Document:

adro-ex1042_1337.htm

Exhibit 10.42

 

AMENDMENT NO. 1 TO SALES AGREEMENT

February 27, 2019

 

Cowen and Company, LLC

599 Lexington Avenue

New York, NY 10022

 

Ladies and Gentlemen:

 

Aduro Biotech, Inc. (the “Company”), and Cowen and Company, LLC (“Cowen”), are parties to that certain Sales Agreement dated August 2, 2017 (the “Original Agreement”). All capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement.  The parties, intending to be legally bound, hereby amend the Original Agreement as follows:

1.With respect to issuances of Placement Shares that occur on or after the date of this Amendment No. 1 to Sales Agreement, reference to the “Current Registration Statement” in the Original Agreement shall refer to the registration statement on Form S-3 (File No. 333-219639), as amended, originally filed with the Securities and Exchange Commission on August 2, 2017.

2.Section 5(a) of the Original Agreement is hereby deleted in its entirety and replaced with the following:

 

“Settlement of Placement Shares.  Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will occur on the second (2nd) Trading Day (or such earlier day as is industry practice for regular-way trading) following the date on which such sales are made (each, a “Settlement Date” and the first such settlement date, the “First Delivery Date”).  The amount of proceeds to be delivered to the Company on a Settlement Date against receipt of the Placement Shares sold (the “Net Proceeds”) will be equal to the aggregate sales price received by Cowen at which such Placement Shares were sold, after deduction for (i) Cowen’s commission, discount or other compensation for such sales payable by the Company pursuant to Section 2 hereof, (ii) any other amounts due and payable by the Company to Cowen hereunder pursuant to Section 7(g) (Expenses) hereof, and (iii) any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.”

 

3.The first paragraph in the section entitled “Notices” on page 26 of the Original Agreement is hereby deleted in its entirety and replaced with the following:

 

“Notices.  All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement shall be in writing, unless otherwise specified in this Agreement, and if sent to Cowen, shall be delivered to 

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Cowen at Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, fax no. 646-562-1124, Attention:  General Counsel with a copy to Duane Morris LLP, 1540 Broadway, New York, New York 10036, attention: James T. Seery, e-mail jtseery@duanemorris.com; or if sent to the Company, shall be delivered to Aduro Biotech, Inc., 740 Heinz Avenue, Berkeley, CA 94710, attention: Celeste Ferber, e-mail: cferber@aduro.com, with a copy to Latham & Watkins LLP, 140 Scott Drive, Menlo Park, CA 94025, attention: Kathleen M. Wells, e-mail: kathleen.wells@lw.com.  Each party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address for such purpose.  Each such notice or other communication shall be deemed given (i) when delivered personally, by email or by verifiable facsimile transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day (as defined below), or, if such day is not a Business Day on the next succeeding Business Day, (ii) on the next Business Day after timely delivery to a nationally-recognized overnight courier, (iii) on the Business Day actually received if deposited in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid) and (iv) if sent by e-mail, on the Business Day on which receipt is confirmed by the individual to whom the notice is sent, other than via auto-reply. For purposes of this Agreement, “Business Day” shall mean any day on which the Nasdaq and commercial banks in the City of New York are open for business.”

 

4.Schedule 2 to the Original Agreement is hereby amended by (a) deleting “Gregory W. Schafer, Chief Operating Officer, gschafer@aduro.com,” (b) deleting “Jennifer Lew, Senior VP, Finance, jlew@aduro.com” and replacing it with “Jennifer Lew, Chief Financial Officer, jlew@aduro.com” and (c) deleting “Robert Sine, Managing Director, robert.sine@cowen.com” and replacing it with “Michael J. Murphy, Director, michael.murphy@cowen.com.”

 

5.All references to “August 2, 2017” set forth in Schedule I and Exhibit 7(m) of the Original Agreement are revised to read “August 2, 2017 (as amended by Amendment No. 1 to Sales Agreement, dated February 27, 2019)”. 

 

6.Except as specifically set forth herein, all other provisions of the Original Agreement shall remain in full force and effect.

 

7.This Amendment No. 1 to Sales Agreement together with the Original Agreement (including all schedules and exhibits attached hereto and thereto and Placement Notices issued pursuant hereto and thereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Amendment No. 1 to Sales Agreement nor any term hereof may be amended except pursuant to a written instrument executed by the Company and Cowen.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties 

 

	
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as reflected in this Amendment No. 1 to Sales Agreement. All references in the Original Agreement to the “Agreement” shall mean the Original Agreement as amended by this Amendment No. 1 to Sales Agreement; provided, however, that all references to “date of this Agreement” in the Original Agreement shall continue to refer to the date of the Original Agreement.

 

8.This Amendment No. 1 to Sales Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or in connection with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof (certified or registered mail, return receipt requested) to such party at the address in effect for notices to it under this Amendment No. 1 to Sales Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

 

9.The Company and Cowen each hereby irrevocably waives any right it may have to a trial by jury in respect of any claim based upon or arising out of this Amendment No. 1 to Sales Agreement or any transaction contemplated hereby.

 

10.This Amendment No. 1 to Sales Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Delivery of an executed amendment by one party to the other may be made by facsimile transmission or electronic transmission (e.g., PDF).

 

 

[Remainder of Page Intentionally Blank]

 

 

	
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If the foregoing correctly sets forth the understanding between the Company and Cowen, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding amendment to the Original Agreement between the Company and Cowen.  

Very truly yours,

 

COWEN AND COMPANY, LLC

 

 

By:      /s/ Michael Murphy         

Name: Michael Murphy

Title:  Managing Director

 

 

ACCEPTED as of the date

first-above written:

 

ADURO BIOTECH, INC.

 

 

By:      /s/ Jennifer Lew

Name: Jennifer Lew 

Title:  Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment No. 1 to Sales Agreement]

DM3\5614353.7Exhibit

Exhibit 10.9.3

THIRD AMENDMENT TO SECOND AMENDED AND RESTATED 
CONSTRUCTION AND FIELD GATHERING AGREEMENT
This Third Amendment to Second Amended and Restated Construction and Field Gathering Agreement (this “Amendment”) is dated as of December 14, 2018 (the “Execution Date”) by and between Republic Midstream, LLC, a Delaware limited liability company (“Gatherer”), and Penn Virginia Oil & Gas, L.P., a Texas limited partnership (“Shipper”).  Gatherer and Shipper may hereinafter be referred to singularly as a “Party” and, together, as the “Parties.”  
WHEREAS, the Parties entered into that certain Second Amended and Restated Construction and Field Gathering Agreement effective as of August 1, 2016 (as amended, the “Agreement”); 
WHEREAS, the Parties entered into that First Amendment to Second Amended and Restated Construction and Field Gathering Agreement, dated as of April 13, 2017; 
WHEREAS, the Parties entered into that Second Amendment to Second Amended and Restated Construction and Field Gathering Agreement, dated as of July 2, 2018; and
WHEREAS, the Parties desire to amend certain provisions of the Agreement;
NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions herein contained, together with other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties, for themselves and for their successors and assigns, do hereby mutually covenant and agree as follows:
A.Amendment of Definitions in Agreement. Article I of the Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:
“Deedra Unit” means that certain 482.359 acre unit described in that certain Designation of Unit recorded in Volume 672 and Page 432, Official Records of Lavaca County, Texas, as amended by that certain First Amendment to Designation of Unit recorded in Volume 691 and Page 18, Official Records of Lavaca County, Texas, and as amended by that certain Second Amendment to Designation of Unit recorded in Volume 781 and Page 294, Official Records of Lavaca County, Texas, solely to the extent not included in the area identified on the map attached hereto as Exhibit A-1. For the avoidance of doubt, the portion of the Deedra Unit within the area identified on the map attached hereto as Exhibit A-1 constitutes an Interest and part of the Dedication Area and remains subject to the dedication set forth in Article II and to the other provisions of this Agreement.
“Future Interests” means all interests that Shipper (or any of its Affiliates or any successor in interest resulting from any merger, reorganization, consolidation or as part of a sale or other disposition of all or any portion of such interests) now or hereinafter owns, controls, acquires or has the right to market (as such marketing rights may change from time to time) in Crude Oil reserves of, and production from, all leases and mineral fee interests, lands and formations (in each case) in, under or attributable to the Future Units, together with any pool, communitized area or unit, and all interests in any wells, whether now existing or drilled hereafter, on or completed within the Future Units, or within any such pool, 

Exhibit 10.9.3

communitized area or unit, even though such interests may be incorrectly or incompletely stated, all as the same shall be enlarged by the discharge of any burdens or by the removal of any charges or encumbrances to which any of same maybe subject as of (x) with respect to the Carol Unit, Robin Unit, Marcia Unit and Shelly Unit, July 2, 2018, and (y) with respect to the Deedra Unit, Nancy Unit and Lori Unit, December 14, 2018, and any and all replacements, renewals and extensions or amendments of any of the same; provided, however, that “Future Interests” shall not include (a) any Interests or (b) any interest of Shipper or any of its Affiliates that must be offered to a third-party working interest partner pursuant to any applicable agreement with such partner in effect on (1) with respect to the Carol Unit, Robin Unit, Marcia Unit and Shelly Unit, July 2, 2018, and (2) with respect to the Deedra Unit, Nancy Unit and Lori Unit, December 14, 2018, and which such partner receives or elects to receive, as applicable under the affected agreement. 
“Future Units” means the Deedra Unit, Nancy Unit, Lori Unit, Carol Unit, Robin Unit, Marcia Unit and Shelly Unit, collectively.
“Future Wells” means (a) with respect to the Carol Unit, Robin Unit, Marcia Unit and Shelly Unit, any new wells drilled within the surface outline of such Future Units, and (b) with respect to the Deedra Unit, Nancy Unit and Lori Unit, the entirety of any new wells with a surface location within the surface outline of such Future Units.  For the avoidance of doubt, the term “Future Wells” does not include the Other Wells.
“Lori Unit” means that certain 670.71 acre unit described in that certain Designation of Unit recorded in Volume 670 and Page 173, Official Records of Lavaca County, Texas, as amended by that certain Second Amendment to Designation of Unit recorded in Volume 781 and Page 306, Official Records of Lavaca County, Texas.
“Nancy Unit” means that certain 693.52 acre unit described in that certain Designation of Unit recorded in Volume 671 and Page 471, Official Records of Lavaca County, Texas, solely to the extent not included in the area identified on the map attached hereto as Exhibit A-1. For the avoidance of doubt, the portion of the Nancy Unit within the area identified on the map attached hereto as Exhibit A-1 constitutes an Interest and part of the Dedication Area and remains subject to the dedication set forth in Article II and to the other provisions of this Agreement.
B.Waiver of Construction Notice.  
		
	(1)
	For purposes of this Amendment, “Deedra-Lori Initial Wells” means the Deedra-Lori Unit 3 (SA) Well 3H and the Deedra-Lori Unit 4 (SA) Well 4H.

		
	(2)
	Gatherer hereby waives the obligation set forth in Section 3.3(g) of the Agreement for Shipper to deliver a Construction Notice for the Deedra-Lori Initial Wells, and hereby agrees and elects to install an Additional Segment to connect a Receipt Point for such Future Wells.  Within 30 days after the date hereof, Gatherer shall deliver to Shipper a Construction Plan in accordance with Section 3.3(b) of the Agreement. The Parties acknowledge and agree that the “Expected Production Date” with respect to the Deedra-Lori Initial Wells is March 11, 2019.

Exhibit 10.9.3

C.Amendment of Section 9.4 of Agreement.  Section 9.4 of the Agreement is hereby amended and restated to read in its entirety as follows:
During the first thirty-six (36) Months of the Term, the aggregate Monthly Fees shall be subject to increase by $0.04 per Barrel for every $1.00 that the Monthly average of the NYMEX West Texas Intermediate (“WTI”) crude price exceeds $50.00 per Barrel, with such increase being capped at a WTI crude price of $90.00. After the first thirty-six (36) Months of the Term and for the remainder of the Term, the aggregate Monthly Fees shall similarly be subject to increase by $0.04 per Barrel for every $1.00 that the Monthly average WTI crude price exceeds $63.75 per Barrel, with such increase being capped at a WTI crude price of $90.00. The above-described increases shall be offset by downward adjustments to reflect corresponding decreases to the WTI crude price from time to time, provided that no downward adjustment shall be recognized for decreases below a WTI crude price of (1) $50.00 during the first thirty-six (36) Months of the Term, and (2) $63.75 after the first thirty-six (36) Months of the Term. Each of the foregoing increases or decreases shall be applied on a Monthly basis, and calculated based on the Monthly average of the WTI crude price over the preceding Month. The adjustments set forth in this Section 9.4 shall be referred to herein as the “Upside Adjustments”.  For the avoidance of doubt, no Upside Adjustment shall result in a Fee being decreased below the amount for such Fee set forth in Section 9.2, after giving effect to any PPI Adjustment.  Notwithstanding the foregoing, for any month in which Shipper delivers an average of 20,000 or more Barrels of Oil per Day, the Upside Adjustment to the Truck Loading Fee shall be waived for all Oil delivered to the Gathering System from Shipper's wells outside the Dedication Area.
D.Ratification; Primacy.  Except as expressly amended by this Amendment, all of the terms, provisions, covenants and conditions contained in the Agreement remain in full force and effect; provided, if there is ever any conflict between the Agreement and this Amendment, the terms, provisions, covenants and conditions contained in this Amendment shall govern.  The terms and provisions of the Agreement as amended by this Amendment are binding upon and inure to the benefit of the Parties, their representatives, successors and assigns.  As amended by this Amendment, the Agreement is ratified and confirmed by the Parties, and declared to be a valid and enforceable contract between them.
E.Counterparts.  This Amendment may be executed in as many counterparts as deemed necessary.  When so executed, the aggregate counterparts shall constitute one agreement and shall have the same effect as if all Parties signing counterparts had executed the same instrument.
F.Amendment; Waiver.  Neither this Amendment nor the Agreement may be amended or modified except pursuant to a written instrument signed by all of the Parties.  Each Party may waive on its own behalf compliance by any other Party with any term or provision hereof; provided, however, that any such waiver shall be in writing and shall not bind the non-waiving Party.  The waiver by any Party of a breach of any term or provision shall not be construed as a waiver of any subsequent breach of the same or any other provision.
G.Joint Preparation.  The Parties agree and confirm that this Amendment was prepared jointly by all Parties and not by any one Party to the exclusion of the other.

Exhibit 10.9.3

H.No Third Party Beneficiaries.  This Amendment is not intended to confer upon any person not a party hereto any rights or remedies hereunder, and no person other than the Parties is entitled to rely on or enforce any provision hereof.
I.Miscellaneous Provisions.  The provisions of Articles XVII, XIX, XX and XXI of the Agreement are incorporated herein by this reference as if set out fully herein and shall apply in all respects to this Amendment.
[Signature Page Follows]

Exhibit 10.9.3

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and year hereinabove first written.

REPUBLIC MIDSTREAM, LLC

By:  /s/ Daniel R. Revers
Name: Daniel R. Revers    
Title:   President    

PENN VIRGINIA OIL & GAS, L.P.

By:    Penn Virginia Oil & Gas GP LLC,
its general partner

By: /s/ Jill T. Zivley
Name:Jill T. Zivley
Title:    Vice President, Land and Marketing

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