Document:

cala-ex1018_206.htm

 

Exhibit 10.18

 

SECOND AMENDMENT TO LEASE AGREEMENT

THIS SECOND AMENDMENT TO LEASE AGREEMENT (this “Second Amendment”) is made as of February 23, 2016, by and between ARE-TECHNOLOGY CENTER SSF, LLC, a Delaware limited liability company (“Landlord”), and CALITHERA BIOSCIENCES, INC., a Delaware corporation (“Tenant”).

RECITALS

A.Landlord and Tenant are now parties to that certain Lease Agreement dated as of February 14, 2013, as amended by that certain letter agreement dated as of March 31, 2013 and as further amended by that certain First Amendment to Lease Agreement dated as of October 30, 2013 (as amended, the “Lease”).  Pursuant to the Lease, Tenant leases certain premises consisting of approximately 29,080 rentable square feet (“Existing Premises”) in a building located at 343 Oyster Point Boulevard, South San Francisco, California (the “Building”).  The Existing Premises are more particularly described in the Lease. Capitalized terms used herein without definition shall have the meanings defined for such terms in the Lease.

B.Landlord and Tenant desire, subject to the terms and conditions set forth below, to amend the Lease to, among other things, (i) expand the size of the Existing Premises by adding the balance of the Building, consisting of approximately 24,900 rentable square feet, and (ii) extend the Term of the Lease.  

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, the mutual promises and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

	
1.
	
Second Expansion Premises.  In addition to the Existing Premises, commencing on the Second Expansion Premises Commencement Date (as defined in Section 2 below), Landlord leases to Tenant, and Tenant leases from Landlord, that certain portion of the Building consisting of approximately 24,900 rentable square feet, as shown on Exhibit A attached hereto (the “Second Expansion Premises”).

	
2.
	
Delivery.  Landlord shall use reasonable efforts to deliver the Second Expansion Premises to Tenant on or before the Target Second Expansion Premises Commencement Date (“Delivery” or “Deliver”).  If Landlord fails to timely Deliver the Second Expansion Premises, Landlord shall not be liable to Tenant for any loss or damage resulting therefrom, and the Lease with respect to the Second Expansion Premises shall not be void or voidable, except as provided herein.  If Landlord does not Deliver the Second Expansion Premises to Tenant on or before April 1, 2017 (as such date may be extended for Force Majeure delays, the “Outside Delivery Date”), this Second Amendment may be terminated by Tenant by written notice to Landlord, and if so terminated by Tenant, neither Landlord nor Tenant shall have any further rights, duties or obligations under this Second Amendment, except with respect to provisions which expressly survive termination of this Second Amendment.  Notwithstanding anything to the contrary contained herein, in no event shall the Outside Delivery Date be extended by more than 30 days for Force Majeure delays resulting from Cytomx’s failure to surrender the Premises.  If Tenant does not elect to terminate this Second Amendment on or before the date that is 10 days after the Outside Delivery Date, such right to terminate this Second Amendment shall be waived and this Second Amendment shall remain in full force and effect.  

	
 
	
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The “Second Expansion Premises Commencement Date” shall be the date Landlord Delivers the Second Expansion Premises to Tenant; provided, however, that in no event shall the Second Expansion Premises Commencement Date occur prior to December 1, 2016.  The “Target Second Expansion Premises Commencement Date” shall be December 1, 2016.  Upon the request of Landlord, Tenant shall execute and deliver a written acknowledgment of the Second Expansion Premises Commencement Date and the Expiration Date of the Lease in the form of the “Acknowledgement of Premises Commencement Date” attached to the Lease as Exhibit D; provided, however, Tenant’s failure to execute and deliver such acknowledgment shall not affect Landlord’s rights hereunder. 

Following the Second Expansion Premises Commencement Date and following written notice from Tenant, Landlord shall perform Landlord’s Work within a reasonable period following Landlord’s receipt of Tenant’s notice.  Tenant acknowledges that Landlord shall require access to the Existing Premises and the Second Expansion Premises following the Second Expansion Premises Commencement Date in order to complete Landlord’s Work (as defined below).  Landlord and its contractors and agents shall have the right to enter the Existing Premises and the Second Expansion Premises following the Second Expansion Premises Commencement Date in order to complete Landlord’s Work. Tenant acknowledges that Landlord’s completion of Landlord’s Work may adversely affect Tenant’s use and occupancy of the Existing Premises and the Second Expansion Premises.  Tenant waives all claims against Landlord in connection with Landlord’s performance of Landlord’s Work, including claims for rent abatement.  As used herein, “Landlord’s Work” shall mean providing touch-up paint and the installation of new carpet, using materials reasonably acceptable to Landlord and Tenant, in the Existing Premises and the Second Expansion Premises.  

For the period of 90 consecutive days after the Second Expansion Premises Commencement Date, Landlord shall, at its sole cost and expense (which shall not constitute an Operating Expense), be responsible for any repairs that are required to be made to the Building Systems serving the Second Expansion Premises, unless Tenant or any Tenant Party was responsible for the cause of such repair, in which case Tenant shall pay the cost.

Notwithstanding anything to the contrary contained herein, Tenant and Landlord acknowledge and agree that the effectiveness of this Second Amendment is conditioned on the satisfaction of the following condition precedent (“Condition Precedent”): that Cytomx Therapeutics, Inc. (“CytomX”), the tenant currently occupying the Second Expansion Premises pursuant to that certain lease agreement between Landlord and CytomX (“CytomX Lease”) enter, on or before March 15, 2016, into a lease termination agreement with Landlord acceptable to Landlord, in its sole and absolute discretion, which provides for the early termination of the CytomX Lease and the surrender of the Second Expansion Premises by CytomX prior to the Target Second Expansion Premises Commencement Date.  Neither Landlord nor Tenant shall have any liability whatsoever to each other relating to or arising from Landlord’s inability or failure to cause the Condition Precedent to be satisfied.  If the Condition Precedent is not satisfied on or before March 15, 2016, this Second Amendment shall terminate in its entirety and shall be null and void and of no further force or effect.

Except as set forth in this Second Amendment: (i) Tenant shall accept the Second Expansion Premises in their condition as of the Second Expansion Premises Commencement Date; (ii) Landlord shall have no obligation for any defects in the Second Expansion Premises; and (iii) Tenant’s taking possession of the Second Expansion Premises shall be conclusive evidence that Tenant accepts the Second Expansion Premises and that the Second Expansion Premises were in good condition at the time possession was taken. 

Tenant agrees and acknowledges that, except as otherwise set forth in this Second Amendment, neither Landlord nor any agent of Landlord has made any representation or warranty with respect 

	
 
	
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to the condition of all or any portion of the Second Expansion Premises, and/or the suitability of the Second Expansion Premises for the conduct of Tenant’s business, and Tenant waives any implied warranty that the Second Expansion Premises are suitable for the Permitted Use.

	
3.
	
Premises.  Commencing on the Second Expansion Premises Commencement Date, the defined terms for “Premises” and “Rentable Area of Premises” on page 1 of the Lease are deleted in their entirety and replaced with the following:

“Premises:  The Building containing approximately 53,980 rentable square feet, consisting of (i) the “Original Premises” containing approximately 17,507 rentable square feet, (ii) the “Expansion Premises” containing approximately 11,573 rentable square feet, and (iii) the “Second Expansion Premises” containing approximately 24,900 rentable square feet, all as determined by Landlord, as shown on Exhibit A.”

“Rentable Area of Premises:  53,980 sq. ft.”

As of the Second Expansion Premises Commencement Date, Exhibit A to the Lease shall be amended to include the Second Expansion Premises described on Exhibit A attached to this Second Amendment.

	
4.
	
Base Term.  Commencing on the Second Expansion Premises Commencement Date, the defined term “Base Term” on page 1 of the Lease is deleted in its entirety and replaced with the following:

“Base Term.  Beginning, (i) with respect to the Original Premises on the Commencement Date, (ii) with respect to the Expansion Space on the Expansion Premises Commencement Date, and (iii) with respect to the Second Expansion Premises on the Second Expansion Premises Commencement Date, and ending, with respect to the entire Premises, on January 31, 2024 (“Expiration Date”).”

	
5.
	
Base Rent. 

a.Existing Premises.  Tenant shall continue to pay Base Rent with respect to the Existing Premises through November 30, 2017, as provided for in the Lease.  Commencing on December 1, 2017, Tenant shall pay Base Rent for the Existing Premises at the rate of $3.40 per rentable square foot of the Existing Premises per month.  Commencing on December 1, 2018, and continuing thereafter on each December 1st during the Base Term (each an “Adjustment Date”), Base Rent for the Existing Premises shall be increased by multiplying the Base Rent payable for the Existing Premises immediately before such Adjustment Date by 3% and adding the resulting amount to the Base Rent payable for the Existing Premises immediately before such Adjustment Date.  Base Rent for the Existing Premises, as so adjusted, shall thereafter be due as provided herein.  Base Rent adjustments for any fractional calendar month shall be prorated.

b.Second Expansion Premises.  For the period commencing on the Second Expansion Premises Commencement Date through June 30, 2017, Tenant shall (in addition to Base Rent for the Existing Premises) pay Base Rent for the Second Expansion Premises at the rate of $2.75 per rentable square foot of Second Expansion Premises per month.  For the period commencing on July 1, 2017, through June 30, 2018, Tenant shall (in addition to Base Rent for the Existing Premises) pay Base Rent for the Second Expansion Premises at the rate of $2.85 per rentable square foot of the Second Expansion Premises per month.  For the period commencing July 1, 2018, through January 31, 2019, Tenant shall (in addition to Base Rent for the Existing Premises) pay Base Rent for the Second Expansion Premises at the rate of $2.95 per rentable square foot of the Second Expansion Premises per month. Commencing on February 1, 2019, Tenant shall (in addition to Base Rent for the Existing Premises) pay Base 

	
 
	
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Rent for the Second Expansion Premises at the same per rentable square foot rate that Tenant is then paying for the Existing Premises, as adjusted pursuant to Section 5(a) above. 

	
6.
	
Tenant’s Share.  Commencing on the Second Expansion Premises Commencement Date, the defined  terms “Tenant’s Share of Operating Expenses of Building” and “Tenant’s Share of Operating Expenses of Project” on page 1 of the Lease are deleted in their entirety and replaced with the following:

“Tenant’s Share of Operating Expenses of Building:  100%”

“Tenant’s Share of Operating Expenses of Project:  50%”  

	
7.
	
Security Deposit.  Commencing on the Second Expansion Premises Commencement Date, the defined term “Security Deposit” on Page 1 of the Lease is deleted in its entirely and replaced with the following:

“Security Deposit:  $440,000”

Landlord currently holds a Security Deposit of $45,518 under the Lease.  On or before the Second Expansion Premises Commencement Date, Tenant shall deliver to Landlord an amended Letter of Credit which increases the amount of the existing Letter of Credit being held by Landlord to $440,000 or an additional Letter of Credit in the amount of $394,482.

	
8.
	
Improvements Allowance.  Commencing on the Second Expansion Premises Commencement Date, Landlord shall make available to Tenant a tenant improvement allowance of up to $5.00 per rentable square foot of the Premises, or $269,900 (the “Improvements Allowance”) for the design and construction of fixed and permanent improvements desired by and performed by Tenant in the Premises (the “Premises Improvements”).  Except as otherwise provided in this Section 8, the Improvements Allowance shall be available only for the design and construction of Premises Improvements in the Premises.  Tenant acknowledges that upon the expiration of the Term of the Lease, the Premises Improvements shall become the property of Landlord and may not be removed by Tenant.  Notwithstanding anything to the contrary contained herein, except as otherwise provided in Section 10 below, the Improvements Allowance shall not be used to purchase any furniture, personal property or other non-Building system materials or equipment, including, but not limited to, Tenant’s voice or data cabling, non-ducted biological safety cabinets and other scientific equipment not incorporated into the Premises.  Except for the Improvements Allowance, Tenant shall be solely responsible for all of the costs of the Premises Improvements.  The Premises Improvements shall be treated as Alterations and shall be undertaken pursuant to Section 12 of the Lease.  The contractor for the Premises Improvements shall be selected by Tenant, subject to Landlord’s approval, which approval shall not be unreasonably withheld, conditioned or delayed.  Prior to the commencement of the Premises Improvements, Tenant shall deliver to Landlord a copy of any contract with Tenant’s general contractor, and certificates of insurance from any contractor performing any part of the Premises Improvements evidencing industry standard commercial general liability, automotive liability, “builder’s risk”, and workers’ compensation insurance.  Tenant shall cause the general contractor to provide a certificate of insurance naming Landlord, Alexandria Real Estate Equities, Inc., and Landlord’s lender (if any) as additional insureds for the general contractor’s liability coverages required above.  

During the course of design and construction of the Premises Improvements, Landlord shall reimburse Tenant for the cost of the Premises Improvements once a month against a draw request in Landlord’s standard form, containing evidence of payment of the applicable costs and such certifications, lien waivers (including a conditional lien release for each progress payment and unconditional lien releases for the prior month’s progress payments), inspection reports and other matters as Landlord customarily obtains, to the extent of Landlord’s approval thereof for 

	
 
	
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payment, no later than 30 days following receipt of such draw request.  Upon completion of the Premises Improvements (and prior to any final disbursement of the remaining Improvements Allowance) Tenant shall deliver to Landlord the following items: (i) sworn statements setting forth the names of all contractors and subcontractors who did work on the Premises Improvements and final lien waivers from all such contractors and subcontractors; and (ii) ”as built” plans for the Premises Improvements.  Notwithstanding the foregoing, if the cost of the Premises Improvements exceeds the Improvements Allowance, Tenant shall be required to pay such excess in full prior to Landlord having any obligation to fund any of the Improvements Allowance.  The Improvements Allowance shall only be available for use by Tenant for the construction of the Premises Improvements in the Premises until the date that is 12 months after the Second Expansion Premises Commencement Date, and any portion of the Improvements Allowance which has not been requested by Tenant in accordance with this Section 8 on or before the date that is 12 months after the Second Expansion Premises Commencement Date shall be forfeited and shall no longer be available for use by Tenant.

	
9.
	
Extension Right.  Section 39 of the Lease is hereby deleted in its entirety and replaced with the following:

“39. Right to Extend Term.  Tenant shall have the right to extend the Term of the Lease upon the following terms and conditions:

(a)Extension Rights.  Tenant shall have 1 right (the “Extension Right”) to extend the term of this Lease for 2 years (the “Extension Term”) on the same terms and conditions as this Lease (other than with respect to Base Rent, the Work Letter and any tenant improvement allowances) by giving Landlord written notice of its election to exercise the Extension Right at least 9 months prior to the expiration of the Base Term of the Lease.

Upon the commencement of the Extension Term, Base Rent shall be payable at the Market Rate (as defined below).  Base Rent shall thereafter be adjusted on each annual anniversary of the commencement of such Extension Term by a percentage as determined by Landlord and agreed to by Tenant at the time the Market Rate is determined.  As used herein, “Market Rate” shall mean the rate that comparable landlords of comparable buildings have accepted in current transactions from non-equity (i.e., not being offered equity in the buildings) and nonaffiliated tenants of similar financial strength for space of comparable size, quality (including all Tenant Improvements, Alterations and other improvements) and floor height in comparable laboratory/office buildings in the South San Francisco area for a comparable term, with the determination of the Market Rate to take into account all relevant factors, including tenant inducements, parking costs, leasing commissions, allowances or concessions, if any.  

If, on or before the date which is 180 days prior to the expiration of the Base Term of this Lease, Tenant has not agreed with Landlord’s determination of the Market Rate and the rent escalations during the Extension Term after negotiating in good faith, Tenant shall be deemed to have elected arbitration as described in Section 39(b).  Tenant acknowledges and agrees that, if Tenant has elected to exercise the Extension Right by delivering notice to Landlord as required in this Section 39(a), Tenant shall have no right thereafter to rescind or elect not to extend the term of the Lease for the Extension Term.  

(b)Arbitration.  

(i)Within 10 days of Tenant’s notice to Landlord of its election  (or deemed election) to arbitrate Market Rate and escalations, each party shall deliver to the other a proposal containing the Market Rate and escalations that the submitting party believes to be correct (“Extension Proposal”).  If either party fails to timely submit an Extension Proposal, the other party’s submitted proposal shall determine the Base Rent and escalations for the Extension 

	
 
	
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Term.  If both parties submit Extension Proposals, then Landlord and Tenant shall meet within 7 days after delivery of the last Extension Proposal and make a good faith attempt to mutually appoint a single Arbitrator (as defined below) to determine the Market Rate and escalations.  If Landlord and Tenant are unable to agree upon a single Arbitrator, then each shall, by written notice delivered to the other within 10 days after the meeting, select an Arbitrator.  If either party fails to timely give notice of its selection for an Arbitrator, the other party’s submitted proposal shall determine the Base Rent and escalations for the Extension Term.  The 2 Arbitrators so appointed shall, within 5 business days after their appointment, appoint a third Arbitrator.  If the 2 Arbitrators so selected cannot agree on the selection of the third Arbitrator within the time above specified, then either party, on behalf of both parties may request such appointment of such third Arbitrator by application to any state court of general jurisdiction in the jurisdiction in which the Premises are located, upon 10 days prior written notice to the other party of such intent. 

(ii)The authority of the Arbitrator(s) shall be limited strictly to a selection of either Landlord’s Extension Proposal in its entirety or Tenant’s Extension Proposal in its entirety as the Extension Proposal which most closely approximates the Market Rate and escalations.  The Arbitrator(s) shall have no authority to create an independent structure of Market Rate and escalations, combine elements of both Extension Proposals to create a third, or compromise or alter in any way any of the components of the Extension Proposals submitted by the parties.  The sole decision to be made shall be which of the parties’ Extension Proposals in its entirety shall determine the Market Rate and escalations for the Extension Term.

(iii)The decision of the Arbitrator(s) shall be made within 30 days after the appointment of a single Arbitrator or the third Arbitrator, as applicable.  The decision of the single Arbitrator or majority of the 3 Arbitrators shall be final and binding upon the parties.  Each party shall pay the fees and expenses of the Arbitrator appointed by or on behalf of such party and the fees and expenses of the third Arbitrator shall be borne equally by both parties.  If the Market Rate and escalations are not determined by the first day of the Extension Term, then Tenant shall pay Landlord Base Rent in an amount equal to the Base Rent in effect immediately prior to the Extension Term and increased by the Rent Adjustment Percentage until such determination is made.  After the determination of the Market Rate and escalations, the parties shall make any necessary adjustments to such payments made by Tenant.  Landlord and Tenant shall then execute an amendment recognizing the Market Rate and escalations for the Extension Term.

(iv)An “Arbitrator” shall be any person appointed by or on behalf of either party or appointed pursuant to the provisions hereof and:  (i) shall be (A) a member of the American Institute of Real Estate Appraisers with not less than 10 years of experience in the appraisal of improved office and high tech industrial real estate in the San Francisco Bay area, or (B) a licensed commercial real estate broker with not less than 15 years experience representing landlords and/or tenants in the leasing of high tech or life sciences space in the San Francisco Bay area, (ii) devoting substantially all of their time to professional appraisal or brokerage work, as applicable, at the time of appointment and (iii) be in all respects impartial and disinterested.

(c)Rights Personal.  The Extension Right is personal to Tenant and is not assignable without Landlord’s consent, which may be granted or withheld in Landlord’s sole discretion separate and apart from any consent by Landlord to an assignment of Tenant’s interest in the Lease, except that they may be assigned in connection with any Permitted Assignment of this Lease.

(d)Exceptions.  Notwithstanding anything set forth above to the contrary, the Extension Right shall, at Landlord’s option, not be in effect and Tenant may not exercise the Extension Right:

	
 
	
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(i)during any period of time that Tenant is in Default under any provision of this Lease; or 

(ii)if Tenant has been in Default under any provision of this Lease 3 or more times, whether or not the Defaults are cured, during the 12 month period immediately prior to the date that Tenant intends to exercise the Extension Right, whether or not the Defaults are cured.

(e)No Extensions.  The period of time within which the Extension Right may be exercised shall not be extended or enlarged by reason of Tenant’s inability to exercise the Extension Right.

(f)Termination.  The Extension Right shall, at Landlord’s option, terminate and be of no further force or effect even after Tenant’s due and timely exercise of the Extension Right, if, after such exercise, but prior to the commencement date of the Extension Term, (i) Tenant fails to timely cure any default by Tenant under this Lease; or (ii) Tenant has Defaulted 3 or more times during the period from the date of the exercise of the Extension Right to the date of the commencement of the Extension Term, whether or not such Defaults are cured.”

	
10.
	
Furniture.  

a.As of the date of this Second Amendment, Cytomx owns certain furniture currently located in the Second Expansion Premises, which furniture is more particularly described on Exhibit B attached hereto (the “Furniture”).  Notwithstanding anything to the contrary contained in Section 8 above, Tenant may use a portion of the Improvements Allowance, up to $50,000, to acquire the Furniture from Cytomx.  If Tenant acquires any of the Furniture, (a) Tenant shall have no right to remove any of the Furniture from the Premises and (b) the Furniture shall be surrendered at the expiration or the earlier termination of the Term in substantially the same condition as received by Tenant, except for ordinary wear and tear and casualty, and the Furniture shall become the property of Landlord at no cost to Landlord. 

b.Any and all furniture (other than the Furniture) located within the Second Expansion Premises as of the Second Expansion Premises Commencement Date belongs to Landlord (“Landlord’s SEP Furniture”).  Commencing on the Second Expansion Premises Commencement Date, Tenant shall have the right, at no additional cost, to use Landlord’s SEP Furniture.  Tenant shall use reasonable efforts to maintain Landlord’s SEP Furniture and return the same to Landlord at the expiration or earlier termination of the Term in the same condition as received by Tenant, except for ordinary wear and tear and casualty.

	
11.
	
OFAC.  Tenant and all beneficial owners of Tenant are currently (a) in compliance with and shall at all times during the Term of the Lease remain in compliance with the regulations of the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury and any statute, executive order, or regulation relating thereto (collectively, the “OFAC Rules”), (b) not listed on, and shall not during the term of the Lease be listed on, the Specially Designated Nationals and Blocked Persons List, Foreign Sanctions Evaders List or the Sectoral Sanctions Identifications List, which are all maintained by OFAC and/or on any other similar list maintained by OFAC or other governmental authority pursuant to any authorizing statute, executive order, or regulation, and (c) not a person or entity with whom a U.S. person is prohibited from conducting business under the OFAC Rules.

	
12.
	
Disclosure.  For purposes of Section 1938 of the California Civil Code, as of the date of this Second Amendment, Tenant acknowledges having been advised by Landlord that the Project has not been inspected by a certified access specialist.

	
13.
	
No Recapture Right.  Notwithstanding anything to the contrary contained in the Lease, as amended by this Second Amendment, except as otherwise provided in Section 20(d) of the 

	
 
	
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Lease, Landlord shall have no right to terminate the Lease or to recapture any portion of the Second Expansion Premises in connection with Tenant’s subletting of all or any portion of the Second Expansion Premises.  

	
14.
	
Miscellaneous.

a.This Second Amendment is the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written agreements and discussions.  This Second Amendment may be amended only by an agreement in writing, signed by the parties hereto.

b.Landlord and Tenant each represents and warrants that it has not dealt with any broker, agent or other person (collectively, “Broker”) in connection with the transaction reflected in this Second Amendment and that no Broker brought about this transaction, other than Savills Studley.  Landlord and Tenant each hereby agree to indemnify and hold the other harmless from and against any claims by any Broker, other than Savills Studley, claiming a commission or other form of compensation by virtue of having dealt with Tenant or Landlord, as applicable, with regard to this leasing transaction.  Landlord shall pay any commission due to Savills Studley pursuant to a separate written agreement between Landlord and Savills Studley.

c.This Second Amendment is binding upon and shall inure to the benefit of the parties and their respective successors and assigns. 

d.This Second Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.  The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto except having additional signature pages executed by other parties to this Second Amendment attached thereto.

e.Except as amended and/or modified by this Second Amendment, the Lease is hereby ratified and confirmed and all other terms of the Lease shall remain in full force and effect, unaltered and unchanged by this Second Amendment.  In the event of any conflict between the provisions of this Second Amendment and the provisions of the Lease, the provisions of this Second Amendment shall prevail.  Whether or not specifically amended by this Second Amendment, all of the terms and provisions of the Lease are hereby amended to the extent necessary to give effect to the purpose and intent of this Second Amendment.

[Signatures are on the next page.]

	
 
	
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IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the day and year first above written.

TENANT:

CALITHERA BIOSCIENCES, INC.,

a Delaware corporation

 

 

 

By: /s/ Susan M. Molineaux

Its: President & CEO

 

 

 

LANDLORD:

ARE-TECHNOLOGY CENTER SSF, LLC,
a Delaware limited liability company 

 

	
 
	
By:
	
ALEXANDRIA REAL ESTATE EQUITIES, L.P.,
a Delaware limited partnership,
managing member

	
 
	
By:
	
ARE-QRS CORP.,
a Maryland corporation,
general partner

By: /s/ Eric S. Johnson
Its: Senior Vice President, RE Legal Affairs

 

 

 

	
 
	
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Exhibit A

Second Expansion Premises

 

Exhibit B

Furniture

	
	
Description

	
Tella Veneer Private Office Maple Veneer

	
72" Round Conference Table - Rm 23 - 343 OP

	
8' Maple Veneer Conference Table-Rm. 111

	
(8) Tella Veneer Private Office Maple Veneer

	
Gunlock Veneer Conference Rectangular Table

	
(6) Tella Veneer Private Office Maple Veneer-Rm. 153-158

	
Hinged Door Credenza-24"x72"x36-Boardroom

	
14' Maple Conference Table w/ Power & Data Cap.

	
TELLA VENEER PRIVATE OFFICE MAPLE VENEER TAG: ROOM 120

	
1st Floor Cubes & Filing Cabinets

	
1st Floor Chairs, Triple Paddle Mesh Back Task Chair (67)

	
1st Floor Cabinets, Novo 4x6 stations (67)

	
1st Floor All Hands Room Chairs, Brayton Side Chair (50)

	
1st Floor All Hands Room Chairs Black (32)

	
1st Floor All hands Tables, Round Occasional Table (5)

	
1st Floor Office Chairs, Geiger Greenwich Guest Chair (30)

	
1st Floor Collaboration Area, Manhattan 9881 Club Chair Latte w/ Cherry Legs (4)

	
1st Floor Conference Room Boardroom Mayline 2547 Chairs (25)

	
1st Floor 2 Drawer Cabinets, Free-Standing Drawer Lateral 42" wide (6)

	
1st Floor 3 Drawer Cabinets, Free-Standing Drawer Lateral 42" wide (21)

	
1st Floor 4 Drawer Cabinets, Free-Standing Drawer Lateral 42" wide (9)

	
1st Floor Conference Room Projecters (3)

	
1st Floor Refrigerators (2)felp-ex101_166.htm

 

Exhibit 10.1

Forbearance Agreement

This Forbearance Agreement, dated as of January 27, 2016 (this “Agreement”), is entered into by and among Foresight Receivables, LLC, as Borrower (the “Borrower”), Foresight Energy, LLC (the “Servicer”), Williamson Energy LLC, Sugar Camp Energy LLC, Hillsboro Energy LLC, Macoupin Energy LLC Foresight Coal Sales LLC (collectively, the “Originators”), PNC Bank, National Association, as LC Bank and Administrative Agent (the “Agent”) and the Committed Lenders, Conduit Lenders, LC Banks and Group Agents signatory hereto (each, a “Lender” and, together with the Agent, the “Lenders”).  Each of the foregoing shall be referred to herein as a “Party” and collectively as the “Parties.”

Witnesseth:

Whereas, the Borrower, the Servicer, the Originators, the Agent and the Lenders have entered into that certain Receivables Financing Agreement dated January 13, 2015 (as amended, restated, extended, supplemented or otherwise modified and in effect from time to time, the “RFA”)1;

Whereas, the Originators, the Servicer, and Foresight Receivables LLC, as Buyer, have entered into that certain Purchase and Sale Agreement dated as of January 13, 2015 (the “PASA”);

Whereas, Foresight Energy LP, as Performance Guarantor, has entered into that certain Performance Guaranty dated as of January 13, 2015 in favor of the Agent and the other Secured Parties under the RFA, pursuant to which it unconditionally and irrevocably guaranteed the obligations of Originators, the Servicer, and the Borrower to the Agent and the Lenders (the “Performance Guaranty”);

Whereas, PNC Bank, National Association, as Creditor, Foresight Receivables LLC, as Customer, Foresight Energy LLC, as Servicer, and Huntington National Bank, as Bank, have entered into that certain Deposit Account Control Agreement dated as of January 13, 2015 (the “DACA”);

Whereas, pursuant to the RFA, the Lenders have agreed to make, and have made, certain advances and other extensions of credit to the Borrower;

Whereas, pursuant to the Performance Guaranty, the Performance Guarantor has unconditionally and irrevocably guaranteed the due and punctual performance and observance by each Originator, Foresight and the Servicer of the terms, covenants, indemnities, conditions, agreements, undertakings and obligations on the part of such Covered Entity to be performed or observed by it under the PASA, the RFA and each of the other Transaction Documents to which such Covered Entity is a party;

	
	 

	
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Capitalized terms not defined herein shall have the meaning ascribed to them in the RFA.

4198354/JMH

 

Whereas, certain Defaults and Events of Default have occurred or may occur under the RFA which are set forth in Schedule 1 hereto (each individually, a “Designated Event of Default” and collectively, the “Designated Events of Default”);

Whereas, the Borrower, Servicer, Originators, and Performance Guarantor acknowledge and agree that, as a result of the existence of the Designated Events of Default, (a) the Agent is entitled to terminate the RFA, to seek immediate repayment in full of the obligations thereunder and to exercise any or all of its rights and remedies under the RFA and Applicable Law; and (b) the Lenders have no obligation to make any further advances or other extensions of credit to the Borrower under the RFA or otherwise;

Whereas, the Borrower and the Servicer acknowledge and agree that a “Notice of Exclusive Control” was properly given on January 15, 2016 to The Huntington National Bank pursuant to the DACA, that the Borrower and the Servicer have no right to access any of the funds in the Lockbox Account without the express written consent of the Agent, and that the Agent may transfer, retain and apply such funds in accordance with the terms of the RFA;

Whereas, the Borrower and the Servicer have requested that the Agent and the Lenders temporarily forbear, solely in connection with the Designated Events of Default, in accordance with the terms and subject to the conditions hereof from terminating the RFA and commencing any legal proceedings against the Borrower, Servicer or the Originators; and

Whereas, the Agent and the Lenders (as defined in the RFA) are not willing to waive the Events of Default;

Now, Therefore, in consideration of the foregoing, the covenants and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.Incorporation of Recitals; Defined Terms.  The Borrower acknowledges that the Recitals set forth above are true and correct in all material respects.  The defined terms in the Recitals set forth above are hereby incorporated into this Agreement by reference.  All other capitalized terms used herein without definition shall have the same meanings herein as such terms have in the RFA.

Section 2.Amounts Owing, Reduction of Commitment, and Borrowing During the Forbearance Period.  (a) The Borrower acknowledges and agrees that as of January 27, 2016, the Aggregate Capital plus the Adjusted LC Participation Amount outstanding under the RFA is $32,200,000 and such amount (together with interest at the default rate and fees thereon) is  outstanding and justly and truly owing by the Borrower without defense, offset or counterclaim.

(b)The Commitments of the Lenders and LC Participants shall be permanently reduced to $50,000,000 in total.  This reduction in the Commitments of the Lenders and LC Participants shall be deemed a reduction pursuant to Section 2.02(e) of the RFA, shall be permanent, and shall survive the termination of this Agreement.

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(c)Subject to the terms and conditions of the RFA, the Transaction Documents, the actual receipt by the Agent of a Daily Information Package before 11:00 a.m. prevailing Eastern Time, and this Agreement, the Borrower may borrow up to an amount such that the Aggregate Capital plus the Adjusted LC Participation Amount at such time does not exceed the least of  (i) $41,000,000, (ii) the Borrowing Base at such time, and (iii) an amount equal to 70% of the Outstanding Balance of Eligible Receivables then in the Receivables Pool, and the other conditions to funding have been satisfied (except for any condition to funding (including the making of any representation or warranty which arose prior to the date of this Forbearance Agreement) that is not satisfied solely as a result of the occurrence or continuance of the Designated Events of Default).  

(d)For purposes of determining the amount that the Borrower may borrow during the Forbearance Period (defined below), the Borrowing Base shall be adjusted as follows: “Eligible Foreign Obligor Percentage” means, at any time of determination, 25%; provided, however, that either the Borrower, the Agent, or any Lender may, in its discretion, by written notice to the other party, immediately cause the Eligible Foreign Obligor Percentage to be restored to 10%.

(e)No additional Letters of Credit shall be issued pursuant to the RFA unless the Agent, each Lender, each Group Agent and each LC Participant shall have consented to such issuance in writing.  In the event that such consent is granted, any fees associated with such Letters of Credit shall be cash collateralized for the entire period such Letters of Credit are outstanding irrespective of whether the Termination Date has occurred.

Section 3.Acknowledgment of Default(s).  The Designated Events of Default constitute Events of Default under the RFA.  The Borrower acknowledges that, because of the Events of Default, the Lenders are permitted and entitled to decline to provide further credit or advances to the Borrower, to terminate the commitments, to accelerate the obligations, and to exercise any other rights or remedies that may be available under the RFA or under Applicable Law.  The Borrower represents to the Agent and Lenders that, to the best of its knowledge, there are no Defaults or Events of Default other than the Designated Events of Default.

Section 4.Forbearance; Forbearance Period.  (a) The “Forbearance Period” shall commence on the Forbearance Effective Date (as defined below) and end on the Forbearance Termination Date (as that term is defined below).

(b)Each of the Agent and the Lenders agree that, upon the terms and subject to the conditions set forth herein (and notwithstanding the existence of the Designated Events of Default) during the Forbearance Period, it shall not commence any legal proceedings against the Borrower to enforce any of its rights and remedies under the RFA with respect to the Designated Events of Default.  

(c)The Forbearance Termination Date shall be the first to occur of:

(1)the date the Borrower, the Servicer, the Originator or the Performance Guarantor fails to perform or comply with any of its obligations under this Agreement;

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(2)the date the Agent ascertains that any representation or warranty made hereunder or in any certificate, report, statement or other document delivered at any time to the Agent or any Lender was untrue or incorrect in any material respect as of the date as of which made or deemed to have been made or repeated (other than any representation or warranty that is untrue solely as a result of the occurrence or continuance of the Designated Event of Default);

(3)the date any Event of Default under the RFA or the other Transaction Documents shall occur other than the Designated Events of Default;  

(4)the date of the termination of any existing or future forbearance agreement to which the Borrower, the Servicer, the Originator or the Performance Guarantor are parties related to any other indebtedness of the Borrower, the Servicer, the Originator or the Performance Guarantor; or

(5)5:00 p.m. (prevailing Eastern Time) on February 29, 2016.

(d)Subject to Section 5 hereof, the Forbearance is limited in nature and nothing contained herein is intended, or shall be deemed or construed (i) to constitute a waiver of any of the Designated Events of Default or any future Defaults or Events of Default or any term or provision of the RFA, any other Transaction Document or Applicable Law; (ii) to establish a custom or course of dealing between the Borrower, on the one hand, and the Agent and the Lenders, on the other hand; (iii) to constitute an election of remedies under the RFA, (iv) to modify any security interest granted under the RFA or any other Transaction Document, or (v) to waive, limit or condition the rights, powers and remedies of the Agent under the RFA, at law or in equity or given by statute, all of which are hereby expressly reserved.

(e)Subject to Section 5 hereof, on the Forbearance Termination Date, without the requirement of any notice to the Borrower, the Servicer, the Originators, the Performance Guarantor or any other Person: (i) the Forbearance and all agreements set forth in Section 4(a) of this Agreement shall terminate automatically and be of no further force or effect, and (ii) each of the Agent and the Lenders shall be free in its sole and absolute discretion without limitation to proceed to enforce any or all of its rights and remedies set forth in this Agreement, the RFA, the other Transaction Documents, and Applicable Law, including, without limitation, commencing legal proceedings and exercising setoff rights in respect thereof.  In furtherance of the foregoing, and notwithstanding the occurrence of the Forbearance Effective Date, the Borrower acknowledges and confirms that, subject to the Forbearance, all rights and remedies of each of the Agent and each of the Lenders under the RFA and Applicable Law with respect to the Borrower, the Servicer, the Originators, the Performance Guarantor or any other Person shall continue to be available to the Agent and each the Lenders.  For the avoidance of doubt, any and all rights and remedies of the Agent and the Lenders under the RFA, the PASA, the DACA, the Performance Guaranty, or any of the other Transaction Documents are hereby reserved.

(f)The Borrower hereby agrees that, during the Forbearance Period, subject to the Forbearance and the other terms and provisions of this Agreement, all of the terms of the RFA and the other Transaction Documents shall remain in full force and effect.

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(g)In their sole and absolute discretion, Lenders or LC Participants, as the case may be, may elect to make Credit Extensions during the Forbearance Period. Borrower agrees that such Credit Extensions, if any, individually and in the aggregate, will be made subject to and in reliance upon the provisions of Section 9 of this Agreement and shall not give rise to any course of dealing or course of performance.

Section 5.Covenants.  (a) The Borrower hereby agrees that, during the Forbearance Period:

(i)The aggregate outstanding Capital under the RFA shall not exceed $41,000,000;

(ii)Each Business Day, prior to 11:00 a.m. prevailing Eastern Time, the Borrower shall provide the Agent with a Daily Information Package substantially in the form attached as Exhibit A hereto containing information related to Pool Receivables as of two (2) Business Days prior to such day. Each Daily Information Package shall include (A) the amount of sales generated by the Originators since the prior Daily Information Package was delivered, (B) the amount of Collections received by the Borrower since the prior Daily Information Package was delivered (such amount shall be referred to as the “Available Collections” herein), and (C) the aggregate amount of Pool Receivables (after giving effect to clauses (A) and (B) above), and shall be accompanied by such other information as the Agent shall request in its sole discretion in order to verify the accuracy of the information set forth in the Information Package.  For the avoidance of doubt, such accompanying information shall include, but not be limited to, information satisfactory to the Agent that is sufficient to permit the Agent to tie back product sales to invoice level data and corresponding Collections.  The Borrower shall certify that the information and calculations contained in the Information Package are true and accurate;

(iii)Should any Information Package delivered on any day reveal a Borrowing Base Deficit, or should the Agent otherwise determine that a Borrowing Base Deficit exists, the Borrower will immediately pay to the Agent such amount from Available Collections on deposit in the Lockbox Account and any other account (an “Agent Account”) established in connection with Section 9.03(b) of the RFA before any additional cash is advanced, and the Agent may apply cash on deposit in the Lockbox Account and any Agent Account until such Borrowing Base Deficit has been cured. Any Available Collections in excess of the sum of (A) amounts applied to cure a Borrowing Base Deficit, if any, and (B) amounts set aside and held in trust for the benefit of the Secured Parties for application on the next Settlement Date in accordance with Sections 4.01(a)(i) and 4.01(a)(ii) of the RFA, shall be paid to the Borrower;

(iv)Distributions shall only be made under Section 4.01(a) of the RFA and under the PASA and Subordinated Notes following the furnishing by the Servicer to the Agent of a calculation of the proposed amount of such distributions and approval by the Agent in writing;

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(v)Unless otherwise authorized in writing by the Agent, and in addition to the obligations set forth in Section 4.01(a) of the RFA, the Servicer shall maintain all funds that are to be held in trust for the Agent under the RFA in account number 01221216973 in the name of the Borrower at The Huntington National Bank or such other account approved by the Agent;

(vi)No equity distributions, management fees, or similar payments may be made by the Borrower during the Forbearance Period without the written consent of the Agent, except that Servicing Fees may be paid pursuant to Section 4.01(a) of the RFA in accordance with the terms thereof and of this Agreement;

(vii)On Tuesday of each calendar week, Borrower shall provide rolling 13 week cash flow forecasts and variance report, in a form and substance acceptable to the Agent;

(viii)The Borrower shall pay the further accruing fees and expenses of the Agent and the Lenders pursuant to the terms of Section 12 hereof; and

(ix)The Borrower shall provide the Agent and the designated financial advisor to the Lenders, if any, with access to such information and personnel of the Borrower, Servicer, Performance Guarantor, or the Originators that the Agent or the financial advisor shall request in its sole and absolute discretion, and the Agent shall be permitted to conduct a site visit to inspect all records relating to the RFA on no more than one Business Day’s notice.  In addition to the rights provided to the Agent in Section 8.01(g) of the RFA, the Borrower shall provide information satisfactory to the Agent in its sole discretion to establish that each Receivable pledged to the Agent that is reported to the Agent as an Eligible Receivable fully complies with the eligibility requirements and all other requirements set forth in the RFA.

Section 6.Representations and Warranties.  (a) The Borrower, Servicer, Originators, and Performance Guarantor hereby represent and warrant to the Agent and the Lenders that as of the date hereof:

(i)They have all requisite power and authority to enter into this Agreement and perform its respective obligations under this Agreement;

(ii)The execution, delivery and performance of this Agreement and its obligations hereunder have been duly authorized by all necessary corporate action on its part;

(iii)The execution, delivery and performance of this Agreement by it do not and shall not: (x) violate any provision of law, rule or regulation applicable to it; or (y) violate its enabling legislation, bylaws, or other organizational documents or those of any of its subsidiaries;

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(iv)The execution, delivery and performance of this Agreement by it do not and shall not conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it or any of its subsidiaries is a party; and

(v)Except for the Designated Events of Default, no Event of Default has occurred and is continuing under any other indebtedness of the Borrower, the Servicer, the Originators or the Performance Guarantor.

(b)Each of the Agent and the Lenders hereby represents and warrants to the Borrower that as of the date hereof:

(i)It has all requisite power and authority to enter into this Agreement and perform its respective obligations under, this Agreement;

(ii)The execution, delivery and performance of this Agreement and its obligations hereunder have been duly authorized by all necessary corporate action on its part; and

(iii)The execution, delivery and performance of this Agreement by it do not and shall not: (x) violate any provision of law, rule or regulation applicable to it; (y) violate its certificate of incorporation, bylaws, or other organizational documents or those of any of its subsidiaries; or (z) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material contractual obligation to which it or any of its subsidiaries is a party.

Section 7.Conditions to Effectiveness of This Agreement.  This Agreement shall become effective (the date of such effectiveness being referred to herein as the “Forbearance Effective Date”) upon the occurrence of each of the following conditions:

(a)Execution and delivery of this Agreement by each of the Agent, the Lenders, the Borrower, the Servicer, the Originators and the Performance Guarantor; and

(b)The payment of the Agent’s fees and expenses in accordance of Section 12 of this Agreement.

(c)If a Borrowing Base Deficit is determined by the Agent to exist at the time the Forbearance Agreement is to be executed and delivered, the Borrower or the Servicer shall have paid to the Agent amounts sufficient to cure such Borrowing Base Deficit.  

Section 8.Effectiveness.  Upon satisfaction of the conditions precedent set forth in Section 7, the Forbearance Effective Date shall be deemed to have occurred.

Section 9.No Waiver and Reservation of Rights.  (a) Nothing in this Agreement is intended or shall be deemed or construed to in any way waive, alter or impair the obligations or any of the rights or remedies of the Agent or the Lenders under the Transaction Documents or 

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Applicable Law.  Without limiting the generality of the foregoing, nothing in this Agreement extends the maturity of or otherwise affects the enforceability of any obligation under the RFA.  All terms and provisions of the RFA, the PASA, the DACA and the Performance Guaranty remain in full force and effect, except to the extent expressly modified by this Agreement.  The Borrower acknowledges that the Lenders have made no representations as to what actions, if any, the Lenders will take after the Forbearance Termination Date, and the Lenders and the Agent must and do hereby specifically reserve any and all rights, remedies, and claims they have (after giving effect hereto) with respect to the Events of Default and each other Default that may occur.

(b)None of (i) any discussions or correspondence between or among the Agent, the Borrower, the Servicer, the Performance Guarantor, or any other person regarding the Events of Default or the RFA or the possibility of refinancing or restructuring any obligation, (ii) the passage of time, or (iii) any action now or hereafter taken (or not taken) by the Agent shall: (A) cause a modification of or amendment to the RFA, (B) be construed or have the effect of curing, excusing, waiving, relinquishing, releasing or postponing any Events of Default under the RFA, or be a consent to any waiver of any Events of Default or any other default, whether such defaults now exist or shall hereafter occur, (C) establish a custom or course of dealing, (D) constitute an election of remedies under the RFA, (E) modify any security interest granted under the RFA or any other Transaction Document, or (F) waive, limit or condition the rights, powers and remedies of the Agent under the RFA, at law or in equity or given by statute, all of which are hereby expressly reserved.

Section 10.No Other Waivers by PNC, Credit Agricole or Atlantic.  The Borrower, the Servicer, the Originators and the Performance Guarantor expressly acknowledge and agree that neither this Forbearance nor any future forbearance or other agreement shall constitute an agreement to forbear, vote to forbear, waiver of rights or shall otherwise restrain PNC Bank, National Association, in its capacity as agent, lender, lessor or otherwise or any of its affiliates (collectively ”PNC”), Atlantic Asset Securitization LLC, in its capacity as lender, lessor or otherwise or any of its affiliates (collectively ”Atlantic”) or Credit Agricole Corporate and Investment Bank, in its capacity as agent, lender, lessor or otherwise  or any of its affiliates (collectively ”Credit Agricole”) in any other financing or accommodation, including but not limited to the Revolver, any equipment leases, any swap agreements, or any other agreement.

Section 11.Release and Covenant Not to Sue.  For value received, including without limitation, the agreements of the Lenders in this Agreement, the Borrower, the Servicer, the Originators, any Program Support Provider and the Performance Guarantor hereby release the Agent and each Lender, its current and former shareholders, directors, officers, agents, employees, attorneys, consultants, and professional advisors (collectively, the “Released Parties”) of and from any and all demands, actions, causes of action, suits, controversies, acts and omissions, liabilities, and other claims of every kind or nature whatsoever, both in law and in equity, known or unknown, which the Borrower, the Servicer, the Originators, and the Performance Guarantor has or ever had against any of the Released Parties prior to, through, and including this date, arising from or relating to any agreement, whether written or oral, between the Borrower, the Servicer, the Originators, and the Performance Guarantor and the Lenders (the “Released Claims”).  The Borrower, 

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the Servicer, the Originators, and the Performance Guarantor hereby covenant and agree that they will never commence, institute, or prosecute any lawsuit, action or other proceeding against the Agent or the Lenders arising from or relating to the Released Claims.

Section 12.Fees and Expenses.  As a condition precedent to the effectiveness of this Forbearance, the Borrower, the Servicer, the Originators, and the Performance Guarantor shall pay the fees and expenses (including attorneys’ fees and expenses) incurred by the Agent, the other Lenders and their counsel in connection with the RFA, this Agreement, and the other instruments and documents being executed and delivered in connection herewith and the transactions contemplated hereby (the Borrower acknowledges that it will receive summary invoice(s) reflecting only the total amount then due and that such summary invoice(s) will not contain any narrative description of the services provided, and that delivery of such summary invoice(s) shall not in any way constitute a waiver of any right or privilege of the Agent and the Lenders associated with such invoice(s)).  The Borrower shall pay such invoices directly to the Agent’s counsel and to any Lenders’ counsel, as the case may be, by wire transfer upon instructions from the Agent and/or such Lender.  The Borrower shall pay any further accruing fees and expenses of the Agent, including but not limited to the fees and out-of-pocket expenses associated with any examination of the Borrower or the Servicer’s books and records, within seven (7) days of presentment.

Section 13.No Third-Party Beneficiaries.  This Agreement shall be binding upon and inure to the benefit of each Party hereto and their respective successors and assigns.  No Person other than the Parties hereto, their respective successors and assigns shall have rights hereunder or be entitled to rely on this Agreement, and all other third-party beneficiary rights are hereby expressly disclaimed.

Section 14.Successors and Assigns.  This Agreement shall be binding upon, and inure to the benefit of, the Parties.  No rights or obligations of any Party under this Agreement may be assigned or transferred to any other Person without the express written consent of all of the other Parties.

Section 15.Severability.  The invalidity, illegality or unenforceability of any provision in or obligation under this Agreement in any jurisdiction shall not affect or impair the validity, legality or enforceability of the remaining provisions or obligations under this Agreement or of such provision or obligation in any other jurisdiction.

Section 16.Governing Law, Jurisdiction; Waiver of Jury Trial.  (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New York.  The Borrower, the Servicer, the Originators, the Performance Guarantor, the Agent and the Lenders hereby consent to the non-exclusive jurisdiction of the state courts located in State of New York in the County of New York, and the United States District Court for the Southern District of New York in connection with any suit, action, or proceedings with respect to this Agreement.

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(b)The Borrower, the Servicer, the Originators, the Performance Guarantor, the Agent and the Lenders hereby waive any right to a jury trial in any dispute arising out of this Agreement, and acknowledge and agree that they have waived their right to a jury trial pursuant to section 14.11 of the RFA.

Section 17.Amendments.  The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, without the express prior written consent of all of the Parties.

Section 18.Prior Negotiations; Entire Agreement.  This Agreement constitutes the entire agreement of the Parties, and supersedes all other prior negotiations, with respect to the subject matter hereof, and no Party shall be liable or bound to any other Party in any manner by any representations, warranties, covenants and agreements except as specifically set forth herein.

Section 19.Information and Financial Data.  In addition to any information or financial data required to be provided under any other agreement between the Parties, during the Forbearance Period, the Borrower, Servicer, the Originators, and the Performance Guarantor agree to promptly provide to the Agent and the Lenders such additional financial and other information that the Agent and the Lenders may reasonably request.  For the avoidance of doubt, the Agent shall be permitted to make site visits to inspect any and all records of the Borrower or the Servicer upon one Business Day’s notice.

Section 20.Notice of Default.  Immediately upon the occurrence of any default under this Agreement, the Borrower, Servicer, the Originators, and the Performance Guarantor shall provide notice of the same to the Agent in writing, which notice shall be delivered by hand or overnight courier service, mailed by certified or registered mail and also sent by email, as follows:

	
 
	
To the Agent on behalf of the Lenders:
	
Michael A. Brown, Managing Director
PNC Bank, National Association
One PNC Plaza, 249 Fifth Avenue
Pittsburgh, PA  15222
m.brown@pnc.com

and

Douglas Mundell, Senior Counsel
Legal Department
PNC Bank, National Association
P1-POPP-21-1
One PNC Plaza, 249 Fifth Avenue
Pittsburgh, PA  15222
douglas.mundell@pnc.com

 

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With copies to:
	
Chapman and Cutler LLP
111 West Monroe Street
Chicago, IL  60603
Attn: James Heiser 
heiser@chapman.com

(Counsel for the Agent)

and

Pierre-Alain Bennaim, Managing Director

Debt Restructuring & Advisory Services

Credit Agricole Corporate & Investment Bank

1301 Avenue of the Americas

New York, NY 10019

pierre.bennaim@ca-cib.com

(Notice Party for Committed Lender, Conduit Lender, and Group Agent for the Atlantic Group)

 

Deric Bradford, Director

Securitization

Credit Agricole Corporate & Investment Bank

1301 Avenue of the Americas

New York, NY 10019

Deric.Bradford@ca-cib.com

(Additional Notice Party for Committed Lender, Conduit Lender, and as Group Agent for the Atlantic Group)

All notices given in accordance with the provisions of this section shall be deemed to have been given on the date of receipt.

Section 21.Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or by electronic mail in portable document format (.pdf) shall be effective as delivery of an original executed counterpart of this Agreement.

Section 22.Interpretation.  This Agreement is the product of negotiations of the Parties and in the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be drafted this Agreement, or any portion hereof, shall not be effective in regard to the interpretation hereof.

Section 23.Representation by Counsel.  Each Party acknowledges that it has been represented by counsel in connection with this Agreement and the Forbearance contemplated 

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herein.  Accordingly, any rule of law or legal decision that would provide any Party with a defense to the enforcement of the terms of this Agreement against such Party based upon lack of legal counsel shall have no application and is expressly waived.

Section 24.Maintenance of Performance Guaranty.  The Performance Guarantor unconditionally and irrevocably guarantees the observance and performance by each Originator, the Borrower and the Servicer of the terms, covenants, indemnities, conditions, agreements, undertakings and obligations of this Agreement.  For the avoidance of doubt, the obligations of each Originator, the Borrower the Servicer or any other Covered Entity under the Performance Guaranty shall be considered “Guaranteed Obligations” for purposes of the Performance Guaranty, and nothing contained in this Agreement shall waive, limit or impair the obligations of the Performance Guarantor under the Performance Guaranty.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

 

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In Witness Whereof, the parties hereto have executed and delivered this Agreement as of the day and year first above written.

 

 

Foresight Receivables, LLC, as Borrower, Buyer and Customer

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

Foresight Energy, LLC, as Servicer

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

Williamson Energy, LLC, as Originator

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

 Hillsboro Energy, LLC, as Originator

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

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Macoupin Energy, LLC, as Originator

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

Foresight Coal Sales, LLC, as Originator

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

Foresight Energy, L.P., as Performance Guarantor

	
 
	
By: /s/ Robert D. Moore
	

	
 
	

	
Name: Robert D. Moore

	
 
	

	
Title: President and Chief Executive Officer

PNC Bank, National Association, as Agent, LC Bank, Group Agent for the PNC Group, Committed Lender and Creditor

	
 
	
By: /s/ Michael Brown
	

	
 
	

	
Name: Michael Brown

	
 
	

	
Title: Sr. Vice President

Credit Agricole Corporate and Investment Bank, as Committed Lender

 

	
 
	

	
By: /s/ Michael Regan

	
 
	

	
Name: Michael Regan

	
 
	

	
Title: Managing Director

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By: /s/ Roger Kiepper

	
 
	

	
Name: Roger Kiepper

	
 
	

	
Title: Managing Director

Atlantic Asset Securitization, as Conduit Lender

	
 
	
By: /s/ Michael Regan
	

	
 
	

	
Name: Michael Regan

	
 
	

	
Title: Managing Director

 

 

	
 
	

	
By: /s/ Roger Kiepper

	
 
	

	
Name: Roger Kiepper

	
 
	

	
Title: Managing Director

 

Credit Agricole Corporate and Investment Bank, as Group Agent for the Atlantic Group

 

By: /s/ Michael Regan

	
 
	

	
Name: Michael Regan

	
 
	

	
Title: Managing Director

 

	
 
	

	
By: /s/ Roger Kiepper

	
 
	

	
Name: Roger Kiepper

	
 
	

	
Title: Managing Director

 

 

 

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Schedule 1

Designated Defaults and Events of Default

 

 

1.Pursuant to Section 10.01(a)(ii) or 10.01(h) of the RFA, in respect of the Borrower’s failure to make a payment on the January 15, 2016 Settlement Date; 

 

2.Pursuant to Sections 10.01(g), 10.01(i)(i) and 10.01(t) of the RFA, in respect of certain events of default occurring under that certain Indenture dated as of August 23, 2013, among Foresight Energy LLC, as Issuer, Foresight Energy Finance Corporation, as Co-Issuer, Foresight Energy, L.P., as Guarantor, certain subsidiaries of the Issuer and Co-Issuer as guarantors, and the Trustee, in respect of that certain Memorandum Opinion issued by the Court of Chancery of the State of Delaware on December 4, 2015 in Case No. 11059-VCL concerning the occurrence of a “Change of Control” under the Indenture; and 

 

3.Pursuant to Section 10.01 of the RFA, in respect of Borrower’s failure to hold funds in the Lock-Box Account in trust in accordance with the provisions of the RFA.

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