SEC Contract Filing

Filing Date: 2020-01-14

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>5
<FILENAME>tm203205d1_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
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<P STYLE="text-align: right; margin-top: 0; margin-bottom: 0"><B>Exhibit 10.3</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: right"><B>EXECUTION VERSION</B></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>EXCHANGE AGREEMENT</U></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This EXCHANGE AGREEMENT
is made and entered into as of January 13, 2020, by and among MUDS Acquisition Sub, Inc., a Delaware corporation (&ldquo;<U>Acquisition
Sub</U>&rdquo;) and an indirect, wholly-owned subsidiary of Mudrick Capital Acquisition Corporation, a Delaware corporation (&ldquo;<U>Parent</U>&rdquo;),
Hycroft Mining Corporation, a Delaware corporation (the &ldquo;Seller&rdquo;), the entities listed on <U>Schedule A</U> attached
hereto (each a &ldquo;<U>1.5 Lien Noteholder</U>&rdquo; and collectively, the &ldquo;<U>1.5 Lien Noteholders</U>&rdquo;) and the
entities listed on <U>Schedule B</U> attached hereto (each a &ldquo;<U>New Subordinated Noteholder</U>&rdquo; and collectively,
the &ldquo;<U>New Subordinated Noteholders</U>&rdquo; and together with the 1.5 Lien Noteholders, the &ldquo;<U>Noteholders</U>&rdquo;).
Each of Acquisition Sub, Seller and each of the Noteholders shall individually be referred to herein as a &ldquo;<U>Party</U>&rdquo;
and, collectively, the &ldquo;<U>Parties</U>.&rdquo; The term &ldquo;<U>Agreement</U>&rdquo; as used herein refers to this Exchange
Agreement, as the same may be amended from time to time, and all schedules, exhibits and annexes hereto. Capitalized terms used
but not otherwise defined herein shall have the meanings ascribed to such terms in that certain Purchase Agreement, dated as of
the date hereof, by and among Parent, Acquisition Sub and Seller, substantially in the form attached hereto as <U>Exhibit A</U>
(the &ldquo;<U>Purchase Agreement</U>&rdquo;).</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">RECITALS</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Seller
has outstanding $137,049,873 principal amount of the 15% PIK Secured Notes due 2020 (the &ldquo;<U>1.5 Lien Notes</U>&rdquo;),
issued pursuant to the Note Purchase Agreements, dated as of May 3, 2016, July 29, 2016, September 22, 2016, November 30, 2016,
February 2, 2017, April 12, 2017, June 30, 2017, July 14, 2017, December 20, 2017, March 8, 2018, May 10, 2018, July 10, 2018,
August 22, 2018, November 1, 2018 and December 19, 2018 (collectively, the &ldquo;<U>1.5 Lien Note Purchase Agreements</U>&rdquo;)
between the Seller, the guarantors party thereto, the 1.5L Noteholders party thereto and WBox 2015-5 Ltd., as collateral agent;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Seller
has outstanding as of the date hereof $77,211,723 principal amount of Senior Secured Notes (the &ldquo;<U>1.25 Lien Notes</U>&rdquo;),
issued pursuant to the Note Purchase Agreements dated as of February 22, 2019, May 21, 2019, June 27, 2019, August 6, 2019, August
29, 2019, September 25, 2019, October 16, 2019, November 21, 2019 and December 17, 2019 (the &ldquo;<U>Current 1.25 Lien Note Purchase
Agreements</U>&rdquo;) by and among the Seller, the guarantors party thereto, the New Subordinated Noteholders party thereto and
WBox 2015-5 Ltd., as collateral agent and may issue additional 1.25 Lien Notes pursuant to additional note purchase agreements
entered by the Seller upon terms substantially similar to those set forth in the Current 1.25 Lien Note Purchase Agreements pursuant
to which additional 1.25 Lien Notes may be issued from time to time (together with the Current 1.25 Lien Note Purchase Agreements,
the &ldquo;<U>1.25 Lien Note Purchase Agreements</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">WHEREAS, the Seller
will issue 10% PIK junior lien promissory notes (the &ldquo;<U>New Subordinated Notes</U>&rdquo;) to each New Subordinated Noteholder
in exchange for such New Subordinated Noteholder&rsquo;s 1.25 Lien Notes (the &ldquo;<U>1.25 Lien Exchange</U>&rdquo;) pursuant
to the 1.25 Lien Exchange Agreement, dated as of January 13, 2020 (the &ldquo;<U>1.25 Lien Exchange Agreement</U>&rdquo;) between
the Seller and the New Subordinated Noteholders party thereto, of which up to $80,000,000 will be assigned to and assumed by Parent
upon the consummation of the Acquisition (as defined below) (the &ldquo;<U>Assumed New Subordinated Notes</U>&rdquo;);</P>

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