Document:

EXHIBIT 10.3

 

CUTBACK AGREEMENT

 

CUTBACK AGREEMENT (the “Agreement”),
dated as of September 26, 2017, among Fifth Street Asset Management Inc. (the “Issuer”), Fifth Street Holdings
L.P. (“Holdings”), and the limited partners of Holdings party hereto (the “Limited Partners”).

 

WHEREAS, the parties hereto desire to provide
for fair treatment to the Limited Partners in connection with the next Quarterly Exchange Date;

 

NOW, THEREFORE, in consideration of the
mutual covenants and undertakings contained herein and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:

 

Section
1.1.         
Definitions. Capitalized terms not defined herein shall have the meanings given
in the Exchange Agreement (the “Exchange Agreement”) by and among the Issuer, Holdings and the limited partners of
Holdings parties thereto, dated as of November 4, 2014.

 

Section
1.2.         
Cutback of Exchange of Partnership Units.

 

(a)          Notwithstanding the Exchange Agreement, if the audit committee or Board of Directors of the
Issuer determine that it is advisable, for tax purposes or other reasons, to limit the number of Partnership Units to be exchanged
on the next Quarterly Exchange Date, the Limited Partners agree that the number of Partnership Units to be exchanged by each of
them shall be reduced, pro rata, based on the amount of Partnership Units most recently requested to be exchanged by each of the
Partners as set forth on Schedule 1 hereto, so that the total number of Partnership Units to be exchanged does not exceed the amount
determined by the audit committee or Board of Directors of the Issuer. For example, if the audit committee determines that only
4,000,000 Partnership Units should be exchanged on the next Quarterly Exchange Date, then each of the Partners listed on Schedule
1 shall be entitled to exchange 69.5% of the Partnership Units of such Partner set forth on Schedule 1 (4,000,000 / 5,755,957 =
69.5%).

 

(b)          The Issuer shall have full discretion to change the date of the next Quarterly Exchange Date.

 

Section
1.3.         
Further Action. The parties shall execute and deliver all documents, provide
all information and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement.

 

Section
1.4.         
Binding Effect. This Agreement shall be binding upon and inure to the benefit
of all of the parties and, to the extent permitted by this Agreement, their successors, executors, administrators, heirs, legal
representatives and assigns.

 

Section
1.5.         
Counterparts. This Agreement may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed
and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Copies
of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed
counterparts.

 

Section
1.6.          Applicable Law. This Agreement shall be governed by,
and construed in accordance with, the law of the State of Delaware without regard to conflict of laws principles that would result
in the application of the laws of any other jurisdiction.

 

     

     

    

 

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

 

 

	 	FIFTH STREET ASSET MANAGEMENT INC.
	 	 
	 	By:	/s/ Leonard M. Tannenbaum
	 	 	Name:  Leonard M. Tannenbaum
	 		Title:    Chief Executive Officer
	 	 	 
	 	 	 
	 	FIFTH STREET HOLDINGS L.P.
	 	 	 
	 	By:	/s/ Leonard M. Tannenbaum
	 	 	Name:  Leonard M. Tannenbaum
	 		Title:    Chief Executive Officer of its General Partner

 

 

	 	LIMITED PARTNERS:
	 	 
	 	 
	 	/s/  Bernard D. Berman
	 	Name: Bernard D. Berman
	 	 
	 	 
	 	/s/  Ivelin M. Dimitrov
	 	Name: Ivelin M. Dimitrov
	 	 
	 	 
	 	/s/  Alexander C. Frank
	 	Name: Alexander C. Frank 
	 	 
	 	 
	 	/s/  Brian D. Finkelstein
	 	Name: Brian D. Finkelstein
	 	 
	 	 
	 	/s/  Steven M. Noreika
	 	Name: Steven M. Noreika

     

     

    

 

	 	FSC CT II, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Leonard M. Tannenbaum
	 		Name:  Leonard M. Tannenbaum
	 		Title:    Chief Executive Officer
	 	 	 
	 	 	 
	 	BERNARD D. BERMAN 2012 TRUST
	 	 
	 	 
	 	By	/s/ William F. Meehan
	 		Name:  William F. Meehan
	 		Title:    Trustee
	 	 	 
	 	By	/s/ Nicole H. Berman
	 		Name:  Nicole H. Berman
	 		Title:    Trustee

 

     

     

    

 

Schedule 1

 

 

	Partner	Partnership Units Requested to be Exchanged
	 	 
	 	 
	FSC CT II, Inc.	3,000,000
	 	 
	Bernard D. Berman	1,427,119
	 	 
	Bernard D. Berman 2012 Trust	725,774
	 	 
	Ivelin M. Dimitrov	426,976
	 	 
	Alexander C. Frank	104,940
	 	 
	Brian D. Finkelstein	66,528
	 	 
	Steven M. Noreika	4,620
	 	 
	 	 
	Total	5,755,957Exhibit
4.51

 

September
20, 2017

 

Mr.
William Serratore

Chief
Executive Officer

Premier
Empire Energy, LLC.

230
Park Ave

New
York, New York 10169

 

Re:
Indication of Intent

 

Dear
Mr. Serratore:

 

Pursuant
to our conversations, NuState Energy Holdings, Inc. (“NSEH”) is pleased to submit this confidential, indication of
intent to enter good faith negotiations with Premier Empire Energy, LLC. (the “Company”) related to the acquisition
of Premier Empire Energy, LLC. (the “Transaction”).

 

NSEH,
located at 401 E. Las Olas Blvd in Ft Lauderdale, Florida, is a publically traded company under the laws of the State of Florida
that provides expertise and leadership in the development, financing and management of business’ looking to expand.

 

1.
Structure and Value

 

This
indication of interest (which is fully assignable with NSEH written permission) is based on our discussions to date. NSEH is prepared
to offer Company an irrevocable option to purchase all interest in the Company. This option to purchase includes all interest
in the Company and all of the underlying rights to the Intellectual Property, know-how, trademarks and goodwill and the benefit
of all proposed agreements.

 

The
exercise price of the option is $2,500,000 in $0.0001 par value restricted common stock (the “Purchase Price”) in
exchange for 100% of the outstanding equity of the Company. The Purchase Price is to be paid as follows: (i) $2,500,000 in $0.0001
par value restricted common stock

 

2.
Timing and Due Diligence

 

NSEH
expects that this Transaction will move quickly. The terms and conditions relating to the Option to Purchase all Interest will
be prepared and agreed upon on or about October 30, 2017. Upon exercising the option to purchase, NSEH and the Company will deliver
all authorizations, consents and other Transaction Documents required for the Company to take controlling interest.

 

The
Company may proceed with due diligence immediately upon execution of this indication of intent. The Company will be given access
to NSEH owners, its management team, its accountant and its bookkeeper during normal business hours and after reasonable notice.
The Company must execute a Confidentiality, Nondisclosure and Non-Use Agreement satisfactory to NSEH.

 

The
Company’s due diligence team may be comprised of financial advisors, legal counsel and other resources experienced in transactions
of this nature. NSEH and the Company will each be responsible for its respective expenses associated with due diligence and the
negotiation and drafting of definitive purchase agreement, license agreement and other Transaction documents.

 

3.
Agreements

 

Completion
of this Transaction is subject to the following: (i) an Option To Purchase all Interest approved by NSEH’s manager and members
and the Company’s board; (ii) the Option To Purchase and other definitive Transaction Documents containing the usual representations,
warranties, and indemnities customarily available in such transactions, including indemnification of the NSEH IP software for
any and all liabilities, damages or expenses arising out of or related to the acts of the Company; and (iii) the parties obtaining
all necessary governmental and other approvals, licenses or permits.

 

NSEH
management team will enter into other agreements on such terms as may be agreed upon by the individuals and the Company, including,
but not limited to:

 

(1)
An employment or independent contractor agreement to provide assistance with the SEC accounting and filing requirements.

 

(2)
non-competition and non-solicitation agreements within the United States to extend not less than two (2) years following the closing
of this Transaction; and

 

(3)
other agreements related to operation of the purchased business.

 

    	 

    	 	 	 

    

 

NSEH
majority owner and its management team will be available as necessary to meet with the Company to negotiate the terms of the purchase
and contingency agreements and other Transaction Documents. NSEH requests that the Company assign a person or person(s) to serve
as the primary contact during the due diligence process and negotiations.

 

4.
Confidentiality, Non-Disclosure and Announcements

 

Neither
party, nor any of its employees, representatives, or agents, may disclose to any third party any confidential or proprietary information
learned about the other party’s business activities, assets, management or employees during the course of this Transaction,
except as required by applicable law. In the event the parties are unable to agree on the specifics of this Transaction, each
party will return all confidential information of the other party obtained during the due diligence process and negotiations.

 

Unless
required by law, neither NSEH nor the Company will make any public disclosure regarding the existence or subject matter of this
indication of intent without the consent of the other party. The parties will mutually agree upon the form of any press release
or announcement to their employees and affiliates regarding this Transaction.

 

5.
Standstill

 

This
indication of intent is intended to create a standstill period during the period set aside for the due diligence period immediately
following the signing of this document for up to 30 days.

 

6.
Governing Law

 

Any
dispute between the parties arising out of or relating to this indication of intent or the definitive agreements and other Transaction
Documents will be construed under and governed by the laws of the State of Florida without respect to its conflicts of law principles.
The parties agree to waive the right to jury trial on matters arising out of or related to this indication of intent, the definitive
agreements and Transaction Documents. The parties designate federal courts sitting in Florida as the appropriate venue for any
action related to such matters.

 

7.
Indication of Intent

 

This
letter is intended as indication of interest in completing the Transaction described herein, but does not constitute a binding
agreement by the parties, except with respect to confidentiality, non-disclosure and announcements (Paragraph 4) and selection
of law and venue (Paragraph 6). NSEH is not obligated by this letter to commence, continue or complete negotiation of the sale
of its business in the United States as described herein. Any commitment to complete this Transaction is subject to the negotiation,
execution and delivery of an Option to Purchase Controlling Interest and other Transaction Documents satisfactory to NSEH and
containing substantially the terms and conditions described in this letter and such other terms as NSEH and the Company may agree.

 

NSEH
looks forward to working with you on this Transaction. If you desire any clarification of this indication of interest or additional
information, please do not hesitate to contact Kevin Yates, Chairman of NuState at (954) 712-7487. If the Company is agreeable
to moving forward with the Transaction under the terms set forth in this letter, please sign and return a copy of this letter
to the address provided above.

 

This
letter is valid if signed and returned on or before September 22, 2017.

 

Sincerely,

 

	NuState
    Energy Holdings, Inc.	 
	 	 
	/s/
    Kevin Yates	 
	Kevin
    Yates, Chairman	 
	 	 
	Premier
    Empire Energy, LLC	 
	 	 
	/s/
    William Serratore	 
	William
    Serratore, CEO

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