Document:

Document

Exhibit 10.1

WRITTEN AGREEMENT & CONSENT 
OF WARRANT HOLDERS AND 
TEMPEST THERAPEUTICS, INC. 

This Warrant Amendment Agreement (this “Agreement”), by and among Tempest Therapeutics, Inc., a Delaware corporation (the “Company”) and the undersigned holders (the “Holders”), as the sole and original holders of the Pre-Funded Common Stock Purchase Warrants (the “Warrants”) issued pursuant to that certain Securities Purchase Agreement dated April 26, 2022 by and between the Company and the Purchasers named therein, is effective as of September 28, 2022.
RECITALS
Whereas, the Company and the Holders mutually agree that the Warrants were not intended to include in the definition of a “Fundamental Transaction” any direct or indirect, purchase offer, tender offer or exchange offer that has been accepted by holders of 50% or less of the outstanding common stock of the Company; 
Whereas, the Company and the Holders mutually desire to cure any ambiguity in the Warrants regarding the foregoing; and
Whereas, Section 5(k) of the Warrants provides that each Warrant may be modified or amended or the provisions thereof waived with the written consent of the Company and the Holder of such Warrant.

 
AGREEMENT

NOW, THEREFORE, the undersigned parties agree that each Warrants shall be amended as set forth below.

1.Warrant Amendment. Section 3(d) of each Warrant is hereby amended and restated as follows:

Fundamental Transaction. 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 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 (which, for the avoidance of doubt, shall not include a license or other agreement granting rights to intellectual property), (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 more than 50% 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, or (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 whereby such other Person 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 Warrant Share 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 2(d) 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 (together, the “Alternate Consideration”), if any, receivable as a 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 2(d) 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 it receives upon any exercise of this Warrant following such Fundamental Transaction. Any such payment of such amount of such Alternative Consideration shall be made in the same form of consideration (whether securities, cash or property) as is given to the holders of Common Stock in such Fundamental Transaction, and if multiple forms of consideration are given, the consideration shall be paid to the Holder in the same proportion as such consideration is paid to the holders of Common Stock. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3(f) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 3(d) pursuant to written 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 any limitations on the exercise of this Warrant) 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 adjustments to the 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), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for the Company (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. Notwithstanding the foregoing, and without limiting Section 2(d) hereof, the Holder may elect, at its sole option, by delivery of written notice to the Company to waive this Section 3(d) to permit a Fundamental Transaction without the assumption of this Warrant.
2.    Effect.  Except as expressly amended by this Agreement, each Warrant shall continue in full force and effect.
3.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.
4.     Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without giving effect to the conflicts of law principles thereof. 

[Signature page follows]

In Witness Whereof, the parties have executed this Warrant Amendment Agreement as of the date first written above.

TEMPEST Therapeutics, Inc.

									
	By:	  /s/ Stephen R. Brady
	
	 	Name: Stephen R. Brady

	 	Title: Chief Executive Officer
Date: September 27, 2022

		
	ECOR1 CAPITAL FUND QUALIFIED, L.P.	
	By: EcoR1 Capital, LLC, its General Partner	

									
	By:	  /s/ Oleg Nodelman	
	 	Name: Oleg Nodelman

	 	Title: Manager 
Date: September 28, 2022

	ECOR1 CAPITAL FUND, L.P.	
	By: EcoR1 Capital, LLC, its General Partner	

									
	By:	  /s/ Oleg Nodelman	
	 	Name: Oleg Nodelman

	 	Title: Manager 
Date: September 28, 2022

 

Signature Page to Warrant Amendment AgreementDocument

Exhibit 10.1
[Execution]

THIRD AMENDMENT TO ABL CREDIT AGREEMENT 
This THIRD AMENDMENT TO ABL CREDIT AGREEMENT, dated as of July 22, 2022 (this “Amendment”), is entered into by and among SMART SAND, INC., a Delaware corporation (“Parent”), the other Borrowers party hereto, each Guarantor party hereto, the Lenders party hereto, and JEFFERIES FINANCE LLC, as agent (in such capacity, including any successor thereto, the “Agent”) for the Lenders, and is made with reference to the Credit Agreement referred to below.
PRELIMINARY STATEMENTS
WHEREAS, Parent, the other Borrowers party hereto, the Guarantors party hereto, the Agent and the Lenders have entered into that certain ABL Credit Agreement dated as of December 13, 2019, as amended by that certain First Amendment to ABL Credit Agreement dated as of July 8, 2020 and that certain Second Amendment to ABL Credit Agreement dated as of September 18, 2020 (as may be further amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); 
WHEREAS, Borrowers have requested that the Agent and the Lenders make certain amendments to the Credit Agreement which the Agent and the Lenders have agreed to make, subject to the terms and provisions set forth in this Amendment.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
SECTION 1.  Definitions.  Except as otherwise defined herein, capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.
SECTION 2.  Additional Definitions.  Section 1.01 to the Credit Agreement is hereby amended by adding thereto, in addition and not in limitation, the following defined terms:
(a)“Amendment No. 3” shall mean the Third Amendment to ABL Credit Agreement, dated as of July __, 2022, by and among the Borrowers party thereto, the Guarantors party thereto, the Agent and the Lenders party thereto.
(b)“Amendment No. 3 Effective Date” shall mean July 22, 2022.
SECTION 3.  Amendments to Section 6.05(b).  Section 6.05(b) of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (v), replacing the period at the end of clause (vi) with “; and”, and adding a new clause (vii) as follows:
“(vii)    any Asset Sale consisting of the issuance or sale of Equity Interests to a Person in connection with any transaction otherwise permitted under this Agreement so long as, after giving effect thereto, no Change of Control shall occur.” 
SECTION 4.  Conditions to Effectiveness.  This Amendment shall become effective only upon the satisfaction of all of the following conditions precedent:
(c)The execution and delivery of this Amendment by the Agent, the Lenders and each Loan Party; and

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(d)Borrowers shall have paid to the Agent all fees, costs and expenses incurred by the Agent in connection with the preparation, execution and delivery of this Amendment (including, without limitation, reasonable attorneys’ fees).
SECTION 5.  Representations and Warranties.  In order to induce the Agent and the Lenders to enter into this Amendment and to amend the Credit Agreement in the manner provided herein, each Loan Party hereby represents and warrants to the Agent and the Lenders that, on and as of the Amendment No. 3 Effective Date:
(e)(i) each Loan Party has the power and authority to execute, deliver this Amendment and perform its obligations under this Amendment and the Credit Agreement, (ii) this Amendment has been duly authorized by all requisite corporate, partnership, limited liability company, and, if required, stockholder, partner or member action, as applicable, of each Loan Party, and (iii) this Amendment has been duly executed and delivered by each Loan Party;
(f)this Amendment constitutes a legal, valid and binding obligation of each Loan Party enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law;
(g)each Loan Party’s execution, delivery and performance of this Amendment and each Loan Party’s performance of the Credit Agreement (i) will not violate any provision of the certificate or articles of incorporation or certificate of formation or other constitutive documents or by-laws, partnership agreement or limited liability company agreement of such Loan Party, (ii) (A) any provision of law, statute, rule or regulation, (B) any order of or undertaking with any Governmental Authority or (C) any provision of any indenture, agreement or other instrument to which any Loan Party is a party or by which any of them or any of their property is bound, except such violation as could not reasonably be expected to have a Material Adverse Effect, (iii) will not be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such indenture, agreement or other instrument, except where the consequences thereof could not reasonably be expected to have a Material Adverse Effect, or (iv) will not require any consent or approval of, registration or filing with, certificate, certification, permit, license or authorization from, or any other action by any Governmental Authority, in each case, except for (A) such as have been made or obtained and are in full force and effect and (B) those, which the failure to obtain could not reasonably be expected to have a Material Adverse Effect;
(h)at the time of and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing or would result therefrom; and
(i)the representations and warranties set forth in Article III of the Credit Agreement and in each other Loan Document are true and correct in all material respects on and as of the Amendment No. 3 Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date; provided that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language is (or was) true and correct (after giving effect to any qualification contained therein) in all respects.
SECTION 6.  Reference to and Effect on the Credit Agreement.
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(j)Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Agent, any Lender or any Secured Party under the Credit Agreement or any Loan Documents, and shall not alter, modify, amend or in any way affect any of the Obligations or any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or of any Loan Documents, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the Obligations or any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any Loan Documents in similar or different circumstances.
(k)On the Amendment No. 3 Effective Date, the Credit Agreement shall be amended as provided herein.  On and after the Amendment No. 3 Effective Date, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import referring to the Credit Agreement, and each reference in the Loan Documents to the “Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.  The parties hereto acknowledge and agree that:  (i) this Amendment and any other document or instrument executed and delivered in connection herewith do not constitute a novation or termination of the Obligations as in effect prior to the Amendment No. 3 Effective Date; (ii) the Obligations are in all respects continuing with only the terms thereof being modified to the extent provided in this Amendment; and (iii) the guarantees and the Liens and security interests as granted or purported to be granted under or pursuant to the Credit Agreement and the Loan Documents securing payment of the Obligations are in all such respects continuing in full force and effect and secure the payment of the Obligations as provided therein.
SECTION 7.  Severability.  In the event any one or more of the provisions contained in this Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction).  The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
SECTION 8.  Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract and shall become effective as provided in Section 6.  Delivery of an executed signature page to this Amendment by facsimile or other customary means of electronic transmission, including by PDF file, shall be as effective as delivery of a manually signed counterpart of this Agreement.
SECTION 9.  Successors and Assigns.  Whenever in this Amendment any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on behalf of Loan Parties, the Agent, the Issuing Banks or the Lenders that are contained in this Amendment shall bind and inure to the benefit of their respective permitted successors and assigns.
SECTION 10.  Governing Law; Miscellaneous.  This Amendment, and the rights and obligations of the parties under this Amendment, shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.  The provisions of Sections 9.07, 9.11 and 9.15 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis, and shall apply with like effect to this Amendment as if fully set forth herein.
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SECTION 11.  Headings.  Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers as of the day and year first above written.
SMART SAND, INC.,
as Parent, a Borrower and
Administrative Loan Party 

By:        /s/ Lee E. Beckelman            
Name:  Lee E. Beckelman
Title:    Chief Financial Officer

SMART SAND OAKDALE LLC,
as a Borrower

By:    SMART SAND, INC.,
its sole Member 

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

QUICKTHREE TECHNOLOGY, LLC,
as a Borrower

By:    SMART SAND, INC.,
its sole Member 

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

SSI BAKKEN I, LLC,
as a Borrower

By:    SMART SAND, INC.,
its sole Member 

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

SMART SAND HIXTON LLC,
as a Subsidiary Guarantor

By:    SMART SAND, INC.,
its sole Member 

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer
[Signature Page to Third Amendment to ABL Credit Agreement] 

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FAIRVIEW CRANBERRY COMPANY, LLC.,
as a Subsidiary Guarantor

By:    SMART SAND, INC.,
its Manager 

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

WILL LOGISTICS, LLC.,
as a Subsidiary Guarantor

By:    SMART SAND, INC.,
its Manager

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

SSI OIL AND GAS PROPPANTS, LLC
as a Borrower

By:    SMART SAND, INC.,
its Manager

By:        /s/ Lee E. Beckelman            
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

SSI OIL AND GAS PROPPANTS HOLDINGS, LLC
as a Borrower

By:    SMART SAND, INC.,
its Manager

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

NORTHERN WHITE SAND LLC
as a Borrower

By:    SMART SAND, INC.,
its Manager
[Signature Page to Third Amendment to ABL Credit Agreement]

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By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

CRS PROPPANTS LLC,
as a Borrower

By:    SMART SAND, INC.,
its Manager

By:        /s/ Lee E. Beckelman        
    Name: Lee E. Beckelman
    Title:   Chief Financial Officer

SMART SAND BLAIR, LLC,
as a Borrower

By:        /s/ Lee E. Beckelman        
    Name:  Lee E. Beckelman
    Title:    Chief Financial Officer

[Signature Page to Third Amendment to ABL Credit Agreement]

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JEFFERIES FINANCE LLC, 
as Agent 

By:  /s/ J. R. Young    
Name:  J.R. Young
Title:    Managing Director

JFIN BUSINESS CREDIT FUND I LLC, 
as Sole Lender 

By:  /s/ J. R. Young    
Name:  J.R. Young
Title:    Managing Director

[Signature Page to Third Amendment to ABL Credit Agreement] 

LEGAL02/41896618v2

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