Document:

wttr_Ex10_3

		

			Exhibit 10.3

		

		
			SELECT ENERGY SERVICES, INC.
		

		
			2016 EQUITY INCENTIVE PLAN
		

		
			PERFORMANCE SHARE UNIT GRANT NOTICE – RETURN ON ASSETS
		

		
			Pursuant to the terms and conditions of the Select Energy Services, Inc. 2016 Equity Incentive Plan, as amended from time to time (the “Plan”), Select Energy Services, Inc. (the “Company”) hereby grants to the individual listed below (“you” or the “Participant”) the number of performance share units (the “PSUs”) set forth below.  This award of PSUs (this “Award”) is subject to the terms and conditions set forth herein and in the Performance Share Unit Agreement attached hereto as Exhibit A (the “Agreement”) and the Plan, each of which is incorporated herein by reference.  Capitalized terms used but not defined herein shall have the meanings set forth in the Plan.
		

			
					
						 

					
					
						 

				
	
					
						Participant:

					
					
						___________________

				
	
					
						Date of Grant:

					
					
						___________________

				
	
					
						Award Type and Description:

					
					
						Other Stock-Based Award granted pursuant to Section 6(h) of the Plan that has been designated as a Performance Award under Section 6(k) of the Plan. This Award represents the right to receive shares of Stock in an amount up to 175% of the Target PSUs (defined below), subject to the terms and conditions set forth herein and in the Agreement. 

					
						Your right to receive settlement of this Award in an amount ranging from 0% to 175% of the Target PSUs shall vest and become earned and nonforfeitable upon (i) your satisfaction of the continued employment or service requirements described below under “Service Requirement” and (ii) the Committee’s certification of the level of achievement of the Performance Goal (defined below). The portion of the Target PSUs actually earned upon satisfaction of the foregoing requirements is referred to herein as the “Earned PSUs.”

				
	
					
						Target Number of PSUs:

					
					
						__________ (the “Target PSUs”). 

				
	
					
						Performance Period:

					
					
						January 1, 2020 (the “Performance Period Commencement Date”) through December 31, 2022 (the “Performance Period End Date”).

				
	
					
						Service Requirement:

					
					
						Except as expressly provided in Sections 4 and 5 of the Agreement, you must remain continuously employed by, or continuously provide services to, the Company or an Affiliate, as applicable, from the Date of Grant through the Performance Period End Date to be eligible to receive payment of this Award, which is based on the level of achievement with respect to the Performance Goal (as defined below).

				

		 

	
					
						

					
						Performance Goal:

					
					
						Subject to the terms and conditions set forth in the Plan, the Agreement and herein, the number of Target PSUs, if any, that become Earned PSUs during the Performance Period will be determined based on the Company’s Average Return on Assets (as defined below) relative to the Average Return on Assets of the peer companies listed on Exhibit B hereto (the “Peer Group”), but only if the Company’s Average Return on Assets is equal to or greater than five percent (5%) during such period (the “Performance Goal”).  

					
						 

					
						The number of Target PSUs, if any, that become Earned PSUs during the Performance Period will be determined based on the following table:

				

		
			 
		

			
					
						 

					
					
						Ranking Among Peer Group

					
					
						 

					
					
						Percentage of Target PSUs Earned*

				
	
					
						 

					
					
						Outside of Top 10

					
					
						 

					
					
						0%

				
	
					
						 

					
					
						Top 10

					
					
						 

					
					
						50%

				
	
					
						 

					
					
						Top 7

					
					
						 

					
					
						100%

				
	
					
						 

					
					
						Top 3

					
					
						 

					
					
						175%

				
	
					
						 

					
					
						*The percentage of Target PSUs earned for a Ranking Among Peer Group that is between the values set forth in the table, excluding between the first and second rows of the table, shall be linearly interpolated between the values in the table.

				

		
			 
		

		

		 

	
					
						

					
						 

					
					
						To determine the Company’s Ranking Among Peer Group, Average Return on Assets will be calculated for the Company and each entity in the Peer Group as of the Performance Period End Date. The entities in the Peer Group and the Company will be arranged by their respective Average Return on Assets (highest to lowest). Notwithstanding the foregoing, in the event the Company’s Average Return on Assets is less than 5%, no Target PSUs will become Earned PSUs, regardless of the Company’s Ranking Among Peer Group.

					
						For purposes of this Award, the following definitions shall apply:

					
						“Adjusted Net Income” means the product obtained by multiplying:

					
						(A) the difference obtained from: 

					
						(i) “Adjusted EBITDA” as publicly disclosed by the applicable company or, if not disclosed, “EBITDA” as publicly disclosed by such company, in each case adjusted in a manner consistent with adjustments included in the Company’s publicly disclosed Adjusted EBITDA during each year of the Performance Period; provided, however, that the adjustments contemplated above shall exclude certain items, including (x) any net non-cash gain or loss during such period arising from the sale, exchange, retirement or other disposition of capital assets (such term to include all fixed assets and all securities) in the ordinary course of business, and (y) any write-up or write-down of tangible assets , less

					
						(ii) the sum of:

					
						(a) interest expense, plus 

					
						(b) depreciation expense, 

					
						by

					
						(B) 0.79.

					
						“Average Return on Assets” means the sum of the Return on Assets of the applicable entity during each year of the Performance Period, divided by 3. 

					
						“Net Assets” means the applicable company’s average property and equipment, net, for each year during the Performance Period, plus average total current assets (other than cash and cash equivalents and current tax assets) for each year during the Performance Period, less 

		 

	average total current liabilities (other than current tax liabilities) for each year during the Performance Period, each as determined in accordance with generally accepted accounting principles or on a non-GAAP basis consistent with the Company’s practices (as determined by the Compensation Committee).

					
						“Return on Assets” means the percentage obtained by dividing (A) Adjusted Net Income by (B) Net Assets.

					
						The Committee may adjust the Performance Goal as permitted by the Plan.

				

		 

	
					
						

					
						Settlement:

					
					
						Settlement of the Earned PSUs shall be made solely in shares of Stock, which shall be delivered to you in accordance with Section 6 of the Agreement. 

				

		
			 
		

		
			By your acceptance below, you agree to be bound by the terms and conditions of the Plan, the Agreement and this Performance Share Unit Grant Notice (this “Grant Notice”).  You acknowledge that you have reviewed the Agreement, the Plan and this Grant Notice in their entirety and fully understand all provisions of the Agreement, the Plan and this Grant Notice.  You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee regarding any questions or determinations that arise under the Agreement, the Plan or this Grant Notice.    
		

		
			IN ORDER TO RECEIVE THE BENEFITS OF THE AGREEMENT AND THIS GRANT NOTICE, AND FOR THIS AWARD TO BE EFFECTIVE, YOU MUST ACKNOWLEDGE YOUR ACCEPTANCE BY CLICKING THE APPROPRIATE BUTTON BELOW (THE “ACCEPTANCE REQUIREMENTS”).  IF YOU FAIL TO SATISFY THE ACCEPTANCE REQUIREMENTS WITHIN 90 DAYS FOLLOWING THE DATE OF GRANT, THEN (1) THIS AWARD WILL BE OF NO FORCE OR EFFECT AND WILL BE AUTOMATICALLY FORFEITED TO THE COMPANY WITHOUT CONSIDERATION AND (2) NEITHER YOU NOR THE COMPANY WILL HAVE ANY FUTURE RIGHTS OR OBLIGATIONS UNDER THE AGREEMENT OR THIS GRANT NOTICE.
		

		
			 
		

		
			

		 

		

		
			EXHIBIT A
		

		
			PERFORMANCE SHARE UNIT AGREEMENT
		

		
			This Performance Share Unit Agreement (together with the Grant Notice to which this Agreement is attached, this “Agreement”) is made as of the Date of Grant set forth in the Grant Notice to which this Agreement is attached by and between Select Energy Services, Inc., a Delaware corporation (the “Company”), and _________ (the “Participant”). Capitalized terms used but not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice.
		

			
	
			
				 1.
			Definitions.  For purposes of this Agreement, the following terms shall have the meanings specified below.

			
	
			
				 (a)
			“Cause”  means “cause” (or a term of like import) as defined under the Participant’s employment, consulting and/or severance agreement with the Company or an Affiliate or, in the absence of such an agreement or definition, shall mean a determination by the Company in its sole discretion that the Participant has: (i) engaged in gross negligence or willful misconduct in the performance of the Participant’s duties with respect to the Company or an Affiliate, (ii) materially breached any material provision of any written agreement between the Participant and the Company or an Affiliate or corporate policy or code of conduct established by the Company or an Affiliate and applicable to the Participant; (iii) willfully engaged in conduct that is materially injurious to the Company or an Affiliate; or (iv) been convicted of, pleaded no contest to or received adjudicated probation or deferred adjudication in connection with, a felony involving fraud, dishonestly or moral turpitude (or a crime of similar import in a foreign jurisdiction).

			
	
			
				 (b)
			“Disability” means “disability” (or a term of like import) as defined under the Participant’s employment, consulting and/or severance agreement with the Company or an Affiliate or, in the absence of such an agreement or definition, shall mean the Participant’s inability to perform the Participant’s duties, with reasonable accommodation, due to a mental or physical impairment that continues (or can reasonably be expected to continue) for (i) 90 consecutive days or (ii) 180 days out of any 365-day period, which, in either case, shall only be deemed to occur following the written determination by the Company of any such occurrence of Disability.

		
			(c)“Good Reason” means “good reason” (or a term of like import) as defined under the Participant’s employment, consulting and/or severance agreement with the Company or an Affiliate or, in the absence of such an agreement or definition, shall mean (i) a material diminution in the Participant’s base salary or (ii) the relocation of the geographic location of the Participant’s principal place of employment by more than 50 miles from the location of the Participant’s principal place of employment as of the Grant Date; provided that, in the case of the Participant’s assertion of Good Reason, (A) the condition described in the foregoing clauses must have arisen without the Participant’s consent; (B)  the Participant must provide written notice to the Company of such condition in accordance with this Agreement within 45 days of the initial existence of the condition; (C) the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by the Company; and (D) the date of termination of the 

		 

Participant’s employment or other service relationship with the Company or an Affiliate must occur within 90 days after such notice is received by the Company.
		

			
	
			
				 (d)
			“Retirement” means the termination of the Participant’s employment or other service relationship with the Company or an Affiliate due to the Participant’s voluntary resignation on or after attaining age 55 and completing 10 or more full years of service with the Company or an Affiliate. 

			
	
			
				 2.
			Award.  In consideration of the Participant’s past and/or continued employment with, or service to, the Company or its Affiliates and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Date of Grant set forth in the Grant Notice (the “Date of Grant”), the Company hereby grants to the Participant the target number of PSUs set forth in the Grant Notice on the terms and conditions set forth in the Grant Notice, this Agreement and the Plan, which is incorporated herein by reference as a part of this Agreement. In the event of any inconsistency between the Plan and this Agreement (including, for the avoidance of doubt, with respect of the subject matter covered in Section 5), the terms of the Plan shall control.  To the extent vested, each PSU represents the right to receive one share of Stock, subject to the terms and conditions set forth in the Grant Notice, this Agreement and the Plan;  provided, however, that, depending on the level of performance determined to be attained with respect to the Performance Goal, the number of shares of Stock that may be earned hereunder in respect of this Award may range from 0% to 175% of the Target PSUs.  Unless and until the PSUs have become vested in the manner set forth in the Grant Notice, the Participant will have no right to receive any Stock or other payments in respect of the PSUs.  Prior to settlement of this Award, the PSUs and this Award represent an unsecured obligation of the Company, payable only from the general assets of the Company.

			
	
			
				 3.
			Vesting of PSUs.  Except as otherwise set forth in Sections 4 and 5, the PSUs shall vest and become Earned PSUs in accordance with the Participant’s satisfaction of the vesting schedule set forth in the Grant Notice (the “Service Requirement”) based on the extent to which the Company has satisfied the Performance Goal set forth in the Grant Notice, which shall be determined by the Committee in its sole discretion following the end of the Performance Period (and any PSUs that do not become Earned PSUs shall be automatically forfeited).   Unless and until the PSUs have vested and become Earned PSUs as described in the preceding sentence,  the Participant will have no right to receive any dividends or other distribution with respect to the PSUs.  

			
	
			
				 4.
			Effect of Termination of Employment or Service.  

			
	
			
				 (a)
			Termination of Employment or Service without Cause or for Good Reason. Notwithstanding anything in the Grant Notice, this Agreement or the Plan to the contrary, upon the termination of the Participant’s employment or other service relationship with the Company or an Affiliate without Cause by the Company or an Affiliate or by the Participant for Good Reason that occurs prior to the Performance Period End Date, then the Participant shall be deemed to have satisfied the Service Requirement with respect to the PSUs and such PSUs shall remain outstanding and, subject to the satisfaction of the Performance Goal, become Earned PSUs, which shall be eligible for settlement in accordance with Section 6.  

		
			

		 

		

			
	
			
				 (b)
			Termination of Employment or Service due to Disability or Death. Notwithstanding anything in the Grant Notice, this Agreement or the Plan to the contrary, upon the termination of the Participant’s employment or other service relationship with the Company or an Affiliate due to the Participant’s Disability or death that occurs prior to the Performance Period End Date, then the Participant shall be deemed to have satisfied the Service Requirement with respect to the PSUs and such PSUs shall remain outstanding and, subject to the satisfaction of the Performance Goal, become Earned PSUs, which shall be eligible for settlement in accordance with Section 6.  

			
	
			
				 (c)
			Termination of Employment or Service due to Retirement.  Notwithstanding anything in the Grant Notice, this Agreement or the Plan to the contrary, upon the termination of the Participant’s employment or other service relationship with the Company or an Affiliate due to the Participant’s Retirement that occurs prior to the Performance Period End Date,  then the Participant shall be deemed to have satisfied the Service Requirement with respect to a number of PSUs equal to (i) the Target PSUs, multiplied by (ii) a fraction, the numerator of which is the number of days which have elapsed between the Performance Period  Commencement Date and the date of such termination of employment or other service relationship, and the denominator of which is the total number of days in the Performance Period, and such PSUs shall remain outstanding and, subject to the satisfaction of the Performance Goal, become Earned PSUs, which shall be eligible for settlement in accordance with Section 6. With respect to the remaining portion of the Target PSUs for which the Service Requirement is not deemed to have been satisfied in accordance with the preceding sentence, such Target PSUs (and all rights arising from such PSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without further notice and at no cost to the Company.

			
	
			
				 (d)
			Other Termination of Employment or Service. Except as otherwise provided in Section 4(a),  (b) or (c), if the Participant has not satisfied the Service Requirement, then upon the termination of the Participant’s employment or other service relationship with the Company or an Affiliate for any reason,  any unearned PSUs (and all rights arising from such PSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without further notice and at no cost to the Company.

			
	
			
				 5.
			Change in Control. In the event a Change in Control (so long as such Change in Control also constitutes a “change in control event” as defined in the Nonqualified Deferred Compensation Rules) occurs prior to the Performance Period End Date (the date of such occurrence, the “Change in Control Date”), so long as the Participant has remained continuously employed by, or has continuously provided services to, the Company or an Affiliate, as applicable, from the Date of Grant through the Change in Control Date, then:

			
	
			
				 (a)
			A portion of the PSUs determined by multiplying (i) the Target PSUs by (ii) a fraction, the numerator of which is the number of days which elapsed between the Performance Period  Commencement Date and the Change in Control Date, and the denominator of which is the total number of days in the Performance Period, will be deemed to be Earned PSUs to the extent that the Performance Goal has been achieved as of the Change in Control Date assuming that the Performance Period ended on the Change in Control Date, and which shall be eligible for settlement in accordance with Section 6 except that settlement shall occur within 60 days following the Change in Control Date; and

		
			

		 

		

			
	
			
				 (b)
			With respect to the remaining portion of the Target PSUs that are not subject to Section 5(a), (i) if the Company continues following the Change in Control in substantially the same form as it existed immediately prior to the Change in Control, such Target PSUs shall remain outstanding and be eligible to be earned in accordance with the terms hereof, or (ii) if the Company does not continue following the Change in Control in substantially the same form as it existed immediately prior to the Change in Control, the successor, surviving, continuing or purchasing entity or parent thereof, as applicable, to the Company shall provide for a replacement or substitute grant on substantially similar terms to this Award, subject to the terms and conditions of the applicable plans of such successor, surviving, continuing or purchasing entity or parent thereof, as applicable, as in effect following the Change in Control. 

			
	
			
				 6.
			Settlement of PSUs.  As soon as administratively practicable following the Committee’s certification of the level of attainment of the Performance Goal (which is expected to occur within two weeks following the date the Company files its annual report on Form 10-K for the Company’s fiscal year that includes the Performance Period End Date), but in no event later than June 30 of the calendar year following the Performance Period End Date, the Company shall deliver to the Participant (or the Participant’s permitted transferee, if applicable),  a number of shares of Stock equal to the number of Earned PSUs; provided, however, that any fractional PSU that becomes earned hereunder shall be rounded down at the time shares of Stock are issued in settlement of such PSU. No fractional shares of Stock, nor the cash value of any fractional shares of Stock, shall be issuable or payable to the Participant pursuant to this Agreement. All shares of Stock, if any, issued hereunder shall be delivered either by delivering one or more certificates for such shares to the Participant or by entering such shares in book-entry form, as determined by the Committee in its sole discretion.    The value of shares of Stock shall not bear any interest owing to the passage of time.  Neither this Section 6 nor any action taken pursuant to or in accordance with this Agreement shall be construed to create a trust or a funded or secured obligation of any kind.

			
	
			
				 7.
			Tax Withholding.  To the extent that the receipt, vesting or settlement of this Award results in compensation income or wages to the Participant for federal, state, local and/or foreign tax purposes, the Participant shall make arrangements satisfactory to the Company for the satisfaction of obligations for the payment of withholding taxes and other tax obligations relating to this Award, which arrangements include the delivery of cash or cash equivalents, Stock (including previously owned Stock, net settlement, a broker-assisted sale, or other cashless withholding or reduction of the amount of shares otherwise issuable or delivered pursuant to this Award), other property, or any other legal consideration the Committee deems appropriate. If such tax obligations are satisfied through net settlement or the surrender of previously owned Stock, the maximum number of shares of Stock that may be so withheld (or surrendered) shall be the number of shares of Stock that have an aggregate Fair Market Value on the date of withholding or surrender equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, local and/or foreign tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to this Award, as determined by the Committee. The Participant acknowledges that there may be adverse tax consequences upon the receipt, vesting or settlement of this Award or disposition of the underlying shares and that the Participant has been advised, and hereby is advised, to consult a tax advisor. The Participant represents that the Participant is in no manner relying on the Board, the Committee, the Company or an Affiliate or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, 

		 

	consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.

			
	
			
				 8.
			Non-Transferability.  During the lifetime of the Participant, the PSUs may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution, unless and until the shares of Stock underlying the PSUs have been issued, and all restrictions applicable to such shares have lapsed.  Neither the PSUs nor any interest or right therein shall be liable for the debts, contracts or engagements of the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means, whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence.

			
	
			
				 9.
			Compliance with Applicable Law.  Notwithstanding any provision of this Agreement to the contrary, the issuance of shares of Stock hereunder will be subject to compliance with all applicable requirements of applicable law with respect to such securities and with the requirements of any stock exchange or market system upon which the Stock may then be listed.  No shares of Stock will be issued hereunder if such issuance would constitute a violation of any applicable law or regulation or the requirements of any stock exchange or market system upon which the Stock may then be listed.  In addition, shares of Stock will not be issued hereunder unless (a) a registration statement under the Securities Act is in effect at the time of such issuance with respect to the shares to be issued or (b) in the opinion of legal counsel to the Company, the shares to be issued are permitted to be issued in accordance with the terms of an applicable exemption from the registration requirements of the Securities Act.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary for the lawful issuance and sale of any shares of Stock hereunder will relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite authority has not been obtained.  As a condition to any issuance of Stock hereunder, the Company may require the Participant to satisfy any requirements that may be necessary or appropriate to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect to such compliance as may be requested by the Company.

			
	
			
				 10.
			Legends.  If a stock certificate is issued with respect to shares of Stock issued hereunder,  such certificate shall bear such legend or legends as the Committee deems appropriate in order to reflect the restrictions set forth in this Agreement and to ensure compliance with the terms and provisions of this Agreement, the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable laws or the requirements of any stock exchange on which the Stock is then listed.  If the shares of Stock issued hereunder are held in book-entry form, then such entry will reflect that the shares are subject to the restrictions set forth in this Agreement.

			
	
			
				 11.
			Rights as a Stockholder.  The Participant shall have no rights as a stockholder of the Company with respect to any shares of Stock that may become deliverable hereunder unless and until the Participant has become the holder of record of such shares of Stock, and no 

		 

	adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of any such shares of Stock, except as otherwise specifically provided for in the Plan or this Agreement.

			
	
			
				 12.
			Execution of Receipts and Releases.  Any issuance or transfer of shares of Stock or other property to the Participant or the Participant’s legal representative, heir, legatee or distributee, in accordance with this Agreement shall be in full satisfaction of all claims of such person hereunder.  As a condition precedent to such payment or issuance, the Company may require the Participant or the Participant’s legal representative, heir, legatee or distributee to execute (and not revoke within any time provided to do so) a release and receipt therefor in such form as it shall determine appropriate; provided, however, that any review period under such release will not modify the date of settlement with respect to Earned PSUs.

			
	
			
				 13.
			No Right to Continued Employment, Service or Awards. Nothing in the adoption of the Plan, nor the award of the PSUs thereunder pursuant to the Grant Notice and this Agreement, shall confer upon the Participant the right to continued employment by, or a continued service relationship with, the Company or any Affiliate, or any other entity, or affect in any way the right of the Company or any such Affiliate, or any other entity to terminate such employment or other service relationship at any time. The grant of the PSUs is a one-time benefit and does not create any contractual or other right to receive a grant of Awards or benefits in lieu of Awards in the future. Any future Awards will be granted at the sole discretion of the Company.

			
	
			
				 14.
			Lock-Up Period. If so requested by the Company or any representative of the underwriters in connection with an underwritten public offering of the Company’s securities (a “Public Offering”), the Participant (or other holder) shall not sell or otherwise transfer or distribute any Stock or other securities of the Company (or any securities convertible or exchangeable or exercisable for Stock or engage in any hedging transactions relating to Stock) during the period beginning 14 days prior to the expected date of the “pricing” of such Public Offering and continuing for the 180-day period (or such other period as may be requested in writing by such underwriters and agreed to in writing by the Company) following the effective date of such Public Offering. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such period. 

			
	
			
				 15.
			Legal and Equitable Remedies.  The Participant acknowledges that a violation or attempted breach of any of the Participant's covenants and agreements in this Agreement will cause such damage as will be irreparable, the exact amount of which would be difficult to ascertain and for which there will be no adequate remedy at law, and accordingly, the parties hereto agree that the Company and its Affiliates shall be entitled as a matter of right to an injunction issued by any court of competent jurisdiction, restraining the Participant or the affiliates, partners or agents of the Participant from such breach or attempted violation of such covenants and agreements, as well as to recover from the Participant any and all costs and expenses sustained or incurred by the Company or any Affiliate in obtaining such an injunction, including, without limitation, reasonable attorneys' fees. The parties to this Agreement agree that no bond or other security shall be required in connection with such injunction. Any exercise by either of the parties to this Agreement of its rights pursuant to this Section 15 shall be cumulative and in addition to any other remedies to which such party may be entitled. 

		
			

		 

		

			
	
			
				 16.
			Notices.  All notices and other communications under this Agreement shall be in writing and shall be delivered to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

		
			If to the Company, unless otherwise designated by the Company in a written notice to the Participant (or other holder):
		

		
			Select Energy Services, Inc.
Attn: Senior Vice President, General Counsel and Secretary
		

		
			1233 W. Loop South, Suite 1400
		

		
			Houston, Texas 77027
		

		
			If to the Participant, at the Participant’s last known address on file with the Company. 
		

		
			Any notice that is delivered personally or by overnight courier or telecopier in the manner provided herein shall be deemed to have been duly given to the Participant when it is mailed by the Company or, if such notice is not mailed to the Participant, upon receipt by the Participant. Any notice that is addressed and mailed in the manner herein provided shall be conclusively presumed to have been given to the party to whom it is addressed at the close of business, local time of the recipient, on the fourth day after the day it is so placed in the mail. 
		

			
	
			
				 17.
			Consent to Electronic Delivery; Electronic Signature.  In lieu of receiving documents in paper format, the Participant agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this and any other Award made or offered by the Company. Electronic delivery may be via a Company electronic mail system or by reference to a location on a Company intranet to which the Participant has access. The Participant hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.

			
	
			
				 18.
			Agreement to Furnish Information.  The Participant agrees to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirement imposed upon the Company by or under any applicable statute or regulation.

			
	
			
				 19.
			Entire Agreement; Amendment.  This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the PSUs granted hereby;  provided ̧ however, that the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment, consulting and/or severance agreement between the Company (or an Affiliate or other entity) and the Participant in effect as of the date a determination is to be made under this Agreement.  Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if any, among the 

		 

	parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.  The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially reduces the rights of the Participant shall be effective only if it is in writing and signed by both the Participant and an authorized officer of the Company.

			
	
			
				 20.
			Severability and Waiver.  If a  court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of such provision shall not affect the validity or enforceability of any other provision of this Agreement, and all other provisions shall remain in full force and effect. Waiver by any party of any breach of this Agreement or failure to exercise any right hereunder shall not be deemed to be a waiver of any other breach or right. The failure of any party to take action by reason of such breach or to exercise any such right shall not deprive the party of the right to take action at any time while or after such breach or condition giving rise to such rights continues.

			
	
			
				 21.
			Clawback.  Notwithstanding any provision in the Grant Notice, this Agreement or the Plan to the contrary, to the extent required by (a) applicable law, including, without limitation, the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any Securities and Exchange Commission rule or any applicable securities exchange listing standards and/or (b) any policy that may be adopted or amended by the Board from time to time, all shares of Stock issued hereunder shall be subject to forfeiture, repurchase, recoupment and/or cancellation to the extent necessary to comply with such law(s) and/or policy.

			
	
			
				 22.
			Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of DELAWARE applicable to contracts made and to be performed therein, exclusive of the conflict of laws provisions of DELAWARE LAW.

			
	
			
				 23.
			Successors and Assigns.    The Company may assign any of its rights under this Agreement without the Participant’s consent.   This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer set forth herein and in the Plan, this Agreement will be binding upon the Participant and the Participant's beneficiaries, executors, administrators and the person(s) to whom the PSUs may be transferred by will or the laws of descent or distribution.

			
	
			
				 24.
			Headings. Headings are for convenience only and are not deemed to be part of this Agreement.

			
	
			
				 25.
			Counterparts.  The Grant Notice may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.  Delivery of an executed counterpart of the Grant Notice by facsimile or portable document format (.pdf) attachment to electronic mail shall be effective as delivery of a manually executed counterpart of the Grant Notice.

			
	
			
				 26.
			Section 409A.  Notwithstanding anything herein or in the Plan to the contrary, the PSUs granted pursuant to this Agreement are intended to comply with the applicable requirements 

		 

	of the Nonqualified Deferred Compensation Rules and shall be construed and interpreted in accordance with such intent. If the Participant is deemed to be a “specified employee” within the meaning of the Nonqualified Deferred Compensation Rules, as determined by the Committee, at a time when the Participant becomes eligible for settlement of the PSUs upon his “separation from service” within the meaning of the Nonqualified Deferred Compensation Rules, then to the extent necessary to prevent any accelerated or additional tax under the Nonqualified Deferred Compensation Rules, such settlement will be delayed until the earlier of: (a) the date that is six months following the Participant’s separation from service and (b) the Participant’s death.  Notwithstanding the foregoing, the Company and its Affiliates make no representations that the PSUs provided under this Agreement are compliant with the Nonqualified Deferred Compensation Rules and in no event shall the Company or any Affiliate be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with the Nonqualified Deferred Compensation Rules.

		
			

		 

		

		
			EXHIBIT B
		

		
			COMPANY PEER GROUP
		

			
	
			
				 1.
			

			
	
			
			FTS International, Inc.

			
	
			
				 2.
			

			
	
			
			NexTier Oilfield Solutions Inc.

			
	
			
				 3.
			

			
	
			
			Liberty Oilfield Services Inc.

			
	
			
				 4.
			

			
	
			
			ProPetro Holding Corp.

			
	
			
				 5.
			

			
	
			
			RPC Inc.

			
	
			
				 6.
			

			
	
			
			Basic Energy Services, Inc.

			
	
			
				 7.
			

			
	
			
			Nine Energy Service Inc.

			
	
			
				 8.
			

			
	
			
			Newpark Resources Inc.

			
	
			
				 9.
			

			
	
			
			Oil States International, Inc.

			
	
			
				 10.
			

			
	
			
			Patterson UTI Energy Inc.

			
	
			
				 11.
			

			
	
			
			Quintana Energy Services Inc.

			
	
			
				 12.
			

			
	
			
			Ranger Energy Services, Inc.

			
	
			
				 13.
			

			
	
			
			TETRA Technologies Inc.Exhibit 10.1

 

Execution Version

 

FOURTH AMENDMENT TO LOAN DOCUMENTS

 

THIS FOURTH AMENDMENT
TO LOAN DOCUMENTS (this “Amendment”), dated as of May 4, 2020, is among STRATOS MANAGEMENT SYSTEMS, INC. (f/k/a
Tango Merger Sub Corp.), a Delaware corporation (“Stratos”), AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC. (f/k/a
Pensare Acquisition Corp.), a Delaware corporation (“Parent” and together with Stratos, collectively and individually,
“Borrower”), COMPUTEX, INC., a Texas corporation (“Computex”), FIRST BYTE COMPUTERS, INC.,
a Minnesota corporation (“First Byte”), ENETSOLUTIONS, L.L.C., a Texas limited liability company (“eNET”,
and together with Computex and First Byte, collectively, “Guarantors”, and each, individually, a “Guarantor”),
and COMERICA BANK (“Bank”).

 

RECITALS:

 

A. Borrower and Bank
are party to that certain Credit Agreement dated as of December 18, 2017 (as the same has been or may hereafter be amended, restated
or otherwise modified from time to time, the “Credit Agreement”).

 

B. In connection with
the Credit Agreement, (i) Borrower and the Guarantors (other than Parent) are party to that certain Security Agreement dated as
of December 18, 2017 in favor of Bank and (ii) Parent is party to that certain Security Agreement dated as of April 7, 2020 in
favor of Bank (collectively, as the same have been or may be amended, restated or modified from time to time, the “Security
Agreement”).

 

C. In connection with
the Credit Agreement, (i) the Guarantors (other than Parent) are party to that certain Guaranty dated as of December 18, 2017 in
favor of Bank and (ii) Parent is party to that certain Guaranty dated as of April 7, 2020 in favor of Bank (collectively, as the
same have been or may hereafter be amended, restated or otherwise modified from time to time, the “Guaranties”).

 

D. In connection with
the Credit Agreement, the Borrower and Guarantors are party to that certain Advance Formula Agreement dated as of December 18,
2017 (as the same has been or may hereafter be amended, restated or otherwise modified from time to time, the “Advance
Formula Agreement”).

 

E. Borrower, Guarantors, and Bank now desire
to amend the Credit Agreement and the other Loan Documents as provided herein.

 

    Fourth Amendment to Loan Documents – Page 1

     

    

 

NOW, THEREFORE, in consideration
of the premises herein contained and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
the parties hereto agree as follows (all provisions of this Amendment being effective as of the date hereof unless otherwise stated
herein):

 

ARTICLE I

 

Definitions

 

Section 1.1 Definitions.
Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Credit
Agreement, as amended hereby.

 

ARTICLE II

 

Amendments to Loan Documents

 

Section 2.1
Additions to Definitions in Section 1(a) of the Credit Agreement. The following definitions are hereby added to Section
1(a) of the Credit Agreement in alphabetical order in their entirety as follows:

 

“Applicable CARES Provisions”
shall mean SBA’s Paycheck Protection Program established under the Coronavirus Aid, Relief and Economic Security Act and
the related rules and regulations, as applicable, as amended from time to time.

 

“Fourth Amendment Effective Date”
shall mean May 4, 2020.

 

“Permitted PPP Loan”
shall mean the Debt incurred by Borrower under Applicable CARES Provisions.

 

“SBA” shall mean the U.S. Small
Business Administration.

 

“Small Business Act”
shall mean the Small Business Act (15 U.S. Code Chapter 14A – Aid to Small Business).

 

Section 2.2
Addition to Section 4 of the Credit Agreement. The following new subsections 4(u) and (y) are added to the end of Section
4 of the Credit Agreement to be read in their entirety as follows:

 

(u) Permitted
PPP Loan. (a) Use all proceeds of the Permitted PPP Loan exclusively for uses that are eligible for forgiveness under the
Applicable CARES Provisions, (b) use its commercially reasonable efforts to conduct its business in a manner that maximizes
the amount of the Permitted PPP Loan that may be forgiven under the Applicable CARES Provisions, (c) maintain all records
required to be submitted in connection with the forgiveness of the Permitted PPP Loan, (d) apply for forgiveness of the
Permitted PPP Loan in accordance with the Applicable CARES Provisions promptly following the first date on which Borrower may
apply for such forgiveness by submitting its application and all related supporting documentation required by SBA or the
lender providing the Permitted PPP Loan, and (e) provide Bank with a copy of such application and all such supporting
documentation promptly following such submission. Notwithstanding anything to the contrary contained in this Agreement, the
Permitted PPP Loan permitted pursuant to Section 5(d)(xii) (other than interest thereon, to the extent not eligible
for forgiveness) shall be disregarded for purposes of calculating any of the financial covenants contained in this Agreement;
provided, however, that, for purposes of such financial covenant calculations, if any portion of the Permitted PPP Loan is
not forgiven, the unforgiven portion of the Permitted PPP Loan (i) will not be disregarded in such calculations and (ii) will
be deemed to have been incurred as of the date on which the Borrower receives the proceeds of the Permitted PPP Loan.

 

    Fourth Amendment to Loan Documents – Page 2

     

    

 

(y) Fourth
Amendment Post-Closing Deliverables. Within thirty (30) days of the Fourth Amendment Effective Date, Borrower shall deliver
to the Bank (i) documentation evidencing the assignment of insurance of the Borrower’s accounts receivable and (ii) lien
terminations from Synovus Bank relating to any assets of the Loan Parties, each in form and substance reasonably satisfactory to
Bank.

 

Section 2.3 Amendment to Section 5(d) of the Credit
Agreement. Section 5(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(d) Debt. Incur,
create, assume or permit to exist any Debt of any kind or nature whatsoever, except (without duplication) for (i) the
Indebtedness, (ii) Subordinated Debt, (iii) existing indebtedness (if any) to the extent set forth in the Schedule of Debt
attached hereto or in the most recent financial statements of Borrower delivered to Bank prior to the date of this Agreement,
(iv) unsecured trade indebtedness, utility indebtedness and non-extraordinary accounts payable incurred and paid in the
ordinary course of business, (v) purchase money indebtedness and lease obligations (whether in respect of capitalized leases,
operating leases or otherwise, but not leases in respect of real property pursuant to which the Loan Parties are a tenant),
not otherwise disclosed in said Schedule of Debt or such most recent financial statements, not to exceed $1,000,000, in
aggregate, at any time, (vi) Debt owing solely between or among Loan Parties, (vii) Debt owed by any Foreign Subsidiary to a
Loan Party in an aggregate outstanding amount not to exceed $100,000 at any time, (viii) Ingram Micro Debt, (ix) other
unsecured Debt not to exceed $100,000, in aggregate, at any time outstanding; (x) any Debt incurred in connection with any
Capital Expenditure set forth on the Schedule of Permitted Capital Expenditures, (xi) unsecured Debt incurred for the sole
purpose of financing insurance premiums in an aggregate outstanding amount not to exceed $1,500,000 at any time, (xii) the
Permitted PPP Loan so long as (1) it is unsecured and (2) the aggregate principal amount of the Permitted PPP Loan shall not
exceed $4,200,000 at any one time outstanding;, and (xiii) any Debt incurred to refinance any Debt referred to in this
Section 5(d); provided, that the principal amount of the Indebtedness secured thereby is not increased.

 

ARTICLE III

 

No Waiver

 

Section 3.1 No
Waiver. Nothing contained herein shall be construed as a consent to or waiver of any Default or Event of Default, which
may now exist or hereafter occur or any violation of any term, covenant or provision of the Credit Agreement or any other
Loan Document. All rights and remedies of Bank are hereby expressly reserved with respect to any such Default or Event of
Default. Nothing contained herein shall affect or diminish the right of Bank to require strict performance by each Loan Party
of each provision of any Loan Document to which such Loan Party is a party, except as expressly provided herein. Except as
amended hereby, all terms and provisions and all rights and remedies of Bank under the Loan Documents shall continue in full
force and effect and are hereby confirmed and ratified in all respects.

 

    Fourth Amendment to Loan Documents – Page 3

     

    

 

ARTICLE IV

 

Conditions Precedent

 

Section 4.1 Conditions
Precedent. The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:

 

(a) Bank shall have received this
Amendment properly executed by Borrower, Guarantors and Bank.

 

(b) The representations
and warranties contained herein and in all other Loan Documents, as amended hereby, shall be true and correct in all material respects
as of the date hereof as if made on the date hereof.

 

(c) No Default or Event of Default
shall have occurred and be continuing.

 

ARTICLE V

 

Ratifications, Representations and Warranties

 

Section 5.1 Ratifications.
The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth
in the Credit Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit
Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect. Each of Borrower,
Guarantors and Bank agree that the Credit Agreement, as amended hereby, and the other Loan Documents shall continue to be legal,
valid, binding and enforceable in accordance with their respective terms. Each Guarantor hereby consents and agrees to this Amendment
and agrees that each Loan Document to which such Person is a party shall remain in full force and effect and shall continue to
(a) in the case of the Guaranty, guarantee the Indebtedness (as defined in the Guaranty) and the other amounts and obligations
as provided in the Guaranty, and (b) be the legal, valid and binding obligation of such Person and enforceable against such Person
in accordance with its terms.

 

Section 5.2 Representations
and Warranties. Each of Borrower and Guarantors hereby represents and warrants to the Bank that (a) with respect to
Borrower, the execution, delivery and performance of this Amendment and any and all other Loan Documents executed and/or
delivered in connection herewith have been authorized by all requisite company or other action on the part of Borrower and
will not violate the charter or organizational documents of Borrower, (b) the representations and warranties contained in the
Credit Agreement and each other Loan Document are true and correct in all material respects on and as of the date hereof as
though made on and as of the date hereof (except for such representations and warranties as are limited by their express
terms to a specific date), and (c) effective upon the execution of this Amendment and the Loan Documents executed in
connection herewith, no Default or Event of Default (other than the Subject Default) has occurred and is continuing.

 

    Fourth Amendment to Loan Documents – Page 4

     

    

 

ARTICLE VI

 

Miscellaneous

 

Section 6.1 Survival
of Representations and Warranties. All representations and warranties made in this Amendment or any other document executed
in connection herewith shall survive the execution and delivery of this Amendment, and no investigation by Bank or any closing
shall affect the representations and warranties or the right of Bank to rely upon them.

 

Section 6.2 Reference
to Agreement. Each of the Credit Agreement, the Loan Documents and any and all other agreements, documents, or instruments
now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement and the Loan
Documents, as amended hereby, are hereby amended so that any reference in such documents to the Credit Agreement and the Loan Documents
shall mean a reference to the Credit Agreement and the Loan Documents as amended hereby.

 

Section 6.3 Expenses
of Bank. As provided in the Credit Agreement, each of Borrower agrees to pay on written demand all reasonable and documented
costs and expenses incurred by Bank in connection with the preparation, negotiation, and execution of this Amendment and any other
documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including without limitation
the reasonable costs and fees of Bank’s legal counsel, and all costs and expenses incurred by Bank in connection with the
enforcement or preservation of any rights under the Credit Agreement, as amended hereby, or any other document executed in connection
therewith, including without limitation the costs and reasonable fees of Bank’s legal counsel.

 

Section 6.4 Severability.
Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate
the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

Section 6.5 Applicable
Law. This Amendment and all other documents executed pursuant hereto shall be deemed to have been made and to be performable
in Dallas, Dallas County, Texas and shall be governed by and construed in accordance with the laws of the State of Texas.

 

Section 6.6 Successors
and Assigns. This Amendment is binding upon and shall inure to the benefit of Bank, each Borrower, each Guarantor, and their
respective successors, assigns, heirs, executors and personal representatives, except neither Borrower, nor any Guarantor may assign
or transfer any of its rights or obligations hereunder without the prior written consent of Bank.

 

    Fourth Amendment to Loan Documents – Page 5

     

    

 

Section 6.7 Counterparts.
This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which
shall be an original and all of which taken together shall constitute one and the same agreement. The signature of a party to
any counterpart shall be sufficient to legally bind such party. Bank may remove the signature pages from one or more
counterparts and attach them to any other counterpart for the purpose of having a single document containing the signatures
of all parties. Delivery of an executed counterpart of a signature page to this Amendment by facsimile, emailed portable
document format (“pdf”), or tagged image file format (“tiff”) or any other electronic
means that reproduces an image of the actual executed signature page shall be effective as delivery of an original executed
counterpart of a signature page to this Amendment. Any party sending an executed counterpart of a signature page to this
Amendment by facsimile, pdf, tiff or any other electronic means shall also send the original thereof to Bank within five (5)
days thereafter, but failure to do so shall not affect the validity, enforceability, or binding effect of this Amendment.

 

Section 6.8 Headings.
The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.

 

Section 6.9 ENTIRE
AGREEMENT. THE CREDIT AGREEMENT, THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED AND DELIVERED
IN CONNECTION WITH THE CREDIT AGREEMENT OR THIS AMENDMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE
ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THIS AMENDMENT,
AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE
PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

Section 6.10 INDEMNIFICATION
OF BANK. EACH OF THE LOAN PARTIES HEREBY AGREES TO INDEMNIFY BANK AND EACH AFFILIATE THEREOF AND THEIR RESPECTIVE
OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, ATTORNEYS, AFFILIATES, AND AGENTS (COLLECTIVELY, “RELEASED
PARTIES”) FROM, AND HOLD EACH OF THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES,
PENALTIES, JUDGMENTS, DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) TO WHICH ANY OF THEM MAY BECOME
SUBJECT WHICH DIRECTLY OR INDIRECTLY ARISE FROM OR RELATE TO (a) ANY AND ALL FAILURES BY SUCH LOAN PARTY TO COMPLY WITH ITS
AGREEMENTS CONTAINED IN THE LOAN DOCUMENTS, (b) THE NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION, OR
ENFORCEMENT OF ANY OF THE LOAN DOCUMENTS PRIOR TO THE DATE HEREOF, (c) ANY OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN
DOCUMENTS PRIOR TO THE DATE HEREOF, (d) ANY BREACH PRIOR TO THE DATE HEREOF BY SUCH LOAN PARTY OR SUMMIT OF ANY
REPRESENTATION, WARRANTY, COVENANT, OR OTHER AGREEMENT CONTAINED IN ANY OF THE LOAN DOCUMENTS OR (e) ANY INVESTIGATION,
LITIGATION, OR OTHER PROCEEDING, INCLUDING, WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION, OR OTHER PROCEEDING
RELATING TO ANY OF THE FOREGOING (COLLECTIVELY, “RELEASED CLAIMS”). WITHOUT LIMITING ANY PROVISION OF THIS
AMENDMENT, IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED UNDER THIS SECTION SHALL BE
INDEMNIFIED FROM AND HELD HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS,
DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) ARISING OUT OF OR RESULTING FROM THE SOLE OR
CONTRIBUTORY NEGLIGENCE OF SUCH PERSON; PROVIDED, HOWEVER, NO PERSON SHALL BE INDEMNIFIED HEREUNDER FOR ITS OWN GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT.

 

    Fourth Amendment to Loan Documents – Page 6

     

    

 

Section 6.11 WAIVER
AND RELEASE. TO INDUCE BANK TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH OF THE LOAN PARTIES REPRESENTS AND WARRANTS THAT
AS OF THE DATE OF THIS AMENDMENT IT OR HE HAS NO CLAIMS AGAINST RELEASED PARTIES AND IN ACCORDANCE THEREWITH IT:

 

(a) WAIVER.
WAIVES ANY AND ALL SUCH CLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF THIS AMENDMENT; AND

 

(b) RELEASE.
RELEASES, ACQUITS AND FOREVER DISCHARGES RELEASED PARTIES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE STATE AND FEDERAL LAW,
FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, COUNTERCLAIMS, CONTROVERSIES, COSTS, DEBTS, SUMS OF MONEY, ACCOUNTS,
BONDS, BILLS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY,
WHICH SUCH LOAN PARTY EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF
AND FROM OR IN CONNECTION WITH THIS AMENDMENT, THE LOAN DOCUMENTS OR THE TRANSACTIONS DIRECTLY OR INDIRECTLY CONTEMPLATED THEREBY.

 

Section 6.12 COVENANT
NOT TO SUE. EACH OF THE LOAN PARTIES FURTHER COVENANTS NOT TO SUE THE RELEASED PARTIES ON ACCOUNT OF ANY OF THE RELEASED CLAIMS,
AND EXPRESSLY WAIVES ANY AND ALL DEFENSES IT OR HE MAY HAVE IN CONNECTION WITH ITS OR HIS OBLIGATIONS UNDER THIS AMENDMENT OR THE
OTHER LOAN DOCUMENTS. THIS SECTION IS IN ADDITION TO AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE, COVENANT NOT TO SUE, OR
WAIVER BY SUCH LOAN PARTY IN FAVOR OF THE RELEASED PARTIES.

 

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

 

    Fourth Amendment to Loan Documents – Page 7

     

    

 

Executed as of the date first written above.

 

	 	BORROWER:
	 	 
	 	STRATOS MANAGEMENT SYSTEMS, INC.
	 	(f/k/a Tango Merger Sub Corp.) and
	 	 	 
	 	By:	/s/ Sam Haffar
	 	 	Sam Haffar
	 	 	Chief Executive Officer
	 	 	 
	 	AMERICAN VIRTUAL CLOUD TECHNOLOGIES, INC.
	 	(f/k/a Pensare Acquisition Corp.)
	 	 	 
	 	By:	/s/ Thomas H. King
	 	 	Thomas H. King
	 	 	Chief Financial Officer
	 	 	 
	 	GUARANTORS:
	 	 
	 	COMPUTEX, INC.
	 	FIRST BYTE COMPUTERS, INC.
	 	eNETsolutions, L.L.C.
	 	 	 
	 	By:	/s/ Sam Haffar
	 	 	Sam Haffar
	 	 	Chief Executive Officer of each entity listed above

 

    Fourth Amendment to Loan Documents – Signature Page

     

    

 

	 	BANK:
	 	 	 
	 	COMERICA BANK
	 	 	 
	 	By:	/s/ Julie M. Anderson
	 	 	Julie M. Anderson
	 	 	Assistant Vice President

 

 

Fourth Amendment to Loan Documents – Signature Page

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