Document:

Nanophase Technologies
Corporation 8-K

 

Exhibit 10.1

FIRST AMENDMENT TO

SUPPLY AGREEMENT

This First Amendment to Supply Agreement (this “Amendment”)
is made by and between Nanophase Technologies Corporation, a corporation organized and existing
under the laws of the State of Delaware, having its principal place of business at 1319 Marquette Drive, Romeoville, IL 60446 (“Supplier”),
and Hallstar Ester Solutions Corporation (formerly known as Ester Solutions Company), a Delaware corporation, having its
principal place of business at 5851 W 73rd St, Bedford Park, IL, USA 60638 (“Company”) (each, a “Party”
and together, “Parties”).

WHEREAS, Supplier and Company
have entered into that certain Supply Agreement dated March 31, 2016 (the “Agreement”); and

WHEREAS, Supplier and Company
desire to enter into this Amendment to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration
of the mutual promises and covenants and agreements herein contained, and for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree to amend and do hereby amend
the Agreement as follows:

1.       

All references
to “Ester Solutions Company” in the Agreement are deleted and replaced with “Hallstar Ester Solutions Corporation.”

2.       

Article 5 of
the Agreement is hereby deleted and replaced by the following:

5.       

MARKS

 5.1

Ownership:
All trademarks, service marks, trade names, logos or other words or symbols identifying the Products (the "Marks") are
and will remain the exclusive property of Company, whether or not specifically recognized or perfected under applicable law. Supplier
will not acquire any right in the Marks. Supplier will not register, directly or indirectly, any trademark, service mark, trade
name, company name or other proprietary or commercial right that is identical or confusingly similar to the Marks or that constitute
translations thereof.

 5.2

Intentionally Omitted.

3.       

Section 8.1
of the Agreement is hereby deleted and replaced by the following:

 8.1

Ownership. All Intellectual
Property Rights in and in relation to the Products that a party developed prior to the Effective Date shall be and remain the sole
and exclusive property of such party ("Pre-Existing IP"). . Notwithstanding the foregoing, as between Suppler and Company,
all Intellectual Property Rights in and in relation to modifications or customizations to the Products (New Product Concept) requested
by Company or a customer of Company shall be under the sole ownership of the Company, and the Company shall have the exclusive
right to sell the New Product Concept. Supplier shall not be obligated to make or develop the New Product Concept. Each party hereby
grants the other party a limited, non-exclusive and nontransferable license to use its Pre-Existing IP and its Intellectual Property
solely as necessary for the other party to perform its obligations under this Agreement.

4.       

The effective
date of this Amendment, like the Agreement, shall be May 21, 2018(the “Effective Date”).

5.       

The Agreement
shall in all other respects be in full force and effect and continue on its existing terms, except as amended by this Amendment.

    	 	1	 

    	 

    

IN WITNESS WHEREOF, the Parties hereto have
executed and delivered this Amendment in multiple originals by their duly authorized officers and representatives on the respective
dates shown below, but effective as of the Effective Date.

 

 

	
        Nanophase Technologies Corporation

        (“Supplier”)
	 	
        Hallstar Ester Solutions Corporation

        (“Company”)

	 	 	 
	 	 	 
	By:	/s/ Jess Jankowski	 	By:	/s/ Jeff Beckman
	 	 	 	 	 
	Name:	Jess Jankowski	 	Name:	Jeff Beckman
	 	 	 	 	 
	Title:	President & Chief Executive Officer	 	Title:	Assistant Secretary
	 	 	 	 	5-21-2018

 

 

    	 	2Exhibit

Exhibit 10.21 

HOULIHAN LOKEY, INC. DIRECTOR COMPENSATION PROGRAM
(Revised as of May 4, 2018)

Eligible Directors (as defined below) on the board of directors (the “Board”) of Houlihan Lokey, Inc. (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Director Compensation Program (this “Program”).  This Program is an amendment and restatement of the Company’s Director Compensation Program that was adopted by the Board on July 29, 2015 (the “Original Program”).  The changes to the Original Program that are effected by this Program shall take effect on July 1, 2018.  The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who (i) is not an employee of the Company or any parent or subsidiary of the Company, (ii) is not designated to serve on the Board by ORIX USA Corporation or its subsidiaries, and (iii) qualifies as “independent” under the rules of the NYSE, including the NYSE rules relating to compensation committee independence, and as a “non-employee director” under Exchange Act Rule 16b-3 (each, a “Eligible Director”), who may be eligible to receive such cash or equity compensation, unless such Eligible Director declines the receipt of such cash or equity compensation by written notice to the Company.

This Program shall remain in effect until it is revised or rescinded by further action of the Board.  This Program may be amended, modified or terminated by the Board at any time in its sole discretion. No Eligible Director shall have any rights hereunder, except with respect to equity awards granted pursuant to Section 2 of this Program.

1.    Cash Compensation.

		
	a.
	Annual Retainers.  Each Eligible Director shall be eligible to receive an annual cash retainer of $62,500 for service on the Board.

		
	b.
	Payment of Retainers.  The annual cash retainers described in Sections 1(a) and 1(b) above shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than thirty days following the end of each calendar quarter.  In the event an Eligible Director does not serve as an Eligible Director for an entire calendar quarter, the retainer paid to such Eligible Director shall be prorated for the portion of such calendar quarter actually served as an Eligible Director.

2.          Equity Compensation.   Eligible Directors shall be granted the equity awards described below.   The awards described below shall be granted under and shall be subject to the terms and provisions of the Company’s Amended and Restated 2016 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from time to time, the “Equity Plan”) and may be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms approved by the Board prior to or in connection with equity grants under the Equity Plan. All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of equity awards hereby are subject in all respects to the terms of the Equity Plan.  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Company’s Amended and Restated 2016 Incentive Award Plan.

		
	a.
	Annual Common Stock Awards.   An Eligible Director who is serving on the Board as of May 15 of each calendar year automatically shall be granted, on such May 15, an Award of Common Stock covering a number of shares of Class A common stock equal to $87,500, divided by the Fair Market Value of a share of Class A common stock on the applicable grant date, rounded to the nearest whole share and subject to adjustment as provided in the Equity Plan.  These awards shall be referred to herein as the “Annual Awards.” With respect to the first Annual Award granted to an Eligible Director following the date on which he or she becomes an Eligible Director (the “Eligible Director Date”), such award shall be pro-rated based on the period of time served as an Eligible Director from (and including) the Eligible Director Date through the May 15 grant date of such Annual Award. Each Annual Award shall be vested in full on the applicable grant date.

		
	b.
	Committee Chair Award.  Each Eligible Director who serves as a Chair of a Committee of the Board as of May 15 of each calendar year automatically shall be eligible to be awarded, at the discretion of the Compensation Committee, on such May 15, an Award of Common Stock covering a number of shares of Class A common stock equal to $30,000, divided by the Fair Market Value of a share of Class A common stock on the applicable grant date, rounded to the nearest whole share and subject to adjustment as provided in the Equity Plan.  These awards shall be referred to herein as the “Committee Chair Awards.” With respect to the first Committee Chair Award granted to a Committee Chair following the date on which he or she becomes a Committee Chair (the “Eligible Chair Date”), such award shall be pro-rated based on the period of time served as a Committee Chair from (and including) the Eligible Chair Date through the May 15 grant date of such Committee Chair Award. Each Committee Chair Award shall be vested in full on the applicable grant date.Exhibit 10.1

 

 

May 24, 2018

 

[Holder Name]

[Holder Address]

 

Re:                             Offer of Reduce the Exercise Price of January 2017 Common Stock Purchase Warrants

To Whom It May Concern:

 

ReShape Lifesciences Inc., a Delaware corporation (the “Company”), is pleased to offer to you (“Holder”) the opportunity to reduce the exercise price of all of the Common Stock Purchase Warrants originally issued by the Company on January 23, 2017 (the “January 2017 Warrants”) currently held by Holder, which consists of an aggregate of ________ January 2017 Warrants.

 

As a result of the reduction in the exercise price of the January 2017 Warrants, pursuant to the terms of the Common Stock Purchase Warrants originally issued by the Company on August 16, 2017 (the “August 2017 Warrants”) and on April 3, 2018 (the “April 2018 Warrants”), the exercise price of all of the August 2017 Warrants and April 2018 Warrants will automatically by their terms also be reduced to the new exercise price of the January 2017 Warrants, including the ________ August 2017 Warrants and ________ April 2018 Warrants currently held by Holder.

 

In consideration for exercising all of the January 2017 Warrants and ________ of the April 2018 Warrants held by Holder as set forth on the signature page hereto, for an aggregate exercise of warrants to purchase ________ shares of Common Stock (the “Offered Warrants”), the Company hereby offers Holder a reduced exercise price per share of Common Stock underlying the January 2017 Warrants of $0.31, which is equal to the closing market price of the Company’s Common Stock on the Nasdaq Capital Market on May 24, 2018.

 

The January 2017 Warrants, and the shares of Common Stock of the Company underlying the January 2017 Warrants (the “January 2017 Warrant Shares”), have been registered for sale pursuant to a registration statement on Form S-1 (File No. 333-213704) and Form S-1 MEF (File No. 333-215590) (collectively, the “S-1 Registration Statement”), and the April 2018 Warrants, and the shares of Common Stock of the Company underlying the April 2018 Warrants (together with the January 2017 Warrant Shares, the “Offered Warrant Shares”), have been registered for sale pursuant to a registration statement on Form S-3 (File No. 333-216600) and Form S-3 MEF (File No. 333-224066) (collectively with the S-1 Registration Statement, the “Registration Statements”). The Registration Statements are currently effective and, upon exercise of the Offered Warrants pursuant to this letter agreement, will be effective for the issuance of the Offered Warrant Shares. Capitalized terms not otherwise defined herein will have the meanings set forth in the Offered Warrants.

 

Expressly subject to the paragraph immediately following this paragraph below, Holder may accept this offer by signing this letter below, with such acceptance constituting Holder’s exercise in full of the Offered Warrants for an aggregate exercise price as set forth on the Holder’s signature page hereto (the “Aggregate Exercise Price”) on or before 8:00 a.m. Eastern Time on May 25, 2018.

 

 

Additionally, the parties hereby agree to their respective representations, warranties and covenants set forth on Annex A attached hereto.

 

By accepting this offer, Holder hereby grants to the Company a one-time waiver from compliance with Section 4.13 of the Securities Purchase Agreement, dated April 2, 2018, between the Company and Holder solely with respect to the transactions contemplated by this Agreement.

 

If this offer is accepted and the definitive transaction documents are executed by the Company and Holder on or before 8:00 a.m. Eastern Time on May 25, 2018, then (a) on or before 9:30 a.m. Eastern Time on May 25, 2018, the Company will file a Current Report on Form 8-K with the Securities and Exchange Commission disclosing the material terms of this transaction, including the reduced exercise price of the January 2017 Warrants, August 2017 Warrants and April 2018 Warrants, as well as adjustments to the conversion prices of outstanding shares of the Company’s convertible preferred stock, and the increased number of shares of common stock issuable upon conversion of such shares of convertible preferred stock, and (b) on or before May 29, 2018, the Company will file an amendment to the prospectus supplement to the Registration Statements registering the exercise of the Offered Warrants disclosing the material terms of this transaction, including the reduced exercise price of the Offered Warrants. The Company represents, warrants and covenants that, upon acceptance of this offer, the Offered Warrant Shares will be issued free of any legends or restrictions on resale by Holder and all of the Offered Warrant Shares will be delivered electronically through the Depository Trust Company within one business day of the date the Company receives the Aggregate Exercise Price (or, with respect to shares that would otherwise be in excess of the Beneficial Ownership Limitation, within two business days of the date the Company is notified by Holder that its ownership is less than the Beneficial Ownership Limitation). The terms of the Offered Warrants, including the obligations to deliver the Offered Warrant Shares, will otherwise remain in effect as if the acceptance of this offer were a formal Notice of Exercise (including any liquidated damages and compensation in the event of late delivery of the Offered Warrant Shares).

 

To accept this offer, Holder must counter execute this letter agreement and return the fully executed agreement to the Company by e-mail at dwgladney@reshapelifesci.com and syoungstrom@reshapelifesci.com with a copy to bmachmeier@foxrothschild.com and bhanson@foxrothschild.com on or before 8:00 a.m. Eastern Time on May 25, 2018.

 

Please do not hesitate to call me if you have any questions.

 

[Signature page follows]

 

 

	
Sincerely,
    	
 
    
	
 
    	
 
    
	
RESHAPE LIFESCIENCES INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
Dan W. Gladney
    	
 
    
	
Title:
    	
President and Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Accepted and Agreed to as of   May 24, 2018:
    	
 
    
	
 
    	
 
    
	
Name of Holder:
    	
 
    	
 
    
	
 
    	
 
    
	
Signature of Authorized   Signatory of Holder:
    	
 
    	
 
    
	
 
    	
 
    
	
Name of Authorized   Signatory:
    	
 
    	
 
    
	
 
    	
 
    
	
Title of Authorized   Signatory:
    	
 
    	
 
    
	
 
    	
 
    
	
Common Stock Purchase   Warrants being exercised:
    	
 
    	
 
    
	
 
    	
 
    
	
Aggregate Exercise   Price:
    	
 
    	
 
    
	
 
    	
 
    
	
DTC Instructions:
    	
 
    	
 
    
	
 
    	
 
    
	
Company Wire   Instructions:
    	
 
    	
 
    
											

 

 

Annex A

 

Representations and Warranties of the Company. The Company hereby makes the following representations and warranties to Holder. For purposes of this Annex A, capitalized terms not otherwise defined herein will have the meanings set forth in the Underwriting Agreement between the Company and Ladenburg Thalmann & Co. Inc. entered into in connection with the issuance of the January 2017 Warrants (the “Underwriting Agreement”).

 

(a)                                 Affirmation of Prior Representations and Warranties. The Company’s representations and warranties as set forth in Section 3.1 of the Underwriting Agreement are true and correct in all material respects as of the date hereof.

 

(b)                                 Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this letter and otherwise to carry out its obligations hereunder.  The execution and delivery of this letter agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors of the Company or the Company’s stockholders in connection herewith.  This letter agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(c)                                  No Conflicts.  The execution, delivery and performance by the Company of this letter agreement and the consummation by it of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, 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 Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, 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 Company or a Subsidiary is subject, or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(d)                                 Nasdaq Corporate Governance. The transactions contemplated by this letter agreement comply with the Nasdaq Stock Market Rules.

 

(e)                                  Equal Consideration. Except as set forth in this letter agreement, no consideration has been offered or paid to any person to amend or consent to a waiver, modification, forbearance or otherwise of any provision of any of the Offered Warrants.

 

Representations and Warranties of Holder. Holder hereby makes the following representations and warranties to the Company.

 

Holder is either an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this letter agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this letter 

 

 

agreement and performance by Holder of the transactions contemplated by the letter agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of Holder.  This letter agreement has been duly executed by Holder, and when delivered by Holder in accordance with the terms hereof, will constitute the valid and legally binding obligation of Holder, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

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