Document:

Exhibit 10.1

 

 

Ms. Holli Ladhani
 President & Chief Executive Officer
 Rockwater Energy Solutions, Inc.
 515 Post Oak Blvd, Suite 200
 Houston, TX 77027

 

Re: Merger Agreement

 

Dear Ms. Ladhani:

 

Reference is made to that certain Agreement and Plan of Merger, dated as of July 18, 2017 (the “Original Agreement”) by and among SELECT ENERGY SERVICES, INC., a Delaware corporation (“Parent”), RAPTOR MERGER SUB, INC., a Delaware corporation and a wholly owned subsidiary of Parent (“Corporate Merger Sub”), SES HOLDINGS, LLC, a Delaware limited liability company (“Parent Holdco”), RAPTOR MERGER SUB, LLC, a Delaware limited liability company and a wholly owned subsidiary of Parent Holdco (“LLC Merger Sub”), ROCKWATER ENERGY SOLUTIONS, INC., a Delaware corporation (the “Company”), and ROCKWATER ENERGY SOLUTIONS, LLC, a Delaware limited liability company (“Company Holdco”). This Letter Agreement (this “Letter Agreement”) is made as of September 19, 2017 by and among Parent, Corporate Merger Sub, Parent Holdco, LLC Merger Sub, the Company and Company Holdco. In consideration of the mutual waivers and agreements set forth herein, the Parties agree to the matters set forth below, which are intended to effect a mutual waiver by Parent and the Company with respect to Section 7.1(b) of the Original Agreement until the date set forth herein and to correct unintended omissions in order to properly reflect the agreement between the Parties in the Original Agreement. Capitalized terms used in this Letter Agreement and not otherwise defined herein are as defined in the Original Agreement.

 

1.              Notwithstanding anything to the contrary in Section 7.1(b) of the Original Agreement, and in consideration of the waiver and agreement by the Other Party, each of Parent and the Company waive any right to, and agree not to, terminate the Original Agreement pursuant to Section 7.1(b) prior to 5:00 p.m. Central Time on December 31, 2017.

 

2.              It is acknowledged and agreed by the Parties that, in connection with the cancellation and retiring of any shares of Company Common Stock at the time of the Corporate Merger then owned by Parent or Corporate Merger Sub or any of Parent’s Subsidiaries (including Select Energy Services, LLC) pursuant to Section 2.1(a)(ii) of the Original Agreement (for which no consideration shall be delivered in exchange therefor), a corresponding number of Company Holdco Units then owned by the Company shall be simultaneously canceled and retired and shall cease to exist, and no consideration shall be delivered in exchange therefor.

 

3.              This Letter Agreement, the Original Agreement, including the schedules, exhibits, and amendments thereto, the New Registration Rights Agreement, the TRA

 

 

Amendments, the Confidentiality Agreement and any other document or instrument referred to in the Original Agreement constitute the entire agreement among the Parties and supersede all other prior or contemporaneous agreements and understandings, both written and oral, among or between any of the Parties with respect to the subject matter hereof and thereof.

 

4.              This Letter Agreement shall not constitute an amendment or waiver of any provision of the Original Agreement not expressly referred to herein and shall not be construed as an amendment, waiver or consent to any action that would require an amendment, waiver or consent except as expressly stated herein.

 

5.              This Letter Agreement may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument and shall become effective when counterparts have been signed by each of the Parties and delivered to the Other Party; it being understood that all Parties need not sign the same counterpart.

 

6.              This Letter Agreement and the agreements, instruments, and documents contemplated hereby, shall be governed by, and construed in accordance with, the Legal Requirements of the State of Delaware, without regard to any applicable principles of conflicts of law that might require the application of the Legal Requirements of any other jurisdiction.

 

[Signature Page Follows]

 

2

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SELECT   ENERGY SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ John   D. Schmitz
    
	
 
    	
Name:
    	
John D.   Schmitz
    
	
 
    	
Title:
    	
Chairman   and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
RAPTOR   MERGER SUB, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John   D. Schmitz
    
	
 
    	
Name:
    	
John D.   Schmitz
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
SES   HOLDINGS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John   D. Schmitz
    
	
 
    	
Name:
    	
John D.   Schmitz
    
	
 
    	
Title:
    	
President   and Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
RAPTOR   MERGER SUB, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John   D. Schmitz
    
	
 
    	
Name:
    	
John D.   Schmitz
    
	
 
    	
Title:
    	
President
    

 

Signature Page to Letter Agreement

 

 

Acknowledged and agreed:

 

	
ROCKWATER   ENERGY SOLUTIONS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Holli Ladhani
    	
 
    
	
Name:
    	
Holli   Ladhani
    	
 
    
	
Title:
    	
Chairman,   President and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
ROCKWATER   ENERGY SOLUTIONS, LLC
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Holli Ladhani
    	
 
    
	
Name:
    	
Holli   Ladhani
    	
 
    
	
Title:
    	
Chairman,   President and Chief Executive Officer
    	
 
    

 

Signature Page to Letter AgreementExhibit

                                                                                                  Exhibit 10.1

PROMISSORY NOTES EXCHANGE AGREEMENT
ASCENT SOLAR TECHNOLOGIES, INC.

The undersigned holder hereby agrees to exchange each of its existing and currently outstanding Promissory Notes (aggregate principal amount and accrued interest equal to $3,504,197.45 as of September 13, 2017) issued by Ascent Solar Technologies, Inc., a Delaware corporation (the “Company”) (the “Existing Notes”) in exchange for one newly issued Promissory Note of the Company (the “New Note”) having a principal amount of $3,504,197.45.  The New Note shall have a maturity date of September 13, 2020, and shall have such other terms and conditions as are mutually agreed to by the holder and the Company.

Date: September 13, 2017

Holder: 
Global Ichiban Ltd         
By:  LT Asia Management Ltd
By:  /s/  Ashley Ong                                                  
Name: Ashley Ong                                                      
Title: Director, LT Asia Management Ltd        

Ascent Solar Technologies, Inc.
By:  /s/ Victor Lee
Name: Victor Lee
Title: President & CEOExhibit

                                                                                                                                       Exhibit 10.2

THIS UNSECURED PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE PAYOR THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.

UNSECURED PROMISSORY NOTE

$3,504,197.45
September 13, 2017
Thornton, Colorado

For value received, Ascent Solar Technologies, Inc., a Delaware corporation (“Payor”), promises to pay to Global Ichiban Ltd or its assigns (“Holder”) the principal sum of $3,504,197.45 with interest on the outstanding principal amount at the rate of twelve percent (12%) per annum.  Interest shall commence from the effective date and shall be computed on the basis of a year of 365 days for the actual number of days elapsed.  The principal and accrued interest on this note (the “Note”) shall be due and payable over Thirty Six (36) equal monthly instalments commencing on October 13, 2017 (the “Instalment”) and ending on September 13, 2020 (the “Maturity Date”), provided that the Instalment and Maturity Date of all Notes (as defined below) may be extended with the written consent of Holder.
1.This Note is issued pursuant to that certain Promissory Notes Exchange Agreement dated September 13, 2017, as the same may be amended from time to time, by and between Borrower and Holder (the “Exchange Agreement”).
2.    The obligations under this Note will be unsecured.
3.    All instalments shall be in lawful money of the United States of America and shall be made pro rata among all Holders.  All payments shall be applied first to accrued expenses due under this Note, next to interest and thereafter to principal.
4.    At the option of the Payor, payments of each instalment may be made (a) in cash, or (b) in Common Stock of the Payor at Market Price (“Instalment Shares”). The Market Price of the Instalment Shares shall be 85% of the average VWAP for the 5 consecutive trading days prior to the date on which the Instalment Shares are issued, but in no event greater than the latest Closing Bid on the day the instalment is made or $0.004 per share, whichever is lower.  Payor may not make any payments in the form of Instalment Shares if the issuance of such Instalment Shares would cause the Holder to be deemed to “beneficially own” (as such term is defined under applicable SEC rules and regulations) more than 9.9% of the Payor’s outstanding shares of common stock.

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5.    Payor shall deliver to Holder, or its designee or agent the Instalment Shares and delivery shall be made via Delivery by Deposit/Withdrawal at Custodian (DWAC) as follows:
DTC Participant:    Bank of New York Mellon, New York
DTC Number:        
Account Number:    

6.    Promptly upon the occurrence thereof, Payor shall furnish to Holder written notice of the occurrence of any Event of Default (as defined below) hereunder.
7.    If action is instituted to collect this Note, the Payor promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred in connection with such action.
8.    Payor may prepay this Note prior to the Maturity Date.
9.    If there shall be any Event of Default hereunder, at the option of, and upon the declaration of the Holder of this Note and upon written notice to the Payor (which election and notice shall not be required in the case of an Event of Default under Section 9(b) or 9(c)), this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable.  The occurrence of any one or more of the following shall constitute an “Event of Default”:
(a)    Payor fails to pay timely any of the principal amount due under any of the Notes on the date the same becomes due and payable or any accrued interest or other amounts due under any of the Notes on the date the same becomes due and payable;
(b)    Payor (i) files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect; (ii) makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing; (iii) applies for or consents to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property; (iv) is unable, or admits in writing its inability, to pay its debts generally as they mature, (v) is dissolved or liquidated; (vi) becomes insolvent (as such term may be defined or interpreted under any applicable statute); or (vii) takes any action for the purpose of effecting any of the foregoing; or
(c)    An involuntary petition is filed against Payor (unless such petition is dismissed or discharged within thirty (30) days under any bankruptcy statute now or hereafter in effect) or a custodian, receiver, trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control of any property of Payor.

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10.    Upon the occurrence or existence of any Event of Default (other than an Event of Default described in Section 9(b) or 9(c)) and at any time thereafter during the continuance of such Event of Default, Holder may, by written notice to the Payor, declare all outstanding principal and accrued interest on this Note immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived.  Upon the occurrence or existence of any Event of Default described in Section 9(b) or 9(c), immediately and without notice, all outstanding principal and interest on this Note shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived.
11.    The Payor hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this Note.
12.    This Note shall be governed by and construed under the laws of the State of Colorado, as applied to agreements among Colorado residents, made and to be performed entirely within the State of Colorado, without giving effect to conflicts of laws principles.
13.    Any term of this Note (excluding the principal amount of the Note and the interest rate of the Note) may be amended or waived with the written consent of Payor and Holder.  Upon the effectuation of such waiver or amendment in conformance with this Section 13, the Payor shall promptly give written notice thereof to the record holders of the Notes who have not previously consented thereto in writing.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, Payor and Holder have caused this Note to be executed as of the date first written above.

PAYOR: 

ASCENT SOLAR TECHNOLOGIES, INC.

By:    /s/  Victor Lee
Name:  Victor Lee
Title:  Chief Executive Officer

HOLDER: 

GLOBAL ICHIBAN LTD

By:  LT Asia Management Ltd

By:    /s/  Ashley Ong
Name:  Ashley Ong
Title:  Director, LT Asia Management Ltd

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SIGNATURE PAGE TO UNSECURED PROMISSORY NOTE

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