Document:

EX-10.2

 Exhibit 10.2 
  

 
 SECURITY AGREEMENT 

This Security Agreement dated July 18, 2022, is executed by U.S. Well Services, LLC, a Delaware limited liability company (“Debtor”), whose
principal office (or residence) address is 1360 Post Oak Blvd., Suite 1800, Houston, Texas 77056, in favor of Equify Financial, LLC (“Secured Party”) whose address is 777 Main Street, Suite 3900, Fort Worth, TX 76102. 

1. To secure the payment and performance of all indebtedness, obligations and liabilities of Debtor to Secured Party of whatever kind, whether previously,
contemporaneously, or subsequently incurred or created, whether direct or acquired from third parties, whether contingent or fixed, and whether of the same or different classes (including, without limiting the generality of the foregoing, all
indebtedness, obligations and liabilities arising out of or relating to (i) advances, payments, loans, endorsements, guaranties, extensions of credit, financial accommodations and/or benefits granted or extended by Secured Party to or for the
account of Debtor, (ii) notes, security agreements, lease agreements, rental agreements, installment sale contracts, bailment agreements, guaranties, and/or any other present or future agreements between Debtor and Secured Party, and/or
(iii) expenses, charges, commissions and/or interest owing by Debtor to Secured Party or chargeable to Debtor by Secured Party), and all extensions, renewals and/or modifications of the foregoing (collectively, the “Obligations”),
Debtor does hereby assign, transfer, pledge and grant to Secured Party a security interest/lien in/upon all property listed on any Schedule to this Agreement, including but not limited to any Security Deposit which might be required pursuant to a
Security Deposit Addendum (collectively the “Collateral”). Debtor and Secured Party acknowledge that Secured Party may (but shall not be obligated to) make future loans or extensions of credit to or guaranteed by Debtor, refinance existing
Obligations of or guaranteed by Debtor, or purchase from third parties loans or indebtedness of or guaranteed by Debtor, and Secured Party and Debtor agree that the Collateral shall be security for any and all such indebtedness. 

2. Debtor hereby represents and warrants to Secured Party and covenants and agrees with Secured Party as follows: (a) All information supplied and
statements made to Secured Party by or on behalf of Debtor relating to the Obligations or the Collateral are and shall be true, complete and accurate, whether supplied or made prior to, contemporaneously with or subsequent to the execution of this
Agreement; (b) (i) Debtor has good and marketable title to the Collateral, free and clear of any liens, security interests or encumbrances of any kind or nature whatsoever (except for (A) any claimed by Secured Party, and (B) any
Permitted Subordinated Liens), and Debtor will warrant and defend the Collateral against all claims; (ii) For purposes of this Security Agreement, “Permitted Subordinated Liens” means (A) any liens and security interests in the
Collateral granted to CLMG Corp., as term loan collateral agent (in such capacity, the “Term Loan Collateral Agent”), under that certain Senior Secured Term Loan Credit Agreement dated as of May 7, 2019, as amended, restated, or
supplemented, which liens and security interests are subject to that certain Amended and Restated Intercreditor Agreement dated as of June 24, 2021, among Bank of America, N.A. (the “ABL Agent”), the Term Loan Collateral Agent,
Wilmington Savings Fund Society, FSC (the “Notes Agent”), and Debtor (as amended, restated, or supplemented, the “Intercreditor Agreement”), (B) any liens and security interests in the Collateral granted to the ABL Agent which
are subject to the Intercreditor Agreement, and (C) any liens and security interests in the Collateral granted to the Notes Agent which are subject to the Intercreditor Agreement, (c) all Collateral listed on any Schedule to this Agreement
is in Debtor’s possession either at Debtor’s equipment yards, customer locations, or in transit, in each case, in the ordinary course of business, and shall at all times remain in Debtor’s possession and control; (d) Debtor shall
not change (i) its name, (ii) the location of any Collateral (other than in the ordinary course of business in accordance with clause (c) above), or (iii) the location of (as applicable) Debtor’s residence, principal place
of business, executive office or the place where Debtor keeps its business records, without thirty (30) days prior written notice to Secured Party; (e) Debtor has full, unrestricted and lawful power and authority to sell and assign the
Collateral, to grant Secured Party a security interest/lien therein/thereon as herein provided and to execute and perform this Agreement and all other instruments and agreements executed by Debtor in favor of Secured Party; (f) if an
organization, Debtor is: (i) duly formed, organized, validly existing and in good standing in the state of its organization, (ii) duly qualified and in good standing in every jurisdiction where the nature of its business requires it to be
so qualified, and (iii) authorized by all requisite action of its stockholders, directors, partners, members and/or managers to execute, deliver and perform this Agreement; (g) Debtor shall cause Secured Party to have a security interest
and lien in/upon the Collateral which at all times shall be duly perfected, enforceable and superior to any liens, encumbrances and interests other than Secured Party’s, and Debtor shall not permit the Collateral or any portion thereof to be
removed from the continental United States, nor to be or become subject to any lien or encumbrance of any kind or nature whatsoever (except in favor of Secured Party, the Term Loan Collateral Agent, the ABL Agent, and the Notes Agent), nor shall
Debtor sell, pledge, grant any security interest in, encumber, assign, rent, lease, lend, destroy or otherwise transfer or dispose of, or permit the filing of a financing statement with respect to (except in favor of Secured Party, the Term Loan
Collateral Agent, the ABL Agent, and the Notes Agent) any Collateral, without the prior written consent of Secured Party in each instance; (h) Debtor shall comply (to the extent necessary to protect the Collateral and Secured Party’s
interest therein) with the provisions of all leases, mortgages, deeds of trust or other contracts affecting any premises where any Collateral is or may be located and with any rules, laws, orders, ordinances or statutes of any state, county,
municipality or other authority having jurisdiction relating to such premises and/or the conduct of business thereon and/or use thereof; (i) Debtor shall, at Debtor’s sole cost and expense, keep and maintain all Collateral in good
condition and repair, and shall use and maintain the Collateral in accordance with all applicable manufacturer’s specifications and warranties; (j) all Collateral shall at all times remain personalty and shall not become part of any realty
to which it may be attached so that Secured Party shall have the unrestricted right (subject only to the terms of this Agreement) to remove all or any portion thereof from any premises where it may be located, and Debtor will obtain and deliver to
Secured Party (in a form acceptable to Secured Party), to the extent applicable, waivers from all landlords, mortgagees and owners of such premises; (k) Debtor shall (at Debtor’s expense) upon request by Secured Party, obtain, execute and
deliver all assignments, certificates, financing statements or other documents, give further assurances and do all other acts and things as may be necessary to fully perfect Secured Party’s interest in the Collateral and to protect, enforce or
otherwise effectuate the terms of this Agreement; and (l) Secured Party has no obligation to lend or advance funds unless and until all representations, warranties, conditions and requirements contained herein have been satisfied including
without limitation receipt by Secured Party of proof of ownership of the Collateral satisfactory to Secured Party in its sole discretion, and any applicable subordinations and/or lien releases as may be required by, and in a form acceptable to,
Secured Party in its sole discretion. Debtor hereby irrevocably designates and appoints Secured Party as Debtor’s agent and attorney-in-fact to sign and deliver all
such assignments, certificates, financing statements and other documents necessary to perfect, protect, continue and/or enforce Secured Party’s interest in the Collateral and to file same with the appropriate office(s). Debtor hereby authorizes
Secured Party to file one or more financing statements in respect of the Collateral in all appropriate locations. 
 3. Debtor hereby acknowledges the
validity of and affirms all of the Obligations, agrees that they are and shall be secured by this Agreement and absolutely and unconditionally promises and agrees to punctually and fully pay and perform all Obligations. In accordance with the Note,
Debtor shall pay to Secured Party on demand, on any installment of the Obligations not fully paid prior to the tenth day (or such longer period as required by law) after its due date, a late charge equal to the maximum percentage of such overdue
installment legally permitted as a late charge, not to exceed five percent (5%); and after maturity of the entire unpaid indebtedness (whether by acceleration or otherwise) of any one or more of the Obligations, Debtor shall pay, on demand, interest
on such matured indebtedness (excluding unpaid late charges) at the maximum lawful daily rate, but not to exceed 0.0666% per day, until paid in full. 
 4.
Debtor shall insure the Collateral against all risks of loss or damage from every cause (including without limitation fire, theft, vandalism, accident, flood, earthquake and extended coverage) for not less than the full replacement value as
determined by Secured Party in its sole discretion, and shall carry liability and property damage insurance covering the Collateral. All insurance shall be in form and amount and with licensed, solvent companies approved by Secured Party, and shall
name Secured Party as sole loss payee. Debtor shall pay the premiums therefor and deliver said policies or duplicates to Secured Party. Each insurer shall agree by endorsement upon the policy or policies issued by it or by independent instrument
furnished to Secured Party to give Secured Party 30 days prior written notice before the policy shall be modified or canceled and that Secured Party’s coverage shall not be diminished or invalidated by any negligence, act or omission of Debtor.
The proceeds of such insurance, at the option of Secured Party, shall be applied toward the replacement or repair of the Collateral or toward payment of the Obligations. Debtor hereby irrevocably appoints Secured Party as its attorney-in-fact and agent to make claim for, adjust, compromise, settle, receive payment of, and to sign all documents, checks and/or drafts in payment of or relating to any
claim for loss of or damage to the Collateral and for any returned premiums; provided, that Secured Party agrees with Debtor that Secured Party shall not exercise such rights unless an Event of Default exists. If any required insurance expires, is
canceled or modified, or is otherwise not in full force and effect, Secured Party may but need not obtain replacement insurance. Secured Party may but need not pay the premiums for insurance and/or replacement insurance and the amount of all
premiums so paid by Secured Party shall be added to Debtor’s obligations hereunder and shall be reimbursed to Secured Party on demand together with interest thereon at the maximum lawful daily rate, not to exceed 0.0666% per day (but only to
the extent permitted by law) from the date paid by Secured Party until fully reimbursed by Debtor. 

  
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 5. Secured Party shall have the right, at any reasonable time, to inspect all or any portion of the
Collateral and/or Debtor’s books and records. Debtor shall assist Secured Party in making any such inspection and Debtor shall reimburse Secured Party for its costs and expenses of making up to four such inspections per year. Upon request,
Debtor shall, from time to time, furnish a current financial statement to Secured Party in form and content satisfactory to Secured Party, and shall provide annual certified financial statements within ten (10) days of Secured Party’s
request therefor. 
 6. If Debtor shall fail to fully and timely pay, perform and fulfill any of its Obligations, covenants or agreements to or with Secured
Party and/or if Debtor shall breach any of its warranties to Secured Party under this Agreement or otherwise, Secured Party shall have the option, in its sole discretion and without any obligation, to pay, perform, fulfill or cause the payment,
performance or fulfillment of same on behalf of Debtor; and all costs and expenses incurred by Secured Party in connection therewith (including but not limited to attorneys’ fees, bond premiums, court costs, costs of retaking, storing,
preserving, selling and/or realizing on any Collateral) shall be added to the Obligations hereby secured and shall be payable by Debtor to Secured Party upon demand together with interest thereon at the maximum lawful daily rate, not to exceed
0.0666% per day (but only to the extent permitted by law), from the date advanced by Secured Party until fully repaid. Secured Party shall have no obligation to make any demand upon or give any notice to Debtor prior to the exercise of any of its
rights under this paragraph; and neither the exercise nor the failure to exercise any such rights by Secured Party shall relieve Debtor of any default or constitute a waiver of Secured Party’s right to enforce strict compliance with the terms
of this Agreement at any time. 
 7. Debtor assumes all liability and risk of loss and agrees to defend, indemnify and hold Secured Party harmless from and
against all claims, liabilities, causes of action and damages of any kind, including but not limited to injury to or death of any person(s) and for loss, damage or destruction of any property and for any fines, penalties, costs, expenses and charges
in any way arising out of or related to the Obligations, this Agreement, the Collateral or its use, possession, storage, maintenance, repair, transportation or operation (including without limitation all costs and expenses of investigation, all
attorneys’ fees, court costs, arbitration expenses and costs, and all special, consequential, compensatory and punitive damages), except to the extent that such claims, liabilities, causes of action or damages are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of Secured Party. Debtor, at its own cost and expense, shall use, operate, maintain, repair, transport and store the
Collateral in a safe and careful manner in compliance with all applicable laws, rules and regulations (including without limitation those regulating hazardous substances, the environment and public health or safety), industry standards, insurance
requirements and manufacturer’s specifications and service bulletins. Debtor also assumes and agrees to indemnify, pay and hold harmless Secured Party and its directors, officers, employees and agents from all expenses, losses, costs, claims,
actions, causes of action, damages of any kind, liabilities, expenses and attorney’s fees that Secured Party may incur or sustain in obtaining or enforcing payment or performance of any of the Obligations or exercising its rights and remedies
under this Agreement or in connection with any action, proceeding or appeal arising out of or related to this Agreement, the Obligations and/or the Collateral, whether brought by Debtor or any third party, except to the extent that such expenses,
losses, costs, claims, actions, causes of action, damages, or liabilities are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such party being
indemnified. The obligations of Debtor under this paragraph shall survive termination of this Agreement. 
 8. If any Event of Default (as defined in
Section 11 of this Agreement) exists, Secured Party without notice or demand may do one or more of the following, in any order, and such remedies shall be cumulative (none of which shall be exclusive but each is in addition to any other remedy
available to Secured Party): (a) Secured Party may accelerate the maturity of the Obligations and declare same to be at once due and payable whereupon they shall be immediately due and payable; (b) Secured Party may require Debtor to pay all
accrued interest, late charges, collection charges, reimbursement for any and all expenses incurred by Secured Party in enforcing any of the Obligations or this Agreement, and reasonable attorneys’ fees; (c) Secured Party may require
Debtor to deliver any or all of the Collateral at Debtor’s expense to such place or places as Secured Party may designate which is reasonably convenient to Debtor and Secured Party; (d) Secured Party may repossess/take possession of any or
all of the Collateral wherever found, voluntarily or involuntarily, and Secured Party may enter the premises where any or all Collateral are located and disconnect, render unusable, and remove any or all Collateral without liability to Debtor
arising out of such entry, taking of possession or removal, and may use such premises without charge to store or show the Collateral for sale or other disposition; (e) Secured Party may sell the Collateral by public or private sale, hold,
retain the Collateral in full or partial satisfaction of the indebtedness due to Secured Party, or otherwise dispose of the Collateral in any manner it chooses, free and clear of any claims or rights of Debtor; and/or (f) Secured Party may sue
to enforce Debtor’s performance hereof, or may exercise any other right or remedy then available to Secured Party permitted at law or in equity whether or not stated herein. Failure or delay on the part of Secured Party to exercise any right or
remedy hereunder shall not operate as a waiver thereof. Debtor agrees that any public or private sale shall be deemed commercially reasonable (i) if notice of any such sale is mailed to Debtor (at the address for Debtor specified herein) at
least ten (10) days prior to the date of any public sale or after which any private sale will occur; (ii) if notice of any public sale is published in a newspaper of general circulation in the county where the sale will occur at least once
within the ten (10) days prior to the sale; (iii) whether the items are sold in bulk, singly, or in such lots as Secured Party may elect; (iv) whether or not the items sold are in Secured Party’s possession and present at the
time and place of sale; and (v) whether or not Secured Party refurbishes, repairs or prepares the items for sale. Secured Party may be the purchaser at any public sale. In all cases, Debtor shall be liable for any deficiency due and owing to
Secured Party after any public or private sale, plus all costs, expenses and damages incurred by Secured Party including but not limited to all legal fees whether or not suit is filed, allocable costs of
in-house counsel, costs related to the repossession, conditioning and disposition of the Collateral, and all incidental and consequential damages. No action taken by Secured Party shall release Debtor from any
of its obligations to Secured Party. Debtor acknowledges and agrees that in any action or proceeding brought by Secured Party to obtain possession of any Collateral, Secured Party shall be entitled to issuance of a writ or order of possession (or
similar legal process) without the necessity of posting a bond, security or other undertaking which is hereby waived by Debtor and if Debtor contests Secured Party’s right to possession of any Collateral in any action or proceeding Debtor shall
post a bond (issued by a national insurer authorized to issue such bonds in the jurisdiction of such action or proceeding) in an amount equal to twice the amount in controversy in such action or proceeding or twice the amount of Debtor’s unpaid
obligations to Secured Party, whichever is less. The proceeds of any sale shall first be applied to the costs and expenses of Secured Party including but not limited to recovering, transporting, storing, refurbishing, and/or selling the items sold,
reasonable attorneys’ fees, court costs, bond and insurance premiums, advertising, postage and publishing costs, and sales commissions. Secured Party may without prior notice to or demand upon Debtor and with or without the exercise of any of
Secured Party’s other rights or remedies, apply toward the payment of Debtor’s obligations (at any time owing to Secured Party) any checks, drafts, notes, balances, reserves, accounts and sums belonging to or owing to Debtor and coming
into Secured Party’s possession and for such purpose may endorse Debtor’s name on any instrument or document payable to Debtor (whether for deposit, collection, discount or negotiation). Without notice to Debtor, Secured Party may make
such applications or change applications of sums previously paid and/or to be paid to Secured Party, to such Obligations as Secured Party in its sole discretion may choose. The exercise or partial exercise of any remedy shall not be construed as a
waiver of any other remedy nor constitute an election of remedies. 
 9. Protest and all demands and notices of any action taken by Secured Party under this
Agreement, or in connection with any Collateral, except as otherwise provided in this Agreement, are hereby waived by Debtor, and any indulgence of Secured Party, substitution for, exchange of or release of any person liable on the Obligations is
hereby consented to. Debtor waives notice of the creation, advance, increase, existence, extension or renewal of, and of any indulgence with respect to, the Obligations; waives presentment, demand, notice of dishonor, and protest; waives notice of
the amount of the Obligations outstanding at any time, notice of any change in financial condition of any person liable for the Obligations or any part thereof, notice of any Event of Default, and all other notices respecting the Obligations; and
agrees that maturity of the Obligations or any part thereof may be accelerated, extended or renewed one or more times by Secured Party in its sole discretion, without notice to Debtor. In performing any act under this Agreement or any of the
Obligations, time shall be of the essence and Secured Party’s acceptance of partial or delinquent payments or performance, or failure or delay to exercise any right or remedy, shall not be a waiver of any obligation of Debtor or right of
Secured Party nor constitute a waiver of any subsequent default. 
 10. This Agreement, Secured Party’s rights hereunder and/or any of the Obligations
may be assigned from time to time by Secured Party, and in any such case the assignee shall be entitled to all of the rights, privileges and remedies herein granted to Secured Party; and Debtor hereby waives and agrees not to assert against any
assignee any defense, setoff, claim, recoupment or counterclaim Debtor may have against Secured Party or any prior assignee. Debtor shall not assign this Agreement nor any of Debtor’s rights or obligations hereunder. 

11. Debtor shall be in default hereunder upon the occurrence of any of the following (each an “Event of Default”): (a) Debtor or any endorser,
guarantor, surety, accommodation party or other person liable for the payment or performance of any of the Obligations (“Other Liable Party”) fails to pay when due any sum due to Secured Party (whether hereunder or under any other
Obligation to Secured Party) or to timely perform any obligation, covenant, term or provision of this Agreement or any other instrument and/or agreement now or hereafter existing between the parties, or there exists any Event of Default thereunder;
(b) any warranty, representation or statement made to Secured Party by or on behalf of Debtor or any Other Liable Party is false in any respect when made or thereafter becomes false or is breached; (c) Debtor’s or any Other Liable
Party’s death, dissolution, termination of existence, insolvency, business failure, assignment for the benefit of creditors, bulk transfer, proceeding under any bankruptcy or insolvency law, being declared judicially incompetent, voluntary or
involuntary consent to the appointment of a receiver, trustee, conservator, liquidator or legal guardian for them or any or all of their property; (d) a default under any indebtedness of Debtor or any Other Liable Party or any event permitting
the holder of any such indebtedness to accelerate the maturity thereof, whether or not such event is cured; (e) the Collateral becomes, in the sole judgment of Secured Party, unsatisfactory or insufficient in character or value and such
character or value is not promptly restored to the satisfaction of Secured Party; (f) Secured Party in good faith believes that the prospect of payment or performance of any of the Obligations or this Agreement is impaired; (g) [Intentionally
Omitted]; (h) any attachment, levy or execution against Debtor and/or any Other Liable Party that is not released within 48 hours; (i) Debtor’s or any Other Liable Party’s affairs so change as to, in Secured Party’s sole
discretion, increase the credit risk involved and Secured Party thereby becomes insecure as to the performance of this Agreement or any other agreement with Debtor or such Other Liable Party; (j) Debtor shall incur, create, assume, cause or
suffer to exist any mortgage, trust, lien, security interest, pledge, hypothecation or other encumbrance (other than Secured Party’s interest therein and Permitted Subordinated Liens) or attachment or execution of any kind whatsoever upon,
affecting or with respect to the Collateral, this Agreement, or any of Secured Party’s interests under this Agreement or any of the Obligations; (k) other than a pledge in favor of the Secured Party, and with respect to the Permitted
Subordinated Liens, the Term Loan Collateral Agent, the ABL Agent, and the Notes Agent, Debtor shall sell, pledge, assign, rent, lease, lend, destroy or otherwise transfer or dispose of any Collateral; (l) failure of Debtor to obtain or
maintain insurance on the Collateral satisfactory to Secured Party in its sole discretion in accordance with Section 4; or (m) any of the Obligations, this Agreement, the security interest or any provision hereof for any reason
attributable to Debtor ceases to be in full force and effect or shall be declared to be null and void or the validity or enforceability thereof shall be contested by Debtor or Debtor shall deny that it has any further liability or obligation
thereunder. 

  
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 12. The term “Debtor” as used in this Agreement shall be construed as the singular or plural to
correspond with the number of persons executing this instrument as Debtor. “Secured Party” and “Debtor” as used in this Agreement include the heirs, executors or administrators, successors, legal representatives, receivers, and
assigns of those parties. If more than one person executes this Agreement as Debtor, their obligations under this Agreement shall be joint and several. Unless the context otherwise requires, terms used in this Agreement which are defined in the
Uniform Commercial Code are used with the meaning as therein defined. 
 THIS WRITTEN AGREEMENT AND ALL OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. No termination,
modification, waiver or amendment of or to this Agreement shall be effective unless in writing signed by Debtor and an officer of Secured Party. If any provision of this Agreement is rendered or declared invalid, illegal or ineffective by any
existing or subsequently enacted legislation or decision of a court of competent jurisdiction, such legislation or decision shall only invalidate such provision to the extent so rendered or declared invalid, illegal or ineffective and shall not
impair, invalidate or nullify the remainder of this Agreement which shall remain in full force and effect. THE PARTIES INTEND THAT THIS AGREEMENT AND EACH OF ITS TERMS BE VALID AND ENFORCEABLE AS WRITTEN AND, ACCORDINGLY, AGREE THAT THE VALIDITY AND
ENFORCEABILITY OF THIS AGREEMENT AND EACH OF ITS TERMS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DEBTOR’S LOCATION AS SET FORTH IN THIS AGREEMENT, OR, IF ONE OR MORE OF THE TERMS OF THIS AGREEMENT WOULD BE INVALID OR UNENFORCEABLE UNDER THE
LAWS OF SUCH STATE, THE LAWS OF THE STATE OF SECURED PARTY’S LOCATION AS SET FORTH IN THIS AGREEMENT. 
 13. Any notice or demand to Debtor hereunder or
in connection herewith may be given and shall conclusively be deemed and considered to have been given and received upon the deposit thereof in the U.S. Mail, in writing, duly stamped and addressed to Debtor at the address set forth in this
Agreement or at such other address of Debtor as Debtor shall have designated by notice in writing delivered to Secured Party. Actual notice to Debtor, however given or received, shall always be effective. DEBTOR, AS A MATERIAL INDUCEMENT FOR SECURED
PARTY TO MAKE LOANS OR OTHER FINANCIAL ACCOMMODATIONS AVAILABLE TO DEBTOR, HEREBY: IRREVOCABLY DESIGNATES AND APPOINTS THE TEXAS SECRETARY OF STATE OR SUCH REGISTERED AGENT AS DESIGNATED IN DEBTOR’S REGISTRATION FILED WITH THE TEXAS SECRETARY
OF STATE AS ATTORNEY-IN-FACT AND AGENT FOR DEBTOR AND IN DEBTOR’S NAME, PLACE AND STEAD TO ACCEPT SERVICE OF ANY PROCESS WITHIN THE STATE OF TEXAS; AGREES TO THE
EXCLUSIVE JURISDICTION AND VENUE OF ANY COURT LOCATED IN TARRANT COUNTY, TEXAS, REGARDING ANY DISPUTE WITH SECURED PARTY OR ANY OF SECURED PARTY’S OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS, INCLUDING WITHOUT LIMITATION ANY MATTER RELATING TO OR
ARISING UNDER THIS OR ANY OTHER EXISTING OR FUTURE AGREEMENT WITH SECURED PARTY, PROVIDED THAT SECURED PARTY MAY BRING SUIT IN ANY OTHER COURT HAVING JURISDICTION; WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY
SUCH ACTION OR PROCEEDING; WAIVES THE RIGHT TO TRANSFER THE VENUE OF ANY SUCH ACTION OR PROCEEDING; AND CONSENTS AND AGREES THAT SERVICE OF PROCESS IN ANY ACTION OR PROCEEDING BROUGHT IN ACCORDANCE HEREWITH SHALL BE GOOD AND SUFFICIENT IF SENT BY
CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO DEBTOR AT DEBTOR’S ADDRESS AS PROVIDED HEREIN. THE PARTIES HEREBY WAIVE ANY AND ALL RIGHTS TO A JURY TRIAL OF ANY CLAIM, CAUSE OF ACTION, COUNTERCLAIM, CROSS-CLAIM, DEFENSE OR OFFSET
INVOLVING DEBTOR, SECURED PARTY OR ANY OF SECURED PARTY’S OFFICERS, DIRECTORS, EMPLOYEES OR AGENTS, OR ANY PERSON CLAIMING ANY RIGHT OR INTEREST ACQUIRED FROM, THROUGH OR UNDER ANY OF THEM; AND DEBTOR FURTHER HEREBY WAIVES ANY AND ALL SPECIAL,
EXEMPLARY, PUNITIVE AND CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT AND/OR THE ACTS OR OMISSIONS OF SECURED PARTY OR ANY ASSIGNEE. 

14. If Secured Party is for any reason compelled to surrender any payment received pursuant to any of the Obligations, because such payment is determined to be
void or voidable as a preference, fraudulent transfer, impermissible set off or recoupment, a diversion of trust funds, or for any other reason, then such Obligation(s) shall be reinstated, if necessary and shall continue in full force
notwithstanding any contrary action which Secured Party or Debtor may have taken in reliance upon such payment. Any such contrary action so taken shall be without prejudice to Secured Party’s rights under the Obligations and hereunder and shall
be deemed to have been conditioned upon such payment having become final and irrevocable. The terms of paragraphs 1, 7, 10, 12, 13, 14 and 15 shall survive termination of this Agreement. 

15. All agreements between Debtor and Secured Party, whether now existing or hereafter arising and whether written or oral, are hereby limited so that in no
contingency, whether by reason of demand for payment or acceleration of maturity or otherwise, shall any interest contracted for, charged or received by Secured Party exceed the maximum amount permissible under applicable law. If, from any
circumstance whatsoever, interest would otherwise be payable to Secured Party in excess of the maximum lawful amount, the interest payable to Secured Party shall be reduced to the maximum amount permitted under applicable law; and if from any
circumstance Secured Party shall ever receive anything of value deemed interest by applicable law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction of any principal and not to the
payment of interest, or if such excessive interest exceeds the unpaid balance of any principal, such excess shall be refunded to Debtor. All interest paid or agreed to be paid to Secured Party shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full period until payment in full of any principal (including the period of any renewal or extension) so that the interest for such full period shall not exceed the maximum amount permitted
by applicable law. This paragraph shall control all agreements between Debtor and Secured Party. 
  

					
	WITNESS (Attest if a corporation):	 	DEBTOR:
		 	U.S. WELL SERVICES, LLC
		 	By: U.S. Well Services, Inc
			
	 /s/ Spencer Daigle
	 	BY: 	 	 /s/ Kyle O’Neill

 

	(Title)	 		 	Name: Kyle O’Neill
		 		 	Title:   President and Chief Executive Officer
	 Subscribed and sworn to before me, the undersigned Notary Public,

on the date above written.
	 		 	
	 

                    
	 		 	
	Notary Public	 		 	

  
 Page 3 of 3EX-10.3

 Exhibit 10.3 
  

 
 CONTINUING GUARANTY 

For Valuable Consideration, the receipt and sufficiency of which is hereby acknowledged, the undersigned for themselves, their heirs, executors, personal
representatives, successors and assigns (individually called “Guarantor” and collectively called “Guarantors”) jointly and severally and in solido, hereby unconditionally guarantee to Equify Financial, LLC,
its successors, affiliates, endorsees and assigns (collectively called “EQUIFY FINANCIAL, LLC”) that U.S. WELL SERVICES, LLC, a Delaware limited liability company (the “Maker”), whose address is 1360 Post Oak Blvd.,
Suite 1800, Houston, Texas 77056 shall promptly and fully perform, pay and discharge all of its present and future liabilities, obligations and indebtedness to Equify Financial, LLC, whether direct or indirect, joint or several, absolute or
contingent, secured or unsecured, matured or un-matured, and whether originally contracted with or otherwise acquired by Equify Financial, LLC (all of which liabilities, obligations and indebtedness are herein individually and collectively called
the “Indebtedness”). This Guaranty is an absolute and unconditional guarantee of payment and not of collectibility. The liability of each Guarantor hereunder is not conditional or contingent upon the genuineness, validity,
sufficiency or enforceability of the Indebtedness or any instruments, agreements or chattel paper related thereto (collectively called “Agreements”) or any security or collateral therefor (collectively called “Security”)
or the pursuit by Equify Financial, LLC of any rights or remedies which it now has or may hereafter have. If the Maker fails to pay the Indebtedness promptly as the same becomes due, or otherwise fails to perform any obligation under any of the
Agreements, each Guarantor agrees to pay on demand the entire Indebtedness and all losses, costs, attorneys’ fees and expenses which may be suffered by Equify Financial, LLC by reason of the Maker’s default or the default of any Guarantor
hereunder, and agrees to be bound by and to pay on demand any deficiency established by the sale of any of the Agreements or Security, all without relief from valuation and appraisement laws and without requiring Equify Financial, LLC to (i) proceed
against the Maker by suit or otherwise, (ii) foreclose, proceed against, liquidate or exhaust any of remedies pursuant to the Agreements or Security, or (iii) exercise, pursue or enforce any right or remedy Equify Financial, LLC may have against the
Maker, any co­ Guarantor (whether hereunder or under a separate instrument) or any other party. Each Guarantor agrees that: this Guaranty shall not be discharged or affected by any circumstances which constitute a legal or equitable discharge of
a Guarantor or surety, or by the death of any Guarantor; the records of Equify Financial, LLC shall be received as conclusive evidence of the amount of the Indebtedness at any time owing absent manifest error; one or more successive or concurrent
suits may be brought and maintained against any or all of the Guarantors, at the option of Equify Financial, LLC, with or without joinder of the Maker or any of the other Guarantors as parties thereto; such Guarantor will not avail itself of any
defense whatsoever which the Maker may have against Equify Financial, LLC, other than full payment of the Indebtedness; and such Guarantor will not seek a change of venue from any jurisdiction or court in which any action, proceeding or litigation
is commenced. 
 EACH GUARANTOR HEREBY WAIVES NOTICE OF ANY ADVERSE CHANGE IN THE MAKER ‘S CONDITION OR OF ANY OTHER FACT WHICH MIGHT MATERIALLY
INCREASE SUCH GUARANTOR’S RISK, WHETHER OR NOT EQUIFY FINANCIAL, LLC HAS KNOWLEDGE OF THE SAME. UNTIL THE INDEBTEDNESS IS PAID IN FULL, EACH GUARANTOR ALSO HEREBY AGREES THAT SUCH GUARANTOR WILL NOT ASSERT, ENFORCE OR OTHERWISE EXERCISE ANY
CLAIM, RIGHT OR REMEDY WHICH SUCH GUARANTOR MAY NOW HAVE OR HEREAFTER ACQUIRE AGAINST THE MAKER THAT ARISES HEREUNDER AND/OR FROM THE PERFORMANCE BY ANY GUARANTOR HEREUNDER INCLUDING, WITHOUT LIMITATION, ANY CLAIM, REMEDY OR RIGHT OF SUBROGATION,
REIMBURSEMENT, EXONERATION, CONTRIBUTION, INDEMNIFICATION, OR PARTICIPATION IN ANY CLAIM, RIGHT OR REMEDY OF EQUIFY FINANCIAL, LLC AGAINST THE MAKER OR ANY SECURITY WHICH EQUIFY FINANCIAL, LLC NOW HAS OR HEREAFTER ACQUIRES WHETHER OR NOT SUCH CLAIM,
RIGHT OR REMEDY ARISES IN EQUITY, UNDER CONTRACT, BY STATUTE, UNDER COMMON LAW OR OTHERWISE. 
 No termination hereof shall be effective until the
Guarantors deliver to Equify Financial, LLC a written notice signed by them electing not to guarantee any new extension of credit that may be granted by Equify Financial, LLC to the Maker after its receipt of such notice, but such notice shall not
affect the obligations of the guarantors hereunder as to any and all Indebtedness existing at the time such notice is received. Each Guarantor hereby waives (i) notice of acceptance hereof and notice of extensions of credit given by Equify
Financial, LLC to the Maker from time to time; (ii) presentment, demand, protest, and notice of non-payment or protest as to any note or other evidence of indebtedness signed, accepted, endorsed or assigned to Equify Financial, LLC by the Maker;
(iii) all exemptions and homestead laws; (iv) any other demands and notices required by law; and (v) any right to trial by jury. Equify Financial, LLC may at any time and from time to time, without notice to or the consent of any Guarantor, and
without affecting or impairing the obligation of any Guarantor hereunder (a) renew, extend or refinance any part or all of the Indebtedness of the Maker or any Indebtedness of its customers, or of any co­ Guarantor (whether hereunder or under a
separate instrument) or any other party; (b) accept partial payments of the Indebtedness and apply such payments to any part of the Indebtedness; (c) settle, release (by operation of law or otherwise), compound, compromise, collect or liquidate, in
any manner, any of the Indebtedness, any Security, or any Indebtedness of any co-Guarantor (whether hereunder or under a separate instrument) or any other party; (d) consent to the transfer of any Security; (e) bid and purchase at any sale of any of
the Agreements or Security; and (f) exercise any and all rights and remedies available to Equify Financial, LLC by law or agreement even if the exercise thereof may affect, modify or eliminate any rights or remedies which a Guarantor may have
against the Maker. Each Guarantor shall continue to be liable under this Guaranty, the provisions hereof shall remain in full force and effect, and Equify Financial, LLC shall not be stopped from exercising any rights hereunder, notwithstanding (i)
Equify Financial, LLC waiver of or failure to enforce any of the terms, covenants or conditions contained in any of the Agreements; (ii) any release of, or failure on the part of Equify Financial, LLC to perfect any security interest in or
foreclose, proceed against, or exhaust, any Security; or (iii) Equify Financial, LLC’s failure to take new, additional or substitute security or collateral for the Indebtedness. 

EACH GUARANTOR, AS A MATERIAL INDUCEMENT FOR EQUIFY FINANCIAL, LLC TO ENTER INTO THIS TRANSACTION, HEREBY: IRREVOCABLY DESIGNATES AND APPOINTS THE TEXAS
SECRETARY OF STATE OR SUCH REGISTERED AGENT AS DESIGNATED IN GUARANTOR’S REGISTRATION FILED WITH THE TEXAS SECRETARY OF STATE AS ATTORNEY-IN-FACT AND AGENT FOR GUARANTOR AND IN GUARANTOR’S NAME, PLACE AND STEAD TO ACCEPT SERVICE OF ANY
PROCESS WITHIN THE STATE OF TEXAS; AGREES TO THE EXCLUSIVE JURISDICTION AND VENUE OF ANY COURT LOCATED IN TARRANT COUNTY, TEXAS, REGARDING ANY DISPUTE WITH EQUIFY FINANCIAL, LLC OR ANY OF EQUIFY FINANCIAL, LLC’S OFFICERS, DIRECTORS, EMPLOYEES
OR AGENTS, INCLUDING WITHOUT LIMITATION ANY MATTER RELATING TO OR ARISING UNDER THIS OR ANY OTHER EXISTING OR FUTURE AGREEMENT WITH EQUIFY FINANCIAL, LLC, PROVIDED THAT EQUIFY FINANCIAL, LLC MAY BRING SUIT IN ANY OTHER COURT HAVING JURISDICTION;
WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF ANY SUCH ACTION OR PROCEEDING; WAIVES THE RIGHT TO TRANSFER THE VENUE OF ANY SUCH ACTION OR PROCEEDING; AND CONSENTS AND AGREES THAT SERVICE OF PROCESS IN ANY
ACTION OR PROCEEDING BROUGHT IN ACCORDANCE HEREWITH SHALL BE GOOD AND SUFFICIENT IF SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO GUARANTOR AT GUARANTOR’S ADDRESS AS PROVIDED HEREIN. THE PARTIES HEREBY WAIVE ANY AND ALL RIGHTS
TO A JURY TRIAL OF ANY CLAIM, CAUSE OF ACTION, COUNTERCLAIM, CROSS-CLAIM, DEFENSE OR OFFSET INVOLVING GUARANTOR, EQUIFY FINANCIAL, LLC OR ANY PERSON CLAIMING ANY RIGHT OR INTEREST ACQUIRED FROM, THROUGH OR UNDER ANY OF THEM; AND GUARANTOR FURTHER
HEREBY WAIVES ANY AND ALL SPECIAL, EXEMPLARY, PUNITIVE AND CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR RELATED TO THIS AGREEMENT AND/OR THE ACTS OR OMISSIONS OF EQUIFY FINANCIAL, LLC OR ANY ASSIGNEE. All rights and remedies of Equify
Financial, LLC are cumulative and not alternative. Each provision of this Guaranty is intended to be severable. Any term or provision hereof declared to be contrary to, prohibited by or invalid under applicable laws or regulations shall be
inapplicable and deemed omitted here from, but shall not invalidate the remaining terms and provisions hereof. 
 IF A GUARANTOR TRANSMITS THE
GUARANTY TO EQUIFY FINANCIAL, LLC BY FAX, THE FAX VERSION OF THE GUARANTY AS RECEIVED BY EQUIFY FINANCIAL, LLC WILL BE BINDING ON THE GUARANTORS AS IF IT WERE MANUALLY SIGNED BY EACH GUARANTOR. EQUIFY FINANCIAL, LLC MAY IN ITS SOLE DISCRETION
REQUIRE A GUARANTOR TO DELIVER A COPY OF THE GUARANTY WITH THE ORIGINAL SIGNATURE(S) OF SUCH GUARANTOR. IN ANY ACTION ARISING OUT OF THE GUARANTY, EQUIFY FINANCIAL, LLC OR ITS ASSIGNS MAY PRODUCE A FAX COPY OF THE GUARANTY RATHER THAN THE COPY
CONTAINING THE ORIGINAL SIGNATURES OF THE GUARANTORS AND SUCH FAX COPY WILL BE DEEMED THE ORIGINAL OF SUCH GUARANTY. 
 The validity, construction,
operation and effect of this Continuing Guaranty shall be governed by and construed and enforced in accordance with the laws of the State of Texas. 

  

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 IN WITNESS WHEREOF, the Guarantors have executed this Guaranty on July 18, 2022. 

 

					
	 Witness /s/ Spencer Daigle
	 	GUARANTOR: U.S. WELL SERVICES, INC.
		 	(Name of Individual, Corporation or Partnership)
			
	 Witness
	 	By:	 	 /s/ Kyle O’Neill

 

		 		 	Kyle O’Neill
		 	Title:	 	President and Chief Executive Officer
		 		 	(If corporate guarantor, authorized officer must sign and show corporate title. If partnership guarantor, a general partner must sign and show “Partner” after name. If individual guarantor, show “Individually”
after name.)
	                                      
                                  	 	Address:	 	 1360 Post Oak Blvd, Floor 18, Houston, TX 77056

 NOTE: Insert exact company names where appropriate. Individual guarantors must sign guaranty without titles. Sign simply
“John Smith, Individually,” not “John Smith, President.” DO NOT USE THIS FORM if the guarantor resides or has a principal place of business in Kentucky. 

  

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