Document:

ex_129134.htm

 

Exhibit 10.9

 

 

Financing AGREEMENT

 

This Financing Agreement (this “Agreement”) is dated as of September 5, 2018, by and among Spine Injury Solutions, Inc., a Delaware corporation (the “Company”), and Peter Dalrymple, an individual whose address is 13451 Belhaven, Houston TX 77069 (“Dalrymple”).

 

Recitals

 

WHEREAS, the Company obtained a Revolving Line of Credit with Wells Fargo Bank, National Association (the “Bank”), of $2,000,000 in August, 2014, which was due August 31, 2017; and

 

WHEREAS, this debt instrument was amended in August 2017 pursuant to an Amended and Restated Revolving Line of Credit in the amount of $1,750,000, which is due August 31, 2018; and

 

WHEREAS, the Bank has agreed to amend this debt instrument pursuant to an Amended and Restated Revolving Line of Credit Note in the amount of $1,750,000 (the “Amended Line of Credit Note”) dated August 31, 2018; and

 

WHEREAS, the Bank requires that Dalrymple continue to pledge certain collateral pursuant to the Amended Line of Credit Note in order to enter into the Amended Line of Credit Note with the Company; and

 

WHEREAS, Dalrymple is willing to continue to pledge certain collateral to the Amended Line of Credit Note, subject to the terms of this Agreement; and

 

WHEREAS, the Company entered into a 12% Secured Promissory Note dated August 29, 2012, in the original principal amount of $1,000,000 payable to Dalrymple; and

 

WHEREAS, the Company provided Dalrymple with certain collateral pursuant to a Security Agreement dated August 29, 2012 in connection with the Promissory Note; and

 

WHEREAS, the Promissory Note was subsequently amended in September 2014, in August 2016 and in September 2017 (as amended, the “Promissory Note”), and the Security Agreement was amended in September 2017 to provide for collateral (as amended, the “Amended Security Agreement”); and

 

WHEREAS, the Promissory Note currently has an outstanding balance of $100,000; and

 

WHEREAS, the Company and Dalrymple have agreed to enter into an Amendment to Amended and Restated Secured Promissory Note to amend the Promissory Note further; and

 

Now, Therefore, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and Dalrymple hereby agree as follows:

 

1.     Dalrymple hereby agrees to (i) enter into an Amended and Restated Security Agreement with the Bank whereby he will continue to provide certain collateral required by the Bank in connection with the Amended Line of Credit Note with the Bank, and (ii) enter into the Amendment to Amended and Restated Promissory Note issued by the Company to Dalrymple, to extend the maturity date to September 8, 2019, a copy of which is attached hereto as Exhibit A.

 

 

 

 

2.     The Company hereby agrees to (i) to continue its Obligations (as defined in the Amended Security Agreement between the Company and Dalrymple) and (ii) to enter into the Amendment to Amended and Restated Promissory Note to extend the maturity date to September 8, 2019, a copy of which is attached hereto as Exhibit A.

 

3.     This Agreement contains the entire understanding of the parties with respect to the subject matter thereof and supersedes all prior agreements, understandings, discussions and representations, oral or written, with respect to such matters.

 

4.     Any notices or other communications required or permitted hereunder shall be sufficiently given if in writing and delivered in person or sent by registered or certified mail (return receipt requested) or nationally recognized overnight delivery service, postage pre-paid, addressed as follows, or to such other address has such party may notify to the other parties in writing:

 

	If to the Company:      	
			Spine Injury Solutions, Inc.

			Attn: William Donovan, President

			5225 Katy Freeway #600

			Houston, TX 77007

			
	 	 
	
			If to Dalrymple:

				
			Peter Dalrymple

			13451 Belhaven

			Houston, TX 77069

			

 

A notice or communication will be effective (i) if delivered in person or by overnight courier, on the business day it is delivered and (ii) if sent by registered or certified mail, three (3) business days after dispatch.

 

5.     Neither this Agreement nor any provision hereof may be amended, modified or supplemented unless in writing, executed by all the parties hereto. Except as otherwise expressly provided herein, no waiver with respect to this Agreement shall be enforceable unless in writing and signed by the party against whom enforcement is sought. Except as otherwise expressly provided herein, no failure to exercise, delay in exercising, or single or partial exercise of any right, power or remedy by any party, and no course of dealing between or among any of the parties, shall constitute a waiver of, or shall preclude any other or further exercise of, any right, power or remedy.

 

6.     The provisions of this Agreement shall inure to the benefit of and be binding upon the parties and their successors and permitted assigns. This Agreement, or any rights or obligations hereunder, may not be assigned by the Company without the prior written consent of Dalrymple.

 

7.     This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

8.     All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Texas, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of this Agreement (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state or federal courts sitting in Harris County, Texas (the “Harris County Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Harris County Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction

 

 

 

Page 2 – Financing Agreement

 

 

 

 

contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Harris County Courts, or that such Harris County Courts are improper or inconvenient venue for such proceeding.

 

9.     This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

10.     If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor and achieves that same or substantially the same effect or result, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

 

In Witness Whereof, the parties hereto have caused this Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

 

SPINE INJURY SOLUTIONS, INC.

 

 

 

By: /s/ William F. Donovan

Name: William F. Donovan

Title: President

 

 

 

/s/ Peter Dalrymple_____________________________

PETER DALRYMPLE

 

 

 

 

 

 

Page 3 – Financing Agreement

 

 

 

 

AMENDMENT 

TO 

AMENDED AND RESTATED SECURED PROMISSORY NOTE

 

THIS AMENDMENT TO AMENDED AND RESTATED SECURED PROMISSORY NOTE (“Amendment”) dated as of September 5, 2018, is to become affixed to, modify and become a part of that certain Amended and Restated Secured Promissory Note in the principal sum of $250,000.00 dated September 8, 2017, which promissory note (hereinafter referred to as the “Note”) was made and executed by Spine Injury Solutions, Inc., a Delaware corporation (the “Debtor”), and payable to the order of Peter Dalrymple (the “Holder”), which Note is due and payable on September 8, 2018 (“Maturity Date”).

 

WHEREAS, the principal amount of the Note presently outstanding is $100,000; and

 

WHEREAS, the Holder and Debtor desire to amend the Note to extend the Maturity Date; and

 

NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements and the respective representations and warranties herein contained, and on the terms and subject to the conditions herein set forth, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.     The introductory paragraph of the Note is amended to redefine the Maturity Date as September 8, 2019.

 

2.     The Note is amended and modified by amending section 1 of the Note in its entirety to read as follows:

 

“1.     Schedule for Payment of Principal and Interest. The Company shall pay to the Holder eleven (11) monthly payments of interest only on the Principal Amount outstanding hereunder, in cash, in arrears, at the rate of six percent (6%) per annum, commencing on October 8, 2018, and continuing thereafter on the 8th day of each successive month throughout the term of this Promissory Note. On the Maturity Date, the Company shall pay the Holder one balloon payment of the entire outstanding Principal Amount of this Promissory Note plus any accrued and unpaid interest thereon.”

 

3.     All terms and conditions of the Note shall, except as amended and modified by this Amendment, will remain in full force and effect and all rights, duties, obligations and responsibilities of the Debtor and the Holder shall be governed and determined by the Note as the same has been amended and modified by this Amendment.

 

4.     THIS AMENDMENT IS TO BE CONSTRUED UNDER THE LAWS OF THE STATE OF TEXAS.

 

5.     This Amendment shall be of no force and effect until receipt and execution of it by the Debtor and the Holder. This Amendment may be executed in counterparts, each of which

 

 

Amendment to Amended and Restated Secured Promissory Note – Page 1

 

 

 

 

shall be deemed an original, but all of which shall be deemed one instrument, by facsimile signature or by e-mail delivery of a “.pdf” format data file signature of any of the parties, each of which shall be deemed an original for all purposes.

 

 

 

IN WITNESS WHEREOF, each of the undersigned has executed and delivered this Amendment to the Note as of the date first written above.

 

DEBTOR:

 

SPINE INJURY SOLUTIONS, INC.

 

 

By: /s/ William F. Donovan                    

William F. Donovan, President/CEO

 

 

HOLDER:

 

 

/s/ Peter Dalrymple_________________________                    

Peter Dalrymple

 

 

 

 

 

 

Amendment to Amended and Restated Secured Promissory Note – Page 2meec_ex101.htm

EXHIBIT 10.1
  
 AMENDMENT NO. 2 TO
 AMENDED AND RESTATED FINANCING AGREEMENT,
 AND REAFFIRMATION OF GUARANTY
  
 This AMENDMENT NO. 2 TO AMENDED AND RESTATED FINANCING AGREEMENT AND REAFFIRMATION OF GUARANTY dated as of September 12, 2018 (the “Amendment”), is executed among Midwest Energy Emissions Corp., a Delaware corporation, (the “Borrower”), MES, Inc., a North Dakota corporation (“MES” or “Guarantor”), and AC Midwest Energy LLC, a Delaware limited liability company (the “Lender”).
  
 R E C I T A L S:
  
 A. Borrower, Guarantor and Lender entered into that certain Amended and Restated Financing Agreement, dated as of November 1, 2016 (the “Amended and Restated Financing Agreement”), pursuant to which Amended and Restated Financing Agreement the Borrower, Guarantor and Lender amended and restated a previously entered into Financing Agreement among the parties, dated as of August 14, 2014, as amended on March 16, 2015, November 16, 2015 and January 28, 2016. 
  
 B. In connection with the Amended and Restated Financing Agreement, and in exchange for certain previously issued Notes and other consideration, the Borrower issued to the Lender (i) a new senior note in the principal amount of $9,646,686 (the “Secured Note”), and (ii) a subordinated unsecured note in the principal amount of $13,000,000 (the “Unsecured Note”).
  
 C. On June 14, 2018, Borrower, Guarantor and Lender entered into that certain Amendment No.1 to Amended and Restated Financing Agreement, and Reaffirmation of Guaranty (the “First Amendment”) which provided that (i) the Remaining Secured Note Principal Balance which at the date thereof was in the amount of $521,686.10 be paid as follows: (a) $250,000 on or prior to June 15, 2018 (which has been paid by Borrower), and (b) the balance on or prior to September 1, 2018, and (ii) until the Remaining Secured Note Principal Balance is paid in full, the Secured Note shall bear interest on the unpaid principal balance thereof at a rate equal to the Current Interest Rate plus three percent (3.0%) per annum. (The Amended and Restated Financing Agreement as amended by the First Amendment is referred to as the “Restated Financing Agreement”.)
  
 D. As of the date hereof, the Remaining Secured Note Principal Balance is in the amount of $271,686.10.
  
 E. At the present time the Borrower and the Guarantor request, and the Lender is agreeable to, an extension on the payment of the Remaining Secured Note Principal Balance on the terms and conditions hereinafter set forth. 
  
 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Borrower, the Guarantor and the Lender agree as follows:
  
  	 
	1
	 
 
	 

  
 A G R E E M E N T S:
  
 1. RECITALS. The foregoing recitals are hereby made a part of this Amendment.
  
 2. DEFINITIONS. Capitalized words and phrases used herein without definition shall have the respective meanings ascribed to such words and phrases in the Restated Financing Agreement.
  
 3. AMENDMENTS TO THE RESTATED FINANCING AGREEMENT.
  
 3.1 Revisions With Respect to Repayment of Remaining Secured Note Principal Balance. Notwithstanding anything to the contrary contained in the Restated Financing Agreement, the Remaining Secured Note Principal Balance shall be paid on or prior to December 15, 2018. 
  
 3.2 Revisions With Respect to Mandatory Prepayments. Notwithstanding anything to the contrary contained in Section 2.3(c) of the Restated Financing Agreement, no mandatory prepayment shall be required unless the net proceeds from any such enumerated actions or events exceed $3,500,000. 
  
 3.3 Covenant Waiver. The Lender hereby waives compliance with the EBITDA covenant contained in Section 8.1 of the Restated Financing Agreement until December 15, 2018, at which time such covenant shall continue in full force and effect. 
  
 3.4 Interest Prepayment. As consideration for the Amendment, the Borrower hereby agrees to prepay on or before September 15, 2018, the interest payments due on September 30, 2018 and December 31, 2018 for the Secured Note and Unsecured Note.
  
 4. GENERAL.
  
 4.1 Governing Law; Severability. This Amendment shall be construed in accordance with and governed by the laws of the State of New York. Wherever possible each provision of the Restated Financing Agreement and this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Restated Financing Agreement and this Amendment shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of the Restated Financing Agreement and this Amendment.
  
 4.2 Successors and Assigns. This Amendment shall be binding upon the Borrower, the Guarantor and the Lender and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Guarantor and the Lender and the successors and assigns of the Lender.
  
  	 
	2
	 
 
	 

  
 4.3 Continuing Force and Effect of Loan Documents. Except as specifically modified or amended by the terms of this Amendment, all other terms and provisions of the Restated Financing Agreement and the other Secured Note Documents are incorporated by reference herein, and in all respects, shall continue in full force and effect. The Borrower, by execution of this Amendment, hereby reaffirms, assumes and binds itself to all of the obligations, duties, rights, covenants, terms and conditions that are contained in the Restated Financing Agreement and the other Secured Note Documents. The Guarantor, by execution of this Amendment, hereby reaffirms, assumes and binds itself to all of the obligations, duties, rights, covenants, terms and conditions that are contained in the Restated Financing Agreement. 
  
 4.4 References to Restated Financing Agreement. Each reference in the Restated Financing Agreement to “this Agreement”, “hereunder”, “hereof”, or words of like import, and each reference to the Restated Financing Agreement in any and all instruments or documents delivered in connection therewith, shall be deemed to refer to the Restated Financing Agreement, as amended hereby.
  
 4.5 Counterparts/Electronic Signatures. This Amendment may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party; provided that a facsimile or other electronic signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or electronic signature.
  
 [SIGNATURE PAGE FOLLOWS]
  
  	 
	3
	 
 
	 

  
 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 to Amended and Restated Financing Agreement and Reaffirmation of Guaranty as of the date first above written.
  
  	 	 BORROWER: 
 MIDWEST ENERGY EMISSIONS CORP.
	
	 	 	 	 
		By:	/s/ Richard H. Gross 	
	  
	 Name: 
	Richard H. Gross 	 
	 	Title:  	Chief Financial Officer	 

  
  	 	 GUARANTOR:
  
 MES, INC.
	
	 	 	 	 
		By:	/s/ Richard H. Gross 	
	  
	 Name: 
	Richard H. Gross 	 
	 	Title: 	Chief Financial Officer 	 
	 	 	 	 
	  
	 LENDER:
  
 AC MIDWEST ENERGY LLC
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Samir Patel 
	  

	  
	 Name: 
	 Samir Patel 
	  

	  
	 Title: 
	 Manager 
	  

   
  
  	 4

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