Document:

ex10-16.htm

Exhibit 10.16

 

FIRST AMENDMENT TO

ANTI-DILUTION AND MAKE WHOLE AGREEMENT

This First Amendment to Anti-Dilution and Make Whole Agreement (this “Agreement”) is made and entered this ___th day of June 2011, effective as of May 11, 2011 (the “Effective Date”), by and between Coil Tubing Technology, Inc., a Nevada corporation (the “Company”) and
Herbert C. Pohlmann, an “affiliate” of the Company (as such term is defined in Rule 144 of the Securities Act of 1933, as amended) and an individual, residing and/or having a principal place of business at 1290 North Ocean Blvd., Palm Beach, Florida 33480 (“Shareholder”), each individually a “Party” and collectively the “Parties.”

	
W I T N E S S E T H:

WHEREAS, the Company and Shareholder previously entered into an Anti-Dilution and Make Whole Agreement, on or around May 11, 2011 (the “Anti-Dilution Agreement”), a copy of which is attached hereto as Exhibit A;

WHEREAS, capitalized terms used herein, but not otherwise defined shall have the meanings ascribed to such terms in the Anti-Dilution Agreement;

WHEREAS, pursuant to the Anti-Dilution Agreement the Company agreed to adjust Shareholder’s ownership of the Company and to issue Shareholder additional shares of restricted common stock such that Shareholder’s ownership in the Company would not be diluted after the issuance by the Company of certain shares of common stock as part of a settlement of the Company’s (and certain related parties) July 30, 2008 lawsuit against Grifco International, Inc., a Nevada corporation (“Grifco”), the Depository
Trust & Clearing Corporation and the president of Grifco, James Dial (the "Defendants" and the “Lawsuit”)[Cause No. 08-07-07397-CV in the Montgomery County, Texas, District Court, 9th Judicial District (the “Court”)];

WHEREAS, the Anti-Dilution Agreement failed to take into account certain recent issuances of common stock by the Company; contained errors as to the total number of shares of common stock Shareholder would be issued in connection with the settlement of the Lawsuit (the “Settlement”); and understated the total number of shares of common stock that Shareholder was required to be issued following the Settlement to maintain his pre-Settlement percentage ownership of the Company; and

WHEREAS, the Parties desire to enter into this Agreement to modify, amend and correct the Anti-Dilution Agreement in order for Shareholder to be able to maintain the same ownership percentage of the Company post-Settlement that he held pre-Settlement pursuant to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and other consideration, which consideration the Parties hereby acknowledge and confirm the sufficiency thereof, the Parties hereto agree as follows:

  

  

  

1. Amendment to Anti-Dilution Agreement.

 

 

	
a.  

	
The tenth (10th) WHEREAS under “W I T N E S S E T H” in the Anti-Dilution Agreement is hereby amended and restated in its entirety to read as follows:

	
  

	
“WHEREAS, the outcome of the Lawsuit was a settlement between the parties thereto (the “Settlement”), pursuant to which, among other things, the Company agreed to issue an aggregate of 228,136,867 shares of the Company’s common stock (the “Settlement Shares”) without restrictive legend pursuant to an exemption from registration provided by Section 3(a)(10) of the Securities Act of 1933, as amended (the “Act”), which number includes
69,291,596 shares issuable to Shareholder;”.

	
b.  

	
Section 2(b) of the Anti-Dilution Agreement is hereby amended and restated in its entirety to read as follows:

	
  

	
“(b)

	
Promptly upon the later of (a) such time as the issuance of the Settlement Shares is made by the Company (the “Settlement Share Issuance”); and (b) the Parties entry into this Agreement, the Shareholder shall be issued such number of additional shares of restricted common stock of the Company equal to the total number of Anti-Dilutive Right Shares multiplied by 3.461178288 (the “Anti-Dilutive Ratio”)(which totals 2,355,141,879 shares of common stock, the “Anti-Dilutive Shares”)(the
“Anti-Dilutive Share Rights”).”

	
c.  

	
Section 3(a) of the Anti-Dilution Agreement is hereby amended and restated in its entirety to read as follows:

	
  

	
“(a)

	
Upon the later of (a) the Settlement Share Issuance date (the “Issuance Date”); and (b) the Parties entry into this Agreement, the Conversion Price of the Notes shall automatically, and without any required action by any party, be amended to reflect such initial Conversion Price divided by the Anti-Dilutive Ratio (which totals $0.0008351165 per share)(the “Conversion Price Amendment” and the “Anti-Dilutive Note Rights”).”

	
d.  

	
Section 3(f) of the Anti-Dilution Agreement is hereby amended and restated in its entirety to read as follows:

	
  

	
“(f)

	
Shareholder agrees to fully convert the Notes into shares of the Company’s common stock, as conclusively evidenced by his entry into this Agreement, effective as of the date of this Agreement, which Notes shall convert into 640,578,407 shares of common stock based on the Conversion Price Amendment (the “Note Conversion Shares”).  The Company shall take whatever action necessary to issue the Note Conversion Shares promptly upon the Parties entry into this Agreement.  Following the Parties’ entry into this Agreement the Notes shall be considered satisfied and repaid in full and the Company shall have no obligations or liability whatsoever in connection with such
Notes.”

 

  

  

  

	
e.  

	
Section 3(g) of the Anti-Dilution Agreement is hereby amended and restated in its entirety to read as follows:

	
  

	
“(g)

	
Shareholder’s cost basis in the Note Conversion Shares shall be $0.0008351165 per share.”

	
f.  

	
Collectively (a.) and (b.) shall be referred to herein as the “Anti-Dilutive Share Adjustment” and collectively (c.), (d.) and (e.) shall be referred to herein as the “Note Conversion Adjustment”.

2. Affect of Anti-Dilutive Share Adjustment.  The affect of the Anti-Dilutive Share Adjustment is that the Company is required to issue an additional 591,214,921 shares of restricted common stock of the Company to Shareholder (2,355,141,879 shares due pursuant to the Anti-Dilutive Share Adjustment minus 1,763,926,958 shares previously issued in connection with the Anti-Dilutive Agreement in connection with the Anti-Dilutive Shares) promptly after the Parties’ entry into this
Agreement.

3. Affect of Note Conversion Adjustment.  The affect of the Note Conversion Adjustment is that the Company is required to issue an additional 178,319,191 shares of restricted common stock of the Company to Shareholder (640,578,407 shares due pursuant to the Note Conversion Adjustment minus 462,259,216 shares previously issued in connection with the Anti-Dilutive Agreement in connection with the Note Conversion Shares) promptly after the Parties’ entry into this Agreement.

4. Consideration.  Each of the Parties agrees and confirms by signing below that they have received valid consideration in connection with this Agreement and the transactions contemplated herein.

 

5. Mutual Representations, Covenants and Warranties.  Each of the Parties, for themselves and for the benefit of each of the other Parties hereto, represents, covenants and warranties that:

(a)           Such Party has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby. This Agreement constitutes the legal, valid and binding obligation of such Party enforceable against such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and general equitable principles; and

  

  

  

(b)           The execution and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall not, by the lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any provision contained in, or a default under, any governmental approval, any writ, injunction, order, judgment or decree of any governmental authority or any contract to which such Party is bound or affected.

6. Further Assurances.  The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and deliver such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes and intent of this Agreement and the transactions contemplated herein.

7. Reconfirmation of Anti-Dilution Agreement. The Parties hereby reaffirm all terms, conditions, covenants, representations and warranties made in the Anti-Dilution Agreement, to the extent the same are not amended hereby.

 

8. Effect of Agreement. Upon the effectiveness of this Agreement, each reference in the Anti-Dilution Agreement to “Agreement,” “hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to such Anti-Dilution Agreement as modified or waived hereby.

 

 

9. Anti-Dilution Agreement to Continue in Full Force and Effect.  Except as specifically modified or amended herein, the Anti-Dilution Agreement and the terms and conditions thereof shall remain in full force and effect.

 

10. Benefit and Burden.  This Agreement shall inure to the benefit of, and shall be binding upon, the Parties hereto and their successors and permitted assigns.

11. Severability.  Should any clause, sentence, paragraph, subsection, Section or Article of this Agreement be judicially declared to be invalid, unenforceable or void, such decision will not have the effect of invalidating or voiding the remainder of this Agreement, and the Parties agree that the part or parts of this Agreement so held to be invalid, unenforceable or void will be deemed to have been stricken herefrom by the Parties, and the remainder will have the same force and effectiveness as if
such stricken part or parts had never been included herein.

12. Entire Agreement.  This Agreement sets forth all of the promises, agreements, conditions, understandings, warranties and representations among the Parties with respect to the transactions contemplated hereby and thereby, and supersedes all prior agreements, arrangements and understandings between the Parties, whether written, oral or otherwise.

  

  

  

13. Construction.  In this Agreement words importing the singular number include the plural and vice versa; words importing the masculine gender include the feminine and neuter genders.

14. Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.  A copy of this Agreement
signed by one Party and faxed to another Party shall be deemed to have been executed and delivered by the signing Party as though an original.  A photocopy of this Agreement shall be effective as an original for all purposes.

           This Agreement has been executed by the Parties on the date first written above, with an Effective Date as provided above.

 

“SHAREHOLDER”

/s/ Herbert C. Pohlmann

Herbert C. Pohlmann

Address:

1290 N Ocean Boulevard

Palm Beach, FL 33480

Tax Id Number:

XXX-XX-XXXX

Telephone Number:

(XXX) - XXX - XXXX

“COMPANY”

	
  

	
Coil Tubing Technology, Inc.

 

/s/ Jerry Swinford

Jerry Swinford

Presidentex10-17.htm

Exhibit 10.17

 

FIRST AMENDMENT TO

EXECUTIVE EMPLOYMENT AGREEMENT

This First Amendment to Executive Employment Agreement (this “Agreement”) dated December 21, 2011 to be effective November 17, 2011 (the “Effective Date”), is by and between Coil Tubing Technology, Inc., a Nevada corporation (“Coil Tubing”) and Jerry Swinford, an
individual (“Swinford”), each referred to herein as a “Party” and collectively the “Parties”.

 

	
W I T N E S S E T H:

WHEREAS, the Parties previously entered into a Executive Employment Agreement (the “Employment Agreement”) on or around November 30, 2010, a copy of which is attached hereto as Exhibit A;

WHEREAS, the Parties previously entered into a First Amendment to the Employment Agreement on or around December 14, 2011, which terms and conditions were agreed to on such date, but which Agreement was never finalized and did not become effective and which is amended, superseded and replaced in all respects by this Agreement;

WHEREAS, capitalized terms used herein shall have the meaning ascribed to such terms in the Employment Agreement, unless otherwise stated herein or the context requires otherwise; and

WHEREAS, the Parties desire to enter into this Agreement to modify and amend the Employment Agreement as provided below.

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, and other consideration, which consideration the Parties hereby acknowledge and confirm the sufficiency thereof, the Parties hereto agree as follows:

1. Amendments to Employment Agreement. 

(a)           The term “Chief Executive Officer” as set forth in Section 1 of the Employment Agreement is hereby amended and revised to read “Executive Vice President”.  Swinford’s duties under the Employment Agreement as amended by this Agreement shall include being in charge of designing tools for Coil Tubing.  Swinford shall also serve as
Chairman of Coil Tubing.

(b)           New Sections 8(c) and (d) shall be added to the Employment Agreement, which shall provide as follows:

 

“(c)         The Company shall reimburse Officer for all reasonable, out-of-pocket business expenses incurred in the performance of his duties hereunder and/or on behalf of the Company, consistent with the Company’s policies and procedures, in effect from time to time including, but not limited to reimbursement for Company related items charged to the Officer’s personal credit card and personal loans made to the Company by the Officer.

  

  

  

(d)            Any expense reimbursements, outstanding loans or other amounts owed to the Officer by the Company shall be paid to the Officer immediately upon the termination of this Agreement for any reason.”

(c)             Section 4(c) of the Employment Agreement shall be amended by the following Section 4(c), which shall replace and supersede Section 4(c) of the Employment Agreement for all purposes, and further provided that all share amounts and exercise prices described below have already been retroactively adjusted for the Company’s 1:300 reverse stock split:

“(c)           Officer shall receive an option (the “Option”) with the following terms and conditions:

i.  The Officer shall be granted an option to purchase 301,667 shares of the Company’s common stock upon the Parties’ entry into this Agreement (the “Initial Option”), which Initial Option shall have such terms and conditions as described below, provided that options to purchase 1,667 shares of common stock shall vest to the Officer upon the Execution Date (the “Execution Option”), with options to purchase the
remaining amount of the Initial Option vesting to the Officer at the rate of 100,000 options per year, over the three years following the Execution Date, with 100,000 options vesting on December 14, 2011 (the “2011 Option”), 100,000 options vesting on December 31, 2012 (the “2012 Option”) and the final 100,000 options vesting on December 31, 2013 (the “2013 Option”), provided that the Officer is still employed by the Company on such date(s).

ii.  The Execution Option shall have an exercise price of $7.50 per share, the 2011 Option shall have an exercise price of $1.00 per share, and the 2012 Option and 2013 Option shall have an exercise price equal to the mean between the highest and lowest quoted selling prices of the Company’s common stock on the pinksheets trading market or Over-The-Counter Bulletin Board (which ever is applicable) on the last day that the Company’s common stock trades prior to the vesting date of such option as provided above, subject in each case to adjustment for stock splits and recapitalizations as provided in the
Option.

iii.  Each portion of the Option which vests to the Officer as provided above shall be exercisable by Officer at any time until the fifth anniversary of the vesting date of such portion of the Option, provided that termination of the Option shall be subject to the termination provisions of the Company’s 2010 Stock Incentive Plan (the “Plan”), and all Options shall provide for a cashless exercise provision.

  

  

  

iv.  The Option shall be evidenced by Option Agreements in such form as approved by the Company’s Board of Directors, and with terms and conditions consistent with the Plan.”

 

2.           Reconfirmation of Employment Agreement. The Parties hereby reaffirm all terms, conditions, covenants, representations and warranties made in the Employment Agreement, to the extent the same are not amended hereby.

 

3.           Effect of Agreement. Upon the effectiveness of this Agreement, each reference in the Employment Agreement to “Agreement,” “hereunder,” “hereof,”
“herein” or words of like import shall mean and be a reference to such Employment Agreement as modified or waived hereby.

 

4.           Employment Agreement to Continue in Full Force and Effect.  Except as specifically modified herein, the Employment Agreement and the terms and conditions thereof shall remain in full force and effect.

 

5.           Effect of Facsimile and Photocopied Signatures. This Agreement may be executed in several counterparts, each of which is an original.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.  A copy of this Agreement signed by one Party and faxed to another
Party shall be deemed to have been executed and delivered by the signing Party as though an original.  A photocopy of this Agreement shall be effective as an original for all purposes.

[Remainder of page left intentionally blank. Signature page follows.]

 

  

  

  

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective as of the Effective Date.

“COIL TUBING”

 

	
COIL TUBING TECHNOLOGY, INC.

	
/s/ Jason Swinford

	
Jason Swinford

Chief Executive Officer

Date: 12/21/11

“SWINFORD”

	
/s/ Jerry Swinford

Jerry Swinford

Date: 12/21/11

Acknowledged and Agreed to by:

/s/ Herbert C. Pohlmann

Herbert C. Pohlmann

Date: 12/26/11

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