FIRST AMENDMENT TO LOAN AGREEMENT
Exhibit 4.26
Execution Version
FIRST AMENDMENT TO
LOAN AGREEMENT
THIS FIRST AMENDMENT TO LOAN AGREEMENT (this “Amendment”) is made and entered into as of April 23, 2024, by and among CENTOGENE N.V., a public company with limited liability (naamloze vennootschap) incorporated under the laws of the Netherlands (the “Borrower”), and PHARMACEUTICAL INVESTMENT COMPANY, a closed joint stock company incorporated pursuant to the laws of the Kingdom of Saudi Arabia (the “Lender”).
W I T N E S S E T H :
WHEREAS, the Borrower and the Lender have executed and delivered that certain Loan Agreement, dated as of October 26, 2023 (as the same may be amended, restated, supplemented, or otherwise modified from time to time, and together with the Terms and Conditions attached thereto, the “Loan Agreement”); and
WHEREAS, the Borrower has requested that the Lender amend certain provisions of the Loan Agreement as set forth herein, and the Lender has agreed to such amendments, subject to the terms and conditions hereof.
NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, the Borrower and Lender hereby covenant and agree as follows:
“Maturity Date” means the earlier to occur of (i) April 1, 2025, and (ii) the date that is twenty (20) days after the date on which CFIUS Clearance is obtained.
“Interest Payment Date” means, with respect to the Loan, (i) the date that is ninety (90) days from the Closing Date,(ii) the date that is one-hundred-eighty (180) days from the Closing Date and (iii) the Maturity Date.
“CFIUS” means the Committee on Foreign Investment in the United States.
“CFIUS Clearance” means (a) the receipt by the Borrower and Lender, or their respective Affiliates, of written notification (including by email) from CFIUS that (i) the transactions contemplated by this Amendment (including the conversion of the Loan into Conversion Consideration) are not a “covered transaction” under the DPA; or (ii) CFIUS has concluded its review (or, if applicable, investigation) under the DPA and determined that there are no unresolved national security concerns with respect to the transactions contemplated by this Amendment (including the conversion of the Loan into Conversion Consideration), and has concluded all action under the DPA with respect to the transactions contemplated by this Amendment (including the conversion of the Loan into Conversion Consideration); or (b) CFIUS has sent a report to the President of the United States (the “President”) requesting the President’s decision on the transactions contemplated by this Amendment and either (i) the President has announced a decision not to take any action to suspend or prohibit the transactions contemplated by this Amendment (including the conversion of the Loan into Conversion Consideration) or (ii) the period under the DPA during which the President may announce a decision to take action on the transactions contemplated by this Amendment (including the conversion of the Loan into Conversion Consideration) has expired without any such action being taken or announced.
“CFIUS Notice” means a joint voluntary notice prepared by the Borrower and Xxxxxx, or their respective Affiliates, with respect to the transactions contemplated by this Amendment and submitted to CFIUS pursuant to 31 C.F.R. Part 800 Subpart E.
“Company Business” means the business of the Borrower and its Subsidiaries as currently conducted or proposed to be conducted; provided, however, that following any conversion of the Loan, any change to the business of the Borrower and its Subsidiaries as conducted on such date shall require the prior written consent of the Lender (which consent may not be unreasonably withheld, conditioned, or delayed).
“DPA” means Section 721 of the Defense Production Act of 1950, as amended, and all implementing regulations thereof.
Section 3.07CFIUS NOTICE AND CLEARANCE
(A)CFIUS Notice. Each of the Borrower and Lender shall (and shall cause their respective Affiliates to) (i) prepare and submit to CFIUS, as soon as practicable, and in any case within thirty (30) business days of the date of this First Amendment, a draft CFIUS Notice, (ii) submit a formal CFIUS Notice pursuant to the DPA as soon as practicable or, if applicable, after receipt of any comments to the draft CFIUS Notice, and (iii) provide any supplemental information and other related information requested by CFIUS pursuant to the DPA as soon as practicable (and, in any case, within the time periods required by
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CFIUS); provided however, that the Borrower and Xxxxxx may agree to request an extension of time pursuant to the DPA to respond to CFIUS requests for information.
(B)CFIUS Clearance. The Borrower and Lender shall, and shall cause their respective Affiliates to, use commercially reasonable efforts to obtain CFIUS Clearance. Each of the Borrower and Lender shall, in connection with the efforts to obtain CFIUS Clearance, (i) cooperate in all respects and consult with each other in connection with the CFIUS Notice, including by allowing each other to have a reasonable opportunity to review in advance and comment on drafts of filings and submissions, (ii) to the extent not prohibited by CFIUS, promptly inform each other of any communication received by any party from, or given by any party to, CFIUS, including by promptly providing copies to each other of any such written communications, (iii) permit each other to review in advance any substantive communication that is given to, and consult with each other in advance of any conference, meeting, or substantive telephone call with, CFIUS, and to the extent not prohibited by CFIUS, provide each other the opportunity to attend and participate in any conference, meeting, or substantive telephone call with CFIUS and (iii) enter into such commercially reasonable assurances or agreements requested or required by CFIUS or the President of the United States to obtain CFIUS Clearance; provided, however, that neither Lender nor any of its Affiliates shall be required to (w) take any action that would violate any Law applicable to Lender or any of its Affiliates, (x) sell, divest, or dispose of any assets or businesses that Lender or any of its Affiliates hold, (y) provide the Borrower with copies of or permit the Borrower to review or receive the “personal identifier information” required under 31 C.F.R. § 800.502(c)(5)(vi), or (z) otherwise adopt conditions or restrictions that would reasonably be expected to have, individually or in the aggregate, an adverse effect on the value of the Lender’s investment. For purposes of this Section 3.07 “commercially reasonable efforts” shall not be construed to require any party to enter into litigation to overturn or challenge any governmental determination or action with respect to the DPA.
(C)Lender Consent. The Borrower shall not, and shall cause their respective Affiliates not to, take or agree to take any action, condition or restriction required by CFIUS in connection with obtaining CFIUS Clearance except with the advance written consent of Lender.
Generally. Following receipt of CFIUS Clearance and the subsequent conversion of the Loan, and for so long as Lender and its Permitted Transferees continue to have record and beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of at least 10% of the outstanding Common Shares of the Borrower (in each case, the “Nomination Right Condition”), Lender and its Permitted Transferees, if any, shall have the right to designate two persons for appointment to the Supervisory Board of Directors (an “Lender Nominee”), at each annual general meeting of shareholders of the Borrower in which one or more members of the Supervisory Board of Directors are up for appointment or re-appointment. If Lender and its Permitted Transferees, if any, have the right to so designate one or two Lender Nominees in a given year, the Supervisory Board
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of Directors shall upon each such designation having been made nominate each Lender Nominee so designated for appointment or re-appointment, as applicable, by the general meeting of shareholders of the Borrower to the Supervisory Board of Directors in accordance with the Articles of Association and Dutch law. If, following appointment or re-appointment to the Supervisory Board of Directors, a Lender Nominee resigns, is removed, is not re-appointed or is otherwise unable to serve for any reason and Lender and its Permitted Transferees, if any, still have the right to designate a Lender Nominee, then Lender and its Permitted Transferees, if any, shall be entitled to designate a replacement Xxxxxx Xxxxxxx, and the Supervisory Board of Directors shall upon such designation nominate the Lender Nominee for appointment by the general meeting of shareholders to the Supervisory Board of Directors in accordance with the Articles of Association and Dutch law. In the event that Lender and its Permitted Transferees, if any, cease to satisfy either Nomination Right Condition, if requested by the Supervisory Board of Directors, Lender and its Permitted Transferees, if any, shall use reasonable efforts to have such Xxxxxx Nominee resign as a member of the Supervisory Board of Directors.
Control Rights Upon Conversion. Following receipt of CFIUS Clearance and the subsequent conversion of the Loan, and for so long as the Nomination Right Condition is met, the Lender’s prior written consent (which shall not be unreasonably withheld, conditioned or delayed) shall be required in order for the Borrower to select a new line of business or venture.
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[SIGNATURES ON FOLLOWING PAGES]
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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be duly executed by its duly authorized officer as of the day and year first above written.
| BORROWER: | |
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| By: | |
| | Name: Xxx Xxxxxxxx |
| | Title: Chief Executive Officer |
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| LENDER: | |
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| PHARMACEUTICAL INVESTMENT COMPANY | |
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| By: | |
| | Name: Xxxxxxx Xxxxxxxxx |
| | Title: Chairman of the Board |
Signature Page to First Amendment