Document:

FS Energy and Power Fund 8-K

Exhibit 10.1

 

 

GOLDMAN SACHS BANK USA

c/o Goldman Sachs & Co.

30 Hudson Street, 4th Floor

Jersey City, New Jersey 07302

 

 

	
         

 

April 1, 2020

 

CONFIDENTIAL

 

	
        Gladwyne Funding LLC

        201 Rouse Boulevard

        Philadelphia, PA 19112

        Facsimile: 215- 339-9131

        E-mail: credit.notices@fsinvestments.com

        Attention: FSEP Portfolio Management
	
        FS Energy and Power Fund, as the Guarantor, solely with respect
        to Section 2(a)(iv) and 2(a)(v), 5 and 6(b)

        201 Rouse Boulevard

        Philadelphia, PA 19112

        Facsimile: 215- 339-9131

        Attention: FSEP Portfolio Management

 

Ladies and Gentlemen:

Reference
is hereby made to (i) that certain Amended and Restated Credit Agreement, dated as of December 2, 2019 (as amended, restated, supplemented
and/or otherwise modified from time to time, the “Credit Agreement”), by and among GLADWYNE FUNDING LLC, a Delaware
limited liability company (the “Borrower”), the Lenders party thereto from time to time, GOLDMAN SACHS BANK
USA (“Goldman Sachs”), as sole lead arranger and syndication agent, Goldman Sachs, in its capacity as Administrative
Agent (in such capacity, the “Administrative Agent”) and in its capacity as Calculation Agent (in such capacity,
the “Calculation Agent”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (“Wells
Fargo”), in its capacity as Collateral Administrator (in such capacity, the “Collateral Administrator”),
Wells Fargo, in its capacity as Collateral Agent (in such capacity, the “Collateral Agent”) and (ii) that certain
Non-Recourse Carveout Guaranty Agreement, dated as of December 2, 2019 (as amended, restated, supplemented and/or otherwise modified
from time to time, the “Limited Guaranty”), by FS Energy and Power Fund, a Delaware statutory trust (the “Guarantor”)
and in favor of the Collateral Agent and Goldman Sachs. Capitalized terms used in this letter agreement (this “Letter
Agreement”) and not otherwise defined shall have the meanings set forth in the Credit Agreement or the Limited Guaranty,
as applicable.

WHEREAS, the
Borrower has requested (i) the removal of the requirement to deliver a Financial Covenant Compliance Certificate pursuant to
Section 5.13(a) of the Credit Agreement and of the representations and warranties set forth in Section 3.4(b) and Section
3.4(c) of the Limited Guaranty, and (ii) certain modifications of the Credit Agreement and the other Transaction Documents,
in each case during a standstill negotiation period from the date hereof to and including the later of (x) July 1, 2020 and
(y) such other date mutually agreed to by the Borrower and the Administrative Agent (the “Standstill Negotiation
Period”) as set forth herein, and, subject to the satisfaction of
the conditions set forth herein, the Administrative Agent and the Lenders are willing to do so, on the terms and subject to the
conditions set forth herein.

    	  

    	 

    

NOW, THEREFORE,
in consideration of the mutual agreements, provisions and covenants contained herein, notwithstanding any contrary term or provision
contained in the Credit Agreement or the other Transaction Documents, the parties agree as follows:

1.              
Amendments to Credit Agreement and Limited Guaranty. Upon satisfaction, or waiver in accordance with Section 11.5
of the Credit Agreement, of the conditions set forth in Section 3 hereof, the parties hereto hereby agree as follows:

a.               
The defined term “Material Adverse Effect” in Section 1.1 of the Credit Agreement is hereby amended and restated
in its entirety as follows:

“Material
Adverse Effect” means a material adverse effect on and/or material adverse developments with respect to (a) the business,
operations, properties, assets or financial condition of the Borrower and its Subsidiaries taken as a whole; (b) the ability of
any Credit Party to fully and timely perform its obligations; (c) the legality, validity, binding effect or enforceability against
a Credit Party of a Transaction Document to which it is a party; or (d) the rights, remedies and benefits available to, or conferred
up, any Agent, any Lender or any other Secured Party under any Transaction Document; provided that, for the avoidance of doubt,
with respect to clauses (a) and (b), no material adverse effect and/or material adverse development shall be deemed to result from,
arise out of or relate to any of the following, or shall be taken into account in determining whether, a material adverse effect
and/or material adverse development has occurred or could or would reasonably be expected to occur: (i) the COVID-19 pandemic,
but solely to the extent such event or development has been disclosed by the Borrower to the Administrative Agent and Lenders (it
being understood that the Administrative Agent and the Lenders hereby acknowledge that the letter agreement, dated as of April
1, 2020, by and among the Borrower, the Lenders, the Administrative Agent, the Calculation Agent, the Collateral Administrator,
the Collateral Agent, Goldman Sachs, as a party to the Limited Guaranty, and, solely with respect to Section 2(a)(iv), 2(a)(v),
(5) and (6)(b) therein, the Guarantor shall be deemed to constitute such disclosure) and the scope of such adverse
effect is not materially and adversely greater than that which has been disclosed and/or (ii) the dispute between Saudi Arabia
and Russia with respect to the price, quantity and/or availability of oil.

b.              
The defined term “Spread” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety
as follows:

“Spread”
means (a) from and including the Effective Date to but excluding April 1, 2020, 3.20% per annum, (b) from and including April 1,
2020 to but excluding the Standstill Negotiation Period End Date, 7.50% per annum and (c) thereafter, 5.20% per annum.

    	2 

    	 

    

c.               
Section 1.1 of the Credit Agreement shall be amended to add the following definition in appropriate alphabetical order therein:

“Standstill
Negotiation Period End Date” means the later of (a) July 2, 2020 and (b) such other date mutually agreed by the Borrower
and the Administrative Agent.

d.              
Any provision (i) in the Credit Agreement (including Sections 5.7(a)(3), (7) and (22)) or the other Transaction Documents
that may have prevented, or will prevent, the contribution of the Equity Interests and indebtedness of EP Synergy Investments,
Inc. and FS Power Investments, LLC and of such Persons becoming subsidiaries of the Borrower and (ii) in the Credit Agreement or
the other Transaction Documents that requires any physical instrument, note, agreement, document, certificate or other similar
asset to be delivered to, or held by, the Collateral Agent or any other Person which cannot reasonably be delivered to, or held
by, the Collateral Agent or such other Person due to closures and other disruptions caused by the COVID-19 pandemic, in each case,
are deemed inapplicable, no Default or Event of Default has occurred or shall occur as a result of any such provisions or any requirement
to deliver any notice of such Default or Event of Default, no such failure to comply with such provisions shall adversely affect
the Borrowing Base and none of the Lenders, the Administrative Agent, the Calculation Agent, the Collateral Administrator, the
Collateral Agent or Goldman Sachs shall exercise any remedies under the Credit Agreement, the Limited Guaranty or any other Transaction
Document as a result of such provisions or the failure to deliver notice of such Default or Event of Default; provided that, in
the case of clause (ii), such physical instruments, notes, agreements, documents, certificates and other similar assets shall promptly
be delivered as required under the Credit Agreement and other Transaction Documents as soon as reasonably practicable once such
closures or disruptions no longer prevent such delivery.

2.              
Standstill Negotiation Period. Upon satisfaction, or waiver in accordance with Section 11.5 of the Credit Agreement,
of the conditions set forth in Section 3 hereof, during the Standstill Negotiation Period, and notwithstanding anything
to the contrary contained in the Credit Agreement or the other Transaction Documents, the parties hereto hereby agree as follows:

a.               
The Credit Agreement and the Limited Guaranty are modified as follows:

(i)             
The defined term “Financial Covenant Compliance Certificate” in Section 1.1 of the Credit Agreement is deemed
inapplicable.

(ii)           
The final row of Schedule A to the Credit Agreement is deemed inapplicable.

(iii)         
Exhibit I to the Credit Agreement is deemed inapplicable.

(iv)          
The defined terms “Asset Coverage Ratio” and “Shareholders’ Equity” in Section 1.2 of the
Limited Guaranty are deemed inapplicable.

    	3 

    	 

    

(v)            
The representations and warranties set forth in Section 3.4(b) and Section 3.4(c) of the Limited Guaranty are deemed inapplicable,
no Default or Event of Default has occurred or shall occur as a result of any prior, current or future breach of such representations
and warranties or any requirement to deliver any notice of such Default or Event of Default, and none of the Lenders, the Administrative
Agent, the Calculation Agent, the Collateral Administrator, the Collateral Agent or Goldman Sachs shall exercise any remedies under
the Credit Agreement, the Limited Guaranty or any other Transaction Document as a result of any prior, current or future breach
of such representations and warranties or the failure to deliver notice of such Default or Event of Default.

b.              
No Default or Event of Default shall arise or otherwise be deemed outstanding in connection with (i) the failure to comply
with the provisions of the Margining Agreement, (ii) the failure to comply with the provisions of Sections 5.13(a) (solely with
respect to rows 4, 5 and 6 of Schedule A of the Credit Agreement and only to the extent such failure was not material or adverse
to the Administrative Agent or the Lenders) and 9(o) of the Credit Agreement and (iii) any provision of the Credit Agreement or
any other Transaction Document that is superseded by this Letter Agreement (the foregoing clauses (i) through (iii), collectively,
the “Standstill Provisions”), and none of the Lenders, the Administrative Agent, the Calculation Agent, the
Collateral Administrator, the Collateral Agent or Goldman Sachs shall exercise any remedies under the Credit Agreement, the Limited
Guaranty or any other Transaction Document in connection with the failure to comply with any Standstill Provision, in each case,
other than in connection with a breach of the Borrower’s obligations under this Section 2.

c.               
The Collateral Obligations attached hereto as Exhibit A are hereby assigned the Market Value, Assigned Price, Advance
Rate and Initial FX Rate for such Collateral Obligations as of the date hereof specified on Exhibit A (such Collateral Obligations
included in Exhibit A, as such Exhibit A may be updated from time to time to reflect the Disposition of Collateral
Obligations with the consent of the Administrative Agent, the “Standstill Negotiation Period Collateral Obligations”);
provided that the preferred units of Great Western Petroleum, LLC set forth on Exhibit A shall be removed from Exhibit
A, and no longer constitute a Standstill Negotiation Period Collateral Obligation, if the written consent of the board of managers
of the related Obligor to the Acquisition, and pledge by the Borrower to the Collateral Agent, of such Collateral Obligation, in
form and substance satisfactory to the Administrative Agent, is not obtained by April 15, 2020 (or such longer period agreed to
by the Administrative Agent in its reasonable discretion).

d.              
If at any time the Loan to Value Ratio (as defined below) is above 70%, then the Administrative Agent may by notice (a “Loan
to Value Ratio Deficiency Notice”) to the Borrower (with a copy to the Collateral Agent) require the Borrower to take
one or more of the following actions within two (2) Business Days of receiving such Loan to Value Ratio Deficiency Notice (it being
understood that, in such event, the actions to be taken will be determined by the Borrower in its discretion): (x) deposit in the
Borrowing Base Principal Collection Account cash in U.S. Dollars or (y) repay outstanding Loans (provided
that, notwithstanding anything to the contrary contained in this Letter Agreement, the Credit Agreement or the other Transaction
Documents, (i) such repayments may be made with amounts from any Borrower Account (without duplication of any amounts in any other
Borrower Accounts) and (ii) the related Make-Whole Amount shall be due and payable in connection therewith), in each case, in an
aggregate amount equal to the lesser of (x) such amount as is needed to cause the Loan to Value Ratio to be reduced to at least
37.5% (or such greater percentage agreed to by the Borrower and the Administrative Agent) and (y) the amount of the Loans outstanding
as of such date.

    	4 

    	 

    

e.               
For purposes of this Letter Agreement:

(i)             
“Adjusted Cash Value” means, as of any date, an amount, equal to the Dollar Equivalent of all
Cash and cash equivalents of the Borrower, including the aggregate amount of cash standing to the credit of each Borrower Account
(without duplication of any amounts in any other Borrower Accounts).

(ii)           
“Aggregate Standstill Negotiation Period Collateral Obligation Calculation Amount” means, on any
date, the sum of, for each Standstill Negotiation Period Collateral Obligation:

(1)            
the Asset Amortized Amount therefor as of such date;

(2)            
the lesser of (x) the Asset Current Price therefor as of such date and (y) 100%; and

(3)            
 the Initial FX Rate therefor as of such date,

all as determined
by the Calculation Agent; provided that, the Aggregate Standstill Negotiation Period Collateral Obligation Calculation Amount
shall be subject to Dispute pursuant to the terms and provisions of Section 2(c) of the Margining Agreement.

(iii)         
“Loan to Value Ratio” means, as of any date of determination, the ratio (expressed as a percentage)
of (a) the aggregate principal amount of Loans outstanding on such date minus the Adjusted Cash Value on such date to (b)
the Aggregate Standstill Negotiation Period Collateral Obligation Calculation Amount on such date; provided that, for the
avoidance of doubt, any Buffer Assets listed on Exhibit A (as such exhibit is updated from time to time in accordance with
this Letter Agreement) and any amounts in the Buffer Asset Collateral Account, the Buffer Asset Interest Collection Account or
the Buffer Asset Principal Collection Account shall be included in calculating the Loan to Value Ratio.

(iv)          
“Make-Whole Amount” means, in connection with a Make-Whole Event, an amount equal to the aggregate
amount of Spread (calculated pursuant to clause (c) of the definition thereof) that would otherwise have been payable to the Lenders
under the Credit Agreement (in each case on an aggregate principal amount of Loans equal to the related
Make-Whole Calculation Amount) during the period from and including the date on which such Make-Whole Event occurs to but excluding
the scheduled Maturity Date, discounted to present value, all as calculated by the Calculation Agent.

    	5 

    	 

    

f.               
The Borrower shall repay up to $20,000,000 of Loans, and make a Voluntary Commitment Reduction on such Loans, in one or
more such repayments and Voluntary Commitment Reductions upon the receipt by the Borrower, after the date hereof, of cash proceeds
of sales of assets, Principal Proceeds and Interest Proceeds. The Borrower also may at any time, in its sole discretion, repay
the Loans, and make a Voluntary Commitment Reduction on the Loans, with the cash proceeds of sales of any assets, Principal Proceeds
and Interest Proceeds or with any other cash of the Borrower, including the aggregate amount of cash standing to the credit of
each Borrower Account (other than the Collateral Accounts). Notwithstanding anything to the contrary contained in this Letter Agreement
or the other Transaction Documents, with respect to any repayment and any Voluntary Commitment Reduction pursuant to or in reliance
upon this Section 2(f), (i) the Borrower shall not be under any requirement to comply with any restrictions, obligations
or limitations on any such repayments or any such Voluntary Commitment Reductions in the Credit Agreement (including Section 8
of the Credit Agreement) or the other Transaction Documents, (ii) no Make-Whole Amount shall be due and payable in connection with
a repayment of Loans or Voluntary Commitment Reduction pursuant to the first sentence of this Section 2(f) and (iii) the
related Make-Whole Amount shall be due and payable in connection with any Voluntary Commitment Reduction pursuant to the second
sentence of this Section 2(f).

g.              
Notwithstanding anything to the contrary in the Credit Agreement:

(i)             
The Borrower may not Acquire or Dispose of any Collateral Obligations without the prior written consent of the Administrative
Agent in its sole and absolute discretion.

(ii)           
Except as expressly contemplated in Section 2(c) above, the Borrower may not deposit capital contributions of cash into
any Borrower Account without the prior written consent of the Administrative Agent in its sole and absolute discretion.

(iii)         
Each Voluntary Prepayment shall result in a Voluntary Commitment Reduction in an amount equal to the principal amount of
the Loans repaid in connection with such Voluntary Prepayment.

3.              
Conditions. The obligations of each Lender pursuant to this Letter Agreement are subject to the satisfaction, or
waiver in accordance with Section 11.5 of the Credit Agreement, of the following conditions:

a.               
The execution and delivery of this Letter Agreement by each of the Borrower, the Lenders, the Administrative Agent, the
Calculation Agent, the Collateral Administrator, the Collateral
Agent, Goldman Sachs, as a party to the Limited Guaranty, and, solely with respect to Section 2(a)(iv), 2(a)(v),
(5) and (6)(b), the Guarantor.

    	6 

    	 

    

b.              
The Borrower shall repay $205,000,000 of Loans, and make a Voluntary Commitment Reduction on such Loans (such repayment
and Voluntary Commitment Reduction, the “Letter Agreement Date Repayment”), substantially concurrently with
the effectiveness of this Letter Agreement. Notwithstanding anything to the contrary contained in this Letter Agreement or the
other Transaction Documents, solely with respect to the Letter Agreement Date Repayment, (i) the Borrower shall not be under any
requirement to comply with any restrictions, obligations or limitations on the Letter Agreement Date Repayment in the Credit Agreement
(including Section 8 of the Credit Agreement) or the other Transaction Documents and (ii) the Borrower shall not be required to
pay any Make-Whole Amount with respect to, or to provide any notice of, the Letter Agreement Date Repayment.

c.               
After giving effect to this Letter Agreement, as of the date hereof, the representations and warranties contained herein
and in the other Transaction Documents shall be true and correct in all material respects on and as of the date hereof to the same
extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate
to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects
on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof.

d.              
After giving effect to this Letter Agreement, as of the date hereof, no event shall have occurred and be continuing or would
result from the consummation of this Letter Agreement that would constitute a Default or an Event of Default.

4.              
Representations and Warranties. In order to induce the Agents and the Lenders to enter into this Letter Agreement,
the Borrower represents and warrants to each Agent and Lender, on the date hereof, that the following statements are true and correct:

a.               
After giving effect to this Letter Agreement, as of the date hereof, the representations and warranties contained herein
and in the other Transaction Documents are true and correct in all material respects on and as of the date hereof to the same extent
as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an
earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such
earlier date; provided that, in each case, such materiality qualifier is not applicable to any representations and warranties
that already are qualified or modified by materiality in the text thereof.

b.              
After giving effect to this Letter Agreement, as of the date hereof, no event has occurred and is continuing or results
from the consummation of this Letter Agreement that would constitute a Default or an Event of Default.

    	7 

    	 

    

5.              
Acknowledgement by Wells Fargo. Wells Fargo, in its capacity as Collateral Agent, acknowledges and agrees that, during
the Standstill Negotiation Period, any instruction regarding the Acquisition of any Collateral, the Disposition of any Collateral
or any withdrawal of funds from any Borrower Account, or in any way otherwise pertaining to the activities of the Borrower, shall
require the prior written consent of the Administrative Agent in its sole and absolute discretion. The Administrative Agent, the
Calculation Agent, the Lender, the Borrower and the Guarantor (i) ‎authorize and ‎direct Wells Fargo, as Collateral
Agent and Collateral Administrator to ‎enter into this letter agreement, (ii) acknowledge and ‎agree that the Collateral
Agent and Collateral Administrator are to be fully protected in relying upon the ‎foregoing ‎authorization and direction
and (iii) release the Collateral ‎Agent and Collateral Administrator from any liability for ‎complying with such direction‎.

6.              
No Modification.

a.               
Except as expressly set forth herein, nothing contained herein shall be deemed to constitute a consent to any non-compliance
or a waiver of compliance with any term or condition contained in the Credit Agreement, the Limited Guaranty or any of the other
Transaction Documents or constitute a course of conduct or dealing among the parties. Except as expressly stated herein, the Lenders,
the Administrative Agent, the Calculation Agent, the Collateral Administrator, the Collateral Agent and Goldman Sachs reserve all
rights, privileges and remedies under the Transaction Documents. Except as amended, waived, consented or otherwise modified hereby,
the Credit Agreement and other Transaction Documents remain unmodified and in full force and effect. All references in the Transaction
Documents to the Credit Agreement and the other Transaction Documents shall be deemed to be references to the Credit Agreement
and such other Transaction Documents as modified hereby; provided that, for the avoidance of doubt and notwithstanding anything
to the contrary contained in this Letter Agreement, after the Standstill Negotiation Period, the provisions in Section 2
shall no longer modify the Credit Agreement and the other Transaction Documents.

b.              
Each of the Guarantor and Goldman Sachs agree to, during the Standstill Negotiation Period, negotiate in good faith to modify
Section 3.4(b) and Section 3.4(c) of the Limited Guaranty, such that such provisions will be substantially consistent with the
related financial covenants in the RCF Credit Agreement, as in effect at the end of the Standstill Negotiation Period; provided
that, for the avoidance of doubt, such modifications shall include a waiver of any Default or Event of Default directly or
indirectly caused by a breach of the representations and warranties set forth in Section 3.4(b) and Section 3.4(c) of the Limited
Guaranty as in effect prior to the Standstill Negotiation Period.

7.              
Successors and Assigns. This Letter Agreement shall be binding upon the parties hereto and their respective successors
and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of the Lenders. No Credit Party's
rights or obligations hereunder nor any interest therein may be assigned or delegated by any Credit Party without the prior written
consent of all Lenders. Nothing in this Letter Agreement, expressed or implied, shall be construed to confer upon any Person (other
than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated in
the Credit Agreement, Affiliates of each of the
Agents and Lenders and other Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Letter Agreement.

    	8 

    	 

    

8.              
Severability. In case any provision in or obligation hereunder shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation
in any other jurisdiction, shall not in any way be affected or impaired thereby.

9.              
Headings. Section headings herein are included herein for convenience of reference only and shall not constitute
a part hereof for any other purpose or be given any substantive effect.

10.           
Terms Generally. The interpretive provisions set forth in Section 1.3 of the Credit Agreement are incorporated herein
mutatis mutandis.

11.           
APPLICABLE LAW. THIS LETTER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT
LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH
RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN
THE LAW OF THE STATE OF NEW YORK.

12.           
CONSENT TO JURISDICTION. SUBJECT TO CLAUSE (E) OF THE FOLLOWING SENTENCE, ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST
ANY PARTY ARISING OUT OF OR RELATING HERETO SHALL BE BROUGHT IN ANY FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE
BOROUGH OF MANHATTAN OR, IF THAT COURT DOES NOT HAVE SUBJECT MATTER JURISDICTION, IN ANY STATE COURT LOCATED IN THE CITY AND COUNTY
OF NEW YORK. BY EXECUTING AND DELIVERING THIS LETTER AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES,
IRREVOCABLY (A) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE (SUBJECT TO CLAUSE (E) BELOW) JURISDICTION AND VENUE OF SUCH
COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY
SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS ADDRESS
PROVIDED IN ACCORDANCE WITH SECTION 11.1 OF THE CREDIT AGREEMENT; (D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT
TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES
EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (E) AGREES THAT THE AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS
IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER JURISDICTION IN
CONNECTION WITH THE EXERCISE OF ANY RIGHTS UNDER
THIS LETTER AGREEMENT OR AGAINST ANY COLLATERAL OR THE ENFORCEMENT OF ANY JUDGMENT, AND HEREBY SUBMITS TO THE JURISDICTION OF,
AND CONSENTS TO VENUE IN, ANY SUCH COURT.

    	9 

    	 

    

13.           
WAIVER OF JURY TRIAL. EACH OF THE LENDERS AND OTHER PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO
A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS LETTER AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH
OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT
TO ENTER INTO THIS LETTER AGREEMENT, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS LETTER AGREEMENT, AND THAT
EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT
IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER
THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 13 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION,
THIS LETTER AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

14.           
Effectiveness; Counterparts. This Letter Agreement shall become effective upon the execution of a counterpart hereof
by each of the parties hereto and receipt by the Borrower and the Administrative Agent of written notification of such execution
and authorization of delivery thereof. This Letter Agreement may be executed in any number of counterparts, each of which when
so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same
instrument. Delivery of an executed counterpart of a signature page of this Letter Agreement by facsimile or in electronic format
(i.e., "pdf" or "tif") shall be effective as delivery of a manually executed counterpart of this Letter Agreement.

[Remainder of Page Intentionally Left
Blank; Signature Pages Follow]

    	10 

    	 

    

Very truly yours,

GOLDMAN SACHS BANK USA, 

as the Administrative Agent and
Calculation Agent

By:_/s/ Joseph McNeila__________________

Name: Joseph McNeila

Title: Managing Director

    	[Letter Agreement]

    	 

    

GOLDMAN SACHS BANK USA, as Lender

By:_/s/ Joseph McNeila__________________

Name: Joseph McNeila

Title: Managing Director

    	[Letter Agreement]

    	 

    

GOLDMAN SACHS BANK USA, as a party to the Limited Guaranty

By:_/s/ Joseph McNeila__________________

Name: Joseph McNeila

Title: Managing Director

 

    	[Letter Agreement]

    	 

    

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as the Collateral
Administrator

By:_/s/ Ryan Thomas_____________________

Name: Ryan Thomas

Title: Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as the Collateral
Agent

By:_/s/ Ryan Thomas_____________________

Name: Ryan Thomas

Title: Vice President

    	[Letter Agreement]

    	 

    

Acknowledged and Agreed:

GLADYWNE FUNDING LLC, as the Borrower

By:__/s/ Edward T. Gallivan, Jr.____________

Name: Edward T. Gallivan, Jr.

Title: Chief Financial Officer

FS ENERGY AND POWER FUND, as the Guarantor, 

solely with
respect to Section 2(a)(iv), 2(a)(v), 5 and 6(b)

 

By:__/s/ Edward T. Gallivan, Jr.____________

Name: Edward T. Gallivan, Jr.

Title: Chief Financial Officer

 

 

    	[Letter Agreement]

    	 

    

EXHIBIT A

Collateral Obligations

OMITTEDIntellectual Property Rights and Transfer Agreement

 

EXHIBIT 10.1 

INTELLECTUAL PROPERTY RIGHTS

PURCHASE AND TRANSFER AGREEMENT

This Intellectual Property Rights Purchase and Transfer Agreement (this “Agreement”) is made as of this 2nd day of April 2020, between Wewards, Inc. A Nevada Corporation, (hereinafter referred to as “Wewards” or “WEWA” or “Buyer”), and United Power, Inc., a Nevada Corporation, hereinafter referred to as (“UPI” or “Seller” or “United Power”).

RECITALS:

A. United Power currently owns or has the right to certain Intellectual Property Rights identified on Exhibit A hereto (the “Assets”), including but not limited to Patents, Pending Patents, Trademarks and Continuation-in-Part, Applications, etc. listed thereon.

B.

Upon the Closing Date, United Power shall transfer to Buyer the Assets free of any and all encumbrances and Buyer accepts all rights to the Assets.

C.

Wewards wishes to purchase the Assets for the Purchase Price set forth in Section 2 below.

It is therefore agreed as follows:

Definitions.

As used herein, the following terms shall have the following meanings:

A.

Intellectual Property Rights. The term “Intellectual Property Rights” means all (i) patents, patent applications, patent disclosures and inventions, (ii) Internet Domain names, trademarks, service marks, trade dress, trade names, logos and corporate names and registrations and applications for registration thereof together with all of the goodwill associated therewith, (iii) copyrights (registered or unregistered) and copyrightable works and registrations and applications for registration thereof, (iv) mask works and registrations and applications thereof, (v) computer software, data, databases and documentation thereof, (vi) trade secrets and other confidential information (including ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, manufacturing and production processes and techniques, research and development information, drawings, specifications, designs, plans, proposals, technical data, and copyrightable works, financial and marketing plans and customer and supplier lists and information, and (vii) copies and tangible embodiments thereof (in whatever form or medium).

B.

Closing. The term “Closing” or “Closing Date” shall have the meaning ascribed to it in Section 3.

C.

Closing Date Payment. The term “Closing Date Payment” shall have the meaning ascribed to it in Section 3.

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D.

Material Adverse Effect. The term “Material Adverse Effect” shall mean events which have an adverse effect in the aggregate which, measured in dollars, exceeds the sum of $10,000.

E.

Material Contract. The term “Material Contract” shall have the meaning ascribed to it in Section 5.3.

F.

Proration Date. The term “Proration Date” shall mean the specific date set for Closing in Section 3 or any subsequent date set for Closing, provided that the actual date of Closing occurs within five (5) business days after said date set for Closing.

G.

Affiliate of Seller. The term “Affiliate of Seller” shall mean (i) any individual, partnership, corporation, or other entity or person which is owned or controlled directly or indirectly by United Power; (ii) any other individual, partnership, corporation, or other entity or person which controls or is controlled by or under common control with Seller; and (iii) any officer, director, partner, or owner of 10 percent or greater equity or voting interest in any such other corporation, partnership, or other entity or person.

H.

Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended.

I.

Agreement. The term “Agreement” shall mean this instrument and all Schedules and Exhibits attached hereto.

1.

Sale, Purchase and Transfer of Intellectual Property Rights.

1.1

Assets. 

Subject to the terms and conditions of this Agreement, at the Closing referred to herein, Seller agrees to sell, transfer and assign and Buyer agrees to purchase and accept on the terms stated herein, all of Seller's right, title and interest in and to the Assets, including, without limitation, all contracts, contract rights, licenses, licenses, notifications, approvals and authorizations to the extent assignable associated therewith (the “Contracts”).

1.2

Assignment of Contracts.

(a)

Contracts Assignable Without Consent. Seller agrees to assign or cause to be assigned to Buyer or a Designee, as of the Closing, all of the rights of Seller under the Contracts that are assignable without consent of any third party and Buyer shall assume, as of the Closing, 

(b)

Seller to Use Reasonable Efforts. Anything in this Agreement to the contrary notwithstanding, Seller shall be obligated to sell, assign, transfer or convey or cause to be assigned, transferred or conveyed to Buyer or a Designee, if applicable, any of its rights in and to any of the Assets and first obtaining all necessary approvals, consents or waivers. Seller shall use all reasonable efforts, and cooperate with the Buyer, to obtain all necessary approvals, consents or waivers, or to resolve any impracticalities of transfer necessary to assign or convey to Buyer or a Designee, if applicable, the Asset as soon as practicable; provided, however, that neither Seller nor Buyer shall be obligated to pay any consideration therefor except for filing fees and other ordinary administrative charges which shall be paid 

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by Seller to the third party from whom such approval, consent or waiver is requested. Such approvals, consents, and waivers shall be in favor of the Buyer and, if applicable, a Designee.

(c)

If Waivers or Consents Cannot be Obtained. To the extent that any of the approvals, consents or waivers referred to in have not been obtained by Seller as of the Closing, or until the impracticalities of transfer are resolved, Seller shall, during the remaining term of such Contracts, use all reasonable efforts to (i) obtain the consent of any such third party with the filing fees and ordinary administrative charges payable to such third party shall be the sole responsibility of the Seller; (ii) cooperate with Buyer in any reasonable and lawful arrangements designed to provide the benefits of such Contracts to Buyer or a Designee, if applicable, so long as Buyer fully cooperates with Seller in such arrangements; and (iii) enforce, at the request of Buyer and at the expense of the Seller.

1.3

Transferring Assets and Licenses.

Seller will assign the Assets, transfer or convey, or cause to be assigned, transferred or conveyed to Buyer or a Designee, if applicable, at the Closing.

2.

Purchase Price.

The purchase price for the Assets (“Purchase Price”) shall be one hundred seventy-nine thousand and three hundred ($179,300) dollars of Buyer.  All securities are to be delivered to the Seller at the Closing.

3.

Closing.

Date of Closing. The Closing shall take place at the offices of Wewards, Inc., or at such other place as the parties may agree in writing, on April 2, 2020 or such later date as all conditions to Closing set forth in Section 7.7 below have been completed.

3.1

Documents to be Delivered by Seller.

At or prior to the Closing, Seller shall deliver, or cause to be delivered, the following:

(a)

documents of Assignment free of encumbrances and other instruments of transfer, dated the Closing Date, transferring to Buyer title to the Assets. 

(b)

documents evidencing the assignment and assumption of the Contracts to

Buyer or a Designee (together with any third-party consents required for such transfers).  

(c)

provide a copy of the written consent of resolutions of the board of directors of United Power and copies of the resolutions of the shareholders of United Power authorizing the execution, delivery and performance of this Agreement by United Power.

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3.2

Documents to be Delivered by Buyer.

At or prior to the Closing Date, Buyer shall deliver the following:

(a)

documents evidencing the issuance of a security instrument e.g. business check or cashier’s check in the amount of one hundred seventy-nine thousand and three hundred ($179,300) dollars pay to Seller. 

(b)

a copy of the resolutions of the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer, and a certificate of its secretary or assistant secretary, dated the Closing Date, that such resolutions were duly adopted and are in full force and effect.

3.3

Transfer Fees

Any recording fees or related Asset transfer fees shall be paid by Seller.

4.

Conduct of the Seller Pending Closing.

(a)

Between the date hereof and the Closing Date, Seller shall continue to operate the Business in the ordinary course and in a manner reasonably consistent with its present operating plan.

(b)

Seller will not take any action, (i) the result of which will be to create a Material Adverse Effect on the value of the Assets, or (ii) which is both not reasonably consistent with its normal operating plan and not in the ordinary course of business, except as otherwise set forth in this Section 4.

5.

Representations of Seller.

Seller represents to Buyer that:

5.1

Organization, Standing and Authority.

United Power is a corporation organized, under the laws of the State of Nevada.

5.2

Authorization of Agreement; Authority.  

The execution, delivery and performance of this Agreement by Seller has been duly authorized by all necessary corporate and partnership action of Seller, and this Agreement constitutes the valid and binding obligation of Seller, enforceable in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The execution, delivery and performance of this Agreement by Seller will not (a) violate or conflict with United Power corporate power and authority; (b) constitute a violation of any law, regulation, order, writ, judgment, injunction or decree applicable to Seller; or (c) subject to the receipt of appropriate consents as specified in this Agreement as of the Closing Date, conflict with, or result in the breach of the provisions 

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of, or constitute a default under, any agreement, license, permit or other instrument to which Seller is a party or is bound or by which the Assets are bound. 

5.3

Material Contracts. 

All of the Material Contracts which are to be transferred to Buyer at Closing, if any, have not been further modified, or amended. A Material Contract shall mean a Contract which involves payments, performance of services or delivery of goods by or to Seller after the Closing Date in an amount with any value.

5.4

Litigation., Compliance with Laws. 

There are no judicial or administrative actions, proceedings or investigations pending or, to the best of Seller's knowledge, threatened, that question the validity of this Agreement or any action taken or to be taken by Seller in connection with this Agreement. There is no claim of infringement, litigation, proceeding or governmental investigation pending or, to the best of Seller's knowledge, threatened, or any order, injunction or decree outstanding which, if decided unfavorably, would have a Material Adverse Effect on Buyer.

5.5

The Assets.

Seller has, or will have on the Closing Date, good and marketable title (which includes leasehold title if applicable) to the Assets to be transferred to Buyer on the Closing Date. Please see Exhibit A in regards to Assets to be transferred.

6. Representations of Buyer. Buyer represents to Seller as follows:

6.1 

Buyer's Organization. 

Buyer is a Corporation organized, existing and in good standing under the laws of Nevada and has the full corporate power and authority to enter into and to perform this Agreement.

6.2

Authorization of Agreement. The execution, delivery and performance of this Agreement by Buyer have been duly authorized by all necessary corporate action of Buyer, and this Agreement constitutes the valid and binding obligation of Buyer enforceable against it in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

6.3

Consents of Third Parties. The execution, delivery and performance of this Agreement by Buyer will not (a) violate or conflict with the articles of organization or by-laws of Buyer; or (b) constitute a violation of any law, regulation, order, writ, judgment, injunction or decree applicable to Buyer.

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6.4 

Litigation. There are no judicial or administrative actions, proceedings or investigations pending or, to the best of Buyer's knowledge, threatened, that question the validity of this Agreement or any action taken or to be taken by Buyer in connection with this Agreement. There is no litigation, proceeding or governmental investigation pending or, to the best of Buyer's knowledge, threatened, or any order, injunction or decree outstanding, against the Buyer that, if adversely determined, would have a material effect upon Buyer's ability to perform its obligations under this Agreement.

7.

Further Agreements of the Parties.

7.1

Access to Information. Buyer and each Designee shall have access to information and other Assets for due diligence investigation purposes and to facilitate an orderly transition in the management of those Assets in anticipation of Closing. In addition, Seller will make available to Buyer and each Designee its financial statements and shall cooperate and instruct Seller's independent auditors to cooperate, at Buyer's expense, in preparing the financial statement and which Buyer will, or such Designee may, be required to file with the Securities Exchange Commission.

7.2

Notice of Changes and Events. Each party shall promptly notify the other party in writing, and furnish to such party any information that such party may reasonably request, with respect to the occurrence of any event or the existence of any state of facts that would (i) result in the party's representations and warranties not being true if they were made at any time prior to or as of the Closing Date, or (ii) impair the party's ability to perform its obligations under this Agreement.

7.3

Expenses. Except as otherwise specifically provided in this Agreement, Buyer and Seller shall bear their own respective expenses incurred in connection with this Agreement and in connection with all obligations required to be performed by each of them under this Agreement.

7.4 

Publicity. Buyer shall have the right to issue a public announcement or press release concerning the transactions contemplated by this Agreement and, except as may be required by applicable law or regulation or rule of any stock exchange or organized securities market on which the securities of Buyer or Seller's securities listed or traded, will most likely make a public announcement or issue a press release.

7.5

Preservation of Records.

Buyer agrees that neither Buyer nor any Designee shall destroy any records related to the Assets without first giving Seller sixty (60) days advance written notice and an opportunity to take custody of such records, at Seller's cost and expense, including reimbursement of Buyer's or any affected Designee's extraordinary costs, if any.

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7.6

Buyer's Due Diligence.

Buyer may conduct due diligence examinations during a period commencing on the date hereof and ending at the close of business on the day prior to the Closing Date (the “Due Diligence Period”).

7.7

Conditions to Obligations of Seller. The respective obligations of each party to perform this Agreement and consummate the Closing are subject to the satisfaction of the following conditions, unless waived by the applicable party.

(a)

The shareholders of Seller shall have approved this Agreement, and the consummation of the transactions contemplated hereby, to the extent required by applicable law.

(b)

Buyer shall have executed a mutually agreeable and reasonable non-compete agreement with seller.

7.8

Registration Rights. Buyer and Seller shall negotiate and execute a mutually agreeable registration rights agreement covering the compliance requirement by the SEC including filing with SEC in connection with the transactions contemplated hereunder.

8.

Default; Remedies; Arbitration.

8.1 

Default; Remedies. Time is of the essence of this Agreement. If either party fails or refuses to carry out this Agreement according to its terms, the other party shall be entitled to the remedies set forth below.

8.2 

Arbitration. This Agreement shall not be subject to termination except as specifically provided in this Agreement. Any question, controversy or claim arising under or relating to this Agreement, including without limitation any such matter pertaining to an alleged event having a Material Adverse Effect or any adjustment of the Purchase Price, or for any breach hereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association and the provisions of the laws of Nevada relating to arbitration, as said rules and laws are in effect on the date of this Agreement. The arbitration shall be conducted in State of Nevada, by and before a single arbitrator, who is experienced in the problem or problems in dispute, to be agreed upon by the Seller and Buyer, or if they are unable to agree upon an arbitrator within ten (10) days after written demand by either party for arbitration, then, at the written request of either party, the arbitrator shall be appointed by the American Arbitration Association, Proceedings to obtain a judgment with respect to any award rendered hereunder shall be undertaken in accordance with the laws of Nevada including the conflicts of laws provisions thereof.

Each party shall pay one-half of the arbitrator's fees and expenses. Upon application to the arbitrator, the parties shall be entitled to limited discovery, including only exchange of documents and only depositions on such terms as the arbitrator may allow for purposes of fairness and to reduce the overall time and expense of the arbitration.

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9.

Indemnification and Related Matters.

9.1 

Indemnification.

Buyer agrees to save, defend, indemnify and hold Seller and its officers and directors, parents, subsidiaries, shareholders, affiliates, predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against any loss, claims, liabilities, damages, costs and expenses, including attorneys' fees incurred with respect to third parties (“Damages”) resulting from, based upon, or arising out of:

(i)

any breaches, occurring before, at or after Closing, of Contracts, Long Term Leases, permits, licenses, and all other agreements and obligations transferred or assigned to Buyer;

(ii)

the operation, management or condition of the Assets or Business at or after the Closing;

(iii)

all matters assumed by the Buyer pursuant to any and all provisions of this Agreement or any related agreement; and

(iv)

all actions, claims, suits, proceedings, demands, assessments, judgments, costs and expenses, including attorneys' fees (incurred with respect to third parties), with respect to the foregoing.

Wherever this Agreement provides for Buyer's indemnification the term “Seller” shall mean United Power, Inc.

Seller agrees to save, defend, indemnify and hold Buyer and its officers and directors, parents, subsidiaries, affiliates, predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against any loss, claims, liabilities, damages, costs and expenses, including attorneys' fees incurred with respect to third parties (“Damages”) resulting from, based upon, or arising out of:

(i)

fringement claims brought against the Assets or any portion thereof, any breaches, occurring before the Closing, of Contracts, Long Term Leases, permits, licenses, and all other agreements and obligations transferred or assigned to Buyer;

(ii)

the operation, management or condition of the Assets or Business or, whether arising before the Closing, excluding only those matters covered by Section 9 above; and

(iii)

all actions, claims, suits, proceedings, demands, assessments, judgments, costs and expenses, including attorneys' fees (incurred with respect to third parties), with respect to the foregoing.

9.2 

Defense of Claims by Third Parties. 

If any claim is made against a party that, if sustained, would give rise to a liability of the other under this Agreement, Buyer or Seller, as the case may be, shall promptly cause notice of the claim to be delivered to the other and shall notify the other party and its counsel of its obligation to defend such claim, at such other party’s sole expense. The obligation to defend indemnity claims shall be the responsibility of 

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each party for a period of two (2) years, with counsel satisfactory to the party against which such claim is made.

10.

Miscellaneous.

10.1 

Entire Agreement. This Agreement contains, and is intended as, a complete statement of all of the terms of the arrangements between the parties with respect to the matters provided for, supersedes any previous agreements and understandings between the parties with respect to those matters, and cannot be changed or terminated orally.

10.2 

Governing Law. Seller and Buyer each hereby consent to personal jurisdiction in any action brought with respect to this Agreement and the transactions contemplated hereunder in State of Nevada and to the arbitration described in Section 8 of this Agreement shall be governed by and construed in accordance with the law of the State of Nevada.

10.3 

Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally or mailed by registered mail, return receipt requested, to the parties at the following addresses (or to such address as a party may have specified by notice given to the other party pursuant to this provision):

If to Buyer to:

Lei Pei, CEO

Wewards, Inc.

2960 W Sahara Ave

Las Vegas, NV, 89102

If to Seller, to:

Lei Pei, CEO

United Power, Inc.

130 E. Huntington Dr

Arcadia, CA 91006

10.4 

Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement which shall remain in full force and effect.

10.5 

Further Assurances and Assistance. Buyer and Seller agree that each will execute and deliver to the other any and all documents, in addition to those expressly provided for herein, that may be necessary or appropriate to effectuate the provisions of this Agreement, whether before, at or after the Closing. Seller agrees that, at any time and from time to time after the Closing, it will execute and deliver to Buyer such further assignments or other written assurances as Buyer may reasonably request to perfect and protect Buyer's title to the Assets.

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10.6 

Survival. The terms, covenants, agreements, representations and warranties contained in or made pursuant to this Agreement together with all indemnities and undertakings contained herein shall survive the Closing for two (2) years, and shall not be deemed to have been merged in any of the documents delivered at the Closing, irrespective of any investigation made by or on behalf of any party.

10.7 

Waiver. Any party may waive compliance by another with any of the provisions of this Agreement. No waiver of any provision shall be construed as a waiver of any other provision. Any waiver must be in writing and signed by the party waiving such provision.

10.8 

Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Except as expressly set forth herein, nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement, including any such person or entity asserting rights as a third party beneficiary with respect to environmental matters. No assignment of this Agreement or of any rights or obligation hereunder may be made by either party (by operation of law or otherwise) without the prior written consent of the other and any attempted assignment without the required consent shall be void; provided, however, that no such consent shall be required of Buyer to assign its rights under this Agreement to one or more Designees, but no such assignment by Buyer of its rights or obligations hereunder shall relieve Buyer of any of its obligations to Seller under this Agreement. Further, no such consent shall be required of Seller to assign its rights or obligations under this Agreement to one or more Affiliates of Seller, but no such assignment by seller of its rights or obligations hereunder shall relieve Seller of any of its obligations to Buyer hereunder.

10.9 

Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, but which together shall constitute one and the same Agreement.

10.10 

No Recordation. Neither this Agreement nor a memorandum hereof shall be recorded in any jurisdiction or public record.

10. 11 

No Presumptions. This Agreement is a result of negotiations between Seller and Buyer, both of whom are represented by counsel of their choosing. No presumption shall exist in favor of either party concerning the interpretation of the documents constituting this Agreement by reason of which party drafted the documents.

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

		
	UNITED POWER, INC.

	 
	 

	 
	 

	 
	 

	 
	 

	By: 

	/s/ Lei Pei

	 
	Lei Pei, CEO of United Power Inc.

[Received signed from seller April 2, 2020]

		
	WEWARDS, INC.

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	By: 

	/s/ Lei Pei

	 
	Lei Pei, CEO of Wewards, Inc.

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Exhibit: A

United Power, Inc. Assets

UPI currently owns IP rights to A MMORPG (Massively Multiplayer Online Role-playing Game) game called Megopoly. It is the first MMOEPG 3-D board game in the world, where players may earn Bitcoins through buying, selling, and managing real estate properties in the forms of tokens, pawns and props in different virtual cities. Each token or pawn or prop is given certain value or “Megopoly Coins” that is equivalent to certain quantity of Satoshi, then equivalent to certain quantity of value of Bitcoin in real-time marketplace.   

The game allows thousands of players from different corners of the world interact with each other in real-time. Players travel (move) through different parts of a city, earning profit by investing in properties, charging rent, acquiring rare bonus assets, and selling off their investments to other players. When a player earns enough credits and passes the level-change threshold, the game will propel the player into higher levels of cities where the player will experience more sophisticated, surprising, shocking and unexpected audio-visual effects with more rewards – all in real-time. 

The goal of Megopoly is to earn Megopoly Coins by investing in properties and collecting rent from other players. Players can keep playing the game using their Megopoly Coins for the opportunity to earn more coins, or they can exchange those coins for Bitcoins based on real-time market exchange rates. 

The Game can be played 24/7 through a web browser on a PC, laptop, tablet or cellphone. It is supported by both English and Chinese languages. It is a free-to-play game for fun and entertainment. The Game’s features and mechanisms are designed for players of both entry-level and pro-level. Entry-level players can immediately enjoy the game, while pros can earn considerable rewards and exchange those rewards for Bitcoins. One of the concepts that UPI designers incorporated into the Game is, “The Sky’s The Limit”, which means a player may earn Bitcoins to an unpredictable level.  

An independent valuation from Scalar that was used as a basis for the purchase price is hereby attached. 

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