Document:

fulc-ex102_13.htm

Exhibit 10.2

 

Certain identified information has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the Company, if publicly disclosed.  Double asterisks denote omissions.

 

FIRST AMENDMENT TO THE RIGHT OF 

REFERENCE AND LICENSE AGREEMENT

This FIRST AMENDMENT TO THE RIGHT OF REFERENCE AND LICENSE AGREEMENT (“Amendment”) is made and entered into, effective as of September 23, 2020, by and between GlaxoSmithKline Intellectual Property (No. 2) Limited, a company organized under the laws of England and Wales and having a place of business at 980 Great West Road, Brentford, Middlesex TW8 9GS England (“GIP2”), GlaxoSmithKline LLC, a Delaware limited liability company having a place of business at 1250 S. Collegeville Road, Collegeville, PA 19426-0989 (“GSK LLC”) and Glaxo Group Limited, a company organized under the laws of England and Wales and having a place of business at 980 Great West Road, Brentford, Middlesex TW8 9GS England (“GGL”; together with GIP2 and GSK LLC”, collectively referred to herein as “GSK”) and Fulcrum Therapeutics, Inc., a Delaware corporation having a place of business at 26 Landsdowne Street, Cambridge, MA 02139 (“Fulcrum”).  GSK and Fulcrum are herein collectively referred to as the “Parties”.   

Background

WHEREAS, the Parties entered into a Right of Reference and License Agreement dated as of February 8, 2019 (the “Original Agreement”) pursuant to which Fulcrum obtained from GSK a right of reference to the Losmapimod IND and an exclusive license under the GSK Intellectual Property to exploit losmapimod and pharmaceutical products containing losmapimod and agreed to, among other things, pay GSK development and regulatory milestones as provided in Section 3.2 of the Original Agreement; 

WHEREAS, in [**] 2020 Fulcrum informed GSK that it intended to [**], and under the terms of the Original Agreement, [**] would trigger the milestone set forth in Section 3.2(b) pertaining to the [**] (the “[**] Milestone”); 

WHEREAS, Fulcrum and GSK have agreed to amend the Original Agreement to provide that the [**] Milestone will not be paid upon the [**] but will be paid upon the occurrence of other events as provided in this Amendment.   

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, GSK and Fulcrum agree as follows:

	
1.
	
Definitions in Amendment.  In this Amendment, capitalized terms not otherwise defined herein shall have the meaning given to them in the Original Agreement or in Section 2 of this Amendment.  

	
2.
	
Revised Defined Term.  The preamble of the Original Agreement is hereby amended by deleting the language “(this “Agreement”)” from the first and second lines thereof 

 

 

		
and Section 1.1 of the Original Agreement is hereby amended by adding the following definition after the definition of “Affiliate”:

“Agreement” means the Right of Reference and License Agreement, dated as of February 8, 2019, made and entered into by and between GSK and Fulcrum, as amended from time to time.” 

	
3.
	
Revised [**] Milestone.  Section 3.2(b) of the Original Agreement is hereby amended by deleting the phrase “[**]” in the box under the column labelled “Milestone Event” in that Section and replacing it with the following:

“[**].”

	
4.
	
Except for the changes expressly mentioned in this Amendment, all other terms and conditions of the Agreement shall remain unchanged and continue to be in full force and effect.

	
5.
	
This Amendment may be executed in any number of counterparts, each of which shall be an original as against the Party whose signature appears thereon, but all of which taken together shall constitute one and the same instrument. 

	
6.
	
The provisions of Section 10.4 of the Original Agreement (Controlling Law and Dispute Resolution) shall apply equally to this Amendment.

[Signature page follows – the rest of this page intentionally left blank]

2

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed, as of the date first above written.

 

	
GLAXOSMITHKLINE INTELLECTUAL PROPERTY (NO. 2) LIMITED

	
 
	
 
	
 

	
By:
	
 
	
/s/ Adam Walker

	
 
	
 
	
 

	
Name:
	
 
	
Adam Walker

	
 
	
 
	
 

	
Title:
	
 
	
Director

	
 
	
 
	
 

	
GLAXOSMITHKLINE LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Hatixhe Hoxha

	
 
	
 
	
 

	
Name:
	
 
	
Hatixhe Hoxha

	
 
	
 
	
 

	
Title:
	
 
	
Assistant Secretary

	
 
	
 
	
 

	
GLAXO GROUP LIMITED

	
 
	
 
	
 

	
By:
	
 
	
/s/ Adam Walker

	
 
	
 
	
 

	
Name:
	
 
	
Adam Walker

	
 
	
 
	
 

	
Title:
	
 
	
Director

	
 
	
 
	
 

	
FULCRUM THERAPEUTICS, INC.

	
 
	
 
	
 

	
By:
	
 
	
/s/ Robert J. Gould

	
 
	
 
	
 

	
Name:
	
 
	
Robert J. Gould

	
 
	
 
	
 

	
Title:
	
 
	
President & CEO

 

 

(Signature Page to Right of Reference and License Agreement)

3EXHIBIT 10.1 

  

 CERTAIN
 INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT
 MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY
 DISCLOSED. THE OMITTED PORTIONS OF THIS DOCUMENT ARE INDICATED BY [***].

 

 

 

12 August 2020                                  

 

Westpac
Banking Corporation (as Agent)

Level 3, 275 Kent Street

Sydney NSW
2000

 

Greetings   

 

Syndicated Facility
Agreement dated 15 September 2018, as amended by Amendment Agreement dated 11
September 2019 (Facility Agreement) and modified by Waiver Letter dated 25 May
2020

Second request
for waivers and modifications 

1            
 Background

1.1        
 In this letter capitalised terms have
the meanings given in the Facility Agreement and clause references are to
clauses in the Facility Agreement, in each case unless otherwise stated.  A
reference to a paragraph is to a paragraph of this letter unless otherwise
stated.

1.2        
 Reference is also made to our letter
requesting waivers and modifications dated 25 May 2020, as accepted by you on
that date (First Waiver Letter). 

1.3        
 We write to you, as Agent under the
Facility Agreement, to seek your agreement to: 

(a)         
 amend the First Waiver Letter so as to
be in the form of the document attached to this letter and marked ‘Annexure A’;
and 

(b)         
 further waivers under, and
modifications of, certain parts of the Facility Agreement.    

1.4        
 Despite anything to the contrary in
this letter, including acceptance by the Agent as contemplated by paragraph 10.1, this letter is of no
effect whatsoever unless and until (and comes into effect automatically and
without need for further act or document when) the Parent enters into an
underwriting agreement with respect to the Equity Raising (as defined in
paragraph 2.1)
of at least USD120,000,000.  If that does not occur by the last moment before
midnight (AEST) on 31 August 2020 (or such later time as the Agent (acting on
the instructions of the Majority Lenders) agrees in writing), then this letter
is permanently withdrawn and terminated.

2            
 Equity Raising

2.1        
 The Group, via the Parent, is proposing
to raise further equity (Equity Raising).  The equity is to be raised by
the Parent and the process is expected to be completed, with the net proceeds
received applied in full in prepayment of Loans under the Syndicated Facility
Agreement, by 31 August 2020.  

3            
 Request for waivers and
modifications

3.1        
 Under clause 39 (Amendments and
waivers) the matters described below require the consent of the Majority
Lenders.  By clause 39.1(b), once you have the requisite consents and are so
instructed, you may execute this letter on behalf all Finance Parties by way of
agreement with the Obligors, as contemplated by paragraph 10.1 (the date you do so
will be the Acceptance Date). 

3.2        
 We seek the consent and agreement of
the Agent (acting on the instructions of the Majority Lenders) to the
following:

Amendments to the First Waiver Letter

3.3        
 The amendments to the First Waiver
Letter contemplated by paragraph 1.3(a) are contingent
upon: 

(a)         
 the Equity Raising securing a minimum
of USD120,000,000 in further equity or such lesser amount as agreed by the Majority
Lenders from time to time; and

 

 

    47880858_7 

    

(b)         
 the net proceeds being applied in full
in pro-rata prepayment of outstanding Facility A Loans and Facility C Loans, 

by 31 August 2020 or such later date as agreed by the
Majority Lenders from time to time (Equity Raise Conditions).   

1        
  

2        
  

2.1        
  

2.2        
  

2.3        
  

3.4        
 The Borrower undertakes to notify the
Agent in writing promptly after the Parent becomes unconditionally entitled to
receive the net proceeds of the Equity Raising.  

3.5        
 Upon the Borrower applying in full the net
proceeds (or any lesser amount required to
fully repay all outstanding Facility A Loans and Facility C Loans) of the Equity Raising to prepayment of Loans in accordance
with the Equity Raise Conditions, the First Waiver Letter is amended in the
manner contemplated by paragraph 1.3(a).  Paragraph 8 of
this letter otherwise applies with respect to the First Waiver Letter as so
amended. 

4            
 Permitted Disposals and
consequential prepayments

4.1        
 Despite clause 24.11 (Disposals)
and the restrictions on disposals in paragraph 2.8 of the First Waiver Letter,
for so long as there is no Default or Review Event continuing, the Majority
Lenders acknowledge and consent to these transactions being Permitted Disposals
during the Waiver Period:

(a)         
 a long term coal sale arrangement on
terms approved by the Majority Lenders (but this does not limit the Obligors’
rights to enter into contracts for the sale of coal that are otherwise
permitted by clause 24.11 (Disposals) and paragraph (a) of the
definition of “Permitted Disposals” in the Facility Agreement);

(b)         
 a sale and leaseback arrangement by
Coronado Curragh Pty Ltd in respect of the heavy machinery equipment (HME) set
out in the schedule attached to this letter and marked ‘Annexure B’ (Annexure
B); and

(c)         
 a sale of any housing set out in Annexure
C, which are currently owned by Curragh Queensland Mining Pty Ltd and
utilised in connection with the Curragh Mine,

(collectively, the Permitted Transactions and
individually a Permitted Transaction), on the condition that:

(d)         
 the relevant Permitted Transaction is
completed within 6 months of the date of this letter; 

(e)         
 the net proceeds received from each
Permitted Transaction are applied in full in prepayment of the Loans; and

(f)          
 an amount equal to 40% of the net
proceeds received from each Permitted Transaction will be applied in permanent
reduction of the Facility A Commitment and the Facility C Commitment, to be
applied pro-rata across each of these Facilities and proportionately against
each respective Lender’s Commitment.  Those permanent reductions are applied
against the obligations to reduce commitments under paragraph 5 in chronological order.

5            
 Calculation and amortisation

5.1        
 If the following reductions have not
occurred by the dates shown in the table below, either in respect of the
Facility A Commitment or the Facility C Commitment (or a combination in
aggregate, as applicable), as a result of Permitted Transactions or otherwise,
then they are automatically reduced 

 2 

    

by the amounts shown (less any such prior reductions) on
those dates in that table (Reduced Commitments).  Each Lender’s
respective Facility A Commitment and Facility C Commitment is reduced
proportionately with the reduced amounts being
permanently cancelled.   

5.2        
 The Borrower must ensure (including by
repaying Facility A Loans and Facility C Loans if necessary) that the principal
outstanding under Facility A and Facility C does not exceed the Reduced
Commitments on those dates.  

	
  15 February 2021

  	
  USD25,000,000

  
	
  15 May 2021

  	
  USD25,000,000

  

 

	
  15
  August 2021

  	
  USD25,000,000

  

5.3        
 The automatic reductions described in
the above are to be applied pro-rata across the Facility A Commitment and the
Facility C Commitment and only once the Commitments under those Facilities are
reduced to zero may any of the above amounts be applied in reduction of the
Facility B Commitment. Any funds received and applied in permanent reduction of
the Commitments will be applied in order of the dates outlined in the above
table. 

6            
 Waiver of Material Adverse Effect

6.1        
 Any Event of Default under clause 25.17
(Material Adverse Effect) arising by reason of paragraph (a) or (b) of
the definition of Material Adverse Effect which may have occurred or be
continuing as at the Acceptance Date as a result of COVID-19 related events
that have occurred on or before that date is waived. 

7            
 Representations

7.1        
 This letter and the supplemental
information provided to the Agent in connection with it comprise disclosure, to
the extent of their contents, for the purposes of the representations in clause
21.9 (Disclosure) and 21.10(c) (No misleading information).    

7.2        
 Except as to matters expressly waived
in this letter, each Obligor repeats the Repeating Representations on the date
of its execution of this letter by reference to the facts and circumstances
then existing.

7.3        
 Each Obligor on the date of this letter
represents and warrants to each Finance Party that no Finance Party has or will
be paid any additional fee or Margin or other payment other than as stated in
this letter in connection with the waivers granted pursuant to this letter.
Each Obligor undertakes that it will not make any such payment.   

7.4        
 Each Obligor incorporated in Australia
represents and warrants that its constitution has not been amended or repealed
since last provided to the Agent on or about 24 October 2018, except as
approved by the Agent. 

8            
 Administration Fee and other
conditions

8.1        
 In consideration of the waivers and
modifications sought in this letter, the Obligors undertake to pay to you as
Agent, for the account of each Lender, an administration fee calculated at
[***] on its respective aggregate Commitment on the Acceptance Date. That fee
will be paid in the currency or currencies in which a Lender’s Commitments are
denominated and shall be payable by the Obligors to the Agent within 10
Business Days after the Acceptance Date.  

8.2        
 The Obligors undertake to pay promptly
on demand the fees, costs and expenses incurred by the Lenders and the Agent in
the preparation, negotiation and execution of this letter (including legal fees
and expenses) pursuant to clause 19.2 (Amendment costs).  

8.3        
 Within 20 Business Days of the
Acceptance Date, the Obligors must procure in form and substance satisfactory
to the Agent legal opinions of: 

(a)         
 Sullivan & Cromwell LLP, as New
York counsel to the Parent and the Obligors; and

(b)         
 Dinsmore & Shohl LLP, as West
Virginia counsel to the Parent and the Obligors,

 

 3 

    

in each case regarding US law matters with respect to the
Obligors and their entry into this letter. A failure to comply with this
undertaking within the time required will be an Event of Default and no remedy
periods under the Facility Agreement will apply.   

8.4        
 Within 20 Business Days
of the Acceptance Date, the Obligors must procure in form and substance
satisfactory to the Agent, all board extracts, verification certificates and
other documentation required by the Agent to enable King & Wood Mallesons,
as Australian counsel to the Finance Parties to issue its legal opinion
regarding Australia law matters with respect to the Obligors and their entry
into this letter. A failure to comply with this undertaking within the time
required will be an Event of Default and no remedy periods under the Facility
Agreement will apply. 

9            
 General

9.1        
 This letter is issued by the Parent,
the Original Borrower and all other Obligors.  

9.2        
 Each Obligor acknowledges that, except
as expressly provided for in this letter (or any other Finance Document):

(a)         
 no other amendments, waivers or
consents are made by this document to the Facility Agreement, the First Waiver
Letter or any other Finance Document; 

(b)         
 this letter does not affect any other
right a Lender may have; and 

(c)         
 all provisions of the Facility
Agreement, the First Waiver Letter (as amended by this letter) and any other
Finance Document remain in full force and
effect.

9.3        
 Each Obligor acknowledges and confirms
that:

(a)         
 except as expressly provided for in
this letter, the terms of this letter do not affect or prejudice the
obligations of any Obligor under the Facility Agreement, the First Waiver
Letter or any other Finance Document; and

(b)         
 each guarantee and security provided by
it and security granted by it continues in full force and effect.

9.4        
 In the event of any inconsistency
between this letter and the Facility Agreement or the First Waiver Letter, the
terms of this letter will prevail to the extent of that inconsistency.

9.5        
 The person who signs this letter on
behalf of the Obligors does so as the duly appointed attorney of each
Australian Obligor and duly authorized signatory of each US Obligor and has no
notice of revocation of that appointment or authority with respect to any
Obligor. 

9.6        
 The Agent acknowledges that the Parent
has advised that it intends to publicly file this letter with the U.S.
Securities and Exchange Commission. The Agent consents on behalf of itself and
the Majority Lenders to the public filing of this letter with the U.S.
Securities and Exchange Commission on the
condition that the Parent redacts any fee information and uses its best
endeavours to ensure that there is a redaction of the margin information set out in paragraph 2.3 of Annexure
A as part of the public filing.

10         
 Acceptance

10.1       If the Majority Lenders agree to the above and instruct you
accordingly, please acknowledge that agreement by executing this letter and
returning it to us.  To facilitate the Equity Raising, we request that you do
so by no later than Wednesday, 12 August 2020.  You and the Obligors
acknowledge and agree that, subject to paragraph 1.4, the waivers and
modifications described in this letter come into effect upon your so doing.   

10.2     
 This letter and any agreement formed by
its acceptance are governed by the laws of Queensland and each party
irrevocable submits to the non-exclusive jurisdiction of the courts of
Queensland.

10.3     
 Once accepted, this letter is a Finance
Document under the Facility Agreement.

10.4     
 This letter may be signed in any number
of counterparts.  Each counterpart constitutes an original of this letter, all
of which together constitute one instrument. This letter is intended to bind
all parties to it.  In the event it is not binding on one party, the parties
agree that it will be binding on none of them

 

 4 

    

10.5       The parties enter into this letter in consideration of,
among other things, the mutual promises contained in this letter.

EXECUTED as an agreement.

 5 

    

Signature pages

Borrower

	
  Signed for and on behalf of CORONADO

  FINANCE PTY LTD  by its attorney under

  power of attorney dated 11
  August 2020___  

  in the presence of:

  	
  )

  )

  )

  )

  )

  )

  	
  /s/ Gerhard Ziems

  
	
  /s/ Liesl Burman

  	
   

  	
  By executing this document the
  attorney states that the attorney has received no notice of revocation of the
  power of attorney

  
	
  Signature of witness

  	
   

  	
   

  
	
  Liesl Burman

  	
   

  	
   

  
	
  Name of witness (BLOCK LETTERS)

  	
   

  	
   

  
	 	
   

  	
   

  
	
  Address of witness

  	
   

  	
   

  

Parent

	
  CORONADO GLOBAL RESOURCES,
  INC

  
	
  By: /s/ Gerhard Ziems

  
	
  Name: Gerhard Ziems

   

  Title: Authorized Signatory

  

 

 6 

    

Obligors

	
  Signed for and on behalf of CORONADO

  AUSTRALIA HOLDINGS PTY LTD  by its

  attorney under power of attorney
  dated 

  11 August 2020___ in the presence of:

  	
  )

  )

  )

  )

  )

  	
  /s/ Gerhard Ziems

  
	
  /s/ Liesl Burman

  	
   

  	
  By executing this document the
  attorney states that the attorney has received no notice of revocation of the
  power of attorney

  
	
  Signature of witness

  	
   

  	
   

  
	
  Liesl Burman

  	
   

  	
   

  
	
  Name of witness (BLOCK LETTERS)

  	
   

  	
   

  
	 	
   

  	
   

  
	
  Address of witness

  	
   

  	
   

  

 

 

	
  Signed for and on behalf of CORONADO 

  CURRAGH PTY LTD  by its attorney under

  power of attorney dated 11
  August 2020___ 

   in the presence of:

  	
  )

  )

  )

  )

  )

  	
  /s/ Gerhard Ziems

  
	
  /s/ Liesl Burman

  	
   

  	
  By executing this document the
  attorney states that the attorney has received no notice of revocation of the
  power of attorney

  
	
  Signature of witness

  	
   

  	
   

  
	
  Liesl Burman

  	
   

  	
   

  
	
  Name of witness (BLOCK LETTERS)

  	
   

  	
   

  
	 	
   

  	
   

  
	
  Address of witness

  	
   

  	
   

  

 

 

 

 7 

    

	
  Signed for
  and on behalf of CURRAGH

  QUEENSLAND MINING PTY LTD  by its

  attorney under power of attorney
  dated 

  11 August 2020___ in the presence of:

  	
  )

  )

  )

  )

  )

  	
  /s/ Gerhard Ziems

  
	
  /s/ Liesl Burman

  	
   

  	
  By executing this document the
  attorney states that the attorney has received no notice of revocation of the
  power of attorney

  
	
  Signature of witness

  	
   

  	
   

  
	
  Liesl Burman

  	
   

  	
   

  
	
  Name of witness (BLOCK LETTERS)

  	
   

  	
   

  
	 	
   

  	
   

  
	
  Address of witness

  	
   

  	
   

  

 

 

 

	
  Signed for and on behalf of CURRAGH

  COAL SALES CO. PTY. LTD.  by its attorney

  under power of attorney dated 

  11 August 2020___ in the presence of:

  	
  )

  )

  )

  )

  )

  	
  /s/ Gerhard Ziems

  
	
  /s/ Liesl Burman

  	
   

  	
  By executing this document the
  attorney states that the attorney has received no notice of revocation of the
  power of attorney

  
	
  Signature of witness

  	
   

  	
   

  
	
  Liesl Burman

  	
   

  	
   

  
	
  Name of witness (BLOCK LETTERS)

  	
   

  	
   

  
	 	
   

  	
   

  
	
  Address of witness

  	
   

  	
   

  

 

 

 

 8 

    

	
   

  CORONADO COAL
  CORPORATION

  CORONADO COAL LLC

  

  CORONADO II LLC

  CORONADO IV LLC

  POWHATAN MID-VOL
  COAL SALES, L.L.C

  MATOAKA LAND
  COMPANY, LLC

  GREENBRIER
  SMOKELESS COAL MINING, L.L.C.

  CORONADO COAL II
  LLC

  CORONADO CURRAGH
  LLC

  BUCHANAN MINING
  COMPANY LLC

  CORONADO VA, LLC

  GREENBRIER
  MINERALS, LLC

  MIDLAND TRAIL
  RESOURCES LLC

  BUCHANAN MINERALS,
  LLC

   

   

  
	
  By: /s/ Gerhard Ziems

  
	
  Name: Gerhard Ziems

   

  Title: Authorized Signatory

  

 

 9 

    

Agent 

 

	
  Signed for and on behalf of Westpac Banking
  Corporation ABN 33 007 457 141 by its Attorney
  under a Power of Attorney dated 17 January 2001, and the Attorney declares
  that the Attorney has not received any notice of the revocation of such Power
  of Attorney, in the presence of: 

   

   

  	
   

  	
   

  	
  /s/ Mathew O’Donohue

  
	
  Signature of Attorney

  
	
  /s/ Jodie Laws

  	
   

  	
   

  	
  Mathew O’Donohue

  
	
  Signature of Witness

   

  Jodie Laws

  	
   

  	
   

  	
  Name of Attorney in
  full

  
	
  Name of Witness in full

  	
   

  	
   

  	
   

  

 

  

 

 10 

 

 

 

ANNEXURE A

To second request for waivers and modifications

Dated 12 August 2020

 

 

 

EXECUTION
VERSION 

 

 

25 May 2020                                      

 

 

                                                       

Westpac
Banking Corporation (as Agent)

Level 3, 275 Kent Street

Sydney NSW
2000

 

 

Greetings   

 

Syndicated Facility
Agreement dated 15 September 2018, as amended by Amendment Agreement dated 11
September 2019 (Facility Agreement) 

Request for
waivers and modifications 

1          Background

1.1       In
this letter capitalised terms have the meanings given in the Facility Agreement
and clause  references are to clauses in the Facility Agreement, in each case
unless otherwise stated.  A reference to a paragraph is to a paragraph of this
letter unless otherwise stated.

1.2       We
write to you as Agent under the Facility Agreement to seek temporary waivers
and modifications of certain parts of the Facility Agreement.    

1.3       Clause
23.1 (Financial covenants) sets out the Financial Covenants with which
the Parent must ensure compliance.  Compliance must be at all times, and the
Borrowers are required to demonstrate compliance as at 30 June and 31 December
each year in accordance with clause 23.2 (Testing of covenants). 

1.4       The circumstances generated locally and globally
by the pandemic of the novel coronavirus disease known as COVID-19, including
its effect on the demand for and price of coal, have placed unanticipated
stresses on the operations of the Group and the predictability of the short and
medium term metrics of the business.  If conditions deteriorate further, there
is the potential that the Group may be unable to comply with certain of the
Financial Covenants for so long as the effects of the pandemic remain current.

2          Request
for waivers and modifications

2.1       Under
clause 39 (Amendments and waivers) the temporary waivers and
modifications described below require the consent of the Majority Lenders.  By
clause 39.1(b), once you have the requisite consents and are so instructed, you
may execute this letter on behalf all Finance Parties by way of agreement with
the Obligors, as contemplated by paragraph 5.1.

 

    470880862_7 

    

2.2       We
seek the consent and agreement of the Agent (acting on the instructions of the
Majority Lenders) to the following, where ‘Waiver Period’ means the
period from the date of your acceptance of this letter in accordance with
paragraph 5.1 (the Acceptance Date) to (and including) the date which is
the earlier of:

(a)         the date on which the Parent delivers to the
Agent a Compliance Certificate signed by the Chief
Executive Officer and Group Chief Financial Officer of the Parent setting
out (in reasonable detail) computations demonstrating compliance with the
Financial Covenants set out in clause 23.1 (Financial Covenants) as at
30 September 2021 on the basis of the financial reporting described in
paragraph 2.13; and 

(b)        the date on which the Agent gives notice that
the Majority Lenders are satisfied with the matters described in paragraph 2.11
(Distribution) below.

If the Waiver
Period has not already ended pursuant to paragraph (a) or (b) above, the
Obligors undertake to ensure that a Compliance Certificate is delivered in
accordance with paragraph (a) demonstrating compliance with the Financial
Covenants no later than 31 October 2021.  A failure to comply with this
obligation will be an immediate Event of Default without any remedy period that
may otherwise be available pursuant to clause 25.3(b) (Other obligations). 

Margin

2.3       In clause 1.1 (Definitions) the definition
of “Margin” is modified during the Waiver Period (and thereafter, but only in
connection with any Interest Period that has commenced during or prior to the
Waiver Period) by replacing the pricing grid and the subsequent paragraph with
the following:

 

	
  Net
  Debt to EBITDA in most recent Compliance Certificate

  	
  Margin

  
	
  >
  3.50 times 

  	
  [***]
  per annum

  
	
  >
  2.50 times and ≤ 3.50 times

  	
  [***]
  per annum

  
	
  >
  2.00 times and ≤ 2.50 times

  	
  [***]
  per annum

  
	
  >
  1.50 times and ≤ 2.00 times

  	
  [***]
  per annum

  
	
  ≤
  1.50 times

  	
  [***]
  per annum

  

a)   Any change in Margin arising by reason of the delivery
of a Compliance Certificate will take effect on the first day of the next
applicable Interest Period or Bank Guarantee fee payment date (as applicable)
occurring after the date of receipt by the Agent of the applicable Compliance
Certificate. 

b)   If a Compliance Certificate is not delivered when due,
for the purposes of determining the applicable Margin, Net Debt to EBITDA will
be assumed to be greater than 3.50 times until a Compliance Certificate is
delivered. 

Despite paragraph (a) of the definition of Margin, if, upon
receipt by the Agent of a Compliance Certificate (prepared on the basis of the
Parent’s financial position as at 30 June 2020, or for each Quarter to and
including 30 September 2021 (in accordance with paragraph 2.13)), the Margin is
to increase in accordance with the above grid, then within 5 Business Days of the receipt by the Agent of the
applicable Compliance Certificate, the Borrower will make a true-up payment
either to the Agent in connection with Facility A and Facility C for the
account of the relevant Lenders or to the relevant Lender in connection with
Facility B of an amount that represents the difference between: 

 

 2 

    

(a)        interest and Bank Guarantee fees paid and payable during
the period from (but excluding) the accounting date to which the Compliance
Certificate is prepared to the date the increased Margin begins to apply
(the “True-Up Period”); and

(b)        interest and Bank Guarantee fees that would have
been paid or payable during the True-Up Period had the Margin during the whole
of that period been at the higher rate.

For the avoidance of doubt, if, upon receipt of the
Compliance Certificate referred to in this paragraph, the Margin is to be
decreased in accordance with the Margin grid set out in this paragraph, no
amount would be payable by any Finance Party to the Borrower in respect of such
decrease in the Margin and the decrease in Margin will occur pursuant to
paragraph (a) of the definition of Margin.

Financial
Covenants

2.4       The
obligation of the Parent under clause 23.1 (Financial covenants) to
ensure compliance with the Financial Covenants at all times is waived during
the Waiver Period.  

2.5       The
obligations of the Parent under clauses 22.1 and 22.2 (Financial Statements)
to supply Financial Statements and Compliance Certificates to the Agent during
the Waiver Period, and the testing regime in clause 23.2 (Testing of
covenants), are unaffected by the waiver in paragraph 2.4 (subject, in
respect of the contents of Compliance Certificates, to paragraph 2.6).

2.6       The
form of Compliance Certificates provided during the Waiver Period need not
contain the phrases ‘which does not exceed 2.50 times’ in paragraph 2(a),
‘which is at least 3.00 times’ in paragraph 2(b) or ‘which does not exceed 40%’
in paragraph 2(c), as shown in the Form of Compliance Certificate in Schedule 7
of the Facility Agreement.  

2.6A     The
Obligors and Finance Parties acknowledge and agree that for the purposes of the
calculation of Financial Covenants in the Facility Agreement, in the event that
EBITDA for a period is less than USD1, the Financial Covenants will be
calculated on the basis that EBITDA is USD1. 

Liquidity
requirement

2.7       The
Obligors and the Agent agree that if a Borrower proposes to utilise Facility A
and/or Facility C during the Waiver Period in circumstances where that
Utilisation will cause the Available Commitment under Facility A and Facility
C, in aggregate, to be less than US$50,000,000, then upon the Borrower giving
the Agent a duly completed Utilisation Request that complies with clause 5 (Utilisation
– Loans) that, once funded, will have that effect:

(a)         subject only to clause 4.2 (Further
conditions precedent), each Lender will make its participation in each Loan
requested in that Utilisation Request on the proposed Utilisation Date; 

(b)        the Obligors and the Lenders must enter into
negotiations for a period of up to 30 days (Negotiation Period) with a
view to agreeing terms on which the Majority Lenders would be prepared to
continue to provide, fund or maintain all or any of the Facilities;

(c)         if agreement is reached during the Negotiation
Period the Obligors must promptly do all acts and execute all documents as the
Majority Lenders reasonably require to document, or to protect, preserve or
secure the Finance Parties’ rights and interests under, such agreement;

(d)        if agreement is not reached during the
Negotiation Period, or if (in the opinion of the Majority Lenders) any of the Obligors
do not do all acts and execute all documents as the Majority Lenders reasonably
require to document, or to protect, preserve or secure for the Finance Parties’
rights and interests under, any agreement, the Agent, acting on the instruction
of the Majority Lenders may by giving written notice to the Borrower:

 

 3 

    

(i)          cancel the whole
or any part of a Facility whereupon it will be immediately cancelled; and

(ii)         declare that all or any part of the
outstanding Utilisations, together with accrued interest, and all other amounts
accrued under the Finance Documents is due and payable whereupon it will be due
and payable within 30 days;

(e)         if the Borrower fails to prepay all amounts
payable following the giving of a notice under paragraph 2.7(d) within 30 days,
that failure will constitute an Event of Default; and

(f)         to avoid doubt, neither the failure to reach
agreement during the Negotiation Period nor the giving of a notice under
paragraph 2.7(d) constitutes an Event of Default.

During the
Negotiation Period and on and from the date of any cancellation pursuant to
paragraph 2.7(d)(ii), the consent of the Borrower will not be required for an assignment
or novation by an Existing Lender pursuant to clause 26.2 (Conditions of
assignment of novation).  

Other
Undertakings

2.8       During the Waiver Period, the Obligors undertake
to ensure that:  

(a)        no Financial Indebtedness is incurred after the
Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) in
respect of the indebtedness described in paragraph (c), (e), (g) and (m) of the
definition of Permitted Financial Indebtedness without the consent of the
Majority Lenders (except as provided for in paragraph (d) below);

(b)        no Limited Recourse Financial Indebtedness is
incurred after the Acceptance Date pursuant to clause 24.10 (Financial
Indebtedness) without the consent of the Majority Lenders;

(c)        the aggregate Financial Indebtedness incurred
after the Acceptance Date pursuant to clause 24.10 (Financial Indebtedness)
in respect of the indebtedness described in paragraph (d) of the definition of
Permitted Financial Indebtedness does not exceed US$10,000,000; 

(d)        the Financial Indebtedness incurred after the
Acceptance Date pursuant to clause 24.10 (Financial Indebtedness) in
respect of indebtedness described in paragraph (m) of the definition of
Permitted Financial Indebtedness is limited to the limited recourse discount
receivables facility entered into with HSBC in June 2020 for up to
USD30,000,000;

(e)        no Security is granted pursuant to paragraphs
(d), (g), (h), (s) and (t) of the definition of Permitted Security; 

(f)         no Security is granted or permitted to subsist
pursuant to paragraph (q) of the definition of Permitted Security if the
aggregate principal amount of indebtedness secured by all Security referred to
in that paragraph exceeds at any time 3% of Total Tangible Assets; 

(g)        the proceeds of disposals made after the
Acceptance Date under clause 24.11 (Disposals) in respect of disposals
described in paragraphs (b), (c), (h) and (j) of the definition of Permitted
Disposal, do not, in aggregate, exceed US$10,000,000. 
For the purposes of paragraph (h) of the definition of Permitted Disposal, the
“Equity Raising” as defined in the letter between the Agent and the Obligors
dated on or about 12 August 2020 is a Permitted Disposal and is excluded from
the calculation of the US$10,000,000 threshold; and

  (h)       the financial accommodation extended by one or
more Obligors after the Acceptance Date under clause 24.9 (Financial
accommodation) in respect of the financial accommodation described in
paragraphs (a), (e), (f) and (g) of the definition of Permitted Financial
Accommodation, does not, when aggregated with the disposal proceeds described
at paragraph 2.8(e), in aggregate, exceed US$10,000,000. 

 4 

    

2.9       Each Obligor undertakes not to participate or
enter, or to permit any other Group Member to participate or enter into any
sale and leaseback transactions or forward sale or coal prepayment arrangements
during the Waiver Period without the consent of the Majority Lenders (except
the Permitted Transactions expressly consented to by the Majority Lenders in
the letter dated 12 August 2020 to which this is Annexure A).  Any disposal or
financial indebtedness permitted by the Facility Agreement or this letter is
subject to the restrictions contained in this paragraph 2.9. 

2.10      Any
funds raised by the Obligors by way of Financial Indebtedness consented to by
the Majority Lenders as contemplated by paragraphs 2.8(a) above and the
proceeds of Permitted Disposals contemplated by paragraph 2.8(g) must only be
applied to working capital or the repayment or prepayment of the amounts owing
to the Lenders under the Facility Agreement.

Distributions

2.11      During
the Waiver Period the Parent undertakes that it will only make a Distribution
if (and only if):

(a)        the Parent delivers to the Agent in form and
substance satisfactory to the Majority Lenders, acting reasonably, a compliance
certificate signed by 2 Directors of the Parent setting out (in reasonable
detail) computations demonstrating compliance (as if no waiver had been granted
pursuant to this letter) with the Financial Covenants set out in clause 23.1 (Financial
Covenants) as at a date 20 Business Days or less prior to the date on which
a Distribution is proposed to be made;

(b)        the Parent delivers to the Agent in form and
substance satisfactory to the Majority Lenders, acting reasonably, at the same
time that the compliance certificate in sub-paragraph (a) is delivered, a
forecast of the Parent’s compliance (as if no waiver had been granted pursuant
to this letter) with the Financial Covenants set out in clause 23.1 (Financial
Covenants) for the next consecutive 6 Month period; and 

(c)        the Majority Lenders, acting reasonably, are
satisfied that if the Parent makes that Distribution, no Event of Default or
Review Event is continuing or would result from it.

Reporting Requirements

2.12      Without prejudice
to the provision of clause 22.4 (Information: miscellaneous), during the
Waiver Period the Obligors undertake to supply to the Agent in a form
satisfactory to the Agent within 15 Business Days after the last day of each
Month:

(a)        a report setting out the performance report in
respect of the Australian assets and in respect of the consolidated US assets
respectively, including the following details: 

(i)              sales production; 

(ii)             operating cost per tonne;

(iii)            sales volume;

(iv)            average realised price; 

(v)             debtors and creditors balance (including a
commentary if there is a + / - 10% deviation of the balance from the
immediately preceding report); and 

(vi)            stockpiles and inventory of coal; and

(b)        a report outlining the Group’s monthly forecast
cashflow and working capital requirements for the period to 30 September 2021
including (if there is a material deviation, which would include + / - 10% of
cash flows from operations, from the immediately preceding forecast) a
reconciliation of the Group’s forecast cashflow and working capital
requirements for that Month against the actual cashflow and working capital
requirements of that Month. For the 

 5 

    

avoidance of
doubt, the report shall also set out the consolidated cash balance of the Group
and the outstanding debt position of the Group as at the last day of the
relevant Month.

2.13      Without prejudice to the provision of clause 22.4
(Information: Miscellaneous), within 60 days after the last day of each
Quarter other than 30 September 2021 and within 30 days of the Quarter ending
30 September 2021, the Obligors undertake to supply to the Agent:

(a)        a
copy of the completed Form 10-Q filed by the Group with the US Securities and
Exchange Commission with respect to that date; and 

(b)        a
Compliance Certificate as at that date, with the ratios calculated by reference
to the Form 10-Q, together with computations (in reasonable detail) (and
subject, in respect of the contents of the Compliance Certificate, to paragraph
2.6).  Each such Compliance Certificate shall be signed by the Chief Executive
Officer and Group Chief Financial Officer of the Parent.  

2.14      The Obligors undertake to provide all Lenders by no earlier
than 15 November 2020 and no later than 15 December 2020, updated board
approved financial model (updated from that previously provided to the Lenders)
and board approved capital management plan (in a form which must be provided by
the Agent to the Borrower following consultation with the Borrower on or before
15 October 2020).  

Representations

2.15      This
letter and the supplemental information provided to the Agent in connection
with it comprise disclosure, to the extent of their contents, for the purposes
of the representations in clause 21.9 (Disclosure) and 21.10(c) (No
misleading information).    

2.16      Except as to
matters expressly waived in this letter, each Obligor repeats the Repeating
Representations on the date of its execution of this letter by reference to the
facts and circumstances then existing.

2.17      Each Obligor on the
date of this letter represents and warrants to each Finance Party that no
Finance Party has or will be paid any additional fee or Margin or other payment
other than as stated in this letter in connection with the waivers granted
pursuant to this letter. Each Obligor undertakes that it will not make any such
payment.   

2.18      Each Obligor
incorporated in Australia represents and warrants that its constitution has not
been amended or repealed since last provided to the Agent on or about 24
October 2018, except as approved by the Agent. 

Material Adverse Effect

2.19      Any Event of
Default under clause 25.17 (Material Adverse Effect) arising by reason
of paragraph (a) or (b) of the definition of Material Adverse Effect which may
have occurred or be continuing as at 12 August 2020 as a result of COVID-19
related events that have occurred on or before that date is waived. 

Additional Rights

2.20      The Obligors
acknowledge and agree that at any time during the Waiver Period any Existing Lender may assign any of its rights or novate
any of its rights and obligations under the Finance Documents to a New Lender
without the consent of the Borrower.

3          Administration
Fee and other conditions

3.1       In
consideration of the waivers and modifications sought in this letter, the
Obligors undertake to pay to you as Agent, for the account of each Lender who
has confirmed its acceptance of this waiver 

 6 

    

letter to
you as Agent by 5.00pm on the 5th Business Day after the Acceptance Date, an
administration fee (in an amount as agreed between the parties) on the
Acceptance Date. That fee will be paid in the currency or currencies in which a
Lender’s Commitments are denominated and shall be payable by the Obligors to
the Agent within 10 Business Days of the Acceptance Date.

3.2       The
Obligors undertake to pay promptly on demand the fees, costs and expenses
incurred by the Lenders and the Agent in the preparation, negotiation and
execution of this letter (including legal fees and expenses) pursuant to
clause 19.2 (Amendment costs).  

3.3       Within
20 Business Days of the Acceptance Date, the Obligors must procure in form and
substance satisfactory to the Agent legal opinions of: 

(i)          Sullivan
& Cromwell LLP, as New York counsel to the Parent and the Obligors; and

(ii)         Dinsmore
& Shohl LLP, as West Virginia counsel to the Parent and the Obligors,

3.4       in
each case regarding US law matters with respect to the Obligors and their entry
into this letter. A failure to comply with this undertaking within the time
required will be an Event of Default and no remedy periods under the Facility
Agreement will apply.   

4          General 

4.1       This
letter is issued by the Parent, the Original Borrower and all other Obligors.  

4.2       Each Obligor acknowledges that, except as expressly
provided for in this letter (or any other Finance Document):

(a)        no other
amendments, waivers or consents are made by this document to the Facility
Agreement or any other Finance Document; 

(b)        this letter does
not affect any other right a Lender may have; and 

(c)        all provisions of
the Facility Agreement and any other Finance Document remain in full force and
effect.

4.3       Each Obligor acknowledges and confirms that:

(a)        except as
expressly provided for in this letter, the terms of this letter do not affect
or prejudice the obligations of any Obligor under any Facility Agreement or any
other Finance Document; and

(b)        each guarantee and
security provided by it and security granted by it continues in full force and
effect.

4.4       In
the event of any inconsistency between this letter and the Facility Agreement,
the terms of this letter will prevail to the extent of that inconsistency.

4.5       The
person who signs this letter on behalf of the Obligors does so as the duly
appointed attorney of each Australian Obligor and duly authorized signatory of
each US Obligor and has no notice of revocation of that appointment or
authority with respect to any Obligor. 

4.6        The Agent acknowledges that the Parent has advised that it
intends to publicly file this letter with the U.S. Securities and Exchange
Commission. The Agent consents on behalf of itself and the Majority Lenders to
the public filing of this letter with the U.S. Securities and Exchange
Commission on the condition that the Parent
redacts any fee information and uses its best endeavours to ensure that there
is a redaction of the any margin information
set out in paragraph 2.3 and paragraph 3.1 of Annexure A as part of the public
filing.

 

 7 

    

5          Acceptance 

5.1       If the Majority Lenders agree to the above and
instruct you accordingly, please acknowledge that agreement by executing this
letter and returning it to us.  You and the Obligors acknowledge and agree that
the waivers and modifications described in this letter come into effect upon
your so doing.   

5.2       This letter and any
agreement formed by its acceptance are governed by the laws of Queensland and
each party irrevocable submits to the non-exclusive jurisdiction of the courts
of Queensland.

5.3       Once accepted, this
letter is a Finance Document under the Facility Agreement.

5.4       This letter may be
signed in any number of counterparts.  Each counterpart constitutes an original
of this letter, all of which together constitute one instrument. This letter is
intended to bind all parties to it.  In the event it is not binding on one
party, the parties agree that it will be binding on none of them

5.5       The parties enter
into this letter in consideration of, among other things, the mutual promises
contained in this letter.

 

 8

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