Document:

Exhibit 10.25

 

*** Confidential treatment has been requested with respect to certain
portions of this exhibit. Omitted portions have been filed separately with the
Securities and Exchange Commission.

 

OPEN ENERGY CORPORATION

514 Via de la Valle, Suite 200

Solana Beach, California 92075

 

April 9, 2008

 

Burlingame Industries, Inc.,

DBA Eagle Roofing Products

3546 N. Riverside Avenue

Rialto, California 92377

 

Re:          Amendment to Joint
Marketing and Distribution Agreement

 

Dear Seamus,

 

This letter agreement will serve as an amendment (this “Amendment”) to,
and forms a part of, the Joint Marketing and Distribution Agreement  (the “JMDA”), dated as of April 6, 2007 by
and between Open Energy Corporation (“OEC”) and Burlingame Industries, Inc.,
DBA Eagle Roofing Products (“Eagle”). 
This Amendment is binding upon both parties in accordance with its terms
and is supported by consideration the adequacy of which is acknowledged by both
parties.  Except as specifically set
forth herein, this Amendment does not alter or amend the JMDA in any way, and
all such terms remain in full force and effect. 
Capitalized terms used herein and not otherwise defined shall have the
respective meanings ascribed to such terms in the JMDA.

 

1.                                       Net Pricing Provisions. 
The parties acknowledge that pursuant to the JMDA a portion of the
pricing for product sold by OEC to Eagle for use in certain jurisdictions has
been eliminated in exchange for the assignment to OEC of the state rebate (each
a “Rebate”) associated with such product pursuant to various state incentive
programs (“Net Pricing”).  In order to
give greater certainty to OEC regarding the timing of the collection of the
Rebates, and to enable OEC to continue to offer Net Pricing, the parties have
agreed to the terms set forth below.

 

a.               Product Invoiced Prior to the Date Hereof.

 

i.                  Exhibit A,
entitled “Eagle Rebate Status” sets forth a matrix of various
previously-invoiced product shipped by OEC to Eagle.  For those categories where Eagle’s percentage
is listed as 100%, Eagle hereby agrees that if on or prior to the date that is 150
days immediately following the date hereof, OEC has not received all
information necessary to submit rebate claim paperwork applicable to any Rebate
in such category to the proper utility or other governmental agency responsible
for rebate payments (e.g., the California Energy Commission) (the “Rebate 

 

1

 

Information”), then Eagle shall remit the
estimated Rebate portion of the Net Pricing associated with the applicable
invoice to OEC within 5 business days immediately following such 150-day period
(such invoices, the “Fully Paid Past Invoices”).  Upon receipt of such payment, OEC will assign
the applicable Rebate to Eagle, and Eagle shall be entitled to all proceeds of
such Rebates upon collection.

 

ii.     OEC
will continue to process the Rebate associated with Fully Paid Past Invoices
following the payment thereof by Eagle.

 

iii.    For
the avoidance of doubt, OEC and not Eagle shall remain responsible for all categories
set forth on Exhibit A where Eagle’s percentage is zero and OEC’s
percentage is listed as 100%.

 

b.              Product
Invoiced on and After the Date Hereof.

 

i.      For
invoices dated April 1, 2008 or later for which Net Pricing is extended,
if OEC has received all Rebate Information applicable to any such invoice on or
prior to the 150th day immediately following the invoice
date (the “Rebate Deadline”), Eagle shall have no further obligation with
respect to such invoice (other than reconciliation for the Rebate amount
ultimately approved and paid by the applicable utility or government agency).

 

ii.     If
OEC has not received all Rebate Information applicable to any invoice for which
Net Pricing is extended on or prior to the applicable Rebate Deadline, then
Eagle shall remit the estimated Rebate portion associated with the applicable
invoice to OEC within 5 business days immediately following the applicable
Rebate Deadline (such Rebates, “Fully Paid Rebates”).  Upon receipt of such payment, OEC will assign
the applicable Rebate to Eagle, and Eagle shall be entitled to all proceeds of
such Rebates upon collection.

 

iii.    Any
Fully Paid Rebate shall be tracked and reconciled on a monthly basis between
representatives of Eagle and OEC.  If
within 90 days after OEC receives payment from Eagle in respect of any Fully
Paid Rebate, such Fully Paid Rebate remains uncollected, then OEC shall credit
to the account of Eagle an amount equal to 20% of such uncollected Fully Paid Rebate
(the “True Up”).  If any Fully Paid
Rebate is received following the applicable True Up: (1) by Eagle, then
Eagle shall remit an amount equal to 20% thereof to OEC; and (2) by OEC,
then OEC shall remit an amount equal to 80% of such Rebate to Eagle.  Eagle shall use commercially reasonable best
efforts to cause the collection of any Rebate at the earliest practicable time
for which a True Up has been effected pursuant to this paragraph.

 

2

 

iv.           Notwithstanding
paragraph 3(c) above, in the event that OEC has not received a signed copy
of the Solar Rebate Processing Agreement in the form set forth on Exhibit B
hereto from the developer (in the case of new construction) or the applicable
homeowner (in the case of custom re-roof 
projects) on or prior to the applicable Rebate Deadline, then Eagle
shall remit an amount equal to 100% of the estimated Rebate portion associated
with the applicable invoice to OEC within 5 business days of the applicable
Rebate Deadline.  Upon receipt of such
payment, OEC will assign the applicable Rebate to Eagle, and Eagle shall be
entitled to all proceeds of such Rebates upon collection.

 

c.               OEC agrees to use
commercially reasonable best efforts to process all Rebates assigned to it in
respect of Net Pricing offered to Eagle to cause the collection thereof as soon
as reasonably practicable.  Eagle
acknowledges that OEC’s Rebate processing efforts are dependent in part on
receipt of information and signatures from Eagle’s customers and others in its
distribution channel.

 

2.                                       Minimum Purchase Commitment.

 

a.               Baseline Minimum Purchase Amounts.  Eagle hereby agrees that it shall purchase
from OEC the following product amounts (expressed both in numbers of tiles as
well as total wattage)  on a monthly
basis from April 2008 through December 2008:

 

	
  i.

  	
   

  	
  April 2008:

  	
   

  	
  4,000 tiles, 136,000 watts;

  
	
  ii.

  	
   

  	
  May 2008:

  	
   

  	
  5,000 tiles, 169,400 watts;

  
	
  iii.

  	
   

  	
  June 2008:

  	
   

  	
  6,000 tiles, 201,600 watts;

  

Quarterly Minimum Total: 15,000 tiles, 507,000 watts

 

	
  iv.

  	
   

  	
  July 2008:

  	
   

  	
  8,000 tiles, 301,000 watts;

  
	
  v.

  	
   

  	
  August 2008:

  	
   

  	
  10,000 tiles, 400,000 watts;

  
	
  vi.

  	
   

  	
  September 2008:

  	
   

  	
  12,000 tiles, 498,000 watts;

  

Quarterly Minimum Total: 30,000 tiles, 1,199,000 watts

 

	
  vii.

  	
   

  	
  October 2008:

  	
   

  	
  13,000 tiles, 506,000 watts;

  
	
  viii.

  	
   

  	
  November 2008:

  	
   

  	
  14,000 tiles, 514,000 watts; and

  
	
  ix.

  	
   

  	
  December 2008:

  	
   

  	
  15,000 tiles, 522,000 watts.

  

Quarterly Minimum Total: 42,000 tiles; 1,542,000 watts

 

b.              Adjusted
Minimum Purchase Amounts.  It
is anticipated that OEC will introduce and make available for purchase by Eagle
a Generation 2 Asphalt Shingle PV product (the “Gen 2 Shingle Product”) on or
prior to October 1, 2008 (the “Asphalt Shingle Condition”).  If the Ashpalt Shingle Condition is
satisfied, Eagle agrees, in addition to the baseline minimum purchase amounts
set forth above in paragraph 2(a), to purchase at least the following quantities
of such Gen 2 Shingle Product from OEC during the applicable periods:

 

3

 

	
  i.

  	
   

  	
  October 2008:

  	
   

  	
  2,500 tiles, 105,000 watts;

  
	
  ii.

  	
   

  	
  November 2008:

  	
   

  	
  3,500 tiles, 147,000 watts; and

  
	
  iii.

  	
   

  	
  December 2008:

  	
   

  	
  5,000 tiles, 210,000 watts.

  

 

c.               Effect of Failure to Purchase Minimum Amounts.  In the event that Eagle fails to purchase the
Quarterly Minimum Total on or prior to the end of any calendar quarter set
forth above under paragraph 2(a), as increased (as applicable) by the minimum
purchase amounts set forth above under paragraph 2(b) in the event the
Asphalt Shingle Condition is satisfied (a “Minimum Purchase Failure”), then the
pricing extended to Eagle set forth below under paragraph 3 for all product
purchased in the applicable calendar quarter shall be increased by $0.02 per
watt for every 1,000 tiles less than the Quarterly Minimum Total that Eagle
purchases in the applicable calendar quarter from OEC.  In addition to the foregoing and not in lieu
thereof, following the date of the Florida Launch (as defined below), upon the
occurrence of any Minimum Purchase Failure, OEC shall be permanently released
from any and all exclusivity provisions set forth in the JMDA and shall be
permitted to sell product in any amount to any party without restriction.

 

i.                  Notwithstanding
the foregoing, until the earlier to occur of (1) the 30th day
following the date on which Miami-Dade County, Florida approves the use of OEC
product in such County, or (2) the date on which Eagle actually begins to
offer its product for purchase in Florida (the “Florida Launch”), which Florida
Launch is expected to occur on or prior to July 30, 2008, the per watt
increase in pricing set forth in paragraph 2(c) shall be limited to $0.01
per watt.

 

ii.               Notwithstanding the
foregoing, in the event that Eagle attempts to purchase and OEC fails to
deliver at least the Quarterly Minimum Total to Eagle for any calendar quarter
described in paragraph 2(a) above, then Eagle shall be entitled to a $0.02
per watt discount for each 1,000 tiles that OEC delivers below the applicable
Quarterly Minimum Total, applicable to all product purchased during such
calendar quarter.

 

3.                                       Tiered Pricing.

 

a.               The following
pricing shall apply for product and services purchased by Eagle from OEC from
and after April 1, 2008:

 

i.                  4 Foot Blue
Tiles:

 

1.               Panel-only price: [***](1)
per watt (includes no ancillary services or support).

 

(1)  Indicates that
confidential treatment has been sought for this information.

 

4

 

2.     Tract
Builders: [***](2) per watt (includes full rebate processing, net pricing and
engineering and customer service support).

 

3.     Custom
Re-Roofs: [***](3) per watt (includes full rebate processing, net pricing and
engineering and customer service support).

 

ii.               4 Foot Gold Tiles:

 

1.     Panel-only
price:  [***](4) per watt (includes no
ancillary services or support).

 

2.     Tract
Builders: [***](5) per watt (includes full rebate processing, net pricing and
engineering and customer service support).

 

3.     Custom
Re-Roofs: [***](6) per watt (includes full rebate processing, net pricing and
engineering and customer service support).

 

iii.            Services Pricing:

 

1.     Rebate
Processing/Net Pricing:  [***](7) per
watt.

 

2.     Engineering/Customer
Service  [***](8) per watt (includes
Levels I-III customer service and training).

 

4.                                       Co-Op Marketing Program. 
The parties expressly agree to continue the co-op marketing program set
forth in the JMDA, including, without limitation, the contribution by OEC of an
amount equal to 1.5% of each calendar quarter’s sales to Eagle to a common
marketing fund.

 

 

IN WITNESS WHEREOF, the parties have caused
this Amendment to be executed by their duly authorized representatives as of
this 10th day of April, 2008.

 

 

	
  OPEN ENERGY CORPORATION

  	
  BURLINGAME INDUSTRIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ David A. Field

  	
   

  	
  By:

  	
  /s/ Richard Jones

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
  David A. Field

  	
   

  	
  By:

  	
  Richard Jones

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
  President

  	
   

  	
  Title:

  	
  CFO

  
											

 

(2)  Indicates that
confidential treatment has been sought for this information.

(3)  Indicates that
confidential treatment has been sought for this information.

(4)  Indicates that
confidential treatment has been sought for this information.

(5)  Indicates that
confidential treatment has been sought for this information.

(6)  Indicates that
confidential treatment has been sought for this information.

(7)  Indicates that
confidential treatment has been sought for this information.

(8)  Indicates that
confidential treatment has been sought for this information.

 

5

 

Exhibit A

 

Eagle Rebate Status

 

6

 

Exhibit B

 

Solar Rebate Processing Agreement

 

7Exhibit 10.26

 

AMENDMENT NO. 1

TO EMPLOYMENT AGREEMENT

 

THIS AMENDMENT
NO. 1 TO EMPLOYMENT AGREEMENT, dated June 15, 2007 (“Amendment”),
is made and entered into by and between Open Energy Corporation, a Nevada
corporation (the “Company”), and David Field, an individual (“Employee”),
with reference to the following facts:

 

A.                                   The
Company and Employee are parties to that certain Employment Agreement, effective
November 1, 2006 (“Employment Agreement”), which contains the terms
and conditions of Employee’s employment by the Company.

 

B.                                     The
Company and Employee wish to amend certain aspects of the Employment Agreement
relating to Employee’s position and compensation.

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound hereby, agree as
follows:

 

1.                                       Amendment
to Section 1 of the Employment Agreement.  Section 1 of the Employment Agreement is
hereby amended and restated in its entirety, as follows:

 

Employee will serve as Executive Vice President and Chief Operating Officer
of the Company reporting directly to the Chief Executive Officer of the
Company.  Employee shall have such executive
responsibilities and shall perform such executive services for the Company as
may be consistent with his title. Employee shall devote substantially full time
and attention to the business of the Company and shall perform all duties as
may be required of Employee.

 

2.                                       Amendment
to Section 4 of the Employment Agreement.  Subject to approval of the Compensation
Committee and the Board of Directors of the Company, the base salary in section
4.1 is increased to $175,000, per annum as of June 8, 2007and options
shall be granted in accordance with Exhibit A to this Amendment.  Provided that the Company has achieved its funding
and revenue targets for the period June 1 through September 30, 2007,
the base salary will be increased to $225,000 as of October 1, 2007.

 

3.                                       Effect.  Except as and to the extent amended by this
Amendment, the Employment Agreement shall remain in full force and effect in
accordance with its terms.

 

4.                                       Counterparts.  This Amendment may be executed in two or more
counterparts and by facsimile, each of which shall be considered an original
instrument, but all of which together shall be considered one and the same
agreement, and shall become binding when one or more counterparts have been
executed and delivered by each of the parties hereto.

 

5.                                       Governing
Law.  This Amendment shall be
governed by and construed in accordance with the internal laws of the State of
California applicable to a contract executed and performed in the State of
California, without giving effect to the conflicts of laws principles thereof.

 

1

 

IN WITNESS
WHEREOF, the parties hereto have executed this Amendment effective as of June 15,
2007.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  OPEN ENERGY
  CORPORATION,

  
	
   

  	
  a Nevada
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  David
  Saltman,

  
	
   

  	
   

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David Field,
  an individual

  

 

2

 

EXHIBIT A

 

The Company
hereby agrees to provide the Employee with options for an additional 1,000,000
shares (the “Stock Option Grant”) of the Company’s common stock, under the
Company’s 2006 Equity Incentive Plan (the “Plan”), which options shall vest
quarterly, based on Company performance against the agreed business plan, over
three years in accordance with the standard form of Option Agreement and  the provisions of the Plan .

 

3

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