Document:

Exhibit 10.18

 

NEST VENTURES, L.L.C.

3104 E Camelback Road #144

Phoenix Arizona  85016-4595

 

June 1, 2005

 

Re:                               A
4 month Management Consulting Contract between 

NestVentures,L.L.C(“NVL”) 

and Sweet Success Enterprises Inc (“Company”)

 

This
will confirm the engagement of NVL as a Consultant to
render, strategic planning, and general management services to Company.

 

1.                                       Services to be provided.                  In connection with our engagement, we
will do the following:

 

(a)                                  Familiarize ourselves with your business,
operations, assets, financial condition, management, and prospects;

 

(b)                                 Advise and assist you with respect to any
acquisition, financing transaction, strategic alliance, joint venture, or other
business arrangement (“Transaction”) you desire to consider, including the
structure, terms and conditions thereof;

 

(c)                                  Advise and assist you in making
appropriate presentations regarding a Transaction if requested by you, advise
in packaging and preparation of the Company for the financial markets, and;

 

(d)                                 Render such other general management,
strategic planning, and financial advice, as you may from time to time request.

 

2.                                       Compensation.                In consideration of our providing, or standing ready
to provide, our services, you agree to pay us the following:

 

(a)                                  Fees for Services.                                               There will be no cash fee involved in
this engagement.

 

 The company will issue a warrant in a timely
fashion to purchase 250.000 shares of the company stock at today’s price of 35
cents in the form of a mutually acceptable 5 year warrant, which will have
piggy back rights, cashless exercise, and change of control provision’s and
will be registered in the next 12 months.

 

(b)                                 Reimbursement of Expenses. 
You will reimburse us for out-or-pocket and incidental expenses incurred
in connection with our engagement hereunder, promptly as requested, including
the fees and expenses of our legal counsel and those of 

 

 

any advisor retained by us, provided,
however, that such reimbursable expenses shall not exceed $1.000.00 without
your prior consent.

 

3.                                       Access to Information. 
In connection with our engagement, you will furnish us with all
information concerning your business, operations, assets, financial condition,
management, and prospects that we reasonably deem appropriate and will provide
us with access to your officers, directors, accountants, counsel, and other
advisors.  You represent and warrant to
us that all such information will be true and accurate in all material respects
and will not contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements made not misleading in
light of the circumstances under which statements are made.  You acknowledge and agree that we will be
using and relying upon such information supplied by you and your officers,
agents, and others and any other publicly available information concerning you
without any independent investigation or verification thereof or independent
appraisal by us of you or your business, operations, assets, financial
condition, management, and prospects.

 

4.                                       Confidentiality.  We will hold in strict confidence all information
obtained from you in connection with our engagement hereunder.  We will restrict access to such information
to those officers, directors, employees, agents and representatives whose
duties require them to have access to such information.  We will have no obligation, however, with
respect to maintaining confidential information that (a) we can establish
to have been known to us at the time the information was disclosed, (b) we
can establish to have been or become known to the general public, other than as
a result of a violation of this Agreement or any other agreement with the other
party, or (c) we can establish to have become known to us from any
independent third party that had the right to disclose such information.

 

5.                                       Indemnification. 
You agree to indemnify and hold us harmless from and against any losses,
claims, damages, or liabilities (or actions, including security holder actions,
in respect thereof) related to or arising out of our engagement hereunder or
our role in connection herewith, and will reimburse us for all reasonable
expenses (including reasonable legal fees) as they are incurred by us in
connection with investigating, preparing for or defending any such action or
claim, whether or not in connection with pending or threatened litigation in
which we are a party.  You will not,
however, be responsible for any claims, liabilities, losses, damages or
expenses that are finally judicially determined to have resulted primarily from
our bad faith or gross negligent

 

6.                                       Modification and Construction. 
This Agreement may not be modified or amended except in writing and
shall be governed by and construed in accordance with the laws of the state of
Arizona.

 

Please confirm that the foregoing is in accordance
with your understandings and agreements with us by signing and returning to us
the duplicate of this letter enclosed herewith.

 

	
   

  	
  Sincerely yours,

  
	
   

  	
   

  
	
   

  	
  Nest Ventures, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  

 

Agreed and confirmed:

	
   

  	
   

  
	
  ByExhibit 10.19

 

August 31, 2005

 

Mr. William Gallagher

Chairman and CEO

1250 NE Loop 410, Suite 630

San Antonio, Texas 78209

 

Dear Mr. Gallagher:

 

This letter confirms the agreement of Sweet
Success Enterprises (the “Company”) to retain ThinkEquity Partners, LLC (“ThinkEquity,”
or the “Placement Agent”) as the Company’s exclusive placement agent to
introduce the Company to certain institutional investors (the “Investors”) as
prospective purchasers of the Company’s preferred stock or common stock (the “Equity”)
and warrants to purchase the Common Stock, which are collectively referred to
in this letter as the “Securities”, in connection with a possible private
placement (the “Transaction”).

 

The Placement Agent will use its reasonable best efforts to complete
the Transaction as soon as practicable. 
The terms of the Transaction shall be subject to mutual agreement of the
Company and each Investor in the Transaction. 
ThinkEquity will contact potential Investors, assist in the negotiation
and the structuring of the Transaction, assist in the preparation of a private placement
memorandum or other appropriate materials and provide related services to
facilitate the successful completion of the Transaction.  ThinkEquity will conduct all sales and
solicitation efforts in a manner consistent with the Company’s intent that the
Transaction be an exempt transaction pursuant to the Securities Act of 1933, as
amended (the “Act”) and only to “accredited investors” as defined in Rule 501(a) under
the Act.  The Company shall in any event
have sole and final authority to approve the timing, price, investors and other
terms of the Transaction and may at any time elect not to proceed with the
Transaction.

 

The Transaction will be a private placement in accordance with the
applicable laws of the United States and pursuant to the following procedures
and terms and conditions:

 

1.                                       (a)                                  Prior to the signing of any
purchase agreements with Investors, officers of the Company with responsibility
for financial affairs have been and will continue to be available to answer
inquiries from prospective Investors approved by the Company.  After the purchase agreements and the
information referred to therein have been reviewed by Investors approved by the
Company, and they have had the opportunity to address inquiries to the Company,
separate purchase agreements will be completed with each prospective Investor
approved by the Company.  The conditions
to the closing of the Transaction (the “Closing”) shall be set forth in the
purchase agreements and mutually agreed between the Company and the
Investors.  In connection with the
Transaction, the Company shall file a registration statement (the “Registration
Statement”) with respect to the possible resale, from time to time, of the Securities

 

150 North
Wacker Dr. Suite 1950

Chicago IL,
60606

www.thinkequity.com

 

 

which have been purchased pursuant to such
purchase agreements pursuant to terms to be set forth in such purchase
agreements.  The Company agrees to keep
the Registration Statement effective until such time as the Securities become
eligible for resale by non-affiliates pursuant to Rule 144(k) under the
Act.

 

(b)                                 Presently the Company plans to
sell up to $10 million of the Securities, but the actual dollar amount the
Company shall ultimately agree to sell pursuant to each of the various purchase
agreements and the price at which the Securities will be sold is entirely
within its discretion.

 

(c)                                  The Company will perform the
agreements set forth in the purchase agreements entered into with the Investors.

 

(d)                                 The Company will:

 

(i)                                     Use its reasonable
efforts to cause the Company’s independent public accountants to address and
deliver to the Company and ThinkEquity a letter or letters (which letters are
frequently referred to as “Comfort Letters”) dated as of the date of the
Closing; provided that delivery of Comfort Letter will not be required to the
extent (i) each Investor conducts its own due diligence, is represented by
reputable legal counsel and provides ThinkEquity with non-reliance letters in
form and substance satisfactory to ThinkEquity and (ii) ThinkEquity
determines in its sole discretion after consultation with its legal counsel
that Comfort Letters are not necessary; and

 

(ii)                                  Use its reasonable
efforts to cause the Company’s counsel to address and deliver to the Company
and ThinkEquity a letter dated as of the date of the Closing and as of the
effective date of the Registration Statement containing the statements set
forth in Exhibit A hereto and addressing such additional matters as ThinkEquity
shall reasonably request.  In addition, ThinkEquity
shall be entitled to rely on any opinion delivered to the purchasers by counsel
to the Company in connection with this transaction.

 

2.                                       In connection with its
engagement hereunder, ThinkEquity will assist the Company in preparing a
private placement memorandum and/or other documents to be used in connection
with the Offering (the “Offering Document”). 
The Company acknowledges and agrees that the Offering Document is its
own work product, that ThinkEquity may rely, without independent verification,
upon the accuracy and completeness of all information furnished by the Company
to ThinkEquity for use in connection with the Offering (collectively, the “Information”)
and that ThinkEquity does not assume any responsibility therefor.

 

The Company shall advise ThinkEquity of those states in which the Securities
have been qualified or exempted under the appropriate securities laws.  ThinkEquity agrees not to solicit any
offerees who do not reside in jurisdictions in which the Securities or the
Offering have been

 

2

 

qualified or exempted under the
appropriate securities laws; provided, however, the Company will take such
action (if any) as ThinkEquity reasonably may request to qualify the Securities
for offer and sale under the securities laws of such states as ThinkEquity may
specify; provided, further, however, in connection therewith the Company will
not be required to qualify as a foreign corporation or file a general consent
to service or process.  The Company
agrees that it, in conjunction with its counsel, will be responsible for making
any filings or taking other actions required under applicable state securities
laws.

 

The Company represents that (i) the Information and the Offering
Document will not include an untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, (ii) all
historical financial data provided to ThinkEquity will be prepared in
accordance with generally accepted accounting principles and practices then in
effect in the United States and will fairly present in all material respects the
financial condition and operations of the Company and (iii) any forecasted
financial, market or industrial information provided to ThinkEquity will be
prepared in good faith with a reasonable basis for the assumptions and the
conclusions reached therein.  In addition,
the Company agrees that it will notify ThinkEquity promptly if any of the
foregoing representations ceases to be accurate at any time during the period
of ThinkEquity’s engagement hereunder.

 

ThinkEquity agrees to use all non-public information provided to it by
or on behalf of the Company hereunder solely for the purpose of providing the
services which are the subject of this letter agreement and to treat all such
information confidentially, provided that nothing herein shall prevent
ThinkEquity from disclosing any such information (i) to purchasers or
prospective purchasers of the Securities in connection with the Offering, (ii) to
any rating agency, (iii) pursuant to the order of any court or
administrative agency or in any pending legal or administrative proceeding, (iv) upon
the request or demand of any regulatory authority having jurisdiction over
ThinkEquity or any of its affiliates, (v) to the extent that such
information was or becomes publicly available other than by reason of
disclosure by ThinkEquity in violation of this agreement or was or becomes
available to ThinkEquity or its affiliates from a source which is not known by
ThinkEquity to be subject to a confidentiality obligation to the Company or (vi) to
ThinkEquity’s affiliates and its and their respective employees, legal counsel,
independent auditors and other experts or agents who need to know such
information in connection with the Offering or any other services provided by
ThinkEquity or its affiliates to the Company and its affiliates.  ThinkEquity accepts responsibility for
compliance by the persons referred to in clause (vi) above with the
provisions of this paragraph.  This
undertaking by ThinkEquity shall automatically terminate one (1) year
following the earlier of completion of the Offering or termination of
ThinkEquity’s engagement hereunder.

 

3.                                       Any final arrangements,
proposals or advice rendered by ThinkEquity pursuant to this letter agreement
may not be disclosed in any manner without ThinkEquity’s prior written approval
and shall be treated as confidential. 
Notwithstanding the foregoing, nothing herein shall prevent the Company
from disclosing such information in a manner consistent with the exceptions set
forth in clauses (ii) through (vi) in the paragraph immediately
above, substituting the Company for ThinkEquity therein, as applicable.

 

3

 

4.                                       The selling price of the Securities
to be issued and sold by the Company in the Transaction will be specified in
writing by ThinkEquity on behalf of the Company (by facsimile, letter or
otherwise) to the prospective Investors prior to the execution of the purchase
agreements, subject to the Company’s approval.

 

5.                                       ThinkEquity’s aggregate fee for
introducing the Investors, assisting with the preparation of the Offering
Document and all other services provided by ThinkEquity in connection
therewith, will be 7.0% of the proceeds from the sale of the Securities
pursuant to the purchase agreements in cash, together with warrants to purchase
Common Stock (the “Agent’s Warrants”) for the number of shares of common stock
equal to 3.0% of the number of shares of Common Stock sold under the Purchase
Agreement at Closing.  The exercise price
of the Agent’s Warrants shall be equal to the closing price of the Company’s
Common Stock on the Closing Date.  The
Agent’s Warrants shall be exercisable for a period of five (5) years after
the date of the Closing, and shall be transferable to the extent permitted by
applicable securities laws and regulations and the rules and regulations
of the NASD.  The Agent’s Warrants shall
include one time demand registration right, unlimited piggyback registration
rights within the life of the warrant and “cashless” exercise rights, subject
to customary conditions and limitations. 
Such fees shall be payable by the Company, on the basis of the aggregate
dollar amount of Securities sold by the Company, at the Closing.  In addition, the Company shall reimburse,
regardless of the consummation of the sale contemplated hereby, ThinkEquity for
all of the reasonable travel, legal and other out-of-pocket expenses incurred
in connection with the engagement hereunder. 
Upon request, ThinkEquity agrees to provide the Company with a detailed
description of such expenses. Prior written consent by the Company is required
for ThinkEquity to exceed $10,000 in reimbursable expenses in connection with
the engagement.

 

If within twelve months after the termination
of this agreement, the Securities or securities convertible into or
exchangeable for the Securities are sold by the Company through a placement to
investors previously identified and/or contacted by ThinkEquity in its capacity
as placement agent hereunder, then the Company shall pay ThinkEquity, at the
time of each such sale, an amount equal to the full fee set forth above from
each such sale.  Upon termination of this
agreement and at the request of the Company, ThinkEquity will provide the
Company with a list of Investors identified and/or contacted by ThinkEquity in
its capacity as placement agent hereunder.

 

6.                                       The Company hereby represents
and warrants to ThinkEquity that it has not had and will not have any
discussions with any person on the basis of which such person would be able to
assert a claim for a finder’s fee or similar fee in connection with the sale by
the Company of the Securities covered by this letter to prospects in the United
States of America or overseas.

 

7.                                       The Company hereby represents
and warrants to ThinkEquity that during the term of this engagement the Company
will not (i) offer any securities for sale to, or solicit any offers to
buy from, any person or persons, whether directly or indirectly, other than
through ThinkEquity or (ii) engage in any discussions with any person
other than representatives of ThinkEquity for the purpose of engaging, or
considering the engagement of, such person as a finder or broker in connection
with the sale by the Company of the securities covered by this letter to
prospects in the United States of America or overseas.  The Company represents and agrees that no
offers or sales of securities of the same or a similar class as the Securities
have

 

4

 

been made or will be made by the Company or
on its behalf that would be integrated with the offer and sale of the Securities
under the doctrine of integration referred to in Regulation D under the
Securities Act of 1933, as amended.

 

8.                                       For a period of ninety days from
the effective date of the Registration Statement, the Company will not, without
ThinkEquity’s prior written consent, which consent shall not be unreasonably
withheld, sell, contract to sell or otherwise dispose of or issue any
securities of the Company, except (i) securities issued pursuant to
contractual obligations of the Company in effect as of the date of this letter
agreement and disclosed to ThinkEquity or its counsel prior to the effective
date of the Registration Statement; (ii) securities issued on a pro rata
basis to all holders of a class of outstanding equity securities of the
Company; and (iii) equity securities issued pursuant to employee benefit
or purchase plans in effect as of the date of this letter agreement.  In addition, the Company will cause each of
its officers and directors not to dispose of any equity securities of the
Company for a period of ninety days from the effective date of the Registration
Statement without the prior written consent of ThinkEquity, and will use its
best efforts to cause such of its stockholders as may be designated by ThinkEquity
to become subject to a lock-up arrangement reasonably acceptable to ThinkEquity
prohibiting the disposition of any equity securities of the Company for a
period of ninety days from the effective date of the Registration Statement,
without the prior written consent of ThinkEquity.

 

9.                                       The Company hereby agrees to
indemnify ThinkEquity in accordance with the Standard Form of
Indemnification Agreement set forth as Exhibit B hereto.

 

From the date
of this letter agreement and for so long as the Registration Statement is
effective covering the resale of Securities sold to a purchaser, the Company
upon reasonable request will meet with ThinkEquity or its representatives to
discuss all information relevant for disclosure in any Registration Statement
covering Securities purchased by purchasers from the Company and offered by
them for resale and will cooperate in any reasonable investigation undertaken
by ThinkEquity for the purpose of confirming the accuracy of the Registration
Statement, including the production of information at the Company’s offices.

 

10.                                 ThinkEquity will not have any
rights or any obligations in connection with the proposed offering contemplated
by this letter agreement other than those expressly provided herein.  In no event shall ThinkEquity or its
affiliates be obligated to purchase the Securities for its own account or for
the accounts of its customers.

 

11.                                 Either the Company or ThinkEquity
may terminate ThinkEquity’s engagement hereunder at any time upon at least
twenty days’ prior written notice to the other party, including, without
limitation, if ThinkEquity, in its sole judgment, is not satisfied with the
results of its due diligence investigation of the Company and its business,
operations, assets, liabilities, financial condition and prospects.  Notwithstanding any such termination, the
Company shall remain responsible for the reimbursement of ThinkEquity’s
expenses under paragraph 5 of this letter agreement and the reimbursement,
indemnification and contribution obligations of the Company under paragraphs 9
and 15 of this letter agreement shall survive. 
Such obligations also shall survive the Transaction.

 

5

 

12.                                 For a period of twelve (12)
months from the date hereof, the Company grants ThinkEquity the right (provided
the Transaction contemplated in this letter agreement is completed) to provide
investment banking services to the Company on an exclusive basis in all matters
for which investment banking services are sought by the Company (such right,
the “Right of First Refusal”).  For these
purposes, investment banking services shall include, without limitation, (i) acting
as lead, book-running manager for any underwritten public offering; (ii) acting
as exclusive placement agent or financial advisor in connection with any
private offering of securities of the Company; and (iii) acting as
financial advisor in connection with any sale or other transfer by the Company,
directly or indirectly, of a majority or controlling portion of its capital stock
or assets to another entity, any purchase or other transfer by another entity,
directly or indirectly, of a majority or controlling portion of the capital
stock or assets of the Company, and any merger or consolidation of the Company
with another entity.  ThinkEquity shall
notify the Company of its intention to exercise the Right of First Refusal
within 15 business days following notice in writing by the Company.  Any decision by ThinkEquity to act in any
such capacity shall be contained in separate agreements, which agreements would
contain, among other matters, provisions for customary fees for transactions of
similar size and nature, as may be mutually agreed upon, and indemnification of
ThinkEquity and its affiliates and shall be subject to general market
conditions.  If ThinkEquity declines to
exercise the Right of First Refusal, the Company shall have the right to retain
any other person or persons to provide such services on terms and conditions
which are not materially more favorable to such other person or persons than
the terms declined by ThinkEquity.

 

13.                                 The Company understands and
agrees that, without ThinkEquity’s prior written consent, ThinkEquity may not
be quoted or referred to in any document, release or communication prepared,
issued or transmitted by the Company, including any entity controlled by, or
under common control with, the Company and any director, officer, employee or
agent thereof.

 

The Company acknowledges that ThinkEquity is
a full service securities firm and in the ordinary course of its business, for
its own account or the accounts of its customers, holds long or short positions
in securities (including options), which may include securities relating to the
Company or other entities which may be involved in the engagement contemplated
hereby.  Nothing in this Agreement shall
be deemed to prohibit ThinkEquity from providing any services permitted by
applicable law to any third party or from engaging in any lawfully permitted
activity on its own behalf.

 

The Company acknowledges that ThinkEquity has been retained solely to
provide the services set forth herein. 
In rendering such services, ThinkEquity shall act as an independent
contractor, and any duties of ThinkEquity arising out of its engagement
hereunder shall be owed solely to the Company. 
In addition, the Company agrees that ThinkEquity may perform the
services contemplated hereby in conjunction with its affiliates, and that any
ThinkEquity affiliates performing services hereunder shall be entitled to the
benefits and be subject to the terms of this letter agreement.

 

In addition, ThinkEquity and its affiliates may from time to time
perform various investment banking and financial advisory services for other
clients and customers who may have conflicting interests with respect to the
Company or the Transaction.  ThinkEquity
and its

 

6

 

affiliates will not use
confidential information obtained from the Company pursuant to this engagement
or their other relationships with the Company in connection with the
performance by ThinkEquity and its affiliates of services for other
companies.  The Company also acknowledges
that ThinkEquity and its affiliates have no obligation to use in connection
with this engagement, or to furnish to the Company, confidential information
from other companies.

 

Furthermore, the Company acknowledges that ThinkEquity and its
affiliates may have fiduciary or other relationships whereby ThinkEquity and
its affiliates may exercise voting power over securities of various persons,
which securities may from time to time include securities of the Company or of
potential purchasers of the Securities or others with interests in respect of
the Transaction.  The Company
acknowledges that ThinkEquity and its affiliates may exercise such powers and
otherwise perform its functions in connection with such fiduciary or other
relationships without regard to ThinkEquity’s relationship to the Company
hereunder.

 

The Company acknowledges that ThinkEquity is not an advisor as to
legal, tax, accounting or regulatory matters in any jurisdiction.  The Company shall consult with its own
advisors concerning such matters and shall be responsible for making its own
independent investigation and appraisal of the transactions contemplated
hereby, and ThinkEquity shall have no responsibility or liability to the
Company with respect thereto.

 

14.                                 The Company agrees that
following the consummation of the sale of the Securities, ThinkEquity shall
have the right to place usual and customary advertisements in financial and
other newspapers and journals at its own expense describing its services to the
Company.

 

15.                                 The benefits of this letter
agreement shall inure to respective successors and assigns of the parties
hereto and of the indemnified parties, and the obligations and liabilities
assumed in this agreement by the parties hereto shall be binding upon their
respective successors and assigns.

 

16.                                 THIS LETTER AGREEMENT SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK GOVERNING CONTRACTS MADE AND TO
BE PERFORMED IN SUCH STATE WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF
LAW. Each of ThinkEquity and the Company (on its own behalf and, to the extent
permitted by applicable law, on behalf of its affiliates and stockholders)
waives all right to trial by jury in any action, claim, suit, proceeding or
counterclaim (whether based upon contract, tort, or otherwise) relating to or
arising out of this engagement of ThinkEquity pursuant to, or the performance
by ThinkEquity of the services contemplated by, this letter agreement.

 

17.                                 This letter agreement contains
the entire agreement between the parties relating to the subject matter hereof
and supersedes all oral statements and prior writings with respect
thereto.  This letter agreement may not
be amended or modified except by a writing executed by each of the parties
hereto.  Section headings herein are
for convenience only and are not a part of this letter agreement.  This letter agreement is solely for the
benefit of the Company and ThinkEquity, and no other person (except for
indemnified persons to the extent set forth in Exhibit B hereto) shall
acquire or have any rights under or by virtue of this letter agreement.  This letter agreement may not be assigned by
either party hereto without the other party’s prior

 

7

 

written consent.  Neither party hereto shall be responsible or
have any liability to any other party for any indirect, special or
consequential damages arising out of or in connection with this letter
agreement or the transactions contemplated hereby, even if advised of the
possibility thereof.

 

This letter agreement may be executed in counterparts, each of which
will be deemed an original, but all or which taken together will constitute one
and the same instrument.

 

If the foregoing correctly sets forth our understanding, please so
indicate by executing this letter, together with the enclosed duplicate
originals, in the place indicated and returning two (2) of these originals
for ThinkEquity’s files.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THINKEQUITY PARTNERS L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ 

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Agreed and accepted by:

  
	
   

  	
   

  
	
   

  	
  SWEET SUCCESS ENTERPRISES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
					

 

8

 

EXHIBIT A

 

1) Opinion
rendered at the time of the Closing shall address matters customary for
transactions of the nature contemplated by the letter agreement.

 

2) Opinion
rendered at the time of effectiveness of the Registration Statement shall
address matters customary for transactions of the nature contemplated by the
letter agreement including, among other things, a statement to the following
effect:

 

The opinion of
counsel to the Company shall be to the effect that the Registration Statement
of the Company (the “Registration Statement”) and the Prospectus of the Company
(the “Prospectus”) as amended and supplemented to date (other than the
financial statements and related schedules, and other financial and statistical
data therein, as to which it need express no opinion) comply as to form in all
material respects with the requirements of the Securities Act of 1933, as
amended, and the rules and regulations of the Securities and Exchange
Commission thereunder; and nothing came to its attention that caused it to
believe that either the Registration Statement or the Prospectus, as so amended
and supplemented, contains an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading (it being understood that it need express no
opinion with respect to the financial statements, related schedules, and other
financial and statistical data therein); 
provided that delivery of an Opinion listed under this paragraph 2) will
not be required to the extent (i) each Investor conducts its own due
diligence, is represented by reputable legal counsel and provides ThinkEquity
with non-reliance letters in form and substance satisfactory to ThinkEquity and
(ii) ThinkEquity determines in its sole discretion after consultation with
its legal counsel that such Opinion is not necessary..

 

A-1

 

EXHIBIT B

 

The Company shall indemnify ThinkEquity and
hold it harmless against any and all losses, claims, damages or liabilities to
which ThinkEquity may become subject (i) arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in
the Offering Document, registration statement (including all documents
incorporated by reference) (the “Registration Statement”) or in any other
written or oral communication provided by or on behalf of the Company to any
actual or prospective purchaser of the Securities or arising out of or based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading or (ii) arising
in any manner out of or in connection with the services or matters that are the
subject of this agreement (including, without limitation, the offer and sale of
the Securities), and shall reimburse ThinkEquity promptly for any legal or
other expenses reasonably incurred by it in connection with investigating,
preparing to defend or defending, or providing evidence in or preparing to
serve or serving as a witness with respect to, any lawsuits, investigations,
claims or other proceedings arising in any manner out of or in connection with
the services or matters that are the subject of this agreement (including,
without limitation, in connection with the enforcement of this agreement and
the indemnification obligations set forth herein); provided, however, that the
Company shall not be liable under clause (ii) of this paragraph in respect
of any loss, claim, damage, liability or expense to the extent that it is
finally judicially determined that such loss, claim, damage, liability or
expense resulted directly from the gross negligence or willful misconduct of
ThinkEquity in the performance of its services hereunder.

 

The Company agrees that the indemnification
and reimbursement commitments set forth herein shall apply whether or not
ThinkEquity is a formal party to any such lawsuits, claims or other proceedings
and that such commitments shall extend upon the terms set forth herein to any
controlling person, affiliate, director, officer, employee or agent of
ThinkEquity (each, with ThinkEquity, an “Indemnified Person”).  The Company further agrees that, without
ThinkEquity’s prior written consent, which consent will not be unreasonably
withheld, it will not enter into any settlement of a lawsuit, claim or other
proceeding arising out of the transactions contemplated by this agreement
unless such settlement includes an explicit and unconditional release from the
party bringing such lawsuit, claim or other proceeding of all Indemnified
Persons.

 

If any action shall be brought against any
Indemnified Person in respect of which indemnity may be sought pursuant to this
Agreement, such Indemnified Person shall promptly notify the Company in
writing, and the Company shall have the right to assume the defense thereof
with counsel of its own choosing.  Any
Indemnified Person shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Person except to the
extent that (i) the employment thereof has been specifically authorized by
the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in
such action there is, in the reasonable opinion of such separate counsel, a
material conflict on any material issue between the position of the Company and
the position of such Indemnified Person.

 

B-1

 

The Company and ThinkEquity agree that if any
indemnification or reimbursement sought hereunder is judicially determined to
be unavailable for a reason other than the gross negligence or willful
misconduct of ThinkEquity, then, whether or not ThinkEquity is the Indemnified
Person, the Company and ThinkEquity shall contribute to the losses, claims,
damages, liabilities and expenses for which such indemnification or reimbursement
is held unavailable (i) in such proportion as is appropriate to reflect
the relative benefits to the Company on the one hand, and ThinkEquity on the
other hand, in connection with the transactions to which such indemnification
or reimbursement relates, or (ii) if the allocation provided by clause (i) above
is judicially determined not to be permitted, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) but
also the relative faults of the Company on the one hand, and ThinkEquity on the
other hand, as well as any other equitable considerations; provided, however,
that in no event shall the amount to be contributed by ThinkEquity hereunder
exceed the amount of the fees actually received by ThinkEquity hereunder.

 

B-2

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