsequently registered under the Act and qualified under applicable state securities laws, or unless exemption from such registration and qualification are otherwise available. Holder is aware of the provisions of Rule 144 promulgated under the Act.

 

4.6                               No Voting Rights; No Stockholder Rights. Holder, as a Holder of this Warrant, will not have any voting rights or otherwise be entitled to any other rights afforded to a stockholder of the Company, except such rights as are expressly granted herein such as notice and other rights, until the exercise of this Warrant.

 

SECTION 5                               MISCELLANEOUS.

 

5.1                               (a)                                 Term and Automatic Conversion Upon Expiration. Subject to the provisions of Section 1.6 above, this Warrant is exercisable in whole or in part at any time and from time to time on or before 6:00 P.M. Pacific time, on the Expiration Date and shall be void thereafter.

 

(b)                                 Automatic Cashless Exercise upon Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Shares (or such other securities) for which it shall not previously have been exercised, and the Company shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise to Holder.

 

5.2                               Legends. The Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form:

 

THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AS SET FORTH IN THAT CERTAIN WARRANT TO PURCHASE STOCK ISSUED BY THE ISSUER TO SOLAR CAPITAL LTD. DATED [ · ], MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND LAWS OR IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

5.3                               Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part except in compliance with applicable federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Holder to provide an opinion of counsel if the transfer is to any affiliate of Holder, provided that any such transferee is an “accredited investor” as defined in Regulation D promulgated under the Act. Additionally, the Company shall also not require an opinion of counsel if there is no material question as to the availability of Rule 144 promulgated under the Act, provided that, Holder represents 

 

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that it has complied with Rule 144 in reasonable detail, the selling broker represents that it has complied with Rule 144, and the Company is provided with a copy of Holder’s proposed notice of sale.

 

5.4                               No Impairment; Further Assurances. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by Holder in order to protect the exercise privilege of Holder against dilution or other impairment, consistent with the tenor and purpose of this Warrant. The Company will not increase the par value of any Shares above the Warrant Price then in effect, and (ii) will take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Shares upon the exercise of this Warrant.

 

5.5                               Transfer Procedure. Subject to the provisions of Section 5.3 and upon providing the Company with written notice, Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities issuable directly or indirectly, upon conversion of the Shares, if any) to any transferee, provided, however, in connection with any such transfer, Holder will give the Company notice of the portion of the Warrant being transferred with the name, address and taxpayer identification number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable); and provided further, that any subsequent transferee shall make to the Company each of the representations and warranties set forth in Section 4 and agree in writing with the Company to be bound by all of the terms and conditions of this Warrant.

 

5.6                               Binding on Successors. This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets.

 

5.7                               Taxes. The Company will pay all taxes (other than taxes based upon income) and other governmental charges that may be imposed with respect to the issuance or delivery of the Shares,  other than any tax or other charge imposed in connection with any transfer involved in the issue and delivery of the Shares in a name other than that of the Holder.

 

5.8                               Notices. All notices and other communications hereunder from the Company to the Holder, or vice versa, shall be deemed delivered and effective (i) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail, postage prepaid, (iii) upon actual receipt if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such address as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this Section 5.5 All notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise:

 

SOLAR CAPITAL LTD.

500 Park Avenue, 3rd Floor

New York, NY 10022

Attention: Anthony Storino

Fax: (212) 993-1698

Email: storino@Solarcapltd.com

 

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With a copy (which shall not constitute notice) to:

 

LATHAM & WATKINS LLP
 505 Montgomery Street, Suite 2000
 San Francisco, CA 94111

Attention: Haim Zaltzman
 Facsimile: (415) 395-8095
 Email: haim.zaltzman@lw.com

 

Notice to the Company shall be addressed as follows until Holder receives notice of a change in address:

 

SENSEONICS HOLDINGS, INC.
 20451 Seneca Meadows Parkway

Germantown, Maryland 20876-7005
 Attention: Chief Financial Officer
 Email: Jon.Isaacson@senseonics.com

 

5.9                               Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

 

5.10                        Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees.

 

5.11                        Counterparts; Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto.

 

5.12                        Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles that would result in the application of any other than the laws of the State of New York.

 

5.13                        Waiver of Jury Trial. AS A MATERIAL INDUCEMENT FOR EACH PARTY HERETO TO ENTER INTO THIS WARRANT, THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATED IN ANY WAY TO THIS WARRANT AND/OR ANY AND ALL OF THE OTHER DOCUMENTS ASSOCIATED WITH THIS TRANSACTION.

 

5.14                        Headings. The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.

 

5.15                        Business Days. “Business Day” is any day that is not a Saturday, Sunday or a day on which banks in the State of New York are closed.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of the Issue Date written above.

 

 

	
“COMPANY”
    	
 
    
	
 
    	
 
    
	
SENSEONICS HOLDINGS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
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“HOLDER”
    	
 
    
	
 
    	
 
    
	
SOLAR CAPITAL LTD.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
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Signature Page to Warrant to Purchase Stock

 

 

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.                                      The undersigned Holder hereby exercises its right purchase             shares of the Common/Series        Preferred [circle one] Stock of                    (the “Company”) in accordance with the attached Warrant To Purchase Stock, and tenders payment of the aggregate Warrant Price for such shares as follows:

 

o                                    check in the amount of $         payable to order of the Company enclosed herewith

 

o                                    Wire transfer of immediately available funds to the Company’s account

 

o                                    Cashless Exercise pursuant to Section 1.2 of the Warrant

 

o                                    Other [Describe]

 

2.                                      Please issue a certificate or certificates representing the Shares in the name specified below:

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Holder’s Name
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Address)
    	
 
    

 

3. By its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in Section 4 of the Warrant to Purchase Stock as of the date hereof.

 

 

	
 
    	
HOLDER:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
(Date):Exhibit 10.3

 

CONSENT SOLICITATION SUPPORT AGREEMENT

 

CONSENT SOLICITATION SUPPORT AGREEMENT, dated as of July 16, 2019, by and among Senseonics Holdings, Inc. a Delaware corporation (the “Company”), and (i) each of the undersigned beneficial owners of (or investment managers or advisors for accounts or funds that beneficially own) Notes (as defined below), and (ii) each other beneficial owner of (or investment manager or advisor for accounts or funds that beneficially own) Notes that executes a counterpart signature page to this Agreement after the date of this Agreement as provided herein (together with their applicable transferees, successors and assigns, each a “Noteholder” and, collectively, the “Noteholders”).

 

WHEREAS, the Company has issued and outstanding $53.0 million aggregate principal amount of its 5.25% Convertible Senior Subordinated Notes due 2023 (the “Notes”) issued under that certain Indenture, dated as of January 30, 2018 (the “Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of January 30, 2018 (the “First Supplemental Indenture”; the Base Indenture, as supplemented by the First Supplemental Indenture, the “Indenture”), by and among the Company and U.S. Bank National Association, as Trustee (the “Trustee”);

 

WHEREAS, in the Consent Solicitation (as defined below) the Company intends to solicit consents from the holders of the outstanding Notes to adopt the Proposed Amendment (as defined below) to the Indenture to modify certain provisions of the Indenture that may be amended by the written consent of holders of a majority in aggregate principal amount of the Notes (the proposed amendment to the Indenture, together with the agreements giving effect to such amendment, the “Proposed Amendment”) in exchange for a consent fee payable in cash and equal to 0.50% of the principal amount of Notes (the “Consent Fee”) in respect of which consent to the Proposed Amendment is granted, payable to the extent provided herein;

 

WHEREAS, the Company and the Noteholders have engaged in good faith negotiations with the objective of consummating the Consent Solicitation and related transactions, including the approval of the Proposed Amendment substantially in the form set forth in Exhibit A hereto, as the foregoing may be amended in accordance with the terms hereof; and

 

WHEREAS, the Company and the Noteholders desire that the Company conduct the Consent Solicitation as soon as reasonably practicable.

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the parties signatory to this Agreement hereby agrees as follows:

 

1.                                      Definitions.  The following terms shall have the following meanings:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.  For the purposes of this definition, “control,” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by

 

 

contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Agreement” means this Consent Solicitation Support Agreement, including the Schedule and Exhibits hereto.

 

“Business Day” means any day that is not a Saturday, a Sunday or a day on which banks in the State of New York are generally closed for business.

 

“Commission” means the Securities and Exchange Commission, or any other federal agency at the time administering the Securities Act or the Exchange Act.

 

“Consent Documents” means this Agreement and any other documents to be executed and delivered in connection with the consummation of the Consent Solicitation.

 

“Consenting Notes” means the principal amount of Notes held by each Noteholder as set forth on Schedule A hereto and in respect of which each Noteholder has agreed to consent to the Proposed Amendment in the Consent Solicitation in accordance with this Agreement and the Consent Solicitation Statement.

 

“Consent Solicitation” means the solicitation of consents to consent to the Proposed Amendment, which, if consented to, will be reflected in the Second Supplemental Indenture.

 

“Consent Solicitation Statement” means any disclosure document delivered to the holders of the Notes in connection with the Consent Solicitation Statement, including any amendments or supplements thereto

 

“Equity Offering” means the public offering of at least $25.0 million of shares of the Company’s common stock pursuant to an effective registration statement.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any successor to such statute, and the rules and regulations of the Commission issued under the Exchange Act, as they each may, from time to time, be amended and in effect.

 

“Person” means any individual, partnership, corporation, limited liability company, association, trust, joint venture, unincorporated organization, governmental unit or other entity.

 

“Proposed Amendment” means the proposed amendment to the Indenture set forth on Exhibit A hereto, together with the Second Supplemental Indenture and any other agreements giving effect to such amendment.

 

“Required Noteholders” means holders of at least a majority of the aggregate principal amount of the Notes then outstanding.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

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“Second Supplemental Indenture” means a supplemental indenture, by and among the Company and the Trustee, which will supplement and amend the Indenture to reflect the Proposed Amendment.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Transfer” means to, directly or indirectly, (i) sell, assign or transfer, (ii) pledge, encumber, create any participation or grant any proxy or option, in each case such as would prevent, preclude, hinder or delay the ability of the Person engaging in such Transfer from fulfilling any of such Person’s obligations under this Agreement, including, without limitation, Section 3 hereof, or (iii) enter into any agreement, commitment or other arrangement to do any of the foregoing.  Notwithstanding the foregoing, the parties acknowledge that certain Noteholders may hold the Consenting Notes in margin accounts and may continue to so hold the Consenting Notes; provided that in no event shall this affect such Noteholders obligations under the terms of this Agreement.

 

“Transaction Documents” means the Consent Documents and the Proposed Amendment.

 

2.                                      Agreements of the Company.

 

(a)                                 Subject to the terms and conditions of this Agreement, the Company agrees as follows:

 

(i)                                     Commencement of Consent Solicitation:  The Company shall commence the Consent Solicitation within three Business Days of the date hereof, pursuant to which the Company will solicit consents from the holders of the outstanding Notes to adopt the Proposed Amendment in exchange for a consent fee payable in cash and equal to 0.50% of the principal amount of Notes in respect of which consent to the Proposed Amendment is granted within two Business Days after the expiration of the Consent Solicitation (the “Consent Consideration”), provided that the Consent Consideration shall only be payable if the Required Noteholders consent to the Proposed Amendment and the Company and the Trustee enter into the Second Supplemental Indenture to supplement the Indenture to reflect such Proposed Amendment.

 

(ii)                                  Expiration of the Consent Solicitation:  The Consent Solicitation shall expire on the date that is 15 calendar days from the date of commencement of the Consent Solicitation, provided that the Company may extend such expiration date with the written consent of each Noteholder party hereto or as required by applicable law or the Depository Trust Company.

 

(b)                                 Notwithstanding anything to the contrary in this Agreement, to the extent the Company pays any consideration in exchange for any consent in addition to the Consent Consideration in the Consent Solicitation, each Noteholder shall receive such consideration in an amount proportional to the principal amount of Consenting Notes to which such Noteholder has given consent hereunder.

 

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3.                                      Agreements of the Noteholders.  Subject to the terms and conditions of this Agreement:

 

(a)                                 Each Noteholder agrees with the Company, in connection with the consummation of the Consent Solicitation and when solicited, to:

 

(i)                                     in respect of all of its Consenting Notes, consent to adopt the Proposed Amendment within three Business Days after the commencement of the Consent Solicitation in accordance with the terms of the Consent Solicitation Statement; and

 

(ii)                                  not withdraw or revoke (or cause not to be withdrawn or revoked) consent to the Proposed Amendment unless and until this Agreement is terminated in accordance with its terms;

 

provided that the agreement pursuant to this Section 3(a) of such Noteholder shall be subject to the closing of the Equity Offering.

 

(b)                                 Each Noteholder agrees, until this Agreement is terminated in accordance with Section 5(a) hereof, not to Transfer any of its Consenting Notes (including beneficial interests therein), in whole or in part, except to the Company or unless the transferee agrees in writing to be bound by the terms of this Agreement to the same extent as the Consenting Notes of a Noteholder hereunder. In the event that any Noteholder Transfers any of the Consenting Notes owned or beneficially held as of the date hereof, as a condition precedent to such Transfer, such Noteholder agrees to cause the transferee to execute and deliver an acknowledgement, in the form attached hereto as Exhibit B, whereby such transferee agrees to be bound by the terms of this Agreement.  Such acknowledgement shall be delivered to the Company immediately following the consummation of such Transfer.  Any Transfer of Consenting Notes to a person not party to this Agreement in violation of this Section 3(b) shall be deemed void.  Notwithstanding the foregoing, any Noteholder may Transfer its Consenting Notes to an Affiliate or another Noteholder so long as (i) such Consenting Notes constitute Additional Notes pursuant to Section 20 hereof and, as a result, become subject to the terms of this Agreement, and (ii) the transferring Noteholder delivers written notice of such Transfer to the Company prior to or within two Business Days following such Transfer.  Notwithstanding the foregoing, the parties acknowledge that certain Noteholders may hold Consenting Notes in margin accounts and may continue to so hold the Consenting Notes; provided that in no event shall this affect such Noteholders’ obligations under the terms of this Agreement. Upon a Transfer of Consenting Notes effected in accordance with the provisions of this section prior to the record date for the Consent Solicitation, the transferring Noteholder will no longer be bound by the provisions of this Agreement with respect to such Transferred Consenting Notes.

 

(c)                                  So long as this Agreement remains in effect, no Noteholder will enter into any voting agreement with any person or entity with respect to any of its Consenting Notes, grant any person or entity any proxy (revocable or irrevocable) or power of attorney with respect to any of its Consenting Notes, deposit any of its Consenting Notes in a voting trust or otherwise enter into any agreement or arrangement with any person or entity limiting or affecting such Noteholder’s legal power, authority or right to vote its Consenting Notes and agree to any amendments to the terms of the Consent Solicitation or this Agreement.

 

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(d)                                 Subject to the provisions of Section 25, each Noteholder agrees that it will permit public disclosure, including in a press release, in any document filed with the Commission related to the Consent Solicitation and the Consent Solicitation Statement (and any amendment thereto), of this Agreement, including, but not limited to, the commitments contained in this Section 3.

 

(e)                                  Each Noteholder further agrees, until the earlier of the consummation of the Consent Solicitation or the termination of this Agreement that it and its Affiliates will not directly or indirectly, object to, or otherwise commence or support any proceeding or action to oppose, the Consent Solicitation or the other actions of the Company contemplated by this Agreement and shall not, indirectly or directly, take any action or otherwise commence or support any action or proceeding that would constitute a breach of any of its representations, warranties and agreements set forth herein or would unreasonably delay, postpone, discourage or materially and adversely affect the consummation of the Consent Solicitation.

 

(f)                                   Each Noteholder acknowledges that the Company and the Trustee shall adopt the Proposed Amendment and enter into the Second Supplemental Indenture promptly upon (i) receipt of written consents of holders of a majority in aggregate principal amount of the Notes and (ii) the satisfaction of the condition to the Consent Solicitation relating to the closing of the Equity Offering and that the Proposed Amendment and Second Supplemental Indenture shall become immediately operative and effective upon execution of the Second Supplemental Indenture, irrespective of whether the expiration of the Consent Solicitation and the payment of the consent fee has occurred.

 

4.                                      Amendments to the Consent Solicitation.

 

(a)                                 The Company shall not:

 

(i)                                     reduce the amount of cash to be paid in the Consent Solicitation per $1,000 principal amount of Notes in respect of which consent is given for the Proposed Amendment or otherwise take or fail to take any action that would reasonably be expected to impede, interfere with, delay, postpone, discourage or materially and adversely affect the timely consummation of the Consent Solicitation;

 

(ii)                                  waive the condition to the Consent Solicitation relating to the closing of the Equity Offering; or

 

(iii)                               extend the Consent Solicitation except to the extent required by applicable law or the Depository Trust Company,

 

in each case without the prior written consent of each Noteholder party hereto.

 

(b)                                 Except as provided in Section 4(a), and to the extent not requiring extension of the Consent Solicitation under applicable law, the Company may waive any of the conditions to the Consent Solicitation.

 

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5.                                      Termination of Agreement.

 

(a)                                 Notwithstanding anything to the contrary set forth in this Agreement, unless the Required Noteholders have consented to the Proposed Amendment and the Second Supplemental Indenture has become effective, this Agreement and all of the obligations and undertakings of the parties set forth in this Agreement shall terminate and expire upon the earlier to occur of:

 

(i)                                     mutual written consent of the Company and each Noteholder; or

 

(ii)                                  without any action by either the Company or any Noteholder, if the Consent Solicitation shall expire by its terms with or without the Proposed Amendment being adopted or be terminated without the Proposed Amendment being adopted.

 

(b)                                 Notwithstanding the foregoing or any other provision of this Agreement, neither the termination of this Agreement nor any other circumstance shall relieve a party from liability for the willful breach of its obligations hereunder.

 

(c)                                  The provisions of this Section 5(c), Sections 9, 13, 14, 15, 16, 17, 22 and 23, and any applicable definition of the capitalized terms used in any of the foregoing sections shall survive any termination of this Agreement.

 

6.                                      Representations, Warranties and Covenants.

 

(a)                                 The Company represents and warrants to each Noteholder, and each Noteholder represents and warrants to the Company as follows:

 

(i)                                     if an entity, it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite corporate, partnership or other power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its respective obligations under, each Transaction Document to which it is a party;

 

(ii)                                  the execution, delivery and performance by it of this Agreement does not and shall not (A) violate any provision of law, order, rule or regulation applicable to it or any of its Affiliates or its certificate of incorporation or bylaws or other organizational documents or those of any of its subsidiaries or (B) conflict with, result in the breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligations to which it or any of its Affiliates is a party or under its certificate of incorporation, bylaws or other governing instruments;

 

(iii)                               the execution, delivery and performance by it of this Agreement does not and shall not require any registration or filing with, the consent or approval of, notice to, or any other action with respect to, any Federal, state or other governmental authority or regulatory body, except such filings as may be necessary or required by the Commission;

 

(iv)                              this Agreement has been duly authorized, executed and delivered and, assuming the due execution and delivery of this Agreement by each of the other parties thereto,  is the legally valid and binding obligation of it, enforceable against it in accordance with its terms, except as enforceability may be limited or affected by applicable bankruptcy,

 

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insolvency, moratorium, reorganization or other laws of general application relating to or affecting creditors’ rights generally; and

 

(v)                                 it has been represented by counsel in connection with this Agreement and the transactions contemplated by the Transaction Documents.

 

(b)                                 Each of the Noteholders further represents and warrants to the Company that:

 

(i)                                     as of the date of this Agreement, such Noteholder is the beneficial owner of, or the investment adviser or manager for the beneficial owners of, the aggregate principal amount of Consenting Notes set forth opposite such Noteholder’s name on Schedule A hereto, which represents all of the Notes held by such Noteholder, with the requisite power and authority to vote such Consenting Notes, and such Consenting Notes are owned free and clear of any liens, encumbrances, equities or claims, other than those under securities laws or any ordinary course claims, including, without limitation, in connection with pledges in connection with bona fide margin accounts or other loan or financing agreement secured by the Consenting Notes;

 

(ii)                                  as of the date of this Agreement and through expiration of the Consent Solicitation, such Noteholder has full legal power, authority and right to consent to the Proposed Amendment with respect to its Consenting Notes then held of record or beneficially owned by it, in each case without the consent, approval of, or any other action on the part of, any other person or entity; and such Noteholder has not entered into any voting agreement (other than this Agreement) with any Person with respect to any of its Consenting Notes, granted to any Person any of its Consenting Notes, deposited any of its Consenting Notes in a voting trust or entered into any arrangement or agreement with any Person limiting or affecting its legal power, authority or right to vote such Consenting Notes on any matter; and

 

(iii)                               such Noteholder has reviewed, or has had the opportunity to review, with the assistance of professional and legal advisors of its choosing, sufficient information necessary for such Noteholder to decide to consent to the Proposed Amendment pursuant to the Consent Solicitation.

 

7.                                      Disclosure of Consent Solicitation.  Contemporaneously with the launch of the Consent Solicitation, the Company shall issue a press release and file a Current Report on Form 8-K describing this Agreement and the Consent Solicitation. The Company shall obtain the prior written consent, such consent not to be unreasonably withheld or delayed, with respect to any disclosure including the identity of any Noteholder therein specifically.

 

8.                                      Good Faith.  Each of the signatories to this Agreement agrees to cooperate in good faith with each other to facilitate the performance by the parties of their respective obligations hereunder and the purposes of this Agreement.

 

9.                                      Amendments and Modifications.  Except as otherwise expressly provided in this Agreement, this Agreement shall not be amended, changed, supplemented, waived or otherwise modified or terminated except by instrument in writing signed by each of the parties hereto.

 

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10.                               No Waiver; Release Upon Consummation of the Consent Solicitation.  Each of the signatories to this Agreement expressly acknowledges and agrees that, except as expressly provided in this Agreement, nothing in this Agreement is intended to, or does, in any manner waive, limit, impair or restrict the ability of any party to this Agreement to protect and preserve all of its rights, remedies and interests, including, without limitation, with respect to its claims against and interests in the Company.

 

11.                               Further Assurances.  Each of the signatories to this Agreement hereby further covenants and agrees to use commercially reasonable efforts to execute and deliver all further documents and agreements and take all further action that may be reasonably necessary or desirable in order to enforce and effectively implement the terms and conditions of this Agreement and the Consent Solicitation.

 

12.                               Complete Agreement.  The Transaction Documents, including the Schedules, Annexes and Exhibits thereto, constitute the complete agreement between the signatories to this Agreement with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, agreements and understandings with respect to the subject matter hereof.  The provisions of the Transaction Documents shall be interpreted in a reasonable manner to effect the intent of the signatories to this Agreement.

 

13.                               Notices.  All notices, requests, demands, claims and other communications hereunder shall be in writing and shall be (a) transmitted by hand delivery, (b) mailed by first class, registered or certified mail, postage prepaid, (c) transmitted by overnight courier, or (d) transmitted by telecopy, and in each case, if to the Company, at the address set forth below:

 

Senseonics Holdings, Inc.
 20451 Seneca Meadows Parkway
 Germantown, MD 20876-7005

Attention:  General Counsel
 Telephone:  (301) 515-7260

 

with a copy to:

 

Cooley LLP
 101 California Street
 San Francisco, CA 94111
 Facsimile:  (415) 693-2999
 Telephone:  (415) 693-2000
 Attention:  Gian-Michele a Marca

 

if to a Noteholder, to the address set forth on the signature pages to this Agreement.

 

Notices mailed or transmitted in accordance with the foregoing shall be deemed to have been given upon receipt.

 

14.                               Governing Law.  This Agreement, the rights of the parties and all claims, actions, causes of action, suits, litigation, controversies, hearings, charges, complaints or proceedings arising in whole or in part under or in connection herewith, will be governed by and construed in

 

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accordance with the domestic substantive laws of the State of New York, without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

15.                               Jurisdiction; Waiver of Jury Trial.  By its execution and delivery of this Agreement, each of the signatories to this Agreement irrevocably and unconditionally agrees that any legal action, suit or proceeding against it with respect to any matter under or arising out of or in connection with this Agreement or for recognition or enforcement of any judgment rendered in any such action, suit or proceeding, shall be brought exclusively in a federal or state court of competent jurisdiction in the State of New York in the Borough of Manhattan.  By its execution and delivery of this Agreement, each of the signatories to this Agreement irrevocably accepts and submits itself to the jurisdiction of a court of competent jurisdiction in the State of New York, as applicable under the preceding sentence, with respect to any such action, suit or proceeding.  Each of the signatories to this Agreement waives any right it may have, and agrees not to request, trial by jury in any suit, action or proceeding with respect to this Agreement and the transactions contemplated hereby.

 

16.                               Consent to Service of Process.  Each of the signatories to this Agreement irrevocably consents to service of process by mail at the address listed with the signature of each such party on the signature pages to this Agreement.  Each of the signatories to this Agreement agrees that its submission to jurisdiction and consent to service of process by mail is made for the express benefit of each of the other signatories to this Agreement.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

17.                               [Reserved.]

 

18.                               Headings.  The headings of the sections, paragraphs and subsections of this Agreement are inserted for convenience only and shall not affect the interpretation hereof.

 

19.                               Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of the signatories to this Agreement and their respective successors, permitted assigns, heirs, executors, administrators and representatives.  The agreements, representations and obligations of the undersigned parties under this Agreement are, in all respects, several and not joint.

 

20.                               Additional Notes.  If, after the date hereof and prior to expiration of the Consent Solicitation, a Noteholder acquires (including in a transaction with another Noteholder permitted by Section 3(b) hereof) beneficial or record ownership of any additional Notes for itself or any account or fund managed by such Noteholder which is not restricted in its ability to consent in respect of any such additional Notes in accordance with the terms of this Agreement and the Consent Solicitation (any such Notes, “Additional Notes”), such Noteholder shall promptly notify the Company of such acquisition and the provisions of this Agreement shall be applicable to such Additional Notes as if such Additional Notes had been Consenting Notes owned by such Noteholder as of the date hereof.  The provisions of the immediately preceding sentence shall be effective with respect to Additional Notes without action by any person or entity immediately upon the acquisition by such Noteholder of beneficial or record ownership of such Additional Notes.

 

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21.                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page by facsimile shall be as effective as delivery of a manually executed counterpart.

 

22.                               No Third-Party Beneficiaries.  This Agreement shall be solely for the benefit of the signatories to this Agreement and their respective successors, permitted assigns, heirs, executors, administrators and representatives, and no other Person or entity shall be a third-party beneficiary hereof.

 

23.                               Severability.  If any provision of this Agreement is found by any court of competent jurisdiction to be invalid or unenforceable, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the fullest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

24.                               Consideration.  It is hereby acknowledged by each of the signatories to this Agreement that no consideration (other than the Consent Fee and other than the obligations of the other parties under this Agreement and the other Consent Documents) has been paid or shall be due or paid to the parties for their agreement to support the Consent Solicitation in accordance with the terms and conditions of this Agreement.

 

25.                               Disclosure of Individual Holdings.  Unless required by applicable law, the Company shall not disclose the principal amount of Consenting Notes held by a Noteholder without the prior written consent of such Noteholder.  The foregoing shall not prohibit the Company from disclosing the aggregate principal amount of the Consenting Notes held by the Noteholders as a group.

 

26.                               Independent Nature of Each Noteholder’s Obligations and Rights.  The obligations of each Noteholder hereunder are several and not joint with the obligations of any other Noteholder hereunder, and no Noteholder shall be responsible in any way for the performance of the obligations of any other Noteholder hereunder.  Nothing contained herein or in any other agreement or document, and no action taken by any Noteholder pursuant hereto or thereto, shall be deemed to constitute the Noteholders as a group, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Noteholders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement.  Each Noteholder shall be entitled to protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Noteholder to be joined as an additional party in any proceeding for such purpose.

 

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27.                               Fees and Expenses.  The Company shall pay all of its expenses incurred in connection with the preparation, execution and delivery of the Transaction Documents and related documents and the consummation of the transactions contemplated thereby.

 

[Signatures Begin on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Consent Solicitation Support Agreement to be duly executed as of the date first set forth above.

 

	
 
    	
THE   COMPANY:
    
	
 
    	
 
    
	
 
    	
SENSEONICS   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[SIGNATURE PAGES TO CONSENT SOLICITATION SUPPORT AGREEMENT]

 

 

NOTEHOLDERS:

 

	
Name   of Holder:
    	
[         ],
    	
 
    
	
 
    	
[as   investment manager for one or more
    	
 
    
	
 
    	
discretionary   accounts]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: [         ]
    	
 
    
	
 
    	
 
    	
 
    
	
Signatory:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address   For Notice:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[                     ]
    	
 
    

 

[SIGNATURE PAGES TO CONSENT SOLICITATION SUPPORT AGREEMENT]

 

 

NOTEHOLDERS (CONTINUED):

 

	
Name   of Holder:
    	
[         ],
    	
 
    
	
 
    	
[as investment   manager for one or more
    	
 
    
	
 
    	
discretionary   accounts]
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   [         ]
    	
 
    
	
 
    	
 
    	
 
    
	
Signatory:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Address   For Notice:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[                     ]
    	
 
    

 

[SIGNATURE PAGES TO CONSENT SOLICITATION SUPPORT AGREEMENT]

 

 

SCHEDULE A

 

TO THE CONSENT SOLICITATION SUPPORT AGREEMENT

 

Noteholder and principal amount of Notes in respect of which consent to the Proposed Amendment will be granted

 

	
Name
    	
 
    	
Principal Amount
   of Notes
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    

 

 

EXHIBITS

 

TO THE CONSENT SOLICITATION SUPPORT AGREEMENT

 

Exhibit A:  Proposed Amendment

 

Exhibit B:  Form of Acknowledgement of Transfer

 

 

EXHIBIT A

 

PROPOSED AMENDMENT

 

The Proposed Amendment would provide for the deletion in its entirety of Section 4.10 of the First Supplemental Indenture, which currently imposes certain limitations on the incurrence of additional indebtedness.  Pursuant to the Proposed Amendment, Section 4.10 of the First Supplemental Indenture would be replaced with the following:

 

Section 4.10              [Reserved]

 

A-1

 

EXHIBIT B

 

TO THE CONSENT SOLICITATION SUPPORT AGREEMENT

 

Form of Acknowledgement of Transfer

 

Senseonics Holdings, Inc.
 20451 Seneca Meadows Parkway
 Germantown, MD 20876-7005

Attention:  General Counsel

 

Ladies and Gentlemen:

 

Reference is made to that certain Consent Solicitation Support Agreement, dated as of July 16, 2019 (the “Agreement”), by and among Senseonics Holdings, Inc., a Delaware corporation (the “Company”), and certain beneficial owners of (or investment managers or advisors for accounts that beneficially own) the 5.25% Convertible Senior Subordinated Notes due 2023 (the “Notes”) of the Company.

 

[Name of the transferor] intends to transfer [insert amount] in aggregate principal amount of Notes to the undersigned.

 

The undersigned acknowledges and agrees that the foregoing [Notes] will be transferred to the undersigned subject to the terms and conditions of the Agreement and that the undersigned shall be bound by the terms and conditions of the Agreement as to the foregoing Notes as a Noteholder thereunder.  In furtherance of the foregoing, as a condition to such transfer, by signing below the undersigned hereby affirms each of the representations, warranties, covenants and agreements of the Noteholders contained in the Agreement.

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
[Transferee]
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Title:
    

 

B-1

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