Document:

Exhibit 10.1

promissory note
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THIS NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD UNLESS REGISTERED PURSUANT TO THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.
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Unless permitted by securities legislation, the holder of this security must not trade the security before February 15, 2022.
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October 14, 2021
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$1,000,000
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Rare Element Resources Ltd., a company incorporated under the laws of the Province of British Columbia (the “Borrower”), hereby promises to pay to the order of Synchron, a California corporation (the “Lender”), the principal sum of ONE MILLION DOLLARS ($1,000,000), together with interest thereon calculated in accordance with the provisions of this Note.  Capitalized terms used in this Note and not otherwise defined herein shall have the respective meanings specified in the Investment Agreement entered into as of October 2, 2017 by and between the Borrower and the Lender (as amended from time to time, the “Investment Agreement”).  All amounts stated herein are in U.S. dollars.
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1.Interest.  Interest shall accrue from and including the date hereof at a rate equal to eight percent (8%) per annum (the “Interest Rate”) on the unpaid principal balance of this Note then outstanding.  Accrued interest on this Note shall be due and payable in dollars on the Maturity Date (as defined below).  The amount of interest payable for any period shall be calculated by multiplying (1) the unpaid principal balance of this Note outstanding during such period by the result of (2) multiplying (a) the rate of interest per annum in respect of this Note by (b) the quotient of the actual number of days in the relevant period divided by 365, and rounding the resulting figure to the nearest cent (half a cent being rounded upwards).  In the event that the Borrower is unable to pay the accrued interest on this Note on the Maturity Date (as defined in Section 2(a)), then the interest due and payable on the Maturity Date shall be paid in kind by adding such accrued interest to the then outstanding principal amount of this Note, which capitalized interest thereafter shall constitute outstanding principal for all purposes hereunder.
2.Principal.
(a)Maturity Date.  On or before the date (the “Maturity Date”) that is the earlier of (i) October 1, 2022 or (ii) the date of consummation of an equity financing pursuant to which the Borrower issues and sells its Common Shares for aggregate gross proceeds of at least $25,000,000 (the “Equity Financing”), the Borrower shall pay the entire unpaid principal amount of this Note then outstanding to the Lender, together with all accrued and unpaid interest thereon.
(b)Optional Prepayments.  The Borrower may, at its option, prepay all, or any part of, the unpaid principal amount of this Note (including any capitalized interest) then outstanding prior to the Maturity Date by paying to the Lender an amount equal to the principal amount of this Note to be prepaid, plus all accrued but unpaid interest thereon through and including the prepayment date.  The Borrower will give the Lender written notice of each optional prepayment under this Section 2(b) not less than three (3) Business Days prior to the date fixed for such prepayment (unless such notice is waived by the Lender).  Each such notice shall specify such date (which shall be a Business Day), the portion of the unpaid principal amount of this Note then outstanding to be prepaid on such date, and interest to be paid on the prepayment date with respect to such principal amount being prepaid.

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(c)Application of Principal Payments and Reductions.  All payments and prepayments of principal on this Note and all principal reductions effected in accordance with the terms of this Note shall be applied first to any outstanding interest owed under this Note and second to the unpaid principal balance of this Note.

3.Representations, Warranties and Covenants.  The Borrower hereby represents, warrants, and covenants to the Lender, as of the date hereof, as follows:
(a)Organization and Good Standing.  The Borrower is a corporation duly organized, validly existing and in good standing under the laws of the Province of British Columbia, with the requisite power and capacity to own and use its properties and assets and to carry on its business as currently conducted.  The Borrower is not in violation nor default of any of the provisions of its organizational or charter documents.  The Borrower is duly qualified to conduct business and is in good standing in each jurisdiction in which the nature of the business conducted or property owned, leased or licensed or otherwise held by it makes such qualification necessary in all material respects and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.
(b)Corporate Power.  The Borrower has all requisite corporate power and capacity to execute and deliver the Note and to carry out and perform its obligations under the terms of this Note.
(c)Authorization.  The Borrower has the requisite corporate power and capacity to enter into this Note and to consummate the transactions contemplated hereby and otherwise to carry out its obligations hereunder.  The execution and delivery of this Note by the Borrower and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Borrower and no further action is required by the Borrower, the Board of Directors or the Borrower’s shareholders in connection herewith.  This Note, when executed and delivered by the Borrower, shall constitute valid and binding obligations of the Borrower enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors, equitable principles, and, with respect to rights to indemnity, subject to federal and state securities laws.
(d)No Conflicts.  The execution, delivery and performance by the Borrower of this Note and the consummation by it of the transactions contemplated hereby do not and will not (a) conflict with or violate any provision of the Borrower’s organizational or charter documents, or (b) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Borrower debt or otherwise) to which the Borrower is a party or by which any property or asset of the Borrower is bound or affected, or (c) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Borrower is subject (including U.S. federal securities laws and regulations), or by which any property or asset of the Borrower is bound or affected; except in the case of clause (c), such as could not be reasonably expected to result in a Material Adverse Effect.
(e)Litigation.  There is no material claim, action, suit, proceeding, arbitration, complaint, charge or investigation pending or to the Borrower’s knowledge, currently threatened in writing (i) against the Borrower that could materially adversely impact the Borrower’s ability to perform in any material respect on a timely basis its obligations under this Note, or (ii) that questions the validity of this Note or the right of the Borrower to enter into this Note, or to consummate the transactions contemplated by this Note.

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(f)Registration Rights.  The Borrower confirms and agrees that any Common Shares that may be acquired by the Lender from time to time shall be Registrable Securities pursuant to the definition of “Registrable Securities” set forth in the Investment Agreement and subject to substantially similar registration rights as the Acquired Shares and the Option Shares.
(g)Reliance by Lender.  The Borrower understands that the representations, warranties, covenants and acknowledgements set forth in this Section 3 constitute a material inducement to the Lender entering into this Note.
(h)Affirmative Covenants.  So long as any obligations under this Note shall remain outstanding or unpaid, the Borrower will:
(i)use the proceeds of this Note solely for fees and expenses incurred in connection with the Equity Financing, the permitting, engineering, construction and operation of a rare earth separation and processing demonstration plant near the Borrower’s Bear Lodge rare earth elements project and other general corporate purposes;
(ii)treat this Note as debt for United States federal income tax purposes that is not a contingent payment debt instrument within the meaning of Treasury Regulations Section 1.1275-4 and shall file all tax returns consistent with such treatment; and
(iii)use commercially reasonable efforts to consummate the Equity Financing.

(i)Negative Covenants.  So long as any obligations under this Note shall remain outstanding or unpaid, the Borrower will not, without the prior written consent of the Lender:
(i)create or suffer to exist any lien upon or with respect to any of its assets or properties, whether now owned or hereafter acquired, or assign any right to receive income, in each case to secure any indebtedness of any person other than liens for current taxes not yet due and payable, banker’s liens, and any statutory liens (such as carrier’s, warehousemen’s and mechanic’s liens) arising in the ordinary course of business by operation of law;
(ii)create or suffer to exist any other indebtedness other than trade payables and other unsecured debt incurred in the ordinary course of business;
(iii)declare or pay any dividends, purchase or otherwise acquire for value any of its Equity Securities now or hereafter outstanding, or make any distribution of assets to its shareholders as such;
(iv)consolidate with or merge into any other corporation or entity;
(v)convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of transactions, any material part of its business, property or assets outside the ordinary course of business, whether now owned or hereafter acquired; and
(vi)engage in any business other than the businesses engaged in by the Borrower on the date hereof and similar or related businesses.

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4.Events of Default; Remedies.
(a)Events of Default.  The term “Event of Default” as used herein means the occurrence or happening, at any time and from time to time, of any of the following:
(i)the failure of the Borrower to pay when due and payable the full amount of any principal payment or interest payment on this Note;
(ii)the Borrower’s breach or violation of any other covenant, agreement or condition under this Note, which breach or violation is not cured within ten (10) days after the occurrence thereof;
(iii)the Borrower admits in writing its inability to pay its debts as they become due (it being understood that any writing by the Borrower regarding a determination of the Borrower or its management that there is substantial doubt about the Borrower’s ability to continue as a going concern shall not be deemed an Event of Default);
(iv)the Borrower makes a general assignment for the benefit of creditors;
(v)the Borrower commences any case or other proceeding seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of its corporate structure or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any part of its property, or shall take any action to authorize any of the foregoing;
(vi)any case or proceeding is commenced against the Borrower to have an order for relief entered against it as debtor or seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of its structure or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking other similar official relief for it or any part of its property, and such case or proceeding (x) results in the entry of an order for relief against it which is not fully stayed within sixty (60) days after the entry thereof or (y) is not dismissed within sixty (60) days of commencement;
(vii)the Borrower’s breach or violation of any material representation, warranty or covenant, agreement or condition under this Note, which breach or violation is not cured within ten (10) days after the occurrence thereof; or
(viii)any default on any uncontested liabilities of the Borrower in the aggregate in excess of $100,000 which default continues for at least fifteen (15) days following such default.

(b)Remedies.  Upon the occurrence of an Event of Default, the Lender may declare all or any portion of the unpaid principal and accrued interest under this Note (the “Obligations”) to be immediately due and payable (provided, however, that if an Event of Default specified in clauses (iii) through (vi) of Section 4(a) occurs, the entire unpaid Obligations shall forthwith automatically become and be immediately due and payable without any declaration or other act on the part of the Lender).  If an Event of Default has occurred and is continuing, (i) interest will accrue at the then applicable Interest Rate plus two percent (2%) per annum on any principal amount then outstanding until all Obligations are paid in full, and (ii) the Lender shall be entitled to exercise any other rights, remedies, powers and privileges which it may have under any contract or agreement at any time and any other rights, remedies, powers and privileges which the Lender may have pursuant to applicable law.

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5.Amendment or Waiver.  This Note may only be amended by mutual written agreement.  The Borrower may not perform any act herein prohibited, or omit to perform any act herein required to be performed, without the written consent of the Lender.
6.Cancellation.  Immediately after all unpaid Obligations have been paid in full, this Note shall be automatically canceled and the Lender shall immediately surrender this Note to the Borrower for cancellation.  After cancellation of this Note, this Note shall not be reissued.
7.Assignment.  The rights and obligations of the Borrower and the Lender shall be binding upon and benefit the successors and permitted assigns and transferees of the Borrower and the Lender, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender.  The Lender shall have the right to assign its rights and obligations under this Note to a transferee without the consent of the Borrower upon the provision of written notice of such assignment to the Borrower.  In the event of any permitted assignment hereunder, the Lender shall surrender this Note to the Borrower and the Borrower shall issue one or more new notes reflecting such assignment but otherwise containing the same terms as this Note (or any replacement thereof) to each new lender (and, in the case of a partial assignment, to the assigning Lender).  The Borrower shall maintain at its address a register, in a manner necessary to establish that the Obligations under this Note are in registered form pursuant to Treasury Regulations Section 5f.103-1(c)(1)(ii), by book entry of the interests of the Lender under this Note, and any assignment of any such interest if the Borrower has received notice of such assignment from the assignor, which shall include (a) the name and address of the Lender, (b) the amount of any principal or interest owing to the Lender, and (c) the name and address of the assignee.
8.Place of Payments.  Payments of principal and interest shall be delivered as directed by prior written notice by the Lender to the Borrower or, if not specified by the Lender, then to the Lender, at the address of the Lender specified in Section 6.4 of the Investment Agreement.
9.Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each of the parties hereto agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Note (whether brought against such party or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and U.S. federal courts sitting in the City of New York.  Each party thereto hereby irrevocably submits to the exclusive jurisdiction of the state and U.S. federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction 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 any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.
10.Waiver of Jury Trial.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY EITHER PARTY AGAINST THE OTHER PARTY, THE PARTIES HERETO EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT 

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PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.
11.Costs and Expenses.  If an action is instituted to collect this Note or enforce the Lender’s rights hereunder, the Borrower shall pay all costs and expenses (including reasonable attorneys’ fees) incurred in connection with such action by the Lender.
12.New Note.  Upon receipt of an affidavit from the Lender in customary form of the loss, theft, destruction or mutilation of this Note, the Borrower will issue a new promissory note, of like tenor and amount and dated the original date of this Note, in lieu of such lost, stolen, destroyed or mutilated Note, and in such event the Lender thereof agrees to indemnify and hold harmless the Borrower in respect of any such lost, stolen, destroyed or mutilated Note.
13.Business Days and Payments.  If any payment is due, or any time period for giving notice or taking action expires, on a day which is not a Business Day, the payment shall be due and payable on the immediately following Business Day.  All payments shall be made under this Note in such coin or currency of the United States of America as at the time of payment shall be legal tender therein for the payment of public and private debts.
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14.Counterparts; Electronic Mail Execution.  This Note may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Note.  The words “execution,” “signed,” “signature” and words of like import in this Note shall be deemed to include electronic signatures, signatures exchanged by electronic transmission, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided, that the Lender may request, and upon any such request the Borrower shall be obligated to provide, manually executed “wet ink” signatures to this Note.

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IN WITNESS WHEREOF, each of the Borrower and the Lender has executed and delivered this Promissory Note on the date first above written.
BORROWER:
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RARE ELEMENT RESOURCES LTD.
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By: /s/Randall Scott
Name: Randall J. Scott
Title: President and Chief Executive Officer
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LENDER:
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SYNCHRON
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By: /s/ Gregory L. Tanner
Name: Gregory L. Tanner
Title: Treasurer

[Signature Page to Promissory Note]
4851-4942-3869.v5​Exhibit 10.9

    

    

    FORM OF

    DIRECTOR NOMINATION AGREEMENT

    

    

    This Director Nomination Agreement (this “Agreement”)
      is made on _______, 2021 (the “Effective Date”), by and among Aris Water Solutions, Inc., a Delaware corporation (the “Company”), COG Operating LLC (“COG”), Trilantic Capital Partners Associates V L.P. (‘‘TCPAV’’) and Trilantic Energy Partners Associates L.P. (“TEPA” and
      together with TCPVA, “Trilantic”), and Yorktown Energy Partners XI, L.P. (“Yorktown”).

    

    

    RECITALS

    

    

    WHEREAS, the Company has agreed
      to permit each of COG, Trilantic and Yorktown to designate one director for nomination for election to the board of directors of the Company (the “Board”),
      subject to the terms and conditions set forth herein.

    

    

    NOW, THEREFORE, in consideration
      of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to the following:

    

    

    ARTICLE I

    DEFINITIONS

    

    

    Section 1.01 Definitions. As used in this
      Agreement, the following terms shall have the following meanings:

    

    

    “Affiliate” means, with
      respect to a specified Person, any other Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the specified Person; provided that the Company and any Person Controlled by the Company shall not be considered to be an Affiliate of any Major Shareholder for any purpose under this Agreement.

    

    

    “Agreement” has the
      meaning set forth in the Preamble.

    

    

    “Beneficial Owner” means,
      with respect to a security, a Person who directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares (a) voting power, which includes the power to vote, or to direct the voting of, such security,
      or (b) investment power, which includes the power to dispose, or to direct the disposition of, such security. The term “Beneficially Own” shall have a
      correlative meaning.

    

    

    “Board” has the meaning
      set forth in the Recitals.

    

    

    “Bylaws” means the Amended
      and Restated Bylaws of the Company, as amended or restated from time to time.

    

    

    “Certificate of Incorporation”
      means the Amended and Restated Certificate of Incorporation of the Company, as amended or restated from time to time.

    

    

    “COG” has the meaning set
      forth in the Preamble.

    

    

    “COG Designated Director”
      has the meaning set forth in Section 2.01(a).

    

    

    “Company” has the meaning
      set forth in the Preamble.

    

    

    “Control” means the
      possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. The terms “Controlled by” and “under common Control with” shall have correlative meanings.

    

    

    “Effective Date” has the
      meaning set forth in the Preamble.

    
      
        

    

    

    

    “Exchange Act” means the
      Securities Exchange Act of 1934, as amended.

    

    

    “Major Shareholders” means
      COG , Trilantic and Yorktown.

    

    

    “Person” means any
      individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, any court, administrative agency, regulatory body, commission or other governmental authority, board, bureau or
      instrumentality, domestic or foreign and any subdivision thereof or other entity, and also includes any managed investment account.

    

    

    “Proceeding” has the
      meaning set forth in Section 4.08.

    

    

    “Securities Exchange”
      means the national securities exchange on which the Company’s Class A common stock, par value $0.01 per share, is then listed.

    

    

    “Selected Courts” has the
      meaning set forth in Section 4.08.

    

    

    “Termination Date” means
      with respect to the rights of COG hereunder, the date when the Voting Percentage of COG and its Affiliates is less than 12.5% for the first time following the Effective Date; with respect to the rights of Trilantic hereunder, the date when the Voting
      Percentage of Trilantic and its Affiliates is less than 12.5% for the first time following the Effective Date; and with respect to the rights of Yorktown hereunder, the date when the Voting Percentage of Yorktown and its Affiliates is less than 12.5%
      for the first time following the Effective Date.

    

    

    “Termination Trigger” has
      the meaning set forth in Section 3.01.

    

    

    “Trilantic” has the
      meaning set forth in the Preamble.

    

    

    “Trilantic Designated Director”
      has the meaning set forth in Section 2.02(a).

    

    

     “Voting Percentage”
      means, with respect to any Person, the percentage voting power in the general election of directors of the Company represented by all shares of Voting Stock Beneficially Owned by such Person.

    

    

    “Voting Stock” means the
      Class A common stock and Class B common stock, each with par value $0.01 per share, of the Company, as well as any other class or series of capital stock of the Company entitled to vote generally in the election of directors to the Board.

    

    

    “Yorktown” has the meaning
      set forth in the Preamble.

    

    

    “Yorktown Designated Director”
      has the meaning set forth in Section 2.01(a).

    

    

    Section 1.02 Other Definitional and Interpretive
          Provisions. The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. References in the singular or to
      “him,” “her,” “it,” “itself” or other like references, and references in the plural or the feminine or masculine reference, as the case may be, shall also, when the context so requires, be deemed to include the plural or singular, or the masculine or
      feminine reference, as the case may be. References to the Preamble, Recitals, Articles and Sections shall refer to the Preamble, Recitals, Articles and Sections of this Agreement, unless otherwise specified. The headings in this Agreement are for
      convenience and identification only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision thereof. References to any statute shall be deemed to refer to such statute as amended
      from time to time and to any rules or regulations promulgated thereunder. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and
      thereof. References to “include,” “includes” and “including” in this Agreement shall be deemed to be followed by the words “without limitation,” whether or not so specified. This Agreement shall be construed without regard to any presumption or other
      rule requiring construction against the party that drafted and caused this Agreement to be drafted.

    
      
        

    

    

    

    ARTICLE II

    NOMINATION RIGHTS

    

    

    Section 2.01 Board Nominees.

    

    

    (a) Subject to the terms and conditions of this Agreement, from and after the Effective Date until the Termination
      Date, at every meeting of the Board, or a committee thereof, at which directors of the Company are appointed by the Board or are nominated to stand for election by stockholders of the Company, the Major Shareholder shall have the right, but not the
      obligation, to nominate directors for election to the Board as follow:

    

    

    	

          	(i)	
            COG shall have the right to nominate one nominee until the first time when the Voting Percentage of COG and its Affiliates is less than 12.5%, who shall be a Class III
              director (the “COG Designated Director”);

          

    

    

    	

          	(ii)	
            Trilantic shall have the right to nominate one nominee until the first time when the Voting Percentage of Trilantic and its Affiliates is less than 12.5%, who shall be
              a Class I director (the “Trilantic Designated Director”); and

          

    

    

    	

          	(iii)	
            Yorktown shall have the right to nominate one nominee until the first time when the Voting Percentage of Yorktown and its Affiliates is less than 12.5%, who shall be a
              Class I director (the “Yorktown Designated Director”).

          

    

    

     The initial COG Designated Director, Trilantic Designated Director and Yorktown Designated Director, respectively, as of the Effective
      Date are Andrew O’Brien, Christopher Manning and W. Howard Keenan, Jr.

    

    

    (b) Subject to Section 2.01(c), the Company
      shall take all actions (to the extent such actions are permitted by applicable law) to (i) include each COG Designated Director, Trilantic Designated Director and Yorktown Designated Director in the slate of director nominees for election by the
      Company’s stockholders and (ii) include each COG Designated Director, Trilantic Designated Director and Yorktown Designated Director in the proxy statement prepared by the Company in connection with soliciting proxies for every meeting of the
      stockholders of the Company called with respect to the election of members of the Board, and at every adjournment or postponement thereof, and on every action or approval by written consent of the Board with respect to the election of members of the
      Board.

    

    

    (c) The Company’s obligations pursuant to Sections
          2.01(b), (d) and (e) shall be subject to each person designated as a nominee or successor for the COG Designated Director, Trilantic Designated Director and Yorktown Designated Director, as applicable, providing, fully and completely,
      (i) any information that is required to be disclosed in any filing or report under the listing standards of the Securities Exchange and applicable law or regulatory guidance or requests, (ii) any information that is required in connection with
      determining the independence status of the COG Designated Director, Trilantic Designated Director and Yorktown Designated Director under the listing standards of the Securities Exchange and applicable law, and (iii) if required by applicable law,
      such individual’s written consent to being named in a proxy statement as a nominee and to serving as director if elected.

    

    

    (d) If a COG Designated Director, Trilantic Designated Director or Yorktown Designated Director is not appointed, nominated or elected
      to the Board because of such person’s death, disability, disqualification, withdrawal as a nominee or for other reason, (i) the Major Shareholder who originally designated such director as a nominee shall be entitled to designate another nominee and
      shall do so as promptly as practicable following the failure of such designated director to be appointed, nominated or elected to the Board and (ii) the director position for which the original designated director was nominated shall not be filled
      pending such designation.

    

    

    (e) If a vacancy occurs because of the death, disability, disqualification, resignation or removal of a COG Designated Director,
      Trilantic Designated Director or Yorktown Designated Director or for any other reason, the Major Shareholder who originally designated such director shall be entitled to designate such person’s successor, and the Company hereby agrees, to the fullest
      extent permitted by applicable law (including with respect to fiduciary duties under Delaware law), to promptly fill the vacancy with such successor, it being understood that any such successor designee shall serve the remainder of the term of the
      designated director whom such designee replaces. A Major Shareholder shall designate a successor pursuant to this Section 2.01(e) as promptly as practicable
      following any such vacancy.

    
      
        

    

    

    

    (f) In the event that COG, Trilantic or Yorktown shall cease to have the right to designate a Director hereunder, then the current COG
      Designated Director, Trilantic Designated Director or Yorktown Designated Director, respectively, shall (i) at the request of a majority of the Directors then in office resign immediately if such resignation would not reasonably be expected to
      violate such director’s fiduciary duties under applicable law, and, upon such request by a majority of the Directors then in office, COG, Trilantic or Yorktown, as applicable, shall take such action as reasonably necessary to facilitate such
      resignation or (ii) if no such request is made, continue to serve until his or her term expires at the next annual meeting of stockholders of the Company.

    

    

    ARTICLE III

    EFFECTIVENESS AND TERMINATION

    

    

    Section 3.01 Termination. This rights of
      each of COG, Trilantic and Yorktown shall terminate upon the earlier to occur of (a) the Termination Date applicable to such Major Shareholder and (b) the delivery of written notice to the Company by a Major Shareholder agreeing to terminate its
      rights under this Agreement (each a “Termination Trigger”).  This Agreement will terminate and be of no further force and effect once a Termination Trigger has
      occurred with respect to each Major Shareholder.

    

    

    ARTICLE IV

    MISCELLANEOUS

    

    

    Section 4.01 Notices. All notices, requests,
      consents and other communications hereunder to any party shall be in writing and shall be personally delivered, sent by nationally recognized overnight courier or mailed by registered or certified mail to such party at the address set forth below, or
      sent by e-mail transmission (or such other address or contact information as shall be specified by like notice):

    

    

    	
            If to the Company:

          	
            Aris Water Solutions, Inc.

            Attention:

            9811 Katy Freeway, Suite 700

            Houston, Texas 77024

            Electronic mail:

          
	 	 
	
            With copy to:

          	
            Gibson, Dunn & Crutcher LLP

            Attention: Hillary H. Holmes

            811 Main Street, Suite 3000

            Houston, Texas 77002

            Electronic mail: hholmes@gibsondunn.com

          
	 	 
	
            If to any Major Shareholder:

          	
            To the address of such Major Shareholder as it appears in the applicable register for securities of the Company or such other address as may be
              designated in writing by such Major Shareholder (including on the signature pages hereto).

          
	 	 
	
            And in the case of notice to COG or any Affiliate thereof, with a copy to:

          	
            King & Spalding LLP

            1180 Peachtree Street, NE

            Atlanta, Georgia 30309

            Attention: Keith M. Townsend

            Electronic email: ktownsend@kslaw.com

          
	 	 
	
            And in the case of notice to Yorktown, with a copy to:

          	
            [______]

          
	 	 
	
            And in the case of notice to Trilantic, with a copy to:

          	
            [______]

          

    

    

    
      
        

    

    

    

    Notices will be deemed to have been given hereunder when personally delivered or when receipt of e-mail has been acknowledged by non-automated response,
      one calendar day after deposit with a nationally recognized overnight courier and five calendar days after deposit in U.S. mail.

    

    

    Section 4.02 Severability. The provisions of
      this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof to any
      Person or any circumstance, is found to be invalid or unenforceable in any jurisdiction, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of
      such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or
      unenforceability affect the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.

    

    

    Section 4.03 Counterparts. This Agreement
      may be executed in any number of counterparts, each of which shall be deemed an original and all of which, taken together, shall be considered one and the same agreement.

    

    

    Section 4.04 Entire Agreement; No Third Party
          Beneficiaries. This Agreement (a) constitutes the entire agreement and supersedes all other prior agreements, both written and oral, among the parties with respect to the subject matter hereof and (b) is not intended to confer upon any
      Person, other than the parties hereto, any rights or remedies hereunder.

    

    

    Section 4.05 Further Assurances. Each party
      shall execute, deliver, acknowledge and file such other documents and take such further actions as may be reasonably requested from time to time by the other parties hereto to give effect to and carry out the transactions contemplated herein.

    

    

    Section 4.07 Governing Law; Equitable Remedies.
      THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF). The parties hereto agree that irreparable damage would occur in the event that
      any of the provisions of this Agreement were not performed in accordance with its specific terms or was otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to an injunction or injunctions and other equitable
      remedies to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any of the Selected Courts (as defined below), this being in addition to any other remedy to which they are entitled at law or in equity.
      Any requirements for the securing or posting of any bond with respect to such remedy are hereby waived by each of the parties hereto. Each party further agrees that, in the event of any action for an injunction or other equitable remedy in respect of
      such breach or enforcement of specific performance, it will not assert the defense that a remedy at law would be adequate.

    

    

    Section 4.08 Consent To Jurisdiction. With
      respect to any suit, action or proceeding (“Proceeding”) arising out of or relating to this Agreement, each of the parties hereto hereby irrevocably (a)
      submits to the non-exclusive jurisdiction of the Court of Chancery of the State of Delaware and the United States District Court for the District of Delaware and the appellate courts therefrom (the “Selected Courts”) and waives any objection to venue being laid in the Selected Courts whether based on the grounds of forum non conveniens or otherwise and hereby agrees not to commence any such Proceeding
      other than before one of the Selected Courts; provided, however,
      that a party may commence any Proceeding in a court other than a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the Selected Courts; (b) consents to service of process in any Proceeding by the mailing of
      copies thereof by registered or certified mail, postage prepaid, or by recognized international express carrier or delivery service, to the Company or the Major Shareholders at their respective addresses referred to in Section 4.01 hereof; provided, however, that nothing herein shall affect the right of any party hereto to serve process in any other manner permitted by law; and (c) TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVES, AND
      COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
      SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE THE RIGHT TO TRIAL
      BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT AND TO HAVE ALL MATTERS RELATING TO THIS AGREEMENT BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

    
      
        

    

    

    

    Section 4.09 Amendments; Waivers.

    

    

    (a) No provision of this Agreement may be amended or waived unless such amendment or waiver is in writing and signed, in the case of an
      amendment, by the Company and each of the Major Shareholders, or, in the case of a waiver, by each of the parties against whom the waiver is to be effective.

    

    

    (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as waiver thereof nor shall any
      single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided
      by law.

    

    

    Section 4.10 Assignment

    

    

    Neither this Agreement nor any of the rights or obligations hereunder shall be assigned by any of the parties hereto without the prior
      written consent of the other parties; provided that any Major Shareholder may assign this Agreement to any of its Affiliates with only the Company’s prior
      written consent, which shall not be unreasonably withheld. This Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and permitted assigns.

    
      
        

    

    

    

    IN WITNESS WHEREOF, the parties
      have caused this Agreement to be duly executed and delivered, all as of the date first set forth above.

     

    

    	 	
            ARIS WATER SOLUTIONS, INC.

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

          	 

    

    

    

    

    	 	
            MAJOR SHAREHOLDERS:

          
	 	 
	 	
            COG OPERATING LLC

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

          	 
	 	 
	 	
            Address for notice:

          
	 	
            [●]

          
	 	 
	 	 
	 	
            TRILANTIC CAPITAL PARTNERS ASSOCIATES V L.P.

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

          	 
	 	 
	 	
            Address for notice:

          
	 	
            [●]

          
	 	 
	 	 
	 	
            TRILANTIC ENERGY PARTNERS ASSOCIATES L.P.

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

          	 
	 	 
	 	
            Address for notice:

          
	 	
            [●]

          
	 	 
	 	 
	 	
            YORKTOWN ENERGY PARTNERS XI, L.P.

          
	 	 
	 	
            By:

          	 
	 	
            Name:

          	 
	 	
            Title:

          	 
	 	 
	 	
            Address for notice:

          
	 	
            [●]

          

    

    

    [Signature Page to Director Nomination Agreement]

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