On August 14, 2019, Carbon Appalachia Enterprises, LLC and Nytis Exploration (USA) Inc. entered into a Second Amendment of the Amended and Restated Credit Agreement dated as of December 31, 2018, by and among the Borrowers, LegacyTexas Bank, as administrative agent, and the lenders from time to time party thereto. Pursuant to the Amendment, Borrowers, the Administrative Agent and such lenders agreed to (i) amend certain provisions of the Credit Agreement and (ii) the Administrative Agent and such lenders provided limited waivers of noncompliance with certain covenants under the Credit Agreement. Pursuant to the Amendment, the parties agreed (i) that commencing October 1, 2019, the Borrowers and their subsidiaries will not have any accounts payable outstanding more than 90 days after the due date therefore, other than accounts payable that are being contested in good faith, (ii) that the Borrowers will maintain a minimum liquidity (unencumbered cash and cash equivalents plus credit available under the Credit Agreement facility) of $3 million and (iii) that the Borrowers will seek the sale of certain non-core assets and apply the proceeds thereof to payment of outstanding amounts under the Credit Agreement. In connection with the Amendment, the Administrative Agent and the lenders provided limited waivers of the Borrower’s failure (xi) to include accounts aging reports concurrently with delivery of quarterly financial statements and (xii) to satisfy the required Current Ratio for the quarter ended June 30, 2019.