Document:

Exhibit 10.21

Exhibit 10.21

AMENDMENT TO NOTE AND WARRANT EXCHANGE AGREEMENT

This Amendment to Note and Warrant Exchange Agreement (this “Agreement”) is entered into as of
the _______day of July, 2009, by and between Vertex Energy, Inc. (“Vertex”) and CleanTech Biofuels,
Inc. (“CTB”).

WHEREAS, effective as of October 22, 2009, CTB and World Waste Technologies, Inc. (“WWT”)
entered into a Patent Purchase Agreement (the “Purchase Agreement”) pursuant to which, among other
things, WWT sold certain intellectual property to CTB in exchange for the issuance by CTB to WWT of
warrants to acquire shares of CTB’s common stock (the “Warrants”) and a promissory note in favor of
WWT in the aggregate principal amount of $450,000 (the “Note”). The Note is secured by the assets
of CTB pursuant to that certain Security Agreement dated as of October 22, 2008, between WWT and
CTB (the “Security Agreement”);

WHEREAS, WWT has assigned all of its right, title and interest in and to the Note, the
Warrants, the Security Agreement and the Purchase Agreement (collectively, the “Assignments”), to
Vertex; and

WHEREAS, to date no payments on account of principal, interest or otherwise have been made by
CTB on the Note; and

WHEREAS, the parties wish to amend the terms of the Note, exchange the Warrants for new
warrants, and document the Assignments, all as set forth below.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1. Upon execution of this Agreement, the parties shall enter into an Amendment to Promissory
Note (the “Amendment to Note”) in the form attached hereto as Exhibit A .

2. Upon execution of this Agreement, the Warrants (copies of which are attached hereto as
Exhibit B ) are hereby canceled in full, and CTB shall issue to Vertex a new warrant in
exchange therefore, the form of which is attached hereto as Exhibit C .

3. CTB hereby consents to the Assignments.

4. All remaining terms and conditions of the Note, the Purchase Agreement and the Security
Agreement shall continue in full force and effect.

5. Upon execution of this Agreement, CTB shall wire transfer immediately available funds (i)
to Vertex in the amount of $65,400, as contemplated by the Amendment to Note, and (ii) to TroyGould
PC in the amount of $2,500 [estimated], as payment of legal fees incurred by Vertex in connection
with the transactions contemplated hereby, in each case to the accounts specified by the recipients
thereof.

IN WITNESS WHEREOF, CTB and Vertex have caused this Amendment to Note and Warrant Exchange
Agreement to be executed and delivered by their duly authorized officers as of the day and year set
forth above.

	 	 	 	 	 
	 	CLEANTECH BIOFUELS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Edward P. Hennessey 	 
	 	 	Title:  	President 	 
	 
	 	VERTEX ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

 

	 	 	 	 	 

AMENDMENT TO PROMISSORY NOTE

			
	 	 	 
	Houston, Texas
	 	July 22, 2009

This Amendment to Promissory Note (this “Amendment”) entered into as of the _______ day of July,
2009 hereby amends that certain Promissory Note originally issued as of October 22, 2008 by
CleanTech Biofuels, Inc. (“Borrower”) in favor of World Waste Technologies, Inc. (“WWT”) in the
original principal amount of $450,000 (the “Note”). WWT subsequently assigned all of its right,
title and interest in and to the Note to Vertex Energy, Inc (“Vertex”). This Amendment is being
entered into pursuant to the terms and conditions of that certain Amendment to Note and Warrant
Exchange Agreement (the “Main Agreement”) between Borrower and Vertex, of even date herewith.
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such
terms in the Note.

(i) All references to Lender in the Note shall be deemed to refer to Vertex.

(ii) Upon execution of this Amendment, and as required by the Main Agreement, Borrower is
making a payment of $65,400 (the “Interim Payment”) to Lender, which payment the parties agree
represents the sum of (x) all interest accrued on the Note up to and through July 22, 2009 and (y)
10% of the total principal amount outstanding on the Note as of the date hereof.

(iii) Upon making of the Interim Payment, the Note is amended such that 50% of the unpaid
principal amount outstanding on the Note ($202,000), plus all accrued but unpaid interest thereon,
shall be due and payable in full on the 22nd day of October, 2009, with the remaining 50% of the
unpaid principal amount outstanding on the Note ($202,000), plus all accrued but unpaid interest
thereon, being due and payable on the 22nd day of January, 2010.

(iii) All terms and conditions of the Note not specifically amended hereby shall remain in
full force and effect as set forth in the Note.

IN WITNESS WHEREOF, Borrower and Lender have caused this Amendment to Promissory Note to be
executed and delivered by their duly authorized officers as of the day and year and at the place
set forth above.

	 	 	 	 	 
	 	CLEANTECH BIOFUELS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Edward P. Hennessey 	 
	 	 	Title:  	President 	 
	 
	 	VERTEX ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

2

 

	 	 	 	 	 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
CLEANTECH BIOFUELS, INC., THAT SUCH REGISTRATION IS NOT REQUIRED.

			
	 	 	 
	July 23, 2009
	 	Warrant No.: 3-B

COMMON STOCK PURCHASE WARRANT

(the “Warrant”)

Right to Purchase 1,800,000 Shares of Common Stock of

CLEANTECH BIOFUELS, INC.

CLEANTECH BIOFUELS, Inc., a corporation organized under the laws of the State of Delaware (the
“Company”), hereby certifies that, for value received, Vertex Energy, Inc. or its successors or
assigns (the “Holder”) shall be entitled to purchase from the Company upon the due exercise hereof,
and subject to the terms and conditions herein, from the date hereof until the fifth (5th)
anniversary of the issuance of this Warrant (the “Expiration Date”), all or any part of 1,800,000
fully paid and non-assessable shares of common stock, par value $0.001 per share (the “Common
Stock”) of the Company, upon surrender hereof, with the exercise form annexed hereto duly completed
and executed, at the office of the Company and upon simultaneous payment therefore in cash or by
certified or official bank check, payable to the order of the Company, at a per share exercise
price (“Exercise Price”) of $0.11, subject to adjustment as provided herein. This Warrant is being
issued to the Holder in exchange for the cancellation of Warrants No 1-B and 2-B, which warrants
were originally issued on October 22, 2008.

Restriction on Transfer. No resale of the Warrant or of any of the shares of Common Stock
underlying the exercise of the Warrant (the “Underlying Stock”) will be made unless such resale is
registered pursuant to a registration statement filed by the Company with the Securities and
Exchange Commission (the “Commission”) or an exemption from registration under the Securities Act
of 1933, as amended (the “Securities Act”). By acceptance of this Warrant, the Holder agrees, for
itself and all subsequent holders, that prior to making any disposition of the Warrant or of any
Underlying Stock, the Holder shall give written notice to the Company describing briefly the
proposed disposition; and no such disposition shall be made unless and until (i) the Company has
notified the Holder that, in the opinion of counsel satisfactory to it, no registration or other
action under the Securities Act is required with respect to such disposition (which opinion may be
conditioned upon the transferee’s assuming the Holder’s obligation hereunder); or (ii) a
registration statement under the Securities Act has been filed by the Company and declared
effective by the Commission or other such similar action has been taken.

Expiration of Warrant. Unless this Warrant and the Exercise Price are tendered in full as
herein provided before the close of business on the Expiration Date, the unexercised portion of
this Warrant will become wholly void and all rights and obligations set forth herein with respect
to such unexercised portion shall expire and terminate.

Partial Exercise. If this Warrant is exercised for less than all the shares that may be
purchased upon the exercise hereof, this Warrant shall be surrendered by the Holder and replaced
with a new warrant of like tender in the name of the Holder providing for the right to purchase the
number of shares of Underlying Stock as to which this Warrant has not yet been exercised.

 

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Cashless Exercise. The Holder may exercise this Warrant, in whole or in part, without
payment of the exercise price in cash by surrendering this Warrant and, in exchange therefor,
receiving such number of Underlying Shares multiplied by the Cashless Exercise Ratio (as defined
below). The “Cashless Exercise Ratio” shall equal a fraction, the numerator of which is the excess
of the “Fair Market Value” (Fair Market Value on a given date means the average of the high and low
price of a share of Common Stock, as reported by the principal national securities exchange or
other trading system on which the Common Stock is traded, or, if no such prices are available, as
mutually agreed upon by the Holder and the Company) per share of Common Stock on the date of
exercise over the exercise price per share of Common Stock as of the date of exercise and the
denominator of which is the Fair Market Value per share of Common Stock on the date of exercise.
All provisions of this Agreement shall be applicable with respect to a Cashless Exercise of this
Warrant for less than the full number of Underlying Stock represented thereby. In the event of an
exercise of this Warrant for less than all the Underlying Stock (after giving effort to the
Cashless Exercise) the Company shall promptly issue the Holder a new Warrant representing the right
to purchase the balance of such Underlying Stock containing the same terms and provisions as are
contained in this Warrant.

Adjustments. The Exercise Price and the number of shares of Underlying Stock of the
Company issuable pursuant to such exercise is subject to adjustment as follows:

In case the Company shall at any time declare a stock dividend or stock split on the outstanding
shares of Common Stock in shares of its Common Stock, then the Exercise Price and number of shares
of Underlying Stock shall be proportionately adjusted so that the Holder shall be entitled to
receive the aggregate number and kind of shares which it would have been entitled to receive by
virtue of such dividend if this Warrant had been exercised immediately prior to such time.

In case the Company shall at any time subdivide or combine the outstanding shares of the Common
Stock, the Exercise Price, initial or adjusted, in effect immediately prior to such subdivision or
combination shall forthwith be proportionately decreased in the case of subdivision or increased in
the case of combination.

In case of any capital reorganization, sale of substantially all the assets of the Company, or any
reclassification of the shares of Common Stock of the Company, or in case of any consolidation with
or merger of the Company into or with another corporation, then as a part of such reorganization
sale reclassification, consolidation or merger, as the case may be, provision shall be made so that
the registered owner of the Warrant evidenced hereby shall have the right thereafter to receive
upon the exercise thereof the kind and amount of shares of stock or other securities or property
which it would have been entitled to receive if immediately prior to such reorganization,
reclassification, consolidation or merger, it had held the number of shares of Underlying Stock
which were then issuable upon the exercise of the Warrant evidenced hereby, to the end that the
provisions set forth herein (including provisions with respect to adjustments of the Exercise
Price) shall thereafter be applicable, as nearly as reasonably may be, in relation to any shares of
stock or other property thereafter deliverable upon the exercise of this Warrant.

If the Company at any time makes any spin-off, split-off, or distribution of assets upon or with
respect to its Common Stock, as a liquidating or partial liquidating dividend, spin-off, or by way
of return of capital, other than as dividend payable out of earnings or any surplus legally
available for dividends, the Holder shall, upon the exercise of this Warrant, receive, in addition
to the shares of Common Stock then issuable on exercise of this Warrant, the amount of such assets
(or, at the option of the Company, a sum equal to the value thereof at the time of the
distributions) which would have been payable to the Holder had it exercised this Warrant
immediately prior to the record date for such distribution.

When any adjustment is required to be made to the Exercise Price, the number of shares of Common
Stock issuable shall be determined as provided for in paragraph (f) hereof. No fractional shares of
Common Stock shall be issued upon the exercise of this Warrant. The Company shall round all
fractional shares up to the next whole share.

Whenever the Exercise Price is adjusted as provided above, the number of shares of Underlying Stock
immediately prior to such adjustment shall be increased, effective simultaneously with such
adjustment, by a number of shares of Common Stock computed by multiplying such number of shares of
Common Stock by a fraction, the numerator of which is the Exercise Price in effect immediately
prior to such adjustment and the denominator of which is the Exercise Price in effect upon such
adjustment, and the number of shares of Underlying Stock arrived at by making said computation
shall be added to the number of shares of Underlying Stock immediately prior to such adjustment.
The total number of shares arrived at by making the computation provided for in the immediately
preceding sentence shall thereupon be the number of shares of Common Stock issuable upon exercise
or the Warrant and the Company shall forthwith determine the new Exercise Price.

 

4

 

Delivery of Underlying Stock. As soon as practicable after the exercise hereof, but not
more than five (5) days thereafter, the Company shall deliver a certificate or certificates for the
number of full shares of Underlying Stock,
all of which shall be fully paid and nonassessable, to the person or persons entitled to receive
the same provided no sale, offer to sell or transfer of the Underlying Stock or of this Warrant, or
of any shares or other securities issued in exchange for or in respect of such shares, shall be
made unless a registration statement under the Act, with respect to such shares, is in effect or an
exemption from the registration requirements of such Act is applicable to such shares.

Condition of Exercise of Warrant.

Unless exercised pursuant to an effective registration statement under the Securities Act which
includes the Underlying Stock, it shall be a condition to any exercise of this Warrant that the
Company shall have received, at the time of such exercise, a representation in writing from the
recipient in the form attached hereto as Exhibit A-1, that the Shares being issued upon exercise,
are being acquired for investment and not with a view to any sale or distribution thereof.

Each certificate evidencing the Underlying Stock issued upon exercise of this Warrant, shall be
stamped or imprinted with a legend substantially in the following form:

“The securities represented by this certificate have not been registered
under the Securities Act of 1933, as amended. The securities have been
acquired for investment and may not be sold, transferred or assigned in the
absence of an effective registration statement for the securities under said
Act, or an opinion of counsel, in form, substance and scope reasonably
acceptable to the Company, that registration is not required under said Act
or unless sold pursuant to Rule 144 under said Act.”

Subject to this Section 7, the Company may instruct its transfer agent not to register the transfer
of all or a part of this Warrant, or any of the Shares, unless one of the conditions specified in
the above legend is satisfied.

Representations and Warranties of the Company. The Company represents and warrants to the
Holder as follows:

This Warrant has been duly authorized and executed by the Company and is a valid and binding
obligation of the Company enforceable in accordance with its terms;

The Underlying Stock has been duly authorized and reserved for issuance by the Company and, when
issued in accordance with the terms hereof, will be validly issued, fully paid and nonassessable;
and

The execution and delivery of this Warrant are not, and the issuance of the Underlying Stock upon
exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the
Company’s Articles of Incorporation or By-laws, as amended.

Representations and Warranties by the Holder. The Holder represents and warrants to the
Company as follows:

This Warrant is being acquired for its own account, for investment and not with a view to, or for
resale in connection with, any distribution or public offering thereof within the meaning of the
Securities Act. Upon exercise of this Warrant, the Holder shall, if so requested by the Company,
confirm in writing, in a form reasonably satisfactory to the Company, that the Underlying Stock
issuable upon exercise of this Warrant is being acquired for investment and not with a view toward
distribution or resale.

The Holder understands that this Warrant and the Underlying Stock have not been registered under
the Securities Act by reason of their issuance in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act pursuant to Section 4(2) thereof, and that
they must be held by the Holder indefinitely, and that the Holder must therefore bear the economic
risk of such investment indefinitely, unless a subsequent disposition thereof is registered under
the Securities Act or is exempted from such registration.

The Holder has such knowledge and experience in financial and business matters that it is capable
of evaluating the merits and risks of the purchase of this Warrant and the Underlying Stock and of
protecting its interests in connection therewith.

The Holder is able to bear the economic risk of the purchase of the Underlying Stock pursuant to
the terms of this Warrant.

 

5

 

Rights of Stockholders. No holder of this Warrant shall be entitled, as a warrant-holder,
to vote or receive dividends or be deemed the holder of Common Stock or any other securities of the
Company which may at any time be issuable on the exercise hereof for any purpose, nor shall
anything contained herein be construed to confer upon the holder of this Warrant, as such, any of
the rights of a stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to
any corporate action (whether upon any recapitalization, issuance of stock, reclassification of
stock, change of par value, consolidation, merger, conveyance, or otherwise) or to receive notice
of meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall
have been exercised and the Shares purchasable upon the exercise hereof shall have become
deliverable, as provided herein.

Miscellaneous.

This Warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver,
discharge or termination is sought.

This Warrant shall be governed by and construed in accordance with the laws of State of New York
without regard to principles of conflicts of laws.

The invalidity or unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision.

The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise
affect any of the terms hereof.

The terms of this Warrant shall be binding upon and shall inure to the benefit of any successors or
assigns of the Company and of the holder or holders hereof and of the Underlying Stock.

This Warrant and the other documents delivered pursuant hereto constitute the full and entire
understanding and agreement between the parties with regard to the subjects hereof and thereof.

Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or destruction, upon delivery
of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case
of any such mutilation, upon surrender and cancellation of such Warrant, the Company at its expense
will execute and deliver to the holder of record, in lieu thereof, a new Warrant of like date and
tenor.

This Warrant and any provision hereof may be amended, waived or terminated only by an instrument in
writing signed by the Company and the Holder.

Receipt of this Warrant by the Holder hereof shall constitute acceptance of and agreement to the
foregoing terms and conditions.

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer.

Dated: July 23, 2009

	 	 	 	 	 
	CLEANTECH BIOFUELS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

	 	 	 	 	 	 	 
	Warrant Holder:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 	 	 

 

6

 

EXHIBIT A

NOTICE OF EXERCISE

	 	 	 
	TO:

	 	CLEANTECH BIOFUELS, INC.

The undersigned hereby elects to purchase _______ shares of Common Stock of CLEANTECH BIOFUELS,
INC. pursuant to the terms of this Warrant, and tenders herewith payment of the purchase price of
such shares in full in the form of cash and/or shares of Common Stock received upon exercise of the
attached Warrant, which shares have the current market value equal to such payment.

Please issue a certificate or certificates representing said shares of Common Stock in the name of
the undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	 

(Name)
	 	 
	 
	 	 	 	 
	 

	 	 

(Address)
	 	 
	 
	 	 	 	 
	 

	 	 

	 	 

The undersigned hereby represents and warrants that the aforesaid shares of Common Stock are being
acquired for the account of the undersigned for investment and not with a view to, or for resale,
in connection with the distribution thereof, and that the undersigned has no present intention of
distributing or reselling such shares and all representations and warranties of the undersigned set
forth in Section 9 of the attached Warrant are true and correct as of the date hereof. In support
thereof, the undersigned agrees to execute an Investment Representation Statement in a form
substantially similar to the form attached to the Warrant as EXHIBIT A-1.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:
	 	                    , 20_______
	 	 

 

 A - 1

 

EXHIBIT A-1

INVESTMENT REPRESENTATION STATEMENT

	 	 	 	 	 	 	 
	 

	 	PURCHASER:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	SELLER:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	COMPANY:
	 	CLEANTECH BIOFUELS, INC.	 	 
	 
	 	 	 	 	 	 
	 	 	SECURITIES:	 	COMMON STOCK ISSUED UPON EXERCISE OF THE WARRANTS ISSUED ON July 23, 2009
	 
	 	 	 	 	 	 
	 

	 	AMOUNT:
	 	                     SHARES	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE:
	 	                    , 20_______	 	 

In connection with the purchase of the above-listed Securities, I, the Purchaser, represent to the
Seller and to the Company the following:

I am aware of the Company’s business affairs and financial condition, and have acquired sufficient
information about the Company to reach an informed and knowledgeable decision to acquire the
Securities. I am purchasing these Securities for my own account for investment purposes only and
not with a view to, or for the resale in connection with, any “distribution” thereof for purposes
of the Securities Act of 1933, as amended (the “Securities Act”).

I understand that the Securities have not been registered under the Securities Act in reliance upon
a specific exemption therefrom, which exemption depends upon, among other things, the bona fide
nature of my investment intent as expressed herein. In this connection, I understand that, in the
view of the Securities and Exchange Commission (the “Commission”), the statutory basis for such
exemption may be unavailable if my representation was predicated solely upon a present intention to
hold these Securities for the minimum capital gains period specified under tax statutes, for a
deferred sale, for or until an increase or decrease in the market price of the Securities, or for a
period of one year or any other fixed period in the future.

I further understand that the Securities must be held indefinitely unless subsequently registered
under the Securities Act or unless an exemption from registration is otherwise available.
Moreover, I understand that the Company is under no obligation to register the Securities. In
addition, I understand that the certificate evidencing the Securities will be imprinted with a
legend which prohibits the transfer of the Securities unless they are registered or such
registration is not required in the opinion of counsel for the Company.

I am familiar with the provisions of Rule 144, promulgated under the Securities Act, which, in
substance, permits limited public resale of “restricted securities” acquired, directly or
indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of
certain conditions.

The Securities may be resold in certain limited circumstances subject to the provisions of
Rule 144, which requires among other things: (1) the availability of certain public information
about the Company, (2) the resale occurring not less than six months after the party has purchased,
and made full payment for, within the meaning of Rule 144, the securities to be sold; and (3) such
other requirements that apply to holders who are affiliates.

I further understand that in the event all of the applicable requirements of Rule 144 are not
satisfied, registration under the Securities Act, compliance with Regulation A, or some other
registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not
exclusive, the Commission has expressed its opinion that persons proposing to sell private
placement securities other than in a registered offering and otherwise than pursuant to Rule 144
will have a substantial burden of proof in establishing that an exemption from registration is
available for such
offers or sales, and that such persons and their respective brokers who participate in such
transactions do so at their own risk.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Date:
	 	                    , 20_______	 	 

 

A - 2exv10w1

Exhibit 10.1

AGREEMENT

          This AGREEMENT (“Agreement”) is entered into effective January 1, 2010 (the
“Effective Date”) by and between Hamilton Beach Brands, Inc. (the “Company”) and
Michael J. Morecroft (“Morecroft”).

WITNESSETH:

     WHEREAS, Morecroft will retire as the President and Chief Executive Officer of the Company
effective December 31, 2009; and

     WHEREAS, Morecroft has experience in leadership and financial skills and specialized expertise
and knowledge regarding the housewares industry; and

     WHEREAS, to ensure a smooth transition, the Company wishes to appoint Morecroft as the
Vice-Chairman of the Boards of Directors of the Company and The Kitchen Collection, Inc. (“KCI”).

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

     1. Services.

     (a) Capacity. The Company and KCI will each appoint Morecroft as Vice-Chairman of
its respective Board of Directors as of the Effective Date. Morecroft hereby accepts such
positions upon the terms and conditions set forth herein and shall perform such services as may be
assigned by the Chairman of the Board of Directors of the Company and KCI.

     (b) Performance of Work. Morecroft may perform the services on site at the Company’s
headquarters in Richmond, Virginia or, if appropriate, from another location. When necessary,
Morecroft may use the Company’s in-house personnel and other resources to assist in the performance
of services.

     (c) Schedule/Hours. Morecroft, the Company and KCI each agree that Morecroft will
provide services over the Term at a level that will be no more than 20% of the average level of
services performed by Morecroft over the 36-month period ending on December 31, 2009. Subject to
the preceding sentence, Morecroft shall have the discretion to determine the work schedule and the
manner in which the services will be performed in consultation with the Chairman of the Board of
Directors.

2. Term. This Agreement shall be effective on the Effective Date and shall continue
in effect until the earlier of (a) June 30, 2010 or (b) Morecroft’s death or disability that
prevents him from performing services hereunder (the “Term”).

     3. Compensation. For services rendered under this Agreement, the Company shall pay
Morecroft a monthly retainer of $25,000, in lieu of any other Board fees or retainers. Such amount
shall be paid to Morecroft, in arrears, in the form of a single lump sum payment within ten (10)
business days following the end of each calendar month during the Term. There shall not be any
proration of the retainer in the event that the Agreement terminates prior to the end of a calendar
month.

     4. Reimbursement of Expenses. The Company shall reimburse Morecroft for any reasonable
expenses incurred by Morecroft in the performance of his duties hereunder upon presentation of
satisfactory evidence thereof in accordance with corporate policies. Notwithstanding the
foregoing, travel expenses and other expenses that are expected to exceed $1,500 shall require the
prior written approval of the Chairman of the Board of Directors of the Company. No later than ten
(10) business days after the end of each calendar month, Morecroft shall provide the General
Counsel of the Company with a written invoice for any such expenses incurred during such month,
indicating the type of expenses incurred and the amount thereof. The Company shall reimburse
Morecroft for such expenses net 30 days from the date of receipt, absent any dispute

 

regarding the
amount thereof. However, as required under Internal Revenue Code Section 409A, such expenses must,
in any event, be paid no later than December 31st of the year following the year in
which such expenses were incurred by Morecroft.

          4. Independent Contractor/Taxes/Benefits.

     (a) During the Term, Morecroft will be and remain an independent contractor of the Company.
For purposes of the amounts paid under this Agreement, Morecroft will NOT be treated as an employee
of the Company for purposes of federal, state or local income tax withholding and unless otherwise
specifically provided by law, for purposes of the Federal Insurance Contributions Act, the Social
Security Act, the Federal Unemployment Tax Act or any Workers’ Compensation law of any state or
country. Morecroft acknowledges and agrees that, as an independent contractor, he will be required
to pay any applicable taxes on the fees paid by the Company and the Company shall not withhold any
taxes on such fees or be responsible for the payment thereof. 

     (b) The parties intend that any payment provided under this Agreement shall be exempt from,
or shall be paid or provided in compliance with, Internal Revenue Code Section 409A and the
Treasury Regulations thereunder such that there shall be no adverse tax consequences,
interest or penalties as a result of the payments, and the parties shall administer and
interpret the Agreement in accordance with Internal Revenue Code Section 409A and the
Treasury Regulations thereunder. Notwithstanding any other provision of this Agreement, the
Company shall not be obligated to guarantee any particular tax result for Morecroft with
respect to any payment provided to Morecroft hereunder and Morecroft shall be responsible
for any taxes imposed on Morecroft with respect to any such payment.

  (c) Except as described in the following sentence, Morecroft acknowledges and agrees
that as of the Effective Date, he will not be treated as an employee of the Company or its
affiliates for purposes of any employee benefit plan or program maintained by the Company
and shall not be entitled to receive or accrue any benefits under any such plan or program.
Notwithstanding the foregoing, (a) nothing contained herein shall change, alter or release
any vested right of Morecroft earned under any employee benefit plan as of December 31, 2009
or under the terms of the consulting agreement between Morecroft and NACCO Industries, Inc.
(the “Parent Company”) dated February 10, 2009 (the “Parent Consulting Agreement”) for
services performed prior to January 1, 2010; (b) during the Term, Morecroft shall be
provided with the use of a
laptop computer and/or blackberry or similar device, which shall be used strictly for
the performance of the services, which shall be and remain the property of the Company, and
related technical support; and (c) during the Term, Morecroft shall be provided with the use
of an office and telephone line at the Company’s headquarters and personnel support to
perform clerical functions associated with the services described herein.

          5. Entire Agreement/Applicable Law. This Agreement is the complete Agreement
between the Company and Morecroft and supersedes any proposal or prior agreement, oral or
written, and any other communications relating to the subject matter of this Agreement other
than the Parent Consulting Agreement. No changes to this Agreement shall be effective
unless made in writing and signed by the parties hereto. This Agreement will be
interpreted, enforced and governed by and under the laws of the Commonwealth of Virginia,
excluding conflict of law provisions. Morecroft consents to the jurisdiction of the
Commonwealth of Virginia for interpretation of this Agreement or any dispute arising from
the Agreement.

          6. Assignment. The Company may assign its rights and obligations under this
Agreement to the Parent Company or any successor of the Company’s business which expressly
assumes the Company’s obligations hereunder in writing.

EXECUTED on the dates indicated below.

	 	 	 
	MICHAEL J. MORECROFT

	 	HAMILTON BEACH BRANDS, INC.
	 
	 	 
	By: /s/ Michael J. Morecroft

	 	By: /s/ Kathleen L. Diller
	 

	 	Title: Vice President, General Counsel and Secretary
	 
	 	 
	Date: 11/10/2009

	 	Date: 11/10/2009

2

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