Document:

vktx-ex41_6.htm

Exhibit 4.1

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY BE OFFERED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, TRANSFERRED OR OTHERWISE DISPOSED OF (EACH, A “TRANSFER”) ONLY IF SUCH SECURITIES ARE REGISTERED UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR IF SUCH TRANSFER IS MADE PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE SECURITIES LAWS AFTER PROVIDING AN OPINION OF COUNSEL TO SUCH EFFECT.  

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AS SET FORTH IN A LOAN AND SECURITY AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, AS AMENDED, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

VIKING THERAPEUTICS, INC.

WARRANT TO PURCHASE COMMON STOCK

		
	
Warrant Shares: 960,000
	
 Date of Issuance: April 13, 2016

 

THIS WARRANT TO PURCHASE COMMON STOCK (this “Warrant”) certifies that, for value received, LIGAND PHARMACEUTICALS INCORPORATED or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, to subscribe for and purchase from Viking Therapeutics, Inc., a Delaware corporation (the “Company”), up to 960,000 shares (as subject to adjustment hereunder, the “Warrant Shares”) of common stock of the Company, par value $0.00001 per share (“Common Stock”). This Warrant is being issued pursuant to that certain Loan and Security Agreement, dated May 21, 2014, by and between the Company and the Holder, as amended or restated from time to time (the “Loan and Security Agreement”).

The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  Prior to due presentment to the Company for registration of transfer of this Warrant, the Company may deem and treat the person in whose name this Warrant is registered in the Warrant Register as the absolute owner of this Warrant (notwithstanding any notation of ownership or other writing on this Warrant made by anyone other than the Company), for the purpose of any exercise thereof, and for all other purposes, and the Company shall not be affected by any notice to the contrary. 

1.Terms and Exercise of Warrant. 

1.1Exercise Price. This Warrant shall entitle the Holder, subject to the provisions of this Warrant, to purchase from the Company the number of shares of Common Stock stated herein at the price of $1.50 per share, subject to the adjustments provided herein. The term 

 

 

“Exercise Price” as used in this Warrant shall mean the price per share at which shares of Common Stock may be purchased at the time this Warrant is exercised.  

1.2Duration of Warrant. This Warrant may be exercised only during the period (the “Exercise Period”) commencing on the Date of Issuance and ending on April 13, 2021 (the “Expiration Date”). If this Warrant is not exercised on or before the Expiration Date, it shall become void, and all rights thereunder and all rights in respect thereof under this Warrant shall cease at 5:00 p.m. New York City time on the Expiration Date.

1.3Exercise of Warrant.

1.3.1Payment. Subject to the provisions of this Warrant, this Warrant may be exercised by the Holder by submitting a duly executed Election to Purchase attached hereto, at the principal office of Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), which may be done by fax or email delivery, and by paying, within two trading days of the date of exercise, in full the Exercise Price for each full share of Common Stock as to which this Warrant is exercised (the “Aggregate Exercise Price”), in lawful money of the United States, by wire transfer or in good certified check or good bank draft payable to the order of the Company or by Cashless Exercise, if permitted under, and in accordance with, Section 1.3.2.  No ink-original Election to Purchase shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Election to Purchase form be required; provided, however, that if the Holder requests that the shares of Common Stock be issued or registered to a holder other than the Holder, then an ink-original Election to Purchase and a medallion guarantee shall be required.  The Holder shall not be required to deliver the original Warrant in order to effect an exercise hereunder until the Holder has purchased all of the Warrant Shares available hereunder and this Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three trading days of the date the final Election to Purchase is delivered to the Company.  

1.3.2Cashless Exercise. Notwithstanding anything contained herein to the contrary, if and only if an effective registration statement covering the issuance of the shares of Common Stock that are subject to the Election to Purchase is not available for the issuance of such shares of Common Stock, the Holder may exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”): 

		
	
Net Number =  
	
(A x B) - (A x C)

	
B

For purposes of the foregoing formula: 

	
A  =
	
the total number of shares with respect to which this Warrant is then being exercised.

 

2

 

 

	
B  = 
	
the arithmetic average of the Closing Sale Prices (as defined below) of the Common Stock for the five (5) consecutive trading days ending on the date immediately preceding the date the Company receives the duly executed Election to Purchase. 

 

	
C =
	
the Exercise Price then in effect for the applicable shares of Common Stock at the time of such exercise.

 

The term “Closing Sale Price” means, for any security as of any date, the last closing bid price and last closing trade price, respectively, for such security on the Nasdaq Capital Market, as reported by Bloomberg, or, if the Nasdaq Capital Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York time, as reported by Bloomberg, or, if the Nasdaq Capital Market is not the principal securities exchange or trading market for such security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the OTC Link or “pink sheets” by OTC Markets Group Inc. (formerly Pink OTC Markets Inc.). If the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall be resolved pursuant to Section 5.3. All such determinations to be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period. 

 

For purposes of Rule 144(d) promulgated under the Securities Act, as in effect on the date hereof, assuming the Holder is not an affiliate of the Company, the shares of Common Stock issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the shares of Common Stock shall be deemed to have commenced, on the date this Warrant was originally issued.  

 

1.3.3Issuance of Common Stock on Exercise. Assuming funds for exercise are paid on or before the second trading day following the date of receipt by the Company of an Election to Purchase, then on or before the third trading day following the date upon which the Company has received a duly executed Election to Purchase, the Company shall cause its transfer agent to (i) provided that the transfer agent is participating in The Depository Trust Company’s (the “Depository”) Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the Holder’s or its designee’s balance account with the Depository through its Deposit/Withdrawal at Custodian System and provided further that there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder, or (ii) if the transfer agent is not participating in the Depository’s Fast 

3

 

 

Automated Securities Transfer Program or there is not an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder, issue and deliver to the Holder, or at the Holder’s instruction pursuant to the delivered Election to Purchase, the Holder’s agent or designee, in each case pursuant to this clause (ii), sent by reputable overnight courier to the address specified in the applicable Election to Purchase, a certificate, registered in the Company’s share register in the name of the Holder or its designee (as indicated in the applicable Election to Purchase), for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise.  While this Warrant remains outstanding, the Company shall maintain a transfer agent that participates in the Depository’s Fast Automated Securities Transfer Program.

 

1.3.4Valid Issuance. All Common Stock issued or issuable upon the proper exercise of this Warrant in conformity with the terms hereof shall be validly issued, fully paid and nonassessable. 

 

1.3.5Date of Issuance. Each person in whose name any certificate for the Common Stock is issued or to whom shares of Common Stock are credited to such person’s account at the Depository shall for all purposes be deemed to have become the holder of record of such Common Stock as of the time that a duly executed Election to Purchase is delivered in accordance with Section 1.3.1, assuming, in the case of a Cash Exercise, payment of the Aggregate Exercise Price is made within two (2) Trading Days after the delivery of the Election to Purchase, and if the payment of the Aggregate Exercise Price is not made within two (2) Trading Days after the delivery of the Election to Purchase, the Holder shall be deemed to have become the holder of record of such Common Stock on the first Trading Day after the date on which the Aggregate Exercise Price has been paid, irrespective of the date of delivery of such certificate or the date the shares of Common Stock are credited to such person’s account at the Depository, except that, if the date of such delivery and/or payment is a date when the stock transfer books of the Company are closed, such person shall be deemed to have become the holder of such shares at the close of business on the next succeeding date on which the stock transfer books are open. 

 

1.3.6Share Delivery Failure. If the Company shall fail, for any reason or for no reason, to issue to the Holder within three (3) trading days after receipt of the applicable Election to Purchase (the “Share Delivery Deadline”), a certificate for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant or credit the Holder’s balance account with the Depository for such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant (as the case may be, but in each case without a restrictive legend) (a “Delivery Failure”), and if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of all or any portion of the number of shares of Common Stock issuable upon such exercise that the Holder so anticipated receiving from the Company, then, in addition to all other remedies available to it, the Company shall, within three (3) Business Days (as defined below) after the Holder’s request and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to 100% of the Holder’s total purchase price (including brokerage commissions and other out-of-pocket expenses, if any) for the shares of Common Stock so purchased (including, without limitation, by any other person in respect, or on behalf, of the Holder) (the “Buy-In Price”), at which point the Company’s obligation 

4

 

 

to so issue and deliver such certificate or credit the Holder’s balance account with the Depository for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such shares of Common Stock) shall terminate, or (ii) promptly honor its obligation to so issue and deliver to the Holder a certificate or certificates representing such shares of Common Stock or credit the Holder’s balance account with the Depository for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied by (B) the lowest Closing Sale Price of the shares of Common Stock on any trading day during the period commencing on the date of the applicable Election to Purchase and ending on the date immediately preceding the date of such issuance and payment under this clause (ii). The term “Business Day” as used in this Warrant shall mean any day except a Saturday, a Sunday or any other day on which commercial banks are required or authorized to close in the City of New York, State of New York or the City of San Diego, State of California.  If the Company fails for any reason to deliver to the Holder the Common Stock subject to a Election to Purchase by the Share Delivery Deadline, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Common Stock subject to such exercise (based on the VWAP of the Common Stock on the date of the applicable Election to Purchase), $10 per trading day (increasing to $20 per trading day on the fifth trading day after such liquidated damages begin to accrue) for each Trading Day after such Share Delivery Deadline until such shares of Common Stock are delivered or Holder rescinds such exercise.  For the purposes of this provision “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on the Nasdaq Capital Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Nasdaq Capital Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the Common Stock is listed or quoted on the OTCQB or OTCQX, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 

 

1.4Beneficial Ownership Limitation on Exercises. The Company shall not affect the exercise of any portion of this Warrant, and the Holder shall not have the right to exercise any portion of this Warrant, to the extent that after giving effect to such exercise, the Holder (together with the Holder’s affiliates, and any persons acting as a group together with the Holder or any Holder’s affiliates) would beneficially own in excess of 49.99% (the “Maximum Percentage”) of the Common Stock outstanding immediately after giving effect to such exercise,. For purposes of the foregoing sentence, the aggregate number of shares of Common Stock beneficially owned by such Holder and its affiliates, and any persons acting as a group together with the Holder and the Holder’s affiliates, shall include the number of shares of 

5

 

 

Common Stock issuable upon exercise of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by the Holder and its affiliates, and any persons acting as a group together with the Holder and the Holder’s affiliates, and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company beneficially owned by the Holder and its affiliates, and any persons acting as a group together with the Holder and the Holder’s affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company shall not be responsible for calculating beneficial ownership in accordance with the provisions of this Section 1.4. To the extent that the limitation contained in this Section 1.4 applies, the Holder’s submission of an Election to Purchase shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to any other securities owned by the Holder together with any affiliates, and any persons acting as a group together with the Holder and the Holder’s affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Maximum Percentage, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Warrant, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as reflected in the most recent of (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing with the Securities and Exchange Commission, as the case may be, (2) a more recent written public announcement by the Company, or (3) any other notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding. For any reason at any time, upon the written or oral request of the Holder, the Company shall within three (3) trading days confirm to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder and its affiliates, and any persons acting as a group together with the Holder and the Holder’s affiliates, since the date as of which such number of outstanding shares of Common Stock was reported. For purposes of clarity, the Common Stock underlying this Warrant in excess of the Maximum Percentage for the Holder shall not be deemed to be beneficially owned by the Holder for any purpose including for purposes of Section 13(d) or Rule 16a-1(a)(1) of the Exchange Act. The provisions set forth herein shall be construed and implemented in a manner otherwise than in strict conformity with the other terms of this Section 1.4 to the extent necessary to correct any such provision which may be defective or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

 

 

 

6

 

 

2.Adjustments.  

 

2.1Stock Dividends. 

 

2.1.1Split-Ups. If after the date hereof, and subject to the provisions of Section 2.4, the number of outstanding shares of Common Stock is increased by a stock dividend payable in Common Stock, or by a split-up of Common Stock or other similar event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of Common Stock issuable on exercise of this Warrant shall be increased in proportion to such increase in the outstanding shares of Common Stock and the Exercise Price shall be proportionally decreased such that the aggregate Exercise Price, after such adjustments, remains the same for this Warrant. 

 

2.1.2Dividends and Other Distributions. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction), except to the extent an adjustment was already made pursuant to Section 2.1.1 or Section 2.2 (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Company shall reserve and put aside the maximum Distribution amount the Holder would have been entitled to receive if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Stock are to be determined for the participation in such Distribution. Upon exercise of this Warrant, in whole or in part, the Company shall, contemporaneously with the delivery of the Warrant Shares, distribute to the Holder a pro rata portion of such Distribution based on the portion of this Warrant that has been exercised (provided, however, to the extent that the Holder’s right to participate in any such Distributions would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution at such time and to such extent (or the beneficial ownership of any such Common Stock as a result of such Distribution to such extent) and such Distribution to such extent shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Maximum Percentage, at which time or times the Holder shall be granted such Distribution (and any Distributions declared or made on such initial Distribution or on any subsequent Distribution to be held similarly in abeyance) to the same extent as if there had been no such limitation). 

 

2.2Aggregation of Shares. If after the date hereof, and subject to the provisions of Section 2.5, the number of outstanding shares of Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Common Stock issuable on exercise of this Warrant shall be decreased in proportion to such decrease in outstanding shares of Common Stock and the Exercise Price shall be proportionally increased such that the aggregate Exercise Price, after such adjustments, remains the same for this Warrant. 

7

 

 

2.3Subsequent Rights Offerings.  In addition to any adjustments stated herein, if at any time the Company grants, issues or sells any Common Stock equivalents or rights to purchase stock, warrants, securities or other property pro rata to all the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation on the Maximum Percentage immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Maximum Percentage, at which time or times the Holder shall be granted such right (and any Purchase Right granted, issued or sold on such initial Purchase Right or on any subsequent Purchase Right to be held similarly in abeyance) to the same extent as if there had been no such limitation). 

 

2.4Fundamental Transactions. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another person, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another person or group of persons whereby such other person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other person or other persons making or party to, or associated or affiliated with the other persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each share of Common Stock that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 1.4 on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a 

8

 

 

result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 1.4 on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration the Holder receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) and for which stockholders of the Company received any equity securities of the Successor Entity to assume in writing all obligations of the Company under this Warrant in accordance with the provisions of this Section 2.3 pursuant to agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to the limitations on exercise set forth in Section 1.4) prior to such Fundamental Transaction, and with an exercise price which applies the Exercise Price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction). Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein.  

 

2.5Calculations. All calculations under this Section 2 shall be made to the nearest cent or the nearest whole share, as the case may be. For purposes of this Section 2, any calculation of the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall not include treasury shares, if any. Notwithstanding anything to the contrary in this Section 2, no adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least 1% in such price; provided, however, that any adjustments which by reason of the immediately preceding sentence are not required to be made shall be carried forward and taken into account in any subsequent adjustment. In any case in which this Section 2 shall require that an adjustment in the Exercise Price be made effective as of a record date for a specified event, if the Holder exercises this Warrant after such record date, the Company may elect to defer, until the occurrence of such event, the issuance of the shares of Common Stock and other capital stock of the Company in excess of the shares of Common Stock and other capital 

9

 

 

stock of the Company, if any, issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment; provided, however, that in such case the Company or shall deliver to the Holder a due bill or other appropriate instrument evidencing the Holder’s right to receive such additional shares and/or other capital securities upon the occurrence of the event requiring such adjustment. 

 

2.6Notices of Changes in Warrant. Upon every adjustment of the Exercise Price or the number of shares issuable upon exercise of this Warrant, the Company shall give written notice thereof to the Holder, which notice shall state the Exercise Price resulting from such adjustment and the increase or decrease, if any, in the number of shares purchasable at such price upon the exercise of this Warrant, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Failure to give such notice, or any defect therein, shall not affect the legality or validity of such event. 

 

2.7No Fractional Shares. Notwithstanding any provision contained in this Warrant to the contrary, the Company shall not issue fractional shares upon exercise of this Warrant. If, by reason of any adjustment made pursuant to this Section 2, the Holder would be entitled, upon the exercise of this Warrant, to receive a fractional interest in a share, the Company shall, upon such exercise, round down to the nearest whole number the number of shares of Common Stock to be issued to such Holder. If less than all of this Warrant is exercised, the outstanding number of Warrant Shares purchasable hereunder shall be reduced by an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases

 

2.8Form of Warrant. This Warrant need not be changed because of any adjustment pursuant to this Section 2, and may state the same Exercise Price and the same number of shares as is stated in the originally issued Warrant.

 

3.Transfer and Exchange of Warrant. 

 

3.1Transfer. Subject to applicable securities laws and any lock-up or other restrictions contained in the Loan and Security Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, , together with a written request for exchange or transfer, duly executed by the Holder, or by a duly authorized attorney, and thereupon the Company shall issue in exchange therefor one or more new Warrants as requested by the Holder, so surrendered, representing an equal aggregate number of Warrants.   

 

3.2Fractional Warrants. The Company shall not be required to effect any registration of transfer or exchange which shall result in the issuance of a Warrant for a fraction of a Warrant. 

 

4.Other Provisions Relating to Rights of Holder. 

 

4.1No Rights as Stockholder. Except as otherwise specifically provided herein, the Holder, solely in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in its capacity 

10

 

 

as the holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. This Warrant does not entitle the Holder to any of the rights of a stockholder.  

 

4.2Lost, Stolen, Mutilated, or Destroyed Warrant. If this Warrant is lost, stolen, mutilated, or destroyed, the Company may on such terms as to indemnity (including obtaining a bond protecting the Company) or otherwise as they may in their discretion impose (which shall, in the case of a mutilated Warrant, include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute a substitute contractual obligation of the Company, whether or not the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone. 

4.3Reservation of Common Stock. The Company shall at all times reserve and keep available a number of its authorized but unissued shares of Common Stock that shall be sufficient to permit the exercise in full of this Warrant. 

 

5.Miscellaneous Provisions. 

 

5.1Successors. All the covenants and provisions of this Warrant by or for the benefit of the Company or the Holder shall bind and inure to the benefit of their respective successors and assigns. 

 

5.2Notices. Any notice, statement or demand authorized by this Warrant to be given or made by the Holder to or on the Company shall be sufficiently given (i) when so delivered if by hand or overnight delivery, (ii) when sent, if delivered by facsimile (provided that confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) or by electronic mail, or (iii) if sent by certified mail or private courier service, within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Company with the Holder), as follows: 

 

Viking Therapeutics, Inc. 

12340 El Camino Real, Suite 250

San Diego, CA 92130

Attention: Chief Executive Officer

By Telefax (which constitutes notice): (858) 704-4659

By Email (which constitutes notice): blian@vikingtherapeutics.com

 

with copies to: 

 

Jeffrey T. Hartlin
Paul Hastings LLP
1117 S. California Avenue
Palo Alto, CA 94304

11

 

 

By Telefax (which constitutes notice): (650) 320-1904
By Email (which constitutes notice): jeffhartlin@paulhastings.com

 

Any notice, statement or demand authorized by this Warrant to be given or made by the Company to or on the Holder shall be sufficiently given (a) upon receipt if by hand or overnight delivery, (b) when sent, if delivered by facsimile (provided that confirmation of transmission is mechanically or electronically generated and kept on file by the sending party) or by electronic mail, or (c) if sent by certified mail or private courier service, within five (5) days after deposit of such notice, postage prepaid, addressed (until another address is filed in writing by the Holder with the Company), as follows: 

 

Ligand Pharmaceuticals Incorporated

11119 North Torrey Pines Rd., Suite 200

La Jolla, CA 92037

By Email (which constitutes notice): cberkman@ligand.com

 

5.3Applicable Law. The validity, interpretation, and performance of this Warrant shall be governed in all respects by the laws of the State of New York, without giving effect to conflicts of law principles that would result in the application of the substantive laws of another jurisdiction. The Company and the Holder hereby agree that any action, proceeding or claim against it arising out of or relating in any way to this Warrant shall be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company and the Holder hereby waive any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. 

 

5.4Persons Having Rights under this Warrant. Nothing in this Warrant shall be construed to confer upon, or give to, any person or corporation other than the parties hereto and the Holder any right, remedy, or claim under or by reason of this Warrant or of any covenant, condition, stipulation, promise, or agreement hereof. All covenants, conditions, stipulations, promises, and agreements contained in this Warrant shall be for the sole and exclusive benefit of the parties hereto and their successors and assigns and of the Holder. 

 

5.5Effect of Headings. The section headings herein are for convenience only and are not part of this Warrant and shall not affect the interpretation thereof. 

 

5.6Amendments. This Warrant may be amended by the parties hereto with the written consent of the Company and the Holder. 

 

5.7Severability. This Warrant shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Warrant or of any other term or provision hereof. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Warrant provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and enforceable.

 

12

 

 

5.8Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws. 

[Signature Page Follows]

 

13

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated. 

 

			
	
 
	
VIKING THERAPEUTICS, INC.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Brian Lian, Ph.D.

	
 
	
 
	
Name: Brian Lian, Ph.D.

	
 
	
 
	
Title: President and Chief Executive Officer

 

 

 

	
 

 

 

 

 

Election to Purchase

 

(To Be Executed Upon Exercise of Warrant) 

The undersigned hereby irrevocably elects to exercise the right, represented by the attached Warrant to Purchase Common Stock (the “Warrant”), to receive shares of Common Stock and herewith tenders payment for such shares to the order of Viking Therapeutics, Inc. (the “Company”) in the amount of $         in accordance with the terms hereof. The undersigned requests that a certificate for such shares be registered in the name of                     , whose address is                       , and that such shares be delivered to                      , whose address is                     . If said number of shares is less than all of the shares of Common Stock purchasable hereunder, the undersigned requests that a new Warrant representing the remaining balance of such shares be registered in the name of                     , whose address is                     , and that such Warrant be delivered to                     , whose address is                     . 

In the event that the Warrant is to be exercised on a “cashless” basis pursuant to Section 1.3.2 of the Warrant, the number of shares that this Warrant is exercisable for shall be determined in accordance with Section 1.3.2 of the Warrant. 

	
 
	
 
	
 

	
 
	
  
	
a “Cash Exercise” with respect to                  Warrant Shares; and/or

	
 
	
  
	
a “Cashless Exercise” with respect to                  Warrant Shares, resulting in a delivery obligation by the Company to the Holder of shares of Common Stock representing the applicable Net Number, subject to adjustment.

In the event that the Warrant may be exercised, to the extent allowed by the Warrant, through cashless exercise (i) the number of shares that the Warrant is exercisable for shall be determined in accordance with the relevant section of the Warrant which allows for such cashless exercise and (ii) the holder hereof shall complete the following: The undersigned hereby irrevocably elects to exercise the right, represented by the Warrant, through the cashless exercise provisions of the Warrant, to receive shares of Common Stock. If said number of shares is less than all of the shares of Common Stock purchasable hereunder (after giving effect to the cashless exercise), the undersigned requests that a new Warrant representing the remaining balance of such shares be registered in the name of                      , whose address is                     , and that such Warrant be delivered to                     , whose address is                     . 

	
Date:             , 20    
	
 
	
 
	
 
	
 
	
 
	
(Signature)

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
(Address)

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
(Tax Identification Number)kop-ex101_6.htm

EXHIBIT 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT

THIS THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT (the "Amendment") is dated as of April 8, 2016 by and among Koppers Inc., a Pennsylvania corporation (the "Borrower"), the Guarantors (as defined in the Credit Agreement), the LENDERS (as defined in the Credit Agreement), and PNC Bank, National Association, as Administrative Agent (in such capacity, the "Administrative Agent").

WITNESSETH:

WHEREAS, this Amendment amends that certain Credit Agreement dated as of August 15, 2014, as amended by that certain (i) First Amendment to Credit Agreement and Consent and Waiver (the "First Amendment") dated as of December 17, 2014 and (ii) Second Amendment to Credit Agreement, dated as of June 30, 2015 (as so amended, the "Credit Agreement").

WHEREAS, Borrower has requested that the Lenders modify certain provisions of the Credit Agreement, and the Administrative Agent and the Lenders have agreed to such modifications as described in this Amendment.  Capitalized terms not otherwise defined in this Amendment have the meanings given to them in the Credit Agreement.

NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements herein contained and intending to be legally bound hereby, covenant and agree as follows:

1.Recitals.  The foregoing recitals are true and correct and incorporated herein by reference.

2.Amendment of Cover Page.  The cover page of the Credit Agreement is hereby amended and restated in its entirety as set forth on Annex A hereto.  

3.Amendment of First WHEREAS paragraph of the Recitals.  The first WHEREAS paragraph of the Recitals of the Credit Agreement is hereby amended by deleting the reference to "$500,000,000" and in its stead inserting a reference to "$300,000,000".

4.Amendment of Section 1.1 [Certain Definitions] – Added Definitions.  Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions in their appropriate alphanumeric positions:

2016 Foreign Restructuring shall mean the transfer of equity interests among certain Loan Parties and their Subsidiaries substantially in accordance with the narrative set forth on Schedule 1.1(2016) attached hereto.

2016 Foreign Restructuring Completion Date shall mean the date on which the 2016 Foreign Restructuring is completed, but such date shall not be later than December 31, 2016, as such date 

 

 

may be extended by the Administrative Agent in its reasonable discretion.

Bail-In Action means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

Bail-In Legislation means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule. 

EEA Financial Institution means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent; 

EEA Member Country means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

EEA Resolution Authority means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

EU Bail-In Legislation Schedule means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

KGICV means Koppers Global Investments C.V., a limited partnership formed under the laws of The Netherlands.

KWWHCV means Koppers World-Wide Holdings C.V., a limited partnership formed under the laws of The Netherlands.

Third Amendment Closing Date shall mean April 8, 2016.

Write-Down and Conversion Powers means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under 

2

 

the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

5.Amendment of Section 1.1 [Certain Definitions] – Restated Definitions.  Section 1.1 of the Credit Agreement is hereby amended by amending and restating the following definitions in their entirety as set forth below:

Daily LIBOR Rate shall mean, for any day, the rate per annum determined by the Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the Euro-Rate Reserve Percentage on such day.  Notwithstanding the foregoing, if the Daily LIBOR Rate as determined above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement.

Federal Funds Effective Rate for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%, with .005% being rounded up) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the "Federal Funds Effective Rate" as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the "Federal Funds Effective Rate" for such day shall be the Federal Funds Effective Rate for the last day on which such rate was announced.

6.Amendment of Definition of Consolidated EBITDA in Section 1.1 [Certain Definitions].  Subsection (k) of the definition of Consolidated EBITDA contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

(k) non-recurring cash and non-cash charges to net income in an aggregate cumulative amount during the period commencing on January 1, 2016 and continuing for the balance of the term of this Agreement not greater than $75,000,000 related to discontinuation or sale of business operations of Holdings and its Subsidiaries as such charges are incurred (provided, for greater certainty, that for calendar quarters ended on or before December 31, 2015, this subsection (k) shall continue to read as set forth in the Agreement prior to the Third Amendment Closing Date), 

3

 

7.Amendment of Definition of Defaulting Lender in Section 1.1 [Certain Definitions].  The definition of Defaulting Lender contained in Section 1.1 of the Credit Agreement is hereby amended to (i) delete the phrase "Bankruptcy Event or (e) has failed" and in its stead insert the phrase "Bankruptcy Event,  (e) has failed" and (ii) insert the following phrase " or (f) becomes the subject of a Bail-in Action" immediately before the period of the first sentence. 

8.Amendment of Definition of Euro-Rate in Section 1.1 [Certain Definitions].  The definition of Euro-Rate contained in Section 1.1 of the Credit Agreement is hereby amended by inserting the following new sub-section (f) immediately below sub-section (e) of such definition as follows:

(f)Notwithstanding the foregoing, if the Euro-Rate as determined under any method above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement.

9.Amendment of Definition of Fixed Charges in Section 1.1 [Certain Definitions].  The definition of Fixed Charges contained in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

Fixed Charges shall mean for any period of determination the sum of interest expense, contractual principal installments on Indebtedness, and contractual principal payments on capitalized leases, in each case of Holdings and its Subsidiaries for such period determined and consolidated in accordance with GAAP; provided that, notwithstanding the foregoing, (i) payments made by the Borrower to redeem the 2009 Senior Notes as permitted under Section 8.2.5 [Restricted Payments] shall be excluded from the calculation of Fixed Charges, (ii) up to $9,500,000 of Capital Expenditures made with respect to the reorganization of the Borrower's carbon materials and chemicals business operations in the US and Europe and incurred prior to December 31, 2015 shall be excluded from the calculation of Fixed Charges, (iii) up to $35,000,000 of Capital Expenditures made with respect to reorganization of the Borrower's carbon materials and chemicals business operations in the US and Europe and incurred on or after January 1, 2016 shall be excluded from the calculation of Fixed Charges, and (iv) in the event that Holdings pays any dividends or distributions after June 30, 2015, then all dividends or distributions made by Holdings during any period of determination shall be included in the calculation of Fixed Charges.

4

 

10.Amendment of Section 8.1 [Affirmative Covenants].  Section 8.1 of the Credit Agreement is hereby amended to insert the following new Section 8.1.17 immediately following Section 8.1.16: 

8.1.172016 Foreign Restructuring Matters.  The Loan Parties shall, within two (2) days of the 2016 Foreign Restructuring Completion Date, execute and deliver to the Collateral Agent an amendment to the Pledge Agreement in form and substance satisfactory to the Administrative Agent pursuant to which the Loan Parties will amend the Pledge Agreement to add as additional pledged collateral all of the equity interests acquired by the Loan Parties as a result of the 2016 Foreign Restructuring (which pledge, in the case of the pledge of the voting capital stock of any first tier Foreign Subsidiary, shall be limited to 65% of the voting capital stock of such Foreign Subsidiary).

11.Amendment of Section 8.2.1 [Indebtedness].  Subsection (iii) of Section 8.2.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

(iii)(a) Indebtedness of a Loan Party to another Loan Party which is subordinated in accordance with the provisions of Section 8.1.12 [Subordination of Intercompany Loans], (b) indebtedness of KWWHCV to KGICV  in an amount not to exceed $350,000,000, which is subordinated until Payment In Full, and (c) Indebtedness of Foreign Subsidiaries to the Loan Parties and their Subsidiaries to the extent permitted under Section 8.2.4(vi);

12.Amendment of Section 8.2.4 [Loans and Investments].  Subsection (vi) of Section 8.2.4 of the Credit Agreement is hereby amended and restated in its entirety as follows:

(vi)loans and advances to, and investments in, (a) Foreign Subsidiaries made in connection with the 2016 Foreign Restructuring and (b) Foreign Subsidiaries created or acquired after the Foreign Restructuring Completion Date, and additional loans and advances to, and investments in, Foreign Subsidiaries in existence on the Foreign Restructuring Completion Date in excess of the amount of such investments in such Foreign Subsidiaries listed on Schedule 8.2.4 (and excluding loans and advances to, and investments in, Foreign Subsidiaries made pursuant to the 2016 Foreign Restructuring), in an aggregate amount not exceeding $100,000,000 at any one time outstanding;

5

 

13.Amendment of Section 8.2.6 [Liquidations, Mergers, Consolidations, Acquisitions].  Subsection (i) of Section 8.2.6 of the Credit Agreement is hereby amended and restated in its entirety as follows: 

(i)(a) any Loan Party other than the Borrower may consolidate or merge into the Borrower or into another Loan Party which is wholly-owned by one or more of the other Loan Parties, (b) Koppers NZ may be dissolved in connection with the Foreign Restructuring and (c) any Loan Party or any Subsidiary of any Loan Party may acquire capital stock in connection with the 2016 Foreign Restructuring;

14.Amendment of Section 8.2.7 [Dispositions of Assets or Subsidiaries].  Subsection (vii) of Section 8.2.7 of the Credit Agreement is hereby amended and restated in its entirety as follows:

(vii)any sale or transfer made in connection with the Foreign Restructuring or the 2016 Foreign Restructuring; or

15.Amendment of Section 8.2.16 [Maximum Total Secured Leverage Ratio].  Section 8.2.16 of the Credit Agreement is hereby amended and restated in its entirety as follows:

8.2.16Maximum Total Secured Leverage Ratio.  The Loan Parties shall not at any time permit the Total Secured Leverage Ratio, calculated as of the end of each fiscal quarter for the four fiscal quarters then ended, to exceed the maximum ratio set forth below for the applicable period:

(1)Prior to the Qualified Note Issuance:

		
	
Fiscal Period-End
	
Maximum Total Secured Leverage Ratio

	
Third Amendment Closing Date through September 30, 2016
	
5.25 to 1.00

	
December 31, 2016 through September 30, 2017
	
5.00 to 1.00

	
December 31, 2017 through September 30, 2018
	
4.50 to 1.00

	
December 31, 2018 and for all periods thereafter
	
4.00 to 1.00

 

6

 

(2)Following the Qualified Note Issuance: 

		
	
Fiscal Period-End
	
Maximum Total Secured Leverage Ratio

	
Date of consummation of the Qualified Note Issuance through but not including December 31, 2015
	
the ratio based on the amount of the Qualified Note Issuance according to the table set forth in the definition of Reduced Ratio

	
December 31, 2015 and for all periods thereafter
	
3.00 to 1.00

 

16.Amendment of Section 9.2 [Consequences of Event of Default].  Section 9.2 of the Credit Agreement is hereby amended to insert the following new Section 9.2.8 immediately following Section 9.2.7:

9.2.8Enforcement of Rights and Remedies.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them (including, without limitation, the authority to give instructions and directions to the Collateral Agent) shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with this Section 9.2 for the benefit of all the Lenders and the Issuing Lender; provided that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the Issuing Lender or the Swing Loan Lender from exercising the rights and remedies that inure to its benefit (solely in its capacity as the Issuing Lender or Swing Loan Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 9.2.3 (subject to the terms of Section 5.3 [Sharing of Payments by Lenders]), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Insolvency Proceeding; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the 

7

 

Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to this Section 9.2.8, and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 5.3 [Sharing of Payments by Lenders]), any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders. 

17.Amendment of Section 11.2 [No Implied Waivers; Cumulative Remedies].  Section 11.2 of the Credit Agreement is hereby amended and restated in its entirety as follows:

11.2No Implied Waivers; Cumulative Remedies.  No course of dealing and no delay or failure of the Administrative Agent or any Lender in exercising any right, power, remedy or privilege under this Agreement or any other Loan Document shall affect any other or future exercise thereof or operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any further exercise thereof or of any other right, power, remedy or privilege.  The enumeration of the rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise.

18.Amendment of Article 11 [Miscellaneous].  Article 11 of the Credit Agreement is hereby amended to insert the following new Section 11.15 immediately following Section 11.14:

11.15Acknowledgment and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including, if applicable, (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of 

8

 

ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority. 

19.Amendment to Incorporate Schedule 1.1(2016).  The Credit Agreement is hereby amended to add a new Schedule 1.1(2016) to the Credit Agreement as set forth on Annex B.

20.Amendment of Schedule 1.1(A).  Schedule 1.1(A) of the Credit Agreement is hereby amended and restated in its entirety as set forth on Annex C hereto.

21.Amendment of Schedule 1.1(B).  Part 1 of Schedule 1.1(B) of the Credit Agreement is hereby amended and deemed to be amended to the extent necessary to modify the amount of each respective Lender's Amount of Commitment for Revolving Credit Loans listed thereon and the total amount of Commitments for Revolving Credit Loans thereof to correspond with the respective amounts set forth on Annex D hereto.

22.Consents, Waivers and Releases.  Subject to the satisfaction of the conditions precedent set forth in Section 23 below and in reliance on the representations, warranties and covenants set forth in Section 24 below, the Lenders hereby consent (to the extent such consent is required under the Credit Agreement) to the 2016 Foreign Restructuring and waive (solely to the extent necessary to permit the consummation of 2016 Foreign Restructuring) any covenant or other restriction set forth in the Credit Agreement or any other Loan Document, which would otherwise restrict the consummation of the 2016 Foreign Restructuring.  Without limiting the generality of the foregoing, subject to the satisfaction of the conditions precedent set forth in Section 23 below and in reliance on the representations, warranties and covenants set forth in Section 24 below, the Lenders hereby waive, prior to the 2016 Foreign Restructuring Completion Date and solely with respect to those matters arising due to the 2016 Foreign Restructuring having commenced but not having been completed, the requirement under Section 6.2 of the Credit Agreement that the Borrower promptly provide revisions or updates to Schedules to correct any information or disclosures provided thereon that have become outdated or incorrect in any material respect.

In addition, the Loan Parties and the Lenders hereby acknowledge that the equity interests being transferred among the Loan Parties in connection with the 2016 Foreign Restructuring (other than the 2016 Released Assets (as hereinafter defined)) will be transferred subject to the security interests of the Collateral Agent and that, after giving effect to the 2016 Foreign Restructuring, such security interests shall remain in full force and effect.  Subject to the satisfaction of the conditions precedent set forth in Section 23 below and in reliance on the representations, warranties and covenants set forth in Section 24 below, the Lenders hereby consent (i) to the execution and delivery by the Administrative Agent on behalf of the Lenders of such amendments or amendment and restatements of the Pledge Agreement as the Administrative Agent may determine to be necessary or appropriate to ratify and confirm the 

9

 

continuation of the security interests of the Administrative Agent in the equity interests referred to in the preceding sentence or otherwise in connection with the 2016 Foreign Restructuring, all such amendments and/or amendments and restatements to be in form and substance satisfactory to the Administrative Agent, and (ii) to the release by the Collateral Agent of its Liens on certain of the equity interests being transferred in connection with the Foreign Restructuring due to the issuers of such equity interests no longer constituting first tier Foreign Subsidiaries of the Loan Parties (collectively, the "2016 Released Assets"), in each case, solely to the extent necessary to effectuate the 2016 Foreign Restructuring, such releases to be in form and substance satisfactory to the Administrative Agent.

The parties acknowledge and agree that the foregoing consents and waivers constitute consents and waivers of the restrictions of the Credit Agreement and the other Loan Documents solely with respect to the 2016 Foreign Restructuring and do not constitute a consent or a waiver of any term or provision of the Credit Agreement or any other Loan Document for any other purpose or on any other occasion, do not constitute an amendment to any term or provision of the Credit Agreement or any other Loan Document and do not constitute a waiver of any Default or Event of Default which may now exist or hereafter arise or occur.

23.Conditions Precedent.  The Borrower, the Guarantors and the Lenders acknowledge that this Amendment shall not be effective until the date each of the following conditions precedent has been satisfied:

(a)The Borrower, the Guarantors, the Required Lenders, and the Administrative Agent shall have executed, and delivered to the Administrative Agent, this Amendment;

(b)Since December 31, 2015, no Material Adverse Change shall have occurred with respect to the Borrower or any of the Guarantors;

(c)No default or event of default shall have occurred or will occur under the terms of any other agreement involving borrowed money or the extension of credit or any other Indebtedness under which any Loan Party or Subsidiary of any Loan Party may be obligated as a borrower or guarantor as a result of and after giving effect to the transactions contemplated by this Amendment;

(d)The Borrower and the Guarantors shall have obtained all approvals and consents necessary to consummate the transactions contemplated by this Amendment and there shall be no legal or regulatory prohibitions or restrictions upon the consummation of the transactions contemplated by this Amendment;

(e)The Borrower shall have furnished to the Administrative Agent a duly completed Compliance Certificate setting forth pro-forma compliance of Holdings and its Subsidiaries on a consolidated basis, after giving effect to the transactions under this Amendment, signed by an Authorized Officer of Holdings;

(f)The Borrower shall have paid to the Administrative Agent and PNC Capital Markets LLC, for themselves and for the account of each Lender, as applicable, all fees required to be paid in connection with this Amendment, and the Borrower shall have 

10

 

reimbursed the Administrative Agent all fees and expenses, including without limitation, attorneys' fees, for which the Administrative Agent is entitled to be reimbursed; and 

(g)All legal details and proceedings in connection with the transactions contemplated by this Amendment and all other Loan Documents to be delivered to the Lenders shall be in form and substance reasonably satisfactory to the Administrative Agent.

24.Representations, Warranties and Covenants.  The Borrower and each Guarantor covenants and agrees with and represents and warrants to the Administrative Agent and the Lenders as follows:

(a)the Borrower's and Guarantors' obligations under the Credit Agreement, as modified hereby, are and shall remain secured by the Collateral (other than the Released Assets (as defined in the First Amendment) and the 2016 Released Assets), pursuant to the terms of the Credit Agreement and the other Loan Documents;

(b)the Borrower and each of the Guarantors possesses all of the powers requisite for it to enter into and carry out the transactions of the Borrower and each Guarantor referred to herein and to execute, enter into and perform the terms and conditions of this Amendment, the Credit Agreement and the other Loan Documents and any other documents contemplated herein that are to be performed by the Borrower or such Guarantor; any and all actions required or necessary pursuant to the Borrower's or such Guarantor's organizational documents or otherwise have been taken to authorize the due execution, delivery and performance by the Borrower and such Guarantor of the terms and conditions of this Amendment; the officers of the Borrower and each Guarantor executing this Amendment are the duly elected, qualified, acting and incumbent officers of such Loan Party and hold the titles set forth below their names on the signature lines of this Amendment; and such execution, delivery and performance will not conflict with, constitute a default under or result in a breach of any applicable law or any agreement, instrument, order, writ, judgment, injunction or decree to which the Borrower or such Guarantor is a party or by which the Borrower or such Guarantor or any of its properties is bound, and that all consents, authorizations and/or approvals required or necessary from any third parties in connection with the entry into, delivery and performance by the Borrower and such Guarantor of the terms and conditions of this Amendment, the Credit Agreement, the other Loan Documents and the transactions contemplated hereby have been obtained by the Borrower and such Guarantor and are full force and effect;

(c)this Amendment, the Credit Agreement, and the other Loan Documents constitute the valid and legally binding obligations of the Borrower and each Guarantor, enforceable against the Borrower and each Guarantor in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and by general equitable principles, whether enforcement is sought by proceedings at law or in equity;

(d)except as specifically modified by this Amendment, all representations and warranties made by the Borrower and each Guarantor in the Credit Agreement and the other Loan Documents are true and correct in all material respects as of the date hereof, with the 

11

 

same force and effect as if all such representations and warranties were fully set forth herein and made as of the date hereof and the Borrower and each Guarantor has complied with all covenants and undertakings in the Credit Agreement and the other Loan Documents; 

(e)this Amendment is not a substitution, novation, discharge or release of the Borrower's or any Guarantor's obligations under the Credit Agreement or any of the other Loan Documents, all of which shall and are intended to remain in full force and effect;

(f)no Event of Default or Potential Default has occurred and is continuing under the Credit Agreement or the other Loan Documents; there exist no defenses, offsets, counterclaims or other claims with respect to the Borrower's or any Guarantor's obligations and liabilities under the Credit Agreement or any of the other Loan Documents; and

(g)the Borrower and each Guarantor hereby ratifies and confirms in full its duties and obligations under the Credit Agreement, the Guaranty Agreement, and the other Loan Documents applicable to it, each as modified hereby.

25.Incorporation into Credit Agreement and other Loan Documents.  This Amendment shall be incorporated into the Credit Agreement by this reference and each reference to the Credit Agreement that is made in the Credit Agreement or any other document executed or to be executed in connection therewith shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  The term "Loan Documents" as defined in the Credit Agreement shall include this Amendment.

26.Severability.  If any one or more of the provisions contained in this Amendment, the Credit Agreement, or the other Loan Documents shall be held invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained in this Amendment, the Credit agreement or the other Loan Documents shall not in any way be affected or impaired thereby, and this Amendment shall otherwise remain in full force and effect.

27.Successors and Assigns.  This Amendment shall apply to and be binding upon the Borrower and each Guarantor in all respects and shall inure to the benefit of each of the Administrative Agent and the Lenders and their respective successors and assigns, provided that neither the Borrower nor any Guarantor may assign, transfer or delegate its duties and obligations hereunder.  Nothing expressed or referred to in this Amendment is intended or shall be construed to give any person or entity other than the parties hereto a legal or equitable right, remedy or claim under or with respect to this Amendment, the Credit Agreement or any of the other Loan Documents, it being the intention of the parties hereto that this Amendment and all of its provisions and conditions are for the sole and exclusive benefit of the Borrower, the Guarantors, the Administrative Agent and the Lenders.

28.Reimbursement of Expenses.  The Borrower unconditionally agrees to pay and reimburse the Administrative Agent and save the Administrative Agent harmless against liability for the payment of reasonable out-of-pocket costs, expenses and disbursements, including without limitation, fees and expenses of counsel incurred by the Administrative Agent in connection with the development, preparation, execution, administration, interpretation or 

12

 

performance of this Amendment and all other documents or instruments to be delivered in connection herewith. 

29.Counterparts.  This Amendment may be executed by different parties hereto in any number of separate counterparts, each of which, when so executed and delivered shall be an original and all such counterparts shall together constitute one and the same instrument.

30.Entire Agreement.  This Amendment sets forth the entire agreement and understanding of the parties with respect to the transactions contemplated hereby and supersedes all prior understandings and agreements, whether written or oral, between the parties hereto relating to the subject matter hereof.  No representation, promise, inducement or statement of intention has been made by any party which is not embodied in this Amendment, and no party shall be bound by or liable for any alleged representation, promise, inducement or statement of intention not set forth herein.

31.Governing Law.  This Amendment shall be deemed to be a contract under the laws of the State of New York and for all purposes shall be governed by and construed and enforced in accordance with the internal laws of the State of New York without regard to its conflict of laws principles.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGES FOLLOW]

 

13

 

[SIGNATURE PAGE TO THIRD AMENDMENT to credit agreement and consent]

IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Amendment as of the day and year first above written.

		
	
 
	
BORROWER:

 

	
 
	
KOPPERS INC.

By: /s/ Louann E. Tronsberg-Deihle

Name:Louann E. Tronsberg-Deihle

Title:Treasurer

 

	
 
	
GUARANTORS:

 

	
 
	
KOPPERS HOLDINGS INC.

KOPPERS DELAWARE, INC.

KOPPERS ASIA LLC

KOPPERS CONCRETE PRODUCTS, INC.

CONCRETE PARTNERS, INC.

 

 

By: /s/ Louann E. Tronsberg-Deihle

Name:Louann E. Tronsberg-Deihle

Title:Treasurer

 

	
 
	
KOPPERS WORLD-WIDE VENTURES CORPORATION

 

 

By: /s/ Louann E. Tronsberg-Deihle

Name:Louann E. Tronsberg-Deihle

Title:Vice President

 

	
 
	
KOPPERS VENTURES LLC

 

 

By: /s/ Louann E. Tronsberg-Deihle

Name:Louann E. Tronsberg-Deihle

Title:Treasurer and Assistant Secretary

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
KOPPERS PERFORMANCE CHEMICALS, INC., 
a New York corporation

 

 

By:/s/ Louann E. Tronsberg-Deihle
Name:Louann E. Tronsberg-Deihle

Title:Treasurer

 

	
 
	
KOPPERS RAILROAD STRUCTURES INC., 
a Delaware corporation

 

 

By:/s/ Louann E. Tronsberg-Deihle
Name:Louann E. Tronsberg-Deihle

Title:Treasurer

 

	
 
	
KOPPERS-NEVADA LIMITED-LIABILITY COMPANY, 
a Nevada limited liability company
KOPPERS NZ LLC, 
a New York limited liability company
WOOD PROTECTION MANAGEMENT LLC, 
a Nevada limited liability company

 

By:/s/ Steven R. Lacy
Name:Steven R. Lacy

Title:Manager

 

	
 
	
WOOD PROTECTION LP,

a Texas limited partnership

By:WOOD PROTECTION MANAGEMENT LLC,

as General Partner

 

By:/s/ Steven R. Lacy

Name:Steven R. Lacy

Title:Manager

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
ADMINISTRATIVE AGENT AND LENDERS:

 

	
 
	
PNC BANK, NATIONAL ASSOCIATION,

as a Lender and as Administrative Agent

 

 

By: /s/ Tracy J. DeCock

Name:Tracy J. DeCock

Title:Senior Vice President

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender and as Co-Syndication Agent

 

 

By:      /s/ J. Barrett Donovan

Name:J. Barrett Donovan

Title:Senior Vice President

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
BANK OF AMERICA, N.A.,

as a Lender and as Co-Syndication Agent

 

 

By: /s/ Colleen M. O’Brien

Name:Colleen M. O’Brien

Title:Senior Vice President

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
CITIZENS BANK OF PENNSYLVANIA,

as a Lender and as Co-Syndication Agent

 

 

By: /s/ Sean McWhinnie

Name:Sean McWhinnie

Title:Duly Authorized Signatory

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
FIFTH THIRD BANK,

as a Lender and as Co-Documentation Agent

 

 

By: /s/ Michael S. Barnett

Name:Michael S. Barnett

Title:Managing Director

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
DEUTSCHE BANK AG NEW YORK BRANCH,

as a Lender

 

 

By: /s/ Marcus M. Tarkington

Name:Marcus M. Tarkington

Title:Director

 

	
 

 
	
 

DEUTSCHE BANK AG NEW YORK BRANCH,

as a Lender

 

 

By: /s/ Michael Winters

Name:Michael Winters

Title:Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
BARCLAYS BANK PLC,

as a Lender

 

 

By: /s/ Vanessa A. Kurbatskiy

Name:Vanessa A. Kurbatskiy

Title:Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Lender

 

 

By: /s/ Mustafa Khan

Name:Mustafa Khan

Title:Director

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
BMO HARRIS BANK N.A.,

as a Lender

 

 

By: /s/ Joshua Hovermale

Name:Joshua Hovermale

Title:Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
FIRST NIAGARA BANK, N. A.,

as a Lender

 

 

By: /s/ Philip R. Medsger

Name:Philip R. Medsger

Title:Senior Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
FIRST NATIONAL BANK OF PENNSYLVANIA,

as a Lender

 

 

By: /s/ Dennis F. Lennon

Name:Dennis F. Lennon

Title:Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
THE HUNTINGTON NATIONAL BANK,

as a Lender

 

 

By: /s/ Michael Kiss

Name:Michael Kiss

Title:Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
FIRST COMMONWEALTH BANK,

as a Lender

 

 

By: /s/ Joe Hynds

Name:Joe Hynds

Title:Senior Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
TRISTATE CAPITAL BANK,

as a Lender

 

 

By: Ellen Frank

Name:/s/ Ellen Frank

Title:Senior Vice President

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
CNB BANK,

as a Lender

 

 

By: /s/ Joseph E. Dell, Jr.

Name:Joseph E. Dell, Jr.

Title:Executive Vice President

 

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
WASHINGTON FINANCIAL BANK,
as a Lender

 

 

By: /s/ Anthony M. Cardone 

Name:Anthony M. Cardone

Title:Vice President

 

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
ZAIS CLO 1, LIMITED,

as a Lender

 

By:ZAIS Leveraged Loan Manager, LLC, its collateral manager

 

By:ZAIS Group, LLC, its sole member

 

 

 

By: /s/ Vincent M. Ingato

Name:Vincent M. Ingato

Title:Managing Director

 

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
ZAIS CLO 2, LIMITED,

as a Lender

 

By:ZAIS Leveraged Loan Manager 2, LLC, its collateral manager

 

By:ZAIS Group, LLC, its sole member

 

 

 

By: /s/ Vincent M. Ingato

Name:Vincent M. Ingato

Title:Managing Director

 

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
ZAIS CLO 4, LIMITED,

as a Lender

 

By:ZAIS Leveraged Loan Manager 4, LLC, its collateral manager

 

By:ZAIS Group, LLC, its sole member

 

 

 

By: /s/ Vincent M. Ingato

Name:Vincent M. Ingato

Title:Managing Director

 

 

 

 

 

 SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

 

		
	
 
	
ZAIS CLO 5, LIMITED,

as a Lender

 

By:ZAIS Leveraged Loan Manager 5, LLC, its collateral manager

 

By:ZAIS Group, LLC, its sole member

 

 

 

By: /s/ Vincent M. Ingato

Name:Vincent M. Ingato

Title:Managing Director

 

 

 

 

 

[SIGNATURE PAGE TO THIRD AMENDMENT TO CREDIT AGREEMENT AND CONSENT]

		
	
 
	
NORTHWEST BANK,

as a Lender

 

 

By: /s/ C. Forrest Tefft

Name:C. Forrest Tefft

Title:Senior Vice President

 

 

 

ANNEX A

CUSIP NUMBER 50060JAA8

 

$300,000,000 REVOLVING CREDIT FACILITY

$300,000,000 TERM LOAN FACILITY

 

CREDIT AGREEMENT

 

by and among

 

KOPPERS INC.,

as Borrower,

 

THE GUARANTORS PARTY HERETO,

 

THE LENDERS PARTY HERETO,

 

PNC BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

 

PNC CAPITAL MARKETS LLC, 

WELLS FARGO SECURITIES, LLC,

MERRILL LYNCH PIERCE FENNER & SMITH INC.,

CITIZENS BANK, N.A.,

FIFTH THIRD BANK,

DEUTSCHE BANK SECURITIES INC.,

and

BARCLAYS BANK PLC,

as Joint Lead Arrangers and Joint Bookrunners,

 

WELLS FARGO BANK, NA,

BANK OF AMERICA, N.A.,
and

CITIZENS BANK OF PENNSYLVANIA,

as Co-Syndication Agent, 

 

and

 

FIFTH THIRD BANK,

DEUTSCHE BANK SECURITIES INC.,

and

BARCLAYS BANK PLC,

as Co-Documentation Agents

 

Dated as of August 15, 2014

 

ANNEX B

SCHEDULE 1.1(2016)

2016 Foreign Restructuring

 

 

 

 

ANNEX C

SCHEDULE 1.1(A)

PRICING GRID--

VARIABLE PRICING AND LETTER OF CREDIT

FEES BASED ON TOTAL SECURED LEVERAGE RATIO

Computations of the Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate made as of the Third Amendment Closing Date and as of the end of each fiscal quarter ending thereafter through the fiscal quarter ending as of September 30, 2016, shall be based upon the following pricing grid:

 

						
	
Level
	
Total Secured Leverage
Ratio
	
Commitment Fee
	
Letter of Credit Fee
	
Base Rate Spread
	
Euro-Rate Spread

	
I
	
Greater than or equal to 3.50 to 1.00
	
0.375%
	
3.50%
	
2.50%
	
3.50%

	
II
	
Less than 3.50 to 1.00 but greater than or equal to 3.00 to 1.00
	
0.375%
	
3.25%
	
2.25%
	
3.25%

	
III
	
Less than 3.00 to 1.00 but greater than or equal to 2.50 to 1.00
	
0.375%
	
3.00%
	
2.00%
	
3.00%

	
IV
	
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00
	
0.250%
	
2.75%
	
1.75%
	
2.75%

	
V
	
Less than 2.00 to 1.00 but greater than or equal to 1.50 to 1.00
	
0.250%
	
2.50%
	
1.50%
	
2.50%

	
VI
	
Less than 1.50 to 1.00
	
0.200%
	
2.25%
	
1.25%
	
2.25%

 

Computations of the Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate made as of December 31, 2016 and as of the end of each fiscal quarter ending thereafter, shall be based upon the following pricing grid:

 

						
	
Level
	
Total Secured Leverage
Ratio
	
Commitment Fee
	
Letter of Credit Fee
	
Base Rate Spread
	
Euro-Rate Spread

	
I
	
Greater than or equal to 4.00 to 1.00
	
0.375%
	
3.75%
	
2.75%
	
3.75%

	
II
	
Less than 4.00 to 1.00 but greater than or equal to 3.50 to 1.00
	
0.375%
	
3.50%
	
2.50%
	
3.50%

	
III
	
Less than 3.50 to 1.00 but greater than or equal to 3.00 to 1.00
	
0.375%
	
3.25%
	
2.25%
	
3.25%

 

ANNEX C

						
	
Level
	
Total Secured Leverage
Ratio
	
Commitment Fee
	
Letter of Credit Fee
	
Base Rate Spread
	
Euro-Rate Spread

	
IV
	
Less than 3.00 to 1.00 but greater than or equal to 2.50 to 1.00
	
0.375%
	
3.00%
	
2.00%
	
3.00%

	
V
	
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00
	
0.250%
	
2.75%
	
1.75%
	
2.75%

	
VI
	
Less than 2.00 to 1.00 but greater than or equal to 1.50 to 1.00
	
0.250%
	
2.50%
	
1.50%
	
2.50%

	
VII
	
Less than 1.50 to 1.00
	
0.200%
	
2.25%
	
1.25%
	
2.25%

 

For purposes of determining the Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate:

(a)The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate shall be determined on the Third Amendment Closing Date based on the Total Secured Leverage Ratio computed on such date pursuant to a Compliance Certificate to be delivered on the Third Amendment Closing Date.

(b)The Applicable Margin, the Applicable Commitment Fee Rate and the Applicable Letter of Credit Fee Rate shall be recomputed as of (i) the end of each fiscal quarter ending after the Third Amendment Closing Date and (ii) if Holdings elects to do so, the date of the consummation of the Qualified Note Issuance, based on the Total Secured Leverage Ratio as of such quarter end or date of consummation, as the case may be.  Any increase or decrease in the Applicable Margin, Applicable Commitment Fee Rate or the Applicable Letter of Credit Fee Rate computed as of (i) a quarter end shall be effective on the date on which the Compliance Certificate evidencing such computation is due to be delivered under Section 8.3.3 [Certificate of Borrower] and (ii) the date of the consummation of the Qualified Note Issuance shall be effective on the date on which the Compliance Certificate evidencing such computation is delivered to the Administrative Agent, except that any changes in pricing levels relating to outstanding Borrowing Tranches of Optional Currency Loans shall be effective upon the expiration of the current Interest Period with respect to such Borrowing Tranches.  If a Compliance Certificate is not delivered when due in accordance with such Section 8.3.3, then the rates in the applicable Level I shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered.

(c)If, as a result of any restatement of or other adjustment to the financial statements of the Borrower or for any other reason, the Borrower or the Lenders determine that (i) the Total Secured Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (ii) a proper calculation of the Total Secured Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively be obligated to pay to the Administrative Agent for the account of the applicable Lenders, promptly on demand by the 

 

ANNEX C

Administrative Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code of the United States, automatically and without further action by the Administrative Agent, any Lender or any Issuing Lender), an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.  This paragraph shall not limit the rights of the Administrative Agent, any Lender or any Issuing Lender, as the case may be, under Section 2.9 [Letter of Credit Subfacility] or Section 4.3 [Interest After Default] or Section 9 [Default].  The Borrower's obligations under this paragraph shall survive the termination of the Commitments and the repayment of all other Obligations hereunder.

 

 

ANNEX D

 

		
	
Lender
	
Amount of Commitment for Revolving Credit Loans

	
PNC Bank, National Association
	
$37,500,000

	
Wells Fargo Bank, National Association
	
$30,937,500

	
Bank of America, N.A.
	
$30,937,500

	
Citizens Bank of Pennsylvania
	
$30,937,500

	
Fifth Third Bank
	
$30,937,500

	
Deutsche Bank AG New York Branch
	
$30,937,500

	
Barclays Bank PLC
	
$30,937,500

	
The Bank of Tokyo-Mitsubishi UFJ, LTD.
	
$18,750,000

	
BMO Harris Bank N.A.
	
$13,125,000

	
First Niagara Bank, N.A.
	
$13,125,000

	
First National Bank of Pennsylvania
	
$11,250,000

	
The Huntington National Bank
	
$7,500,000

	
First Commonwealth Bank
	
$7,500,000

	
TriState Capital Bank
	
$5,625,000

	
TOTAL
	
$300,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00257-of-00352.parquet"}]]