Document:

Monaker Group, Inc. 8-K

 

Exhibit 10.1

 

FIRST AMENDMENT TO WARRANT 

This First Amendment
to Warrant (this “Agreement”) dated March 1, 2018 (the “Effective Date”), is
by and among Monaker Group, Inc., a Nevada corporation (the “Company”) and Pacific Grove Capital
LP, a Delaware limited partnership (the “Warrant Holder”), each a “Party”
and collectively the “Parties.”

W I T N
E S S E T H:

WHEREAS, on
August 11, 2017, the Company closed the transactions contemplated by the Common Stock and Warrant Purchase Agreement, entered into
by the Company on July 31, 2017 (the “Purchase Agreement”), with certain accredited investors named therein,
including the Warrant Holder (collectively, the “Purchasers”);

WHEREAS, under
the terms of the Purchase Agreement, the Company sold the Purchasers an aggregate of 613,000[1]
shares of common stock (the “Shares”) and 613,000 warrants to purchase one share of common stock (the
“Offering Warrants”);

WHEREAS, pursuant
to the Purchase Agreement, the Warrant Holder subscribed for 350,000 Shares and 350,000 Offering Warrants;

WHEREAS, the
Purchase Agreement included certain liquidated damage provisions which require the Company to grant to the Purchasers, as partial
liquidated damages for any delay in obtaining an uplisting to the NASDAQ Capital Market, which uplisting was required pursuant
to the Purchase Agreement, to have occurred on or before December 9, 2017, additional warrants (on substantially similar terms
as the Offering Warrants) equal to each Purchaser’s pro rata share of 1% of the Offering Warrants sold pursuant to the Purchase
Agreement (the “Liquidated Damages”);

WHEREAS, the
Warrant Holder was previously granted, and previously exercised, additional warrants to purchase 108,500 shares of the Company’s
common stock in connection with the Liquidated Damages and the Offering Warrants, on January 10, 2018;

WHEREAS, the
Warrant Holder holds additional warrants to purchase 147,000 shares of the Company’s common stock granted in connection with
the Liquidated Damages (the “Warrants”), which Warrants the Company has granted to the Warrant Holder
as of the date of this Agreement;

 

1

All
share and warrant amounts and exercise prices set forth herein have been retroactively adjusted by the Company’s 1-for-2.5
reverse stock split effective March 12, 2018.

 

    	 	Page 1 of 5
 First Amendment to Warrant
 March 2018	 

    	 

    

WHEREAS, the
Company desires to incentivize the Warrant Holder to exercise the Warrants by reducing the exercise price of the Warrants from
$5.25 per share to $2.625 per share, provided that the Warrant Holder agrees to immediately exercise such Warrants for cash;

WHEREAS, the
Warrant Holder desires to immediately exercise the Warrants for cash subject to the reduction in exercise price described above;
and

WHEREAS, the
Parties now desire to amend the Warrant Agreements evidencing the Warrants (the “Warrant Agreements”)
to reduce the exercise price of such Warrants in consideration for the immediate cash exercise of such Warrants by the Warrant
Holder, pursuant to the terms and conditions of this Agreement and the Warrant Agreements as amended hereby.

NOW, THEREFORE,
in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and other consideration,
which consideration the Parties hereby acknowledge and confirm the receipt and sufficiency of, the Parties hereto agree as follows:

1.       

Amendment to
Warrant Agreements and Warrant Holder Exercise.

(a)       

Effective as of the
Effective Date, the definition of “Exercise Price” set forth in Section 1 of the Warrant Agreements
are hereby amended and replaced by the following definition:

““Exercise
Price” means $2.625, subject to adjustment in accordance with Section 9.”

(b)       

Effective as of the
Effective Date, the Warrant Holder shall be deemed to have affected a cash exercise of the full amount of the Warrants, i.e., the
Warrant Holder shall be deemed to have exercised the Warrant Agreements in full in cash at the Exercise Price as amended hereby;

(c)       

Concurrently with
the Warrant Holder’s entry into this Agreement and effective as of the Effective Date, but no later than two (2) Business
Days after the Effective Date (the “Deadline”), the Warrant Holder shall provide the Company (a) Notice
of Exercises in the form of Exhibit A attached hereto (the “Notice of Exercises”), confirming
and documenting the exercise of such Warrants in cash pursuant to the terms and conditions thereof (the “Exercise”);
and (b) the aggregate Exercise Price of the Warrants ($385,875)(the “Aggregate Exercise Price”).

(d)       

Unless extended by
the Company in its sole discretion, in the event the Notice of Exercises and the Aggregate Exercise Price are not received by the
Company by the Deadline, this Agreement shall be rescinded and shall be void ab initio, the Exercise shall be voided, the
Exercise Price of the Warrants shall revert to $5.25 per share, and this Agreement shall have no force or effect on the date immediately
following the Deadline.

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 First Amendment to Warrant
 March 2018	 

    	 

    

2.       

Consideration.
Each of the Parties agrees and confirms by signing below that they have received valid consideration in connection with this Agreement
and the transactions contemplated herein.

3.       

Mutual Representations,
Covenants and Warranties. Each of the Parties, for themselves and for the benefit of each of the other Parties hereto,
represents, covenants and warrants that:

(a)       

Such Party has all
requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and thereby. This Agreement constitutes the legal, valid and binding obligation of such Party enforceable against
such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and general equitable principles;

(b)       

The execution and
delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the lapse
of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any provision
contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental
authority or any contract to which such Party is bound or affected; and

(c)        Any
individual executing this Agreement on behalf of an entity has authority to act on behalf of such entity and has been duly and
properly authorized to sign this Agreement on behalf of such entity.

4.       

Further Assurances.
The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and deliver
such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes
and intent of this Agreement and the transactions contemplated herein.

5.       

Effect
of Agreement. Upon the effectiveness of this Agreement, each reference in the Warrant Agreements
to “Warrant”, “Agreement,”
“hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to such
Warrant Agreements as modified or amended hereby.

    	 	Page 3 of 5
 First Amendment to Warrant
 March 2018	 

    	 

    

6.       

Exercise
of Warrants In Full; Termination of Warrant Agreements. Effective upon the Effective Date
and in connection with the Exercise, except for the right to receive Warrant Shares in connection with the Exercise of the Warrants
pursuant to the terms of this Agreement above and the terms of the Warrant Agreements (to the extent not modified hereby), the
Warrant Agreements and the Warrants shall be deemed to have been exercised in full, shall have no further force or effect, shall
be deemed terminated, and the Warrant Holder shall have no further rights, and the Company shall have no further obligation under,
such Warrant Agreements, effective on the Effective Date.

7.       

Benefit and Burden.
This Agreement shall inure to the benefit of, and shall be binding upon, the Parties hereto and their successors and permitted
assigns.

8.       

Entire Agreement.
This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties and representations among
the Parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior agreements, arrangements
and understandings between the Parties, whether written, oral or otherwise.

9.       

Fully Informed;
Arm’s Length Transaction. Each Party herein expressly represents and warrants to all other Parties hereto that (a)
before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions and effects of this Agreement;
(b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said Party has had the opportunity
to seek and has obtained the advice of its own legal, tax and business advisors before executing this Agreement; (d) said Party
has acted voluntarily and of its own free will in executing this Agreement; and (e) this Agreement is the result of arm’s
length negotiations conducted by and among the Parties and their respective counsel.

10.       

No Presumption
from Drafting. This Agreement has been negotiated at arm’s-length between persons knowledgeable in the matters set
forth within this Agreement. Accordingly, given that all Parties have had the opportunity to draft, review and/or edit the language
of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this Agreement will be applied
in any action relating to, connected with or involving this Agreement. In particular, any rule of law, legal decisions, or common
law principles of similar effect that would require interpretation of any ambiguities in this Agreement against the Party that
has drafted it, is of no application and is hereby expressly waived. The provisions of this Agreement shall be interpreted in a
reasonable manner to effect the intentions of the Parties.

    	 	Page 4 of 5
 First Amendment to Warrant
 March 2018	 

    	 

    

 

11.       

Effect of Facsimile
and Photocopied Signatures. This Agreement and any signed agreement or instrument entered into in connection with this
Agreement, and any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one
and the same instrument. Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif,
..jpeg or similar attachment to electronic mail (any such delivery, an “Electronic Delivery”) shall be
treated in all manner and respects as an original executed counterpart and shall be considered to have the same binding legal effect
as if it were the original signed version thereof delivered in person. At the request of any Party, each other Party shall re execute
the original form of this Agreement and deliver such form to all other Parties. No Party shall raise the use of Electronic Delivery
to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use
of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives any such defense, except
to the extent such defense relates to lack of authenticity.

IN WITNESS
WHEREOF, the Parties hereto have executed this Agreement as of the day and year first written above to be effective as of the
Effective Date.

(“Company”)

Monaker Group,
Inc.

		By:	/s/ Bill Kerby 	 	 
	 	 	 
	 	Its:	CEO 	 	 

 

	 	Printed Name:	Bill Kerby 	 	 
	 	 	 

 

(“Warrant Holder”)

Pacific Grove Capital LP

	 	By:	/s/ Mark Simmons	 	 
	 	 	 
	 	Its:	Chief Financial Officer	 	 

 

	 	Printed Name:	Mark Simmons 	 	 
	 	 	 

    	 	Page 5 of 5
 First Amendment to Warrant
 March 2018	 

    	 

    

 

 

 

 

EXHIBIT A

 

 

 

    	 	 	 

    	 

    

 

EXERCISE NOTICE

The undersigned Holder
hereby irrevocably elects to purchase 73,500 shares of Common Stock pursuant to the attached Warrant. Capitalized
terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

(1)       The
undersigned Holder hereby exercises its right to purchase Warrant Shares pursuant to the Warrant.

(2)       The
Holder intends that payment of the Exercise Price shall be made as (check one):

[X] “Cash Exercise” under
Section 10

[ ] “Cashless Exercise” under
Section 10

(3)       If
the holder has elected a Cash Exercise, the holder shall pay the sum of $192,937.50  to the Company in accordance
with the terms of the Warrant.

(4)       Pursuant
to this Exercise Notice, the Company shall deliver to the holder Warrant Shares in accordance with the terms of the Warrant.

 

 

	Dated March 1, 2018	Name of Holder:
	 	 
	 	(Print)
	 	 
	 	Pacific Grove Capital LP
	 	 
	 	 
	 	 
	 	By:	/s/ Mark Simmons	 
	 	 
	 	Its:	Chief Financial Officer	 

	 	Printed Name:	Mark Simmons	 
	 	 	(Signature must conform in all respects
to name of holder as specified on the face of the Warrant)	 

 

    	 	 	 

    	 

    

 

EXERCISE NOTICE

The undersigned Holder
hereby irrevocably elects to purchase 73,500 shares of Common Stock pursuant to the attached Warrant. Capitalized
terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

(1)       The
undersigned Holder hereby exercises its right to purchase Warrant Shares pursuant to the Warrant.

(2)       The
Holder intends that payment of the Exercise Price shall be made as (check one):

[X] “Cash Exercise” under
Section 10

[ ] “Cashless Exercise” under
Section 10

(3)       If
the holder has elected a Cash Exercise, the holder shall pay the sum of $192,937.50  to the Company in accordance
with the terms of the Warrant.

(4)       Pursuant
to this Exercise Notice, the Company shall deliver to the holder Warrant Shares in accordance with the terms of the Warrant.

 

 

	Dated March 1, 2018	Name of Holder:
	 	 
	 	(Print)
	 	 
	 	Pacific Grove Capital LP
	 	 
	 	 
	 	 
	 	By:	/s/ Mark Simmons	 
	 	 
	 	Its:	Chief Financial Officer	 

	 	Printed Name:	Mark Simmons	 
	 	 	(Signature must conform in all respects
to name of holder as specified on the face of the Warrant)Exhibit

Exhibit 10.1 

Execution Version

March 1, 2018
CONFIDENTIAL
		
	TO:
	Babcock & Wilcox Enterprises, Inc..

Re:  Equity Financing Commitment
Ladies and Gentlemen:
Babcock & Wilcox Enterprises, Inc., a Delaware corporation (the “Company”), has advised each of the undersigned (collectively, the “Backstop Parties” and individually each a “Backstop Party”) the Company intends to initiate a rights offering (the “Rights Offering”) to all of its common shareholders (“Common Shareholders”) pursuant to which the Company will distribute at no charge one purchase right (each a “Right”) per share of common stock (“Common Stock”) of the Company outstanding and held of record as of the record date (the “Record Date”) to be set by the members of the Board of Directors of the Company (the “Board of Directors”).   The Company is proposing to offer and sell in the aggregate a minimum number of shares of Common Stock resulting gross cash proceeds to the Company of at least $182,000,000, (the “Minimum Rights Offering Proceeds Amount”) on the terms described in the attached Exhibit A (the “Term Sheet”).  This letter agreement (including the Term Sheet, this “Letter Agreement”) sets forth the terms and conditions under which the Backstop Parties have agreed to provide the Backstop Commitments (defined below) referenced herein.  Capitalized terms used herein but not defined herein have the meaning given to them in the Term Sheet.
It is contemplated that one or more additional letter agreements (each, an “Additional Letter Agreement” and together with this Letter Agreement, collectively, the “Backstop Agreements”) will be executed on or after the date hereof pursuant to which additional persons (each, an “Additional Backstop Party” and together with the Backstop Parties, collectively, the “Global Backstop Parties”) may, at the request and with the consent of the Company, provide additional backstop commitments on the same terms as set forth herein (each an “Additional Backstop Commitment” and together with the Backstop Commitments, collectively, the “Global Backstop Commitments”).  To the extent that the aggregate amount of the Global Backstop Commitments are in excess of the Minimum Rights Offering Proceeds Amount, the Company shall have the right in its discretion to determine the final allocation of each of the Global Backstop Commitments (which, in the case of each of the Global Backstop Parties shall not be in excess of each of their respective individual original Global Backstop Commitments).
Each of the Backstop Parties, severally and not jointly, irrevocably commits and agrees as follows:

1.Each Backstop Party hereby commits (such commitment a “Backstop Commitment” and collectively the “Backstop Commitments”), subject solely to the conditions set forth in this Section 1, and on the terms described in Exhibit A, to purchase any shares of Common Stock that would have otherwise been issuable pursuant to any Rights that were not properly exercised during the Rights Offering and remain unexercised after the expiration of Offer Period, less any shares of Common Stock purchased by the Backstop Parties in the Rights Offering (such shares, in the aggregate, the “Unsubscribed Shares”) on the Closing Date up to a maximum aggregate amount for each Backstop Party not to exceed the amount set forth on Schedule 1 hereto as its Maximum Backstop Commitment Amount (for each Backstop Party, its “Maximum Backstop Commitment Amount”).  Each of the foregoing Backstop Commitments is subject solely to (i) the receipt by such Backstop Party of written notice from the Company after the Commencement Date and after the expiration of the Offer Period but prior to the termination of the Backstop Commitments pursuant to Section 2 below that the Company is exercising its rights to require each Backstop Party to fund its Backstop Commitment and setting forth the amount of the Backstop Commitment to be funded, which, for each Backstop Commitment Party, shall not be excess of the Maximum Backstop Commitment Amount, (ii) the receipt by each Backstop Party of the its pro rata portion of the Unsubscribed Shares as specified on Schedule 1 hereto simultaneously with the receipt by the Company of the proceeds of such Backstop Commitment, and (iii) the resignation from the Board of Directors of  at least four members who were also members of the Board of Directors as of December 31, 2017.  
2.    This Letter Agreement, including the undersigned’s obligation to fund the Commitment, terminates upon the earliest to occur of (i) the receipt by the Company of gross cash proceeds from the Rights Offering from Participating Common Shareholders in an aggregate amount of at least $182,000,000, (ii) the date on which the Company provides written notice to the Backstop Parties that it is terminating this Letter Agreement, (iii) the date on which the Backstop Parties have provided the Company with the proceeds of the full amount of the Backstop Commitments on the terms set forth in this Letter Agreement, or (iv) September 30, 2018.  Upon any such termination of this Letter Agreement, any obligations hereunder will terminate and none of the parties hereto shall have any liability under this Letter Agreement whatsoever to any other party.
3.    The obligation of any Backstop Party to fund its Backstop Commitment may not be assigned to any other person or entity without the prior written consent of the Company.
4.    This Letter Agreement is binding on and solely to the benefit of and enforceable by the Backstop Parties and the Company, and nothing set forth in this Letter Agreement is be construed to confer upon or give to any other person any benefits, rights or remedies under or by reason of, or any rights to enforce or cause the Company to enforce, the Backstop Commitments or any provisions of this Letter Agreement.

5.    Each Backstop Party hereby represents and warrants with respect to itself to the Company that (a) it has all corporate, limited liability company or limited partnership power and authority to execute, deliver and perform this Letter Agreement, (b) the execution, delivery and performance of this Letter Agreement by it has been duly and validly authorized and approved by all necessary corporate, limited liability company or limited partnership action, (c) this Letter Agreement has been duly and validly executed and delivered by it and constitutes a valid and legally binding obligation of such Backstop Party, (d) the execution, delivery and performance of this Letter Agreement by it does not and will not conflict with, violate the terms of or result in the acceleration of any obligation (i) under any material contract, material commitment or other material instrument to which it is a party or is bound, (ii) under its certificate incorporation or organization, bylaws or articles, membership agreement or limited partnership or limited partnership agreement, or (iii) result in the violation of any law or statute applicable to it or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority having jurisdiction over it, (e) no consent, approval, authorization, order, license, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance of this Letter Agreement by it, and (f) it has available unrestricted cash or cash equivalents and/or uncalled capital commitments in excess of its Backstop Commitment.
6.    This Letter Agreement is governed in all respects, including as to validity, interpretation and effect, by the laws of the State of Delaware, without giving effect to its principles or rules of conflict of laws, to the extent such principles are not mandatorily applicable by statute and would permit or require the application of the laws of another jurisdiction.  The parties hereto hereby irrevocably submit to the jurisdiction of the Chancery Court of the State of Delaware (and in the absence of jurisdiction in the Chancery Court of the State of Delaware, the parties hereto consent to be subject to the exclusive jurisdiction of any federal court located in the State of Delaware or any other Delaware state court) solely in respect of the interpretation and enforcement of the provisions of this Letter Agreement, and irrevocably agree that all claims in respect of the interpretation and enforcement of the provisions of this Letter Agreement, or with respect to any action or proceeding hereunder, shall be heard and determined in the Chancery Court of the State of Delaware (and in the absence of jurisdiction in the Chancery Court of the State of Delaware, the parties hereto consent to be subject to the exclusive jurisdiction of any federal court located in the State of Delaware or any other Delaware state court), and that such jurisdiction of such courts with respect thereto shall be exclusive, except solely to the extent that all such courts shall lawfully decline to exercise such jurisdiction.  Each party hereto hereby waives and agrees not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject to such jurisdiction.  Each party hereto hereby waives and agrees not to assert, to the maximum extent permitted by law, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that such action, suit or proceeding may not be brought or is not maintainable in such courts, that the venue thereof may not be appropriate or that this Letter Agreement may not be enforced in or by such courts.  The 

parties hereto hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of any such dispute.  THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) BROUGHT BY EITHER OF THEM AGAINST THE OTHER IN ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LETTER AGREEMENT.
7.    This Letter Agreement constitutes the sole agreement, and supersedes all prior agreements, understandings and statements, written or oral, between the parties hereto with respect to the subject matter hereof.  The terms of this Letter Agreement may not be modified or otherwise amended, or waived, except pursuant to a written agreement signed by the parties hereto.  This Letter Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument.
 [Rest of Page Left Intentionally Blank]

Very truly yours, 
VINTAGE CAPITAL MANAGEMENT LLC

By:        /s/ Brian Kahn                     
    Name:  Brian Kahn     
    Title:    Managing Member
    
Acknowledged and agreed as of 
the date first above written: 
 
BABCOCK & WILCOX ENTERPRISES, INC.
By:  /s/ Jenny L. Apker     
    Name:  Jenny L. Apker 
    Title:    SVP & CFO

[Signature Page to Equity Commitment Letter]

Schedule 1

Backstop Commitments

	
			
	Backstop Party
	Aggregate Backstop Commitment Percentage
	Maximum Backstop Commitment Amount

	Vintage Capital Management LLC
	100%
	$182,000,000

Exhibit A

Term Sheet
Capitalized terms used in this Term Sheet but not defined herein shall have the meaning given to them in the Letter Agreement to which it is attached.
THIS TERM SHEET IS NOT AN OFFER OR A SOLICITATION WITH RESPECT TO ANY SECURITIES OF THE DEBTORS.  ANY SUCH OFFER OR SOLICITATION MUST COMPLY WITH ALL APPLICABLE SECURITIES LAWS.  
	
		
	Parties
	Babcock & Wilcox Enterprises, Inc. (the “Company”).
Each of the Global Backstop Commitment Parties.
Each of the holders of the Company’s Common Stock (a “Common Shareholder”) who determines to participate in the Rights Offering (the “Participating Common Shareholders”), which may include the Backstop Commitment Parties.

	Purchase Price
	At least $182,000,000 in the aggregate divided by the number of shares of Common Stock (“Common Shares”) being offered in the Rights Offering (the “Purchase Price”) with a purchase price of $3.00 per newly-issued share.  

	Use of Proceeds
	The proceeds of the Rights Offering and, if applicable, any Global Backstop Commitments, together with cash on hand and other available sources will be used by the Company to repay in full all of the indebtedness outstanding under the Second Lien Credit Agreement, dated as of August 9, 2017, among the Company, the lenders party thereto from time to time and Lightship Capital, as the administrative agent, together with any prepayment premium or make-whole amounts and all fees and expenses related to the foregoing.

	Commencement Date
	 
The Company shall commence the Rights Offering by mailing of the subscription and disclosure documents for the Rights Offering on a date specified by the Board of Directors in March 2018 (the “Commencement Date”).

	Termination Date
	The date that is the earlier of (a) the date the Company publicly announces that it is terminating the Rights Offering, and (b) September 30, 2018 (the “Outside Date”). 

	Closing Date
	The date (such date, the “Closing Date”) after the Commencement Date and after the expiration of the Offer Period (defined below) but prior to the Termination Date that the Company specifies as the date upon which each Participating Common Shareholder and/or Backstop Party shall be required to pay for the Rights Offering Shares (defined below) it is has subscribed for or is commitment to purchase.

	
		
	The Rights Offering
	All Common Shareholders as of the record date the Company initiates the Rights Offering (the “Record Date”) to be established by the Board of Directors will be entitled to purchase, on a pro rata basis based upon the number of shares owned by each such holder of Common Shares as of the Record Date, newly issued Common Shares of the Company (the “Rights Offering Shares”) at the Purchase Price such that the total amount of Rights Offering Shares sold pursuant to the Rights Offering and the Backstop Commitments described below will generate not less than $182,000,000 in gross cash proceeds (the “Rights Offering Proceeds”), it being understood that the Company will have the right to elect to issue more Rights Offering Shares if there are sufficient Participating Common Shareholders with any such additional shares being offered to Participating Common Shareholders on a pro rata basis. 
Each Common Shareholder will have not less than a period to be specified by the Board of Directors after the Commencement Date (the “Offer Period”) to determine whether to participate in the Rights Offering.  Participating Common Shareholders must fund such purchase on the Closing Date.

	Global Backstop Commitments

Standstill and Voting Arrangements
	 
As set forth in the Backstop Agreements, and subject solely to the conditions set forth therein, each Global Backstop Party will purchase, in accordance with their respective Global Backstop Commitments, Rights Offering Shares not subscribed and paid for in the Rights Offering by Common Shareholders pursuant to unexercised Rights.  The allocation of Rights Offering Shares to the Global Backstop Parties shall be determined by the Company, in its discretion.
 
 
To be determined.

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