Document:

Exhibit 10.1

 

[EXECUTION VERSION ]

 

AMENDMENT AND WAIVER NO. 6

 

THIS AMENDMENT AND WAIVER, dated as of November 16, 2018 (this “Agreement”), is made among Synergy Pharmaceuticals Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors as from time to time party hereto, the Lenders listed on the signature pages hereof under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”), and CRG Servicing LLC, a Delaware limited liability company (“CRG Servicing”), as administrative agent and collateral agent for the Lenders (in such capacities, together with its successors and assigns, “Agent”).

 

The Obligors, the Lenders and Agent are parties to that certain Term Loan Agreement, dated as of September 1, 2017 (as amended as of February 26, 2018, August 28, 2018, October 29, 2018 and November 13, 2018, and as further amended, restated, modified or supplemented from time to time, the “Loan Agreement”).

 

The parties hereto desire to waive certain provisions of the Loan Agreement, and to amend the Loan Agreement, in each case, on the terms and subject to the conditions set forth herein.

 

Accordingly, the parties hereto agree as follows:

 

SECTION 1.                         Definitions; Interpretation.

 

(a)                                 Terms Defined in Loan Agreement.  All capitalized terms used in this Agreement (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

 

(b)                                 Interpretation.  The rules of interpretation set forth in Section 1.03 of the Loan Agreement shall be applicable to this Agreement and are incorporated herein by this reference.

 

SECTION 2.                         Waiver.

 

(a)                                 Subject to Section 4, the Lenders hereby waive compliance with Section 10.01 and related provisions of the Loan Agreement through and including 5:00 p.m. (Eastern time) on November 20, 2018.

 

(b)                                 The waiver set forth in Section 2(a) shall be limited precisely as written.  Except as expressly stated herein, nothing in this Agreement shall be deemed to constitute a waiver of noncompliance or breach of any other term or provision in the Loan Agreement or the other Loan Documents, nor prejudice any right or remedy that the Lenders may now have or may have in the future under or in connection with the Loan Agreement or the other Loan Documents.  Nothing contained herein shall be deemed a waiver or consent in respect of (or otherwise affect the Lenders’ ability to enforce) any condition not explicitly waived by Section 2(a).

 

SECTION 3.                         Amendment.  Subject to Section 4, the Loan Agreement hereby is amended as follows:

 

 

(a)                                 Section 2.03 is amended as follows:

 

(i)                                     By adding a new Section 2.03(c), to read in its entirety as follows:

 

“(b)                           Borrower shall pay to Administrative Agent for the benefit of the Lenders, not later than November 19, 2018, an aggregate fee of $150,000, in consideration for Lenders’ and Administrative Agent’s entry into that certain Waiver and Amendment No. 6, dated as of November 16, 2018.”

 

(b)                                 Section 11.01(d) is amended by inserting, immediately prior to “8.02” therein, the section reference “2.03(c), ”.

 

SECTION 4.                         Conditions to Effectiveness.  Sections 2 and 3 shall be effective, as of the date hereof, subject to satisfaction of the following conditions precedent:

 

(a)                                 Agent shall have received, in form and substance reasonably satisfactory to it and the Lenders, this Agreement duly executed by Borrower, Agent and Lenders.

 

SECTION 5.                         Representations and Warranties; Reaffirmation.

 

(a)                                 Each Obligor hereby represents and warrants to Agent and each Lender as follows: Such Obligor has full power, authority and legal right to make and perform this Agreement and the Loan Agreement, as modified by this Agreement (the “Amended Loan Agreement”).  Each of this Agreement and the Amended Loan Agreement is within such Obligor’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Agreement has been duly executed and delivered by such Obligor and each of this Agreement and the Amended Loan Agreement constitutes legal, valid and binding obligations of such Obligor, enforceable against such Obligor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Each of this Agreement and the Amended Loan Agreement (x) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect, (y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of such Obligor and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an event of default under any material indenture, agreement or other instrument binding upon such Obligor and its Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person.

 

(b)                                 Each Obligor hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a party and agrees that the Loan Documents remain in full force and effect, undiminished by this Agreement, except as expressly provided herein.  By executing this Agreement, each Obligor acknowledges that it has read, consulted with its attorneys regarding, and understands, this Agreement.

 

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SECTION 6.                         Governing Law; Submission To Jurisdiction; Waiver Of Jury Trial.

 

(a)                                 Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall apply.

 

(b)                                 Submission to Jurisdiction.  Each Obligor agrees that any suit, action or proceeding with respect to this Agreement or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment.  This Section 6 is for the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with jurisdiction.  To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions.

 

(c)                                  Waiver of Jury Trial.  Each Obligor and each Lender hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any suit, action or proceeding arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby.

 

SECTION 7.                         Miscellaneous.

 

(a)                                 No Waiver.  Except as expressly set forth in Section 2, nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents (including, without limitation, all such rights, privileges and remedies with respect to any Default, Event of Default or Material Adverse Effect, whether communicated or not to the Lenders or Agent).  Except as amended hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect.

 

(b)                                 Severability.  In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

(c)                                  Headings.  Headings and captions used in this Agreement (including the Exhibits, Schedules and Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect.

 

(d)                                 Integration.  This Agreement constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

 

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(e)                                  Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

(f)                                   Controlling Provisions.  In the event of any inconsistencies between the provisions of this Agreement and the provisions of any other Loan Document, the provisions of this Agreement shall govern and prevail.

 

(g)                                  Loan Document.  This Agreement is a Loan Document.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
SYNERGY PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary G. Gemignani
    
	
 
    	
 
    	
Name:
    	
Gary G. Gemignani
    
	
 
    	
 
    	
Title:
    	
EVP, Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
SUBSIDIARY GUARANTORS:
    
	
 
    	
 
    
	
 
    	
SYNERGY ADVANCED PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Gary G. Gemignani
    
	
 
    	
 
    	
Name:
    	
Gary G. Gemignani
    
	
 
    	
 
    	
Title:
    	
EVP,Chief Financial Officer
    

 

[Signature Page to Amendment and Waiver]

 

 

	
ADMINISTRATIVE AGENT:
    	
 
    
	
 
    	
 
    
	
CRG SERVICING LLC
    	
 
    
	
 
    	
 
    
	
By
    	
/s/ Nathan Hukill
    	
 
    
	
 
    	
Nathan Hukill
    	
 
    
	
 
    	
President
    	
 
    
	
 
    	
 
    
	
LENDERS:
    	
 
    
	
 
    	
 
    
	
CRG PARTNERS III—PARALLEL FUND “A” L.P.
    	
 
    
	
 
    	
By CRG PARTNERS III—PARALLEL FUND “A” GP   L.P., its General Partner
    	
 
    
	
 
    	
By CRG PARTNERS III GP LLC, its General   Partner
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Nathan Hukill
    	
 
    
	
 
    	
 
    	
Nathan Hukill
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    
	
CRG PARTNERS III (CAYMAN) UNLEV AIV I L.P.
    	
 
    
	
 
    	
By CRG PARTNERS III (CAYMAN) GP L.P., its   General Partner
    	
 
    
	
 
    	
By CRG PARTNERS III GP LLC, its General   Partner
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Nathan Hukill
    	
 
    
	
 
    	
 
    	
Nathan Hukill
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    
	
 
    	
Witness:
    	
/s/ Ashley Patton Anderson
    	
 
    
	
 
    	
Name:
    	
Ashley Patton Anderson
    	
 
    
	
 
    	
 
    
	
CRG ISSUER 2017-1
    	
 
    
	
 
    	
By CRG SERVICING LLC, acting by power of   attorney
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Nathan Hukill
    	
 
    
	
 
    	
 
    	
Nathan Hukill
    	
 
    
	
 
    	
 
    	
Authorized Signatory
    	
 
    
							

 

[Signature Page to Amendment and Waiver]EX-10.1

 Exhibit 10.1 

AGREEMENT 
 THIS AGREEMENT
is made and entered into this 16th day of November, 2018, by and between NewMarket Corporation, a Virginia corporation, 330 South Fourth Street, Richmond, Virginia 23219 (hereinafter called “NewMarket”), and Mr. Robert A. Shama
(hereinafter called “Shama”). 
 WITNESSETH: 

1.    For the period January 1, 2019 through December 31, 2021 (the “Term”) NewMarket hereby retains
Shama to provide counsel and assistance to NewMarket in support of its businesses and in particular, Afton Chemical Corporation (the “Services”). Through the period of this Agreement, Shama will devote his best efforts in the interest of
NewMarket to perform these Services. 
 2.    For the Services rendered hereunder, NewMarket shall pay Shama and Shama
hereby accepts compensation of the annual amount of $355,000, which payments will be made in monthly installments in arrears, less withholdings for applicable income taxes. 

3.    NewMarket may terminate this Agreement immediately upon written notice to Shama in the event of any material breach
of Section 4, 5, 6, 7 and 8 of this Agreement. 
 4.    Any and all inventions, discoveries, improvements, ideas,
processes, methods, formulae and modifications made or conceived by Shama during the Term of this Agreement as the direct result of the Services rendered hereunder shall become the exclusive property of NewMarket, and Shama will promptly disclose to
NewMarket and upon its request assign to it any and all inventions, discoveries, improvements, ideas, processes, methods, formulae and modifications without further compensation or remuneration. Shama agrees to execute from time to time during or
after the Term hereof such documents as NewMarket may consider necessary to secure to it the benefits under this Agreement. 

5.    For the Term of this Agreement and for a period of two years thereafter, Shama agrees that he will maintain in
confidence and will not disclose to anyone other than the officers and duly authorized employees and representatives of NewMarket, except with the prior written permission of NewMarket, any information that may be obtained by him from NewMarket or
from others in the course of his duties hereunder with respect to the conduct and details of the business or the processes, formulae, compounds, equipment, machinery, appliances, “know how” and arts used or usable by NewMarket in its
business or in its research and development activities, or any other knowledge or information so obtained of whatever character. The information referenced above shall not include information which (i) has become publicly known or generally
known within the industry and/or made generally available through no wrongful act of 

 
Shama in breach of this Agreement, or (ii) has been rightfully received by Shama from a third party who is authorized to make such disclosure. Shama agrees to execute a Patent and
Confidentiality Agreement attached as Annex A. 
 6.    Shama shall have no authority to enter any contract or agreement
on behalf of NewMarket, its affiliates or subsidiaries and shall make no warranties or representation regarding products of NewMarket, its affiliates or subsidiaries without the prior written consent of NewMarket. 

7.    During the Term of this Agreement, Shama agrees that he will not act on behalf of any other party on matters
involving use of confidential or proprietary information obtained from NewMarket, its affiliates or subsidiaries or involving any conflict with work performed by NewMarket, its affiliates or subsidiaries. 

8.    During the Term of this Agreement, Shama will not personally engage in Competitive Activities (as defined below);
provided that Shama’s purchase or holding, for investment purposes, of securities of a publicly-traded company shall not constitute “ownership” or “participation in ownership” for purposes of this paragraph so long as
Shama’s equity interest in any such company is less than a controlling interest. For purposes of this Agreement, “Competitive Activities” means to work for, own, manage, operate, control, or participate in the ownership, management,
operation, or control of, or provide consulting or advisory services to the companies listed on Annex B of this Agreement and /or any of their successors, affiliates or subsidiaries. 

9.    The Term of this Agreement shall commence on January 1, 2019 and shall terminate on December 31, 2021
without further notice. 
 10.    All data, studies and reports generated by Shama in connection with the Services shall
be the exclusive property of NewMarket. Shama shall deliver to NewMarket within fourteen days after termination of this Agreement, all books and records (including any and all proprietary and confidential information) belonging to NewMarket or
received by Shama pursuant to the terms of this Agreement. 
 11.    This Agreement is personal to Shama and may not be
assigned or otherwise transferred by Shama. 
 12.    There are no other agreements or understandings verbal or in
writing, between the parties hereto regarding the subject matter of this Agreement or any part thereof. 
 13.    The
obligations of Shama under Sections 4, 5, 6 and 10 shall survive termination of this Agreement. 
 14.    Shama shall be
entitled to retain all of his accrued pension benefits provided as a result of his retirement on January 1, 2019 from NewMarket, its affiliates or subsidiaries. Shama shall not accrue any additional pension benefits or service credit in the
pension or welfare benefit programs of NewMarket, its affiliates or subsidiaries during the Term of this Agreement. 

 15.    This Agreement shall be construed and interpreted under the laws
of the Commonwealth of Virginia. 
 IN WITNESS WHEREOF, NewMarket Corporation has caused this instrument to be signed in its name by its
President, and Robert A. Shama has hereunto set his hand all as of the day and year first above written. 
  

							
	NEWMARKET CORPORATION	  		  	
				
	By:	 	 /s/ Thomas E. Gottwald
	  	                        	  	 /s/ Robert A. Shama

		 	Thomas E. Gottwald	  		  	Robert A. Shama
		 	President

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