Document:

Unassociated Document

Exhibit 10.59

 

FOURTH AMENDMENT TO CREDIT AGREEMENT

(Third Credit Agreement)

 

This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated effective as of March 1, 2013 (the “Effective Date”), is between Recovery Energy, Inc., a Nevada corporation (“Borrower”), and Hexagon, LLC, a Colorado limited liability company, formerly known as Hexagon Investments, LLC (“Lender”).

 

RECITALS

 

A.            Borrower and Lender have entered into a Credit Agreement, dated as of April 14, 2010 (as modified by (i) that certain Amendment to Promissory Note, dated December 29, 2010, (ii) that certain Second Amendment to Promissory Note, dated November 14, 2011, (iii) that certain Amendment to Credit Agreement dated March 15, 2012, (iv) that certain Second Amendment to Credit Agreement dated July 31, 2012, (v) that certain Third Amendment to Credit Agreement dated November 8, 2012, and as further amended, modified, supplemented, substituted or replaced, the “Credit Agreement”), providing for a term loan in the original principal amount of $15,000,000.  Defined terms used herein and not defined herein shall have the meanings set forth in the Credit Agreement.

 

B.            Borrower has asked Lender, and Lender has agreed to amend the terms and conditions of the Credit Agreement to extend the Maturity Date until May 16, 2014, subject to and as more fully set forth in this Amendment.

 

AGREEMENT

 

In consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender agree as follows:

 

1.             Amendment to Credit Agreement.  Effective as of the Effective Date and upon the terms and subject to the conditions set forth in this Amendment:

 

(a)            Section 1.1 of the Credit Agreement is hereby amended by deleting “December 31, 2013” in the definition of “Maturity Date” and replacing it with “May 16, 2014”.

 

(b)            Section 2.1(c) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“(c)           The Loan shall bear interest at a rate of 15.00% per annum for all periods prior to March 1, 2013.  For all periods commencing March 1, 2013 and thereafter, the Loan shall bear interest at a rate of 10.00% per annum.”

 

(c)            Section 2.2 of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“Section 2.2 Mandatory Prepayments.  Commencing with March, 2013, Borrower shall be required only to make payments of interest accruing under the Loan for the months of March, April, May and June 2013, each such interest payment to be due for a particular month on or before the last day of that month.  Commencing with July, 2013, Borrower shall repay the Loan and any amounts due under the Other Credit Agreements (as defined below) with the greater of: (a) the sum of 100% of the Net Proceeds from the Oil and Gas Properties as defined in the Credit Agreement plus 100% of the Net Proceeds from the Oil and Gas Properties as defined in the Credit Agreement dated January 29, 2010 and the Credit Agreement dated March 25, 2010, each between Borrower and Lender (the “Other Credit Agreements”), and (b) either (i) $190,000 if a sale of the Palm Field (as described in Section 2.6(a) below) has closed on or before July 1, 2013 for a sale price of $4,500,000 or such other price as is mutually agreed by Borrower and Lender, or (ii) $225,000 if the condition in clause (i) is not satisfied.  Such amounts paid under this Section 2.2 shall be applied to amounts due under the Loan and the amounts due under the Other Credit Agreements in a manner as determined by Lender in its sole discretion.”

 

  

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(d)            Section 2.4 of the Credit Agreement is hereby amended by deleting "December 31, 2013" in the second line and replacing it with "May 16, 2014".

 

(e)            Section 2.5 of the Credit Agreement is hereby amended by deleting Sections 2.5(b) and 2.5(c) in their entirety.

 

(f)             A new Section 2.6 of the Credit Agreement is hereby added as follows:

 

“Section 2.6 Additional Equity and Development Covenants.  Borrower agrees to use its reasonable best efforts to pursue the following transactions and other actions to improve the financial condition of Borrower:

 

(a)           A sale for cash on or before July 1, 2013 of all of Borrower’s oil and gas interests and wells in the Palm Field located in T. 17 N., R. 58 W., Banner County, Nebraska, for a price that is mutually agreed by Borrower and Lender.  All of the proceeds of any such sale shall be paid to Lender and shall reduce the amount outstanding under the Credit Agreement dated March 25, 2010 and, to the extent the proceeds exceed the amount outstanding under such Credit Agreement, the amounts due under this Credit Agreement or the Credit Agreement dated January 29, 2010, the allocation of which Lender shall determine in its sole discretion.

 

(b)           An equity offering or other transaction to provide additional equity for the Borrower, through an investment banking firm deemed by Borrower in its reasonable discretion to have suitable qualifications for such transaction.

 

(c)           One or more joint venture development agreements to develop the Borrower’s oil and gas assets with a financial or oil and gas industry entity with suitable financial strength and technical expertise for the successful implementation of such development agreements.

 

(d)           Engineering study of Borrower’s producing oil and gas properties in the Wilke and State Line Fields (in Banner and Kimball Counties, Nebraska and Laramie County, Wyoming) to ascertain possible operations to enhance production from such properties.

 

  

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2.             Other Agreements.  (a) Borrower and Lender agree that all of the Loan Documents are hereby amended to reflect the amendments set forth herein and that no further amendments to any Loan Documents are required to reflect the foregoing; and (b) all references in any document to “Credit Agreement” or any “Loan Document” shall refer to the Credit Agreement or any such Loan Document, as amended pursuant to this Amendment.

 

3.             Representations and Warranties.  Borrower hereby certifies to Lender that as of the date of this Amendment and as of the Effective Date (taking into consideration the transactions contemplated by this Amendment) all of Borrower’s representations and warranties contained in the Credit Agreement and each of the Loan Documents are true, accurate and complete in all material respects.  Without limiting the generality of the foregoing, Borrower represents and warrants that (i) the execution and delivery of this Amendment has been authorized by all necessary action on the part of Borrower, (ii) the person executing this Amendment on behalf of Borrower is duly authorized to do so, and (iii) this Amendment constitutes the legal, valid, binding and enforceable obligation of Borrower.

 

4.             Additional Documents.  Borrower shall execute and deliver, and shall cause to be executed and delivered, to Lender at any time and from time to time such documents and instruments, including without limitation additional amendments to the Credit Agreement and the Loan Documents, as Lender may reasonably request to confirm and carry out the transactions contemplated hereby or by any other Loan Documents executed in connection herewith.

 

5.             Continuation of the Credit Agreement and Loan Documents.  Except as specified in this Amendment, the provisions of the Credit Agreement and the Loan Documents shall remain in full force and effect, and if there is a conflict between the terms of this Amendment and those of the Credit Agreement or the Loan Documents, the terms of this Amendment shall control.  This Amendment is a Loan Document.

 

6.             Ratification and Reaffirmation of Obligations by Borrower.  Borrower hereby (a) ratifies and confirms all of its Obligations under the Credit Agreement and each of the other Loan Documents, and acknowledges and agrees that such Obligations remain in full force and effect, and (b) ratifies, reaffirms and reapproves in favor of Lender the terms and provisions of the Credit Agreement and each of the other Loan Documents, including (without limitation), its pledges and other grants of Liens and security interests pursuant to the Loan Documents.

 

7.             Release and Indemnification.

 

(a)            Borrower hereby fully, finally, and forever releases and discharges Lender, and its successors, assigns, directors, officers, employees, agents and representatives, from any and all causes of action, claims, debts, demands and liabilities, of whatever kind or nature, in law or equity, of Borrower, whether now known or unknown to Borrower in respect of (i) the Obligations under the Credit Agreement and each of the other Loan Documents or (ii) the actions or omissions of Lender in any manner related to the Obligations under the Credit Agreement and each of the other Loan Documents; provided that this Section shall only apply to and be effective with respect to events or circumstances existing or occurring prior to and including the date of this Amendment.

 

  

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(b)            Without limiting Section 7.3 of the Credit Agreement, Borrower hereby agrees to indemnify, defend, and hold harmless Lender and its successors, assigns, directors, officers, employees, agents and representatives (each an “Indemnified Party” and collectively the “Indemnified Parties”) from and against any and all accounts, covenants, agreements, obligations, claims, debts, liabilities, offsets, demands, costs, expenses, actions or causes of action of every nature, character and description, whether arising at law or equity or under statute, regulation or otherwise, and whether liquidated or unliquidated, contingent or noncontingent, known or unknown, suspected or unsuspected (“Claims”), arising from or made under any legal theory, which any of Indemnified Parties may incur as a direct or indirect consequence of or in relation to any acts or omissions of Borrower arising from or relating to any of: (i) the Credit Agreement; (ii) the Loan Documents; (iii) this Amendment; or (iv) any documents executed by Borrower in connection with this Amendment.  Should any Indemnified Party incur any such Claims, or defense of or response to any Claims or demand related thereto, the amount thereof, including costs, expenses and attorneys’ fees, shall be added to the amounts due under the Loan Documents, and shall be secured by any and all liens created under and pursuant to the Loan Documents.  This indemnity shall survive until the Obligations have been indefeasibly paid in full and the termination, release or discharge of Borrower.  To the extent permissible under applicable law, this indemnity shall not limit any other rights of indemnification, subrogation or assignment, whether explicit, implied, legal or equitable, that any Indemnified Party may have.

 

8.             Forbearance.  Lender hereby agrees to forbear from exercising its rights and remedies under the Credit Agreement and the other Loan Documents arising as a result of any actual or alleged breach of the terms of the Credit Agreement or other Loan Documents that may have occurred prior to the date of this Amendment (a “Forbearance Default”); provided, however, that upon the occurrence of any Event of Default other than a Forbearance Default, Lender shall be entitled to exercise any and all of their rights and remedies under the Credit Agreement, the other Loan Documents and applicable law, without further notice other than as required therein.

 

9.             No Waiver. This Amendment does not constitute a waiver by Lender of Borrower’s compliance with any covenants, or a waiver of any Defaults or Events of Default, under the Credit Agreement or any of the Loan Documents, and shall not entitle the Borrower to any amendments or waivers in the future.

 

10.            Miscellaneous. Article VIII of the Credit Agreement is hereby incorporated by reference into this Amendment.

 

11.            Condition to Effectiveness.  The effectiveness of this Amendment is conditioned upon Borrower obtaining from all of the holders of its 8% Senior Secured Debentures due February 14, 2014 extensions of the due date of such debentures until a date not earlier than May 16, 2014.  Borrower has provided Lender with evidence of its satisfaction of this condition, and Lender’s execution of this Amendment shall evidence Lender’s agreement that such condition has been satisfied and that such evidence provided by Borrower is satisfactory to Lender.

 

[Signature Pages Follow]

 

  

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Borrower and Lender have executed this Fourth Amendment to Credit Agreement on April __, 2013, effective as of the Effective Date first above written.

 

	

HEXAGON, LLC

	 	RECOVERY ENERGY, INC.	 
	By:  	 
Hexagon, Inc., its Manager

	 	 	 	 
	 	 	 	 	 	 
	By:    	

/s/ Brian Fleishmann

	 	By:    	
/s/ A. Bradley Gabbard

	 
	 	

Brian Fleischmann

	 	 	

A. Bradley Gabbard

	 
	 	

Executive Vice President

	 	 	

Chief Financial Officer

	 

 

 

5ex10_1.htm

Exhibit 10.1                        

 

POWIN CORPORATION

 

 BUSINESS DEVELOPMENT AGREEMENT

 

This Business Development Agreement (the “Agreement”) is effective as of this 15th day of April, 2013, (“Effective Date”) between Powin Corporation, a corporation with principal offices at 20550 SW 115th Ave., Tualatin, Oregon 97062 and Harvey Weiss with principal offices at 9121 Town Gate Lane, Bethesda, MD 20817(hereinafter the “Representative”).

 

WHEREAS, POWIN desires to appoint Representative as a business development representative for POWIN Products (as defined below);

 

WHEREAS, Representative desires to become a business development representative of the Products in a designated geographic territory;

 

WHEREAS, POWIN believes that the Products can be distributed most efficiently as set forth in this Agreement;

 

NOW THEREFORE, in consideration of the foregoing and the mutual covenants and conditions herein contained, the parties do hereby agree as follows:

 

(a)                   DEFINITIONS

 

(i)      “Products” shall mean those products listed in Exhi­bit A attached hereto and any user manual and/or related materials provided by POWIN for use in connection therewith.  Products may be changed, abandoned or added by POWIN in POWIN’s sole discretion provided that POWIN gives thirty (30) days prior written notice to Repre­senta­tive.

 

(ii)     “Territory” shall mean the geographical areas and specified accounts (commercial and government independent of geographic location) set forth in Exhibit A attached hereto.

 

(b)                   APPOINTMENT AND AUTHORITY OF REPRESENTATIVE

 

(i)      Business Development Representative Appointment.  Subject to the terms and conditions of this Agreement, POWIN hereby appoints Represen­ta­tive as POWIN's business development representative for the Pro­ducts only in the Territory, and Representative hereby accepts such appointment.  Representative's sole authority and objective shall be to solicit orders for the Products in the Territory in accordance with the terms of this Agreement.  Representative shall have no power or authority, expressed or implied, to make any commitment or incur any obligations on behalf of POWIN.

 

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(ii)        Exclusivity.  The Territory is non-exclusive.

 

(iii)       Territorial Limitation.  Representative shall not solicit purchase orders from outside the Territory without the prior written consent of  POWIN.  Representative shall promptly submit to POWIN, for POWIN’s attention and handling, the originals of all inquiries received by Representative from potential customers regardless of  Territory.

 

(iv)       Conflict of Interest.  Representative represents and warrants to POWIN he does not currently represent or promote any competing products as listed in Exhibit C hereto.

 

(v)        Reserved Rights.  POWIN reserves the right to solicit orders directly from and sell directly to the customers and distributors within the Territory set forth in Exhibit D.  Except as expressly provided herein, no right, title or interest is granted by POWIN to Representative.  POWIN reserves the right under all intellectual property rights to make, have made, develop, market, sublicense, sell and distribute products other than the Products in the Territory, either directly or indirectly, for any and all uses, and no right title or interest is granted by POWIN to Representative relating to products other than the Products.  POWIN reserves the right under all intellectual property rights to make, have made, use, copy, modify, have modified, create derivative works of, have created derivative works of, demonstrate, maintain and support the Products and the right to sublicense the foregoing rights.

 

(vi)       Independent Contractors.  The relationship of POWIN and Representative established by this Agreement is that of independent contractors, and nothing contained in this Agreement shall be construed to give either party the power to direct or control the day-to-day activities of the other.  All financial and other obligations asso­ciated with Representative's business are the sole responsibility of Repre­sentative.  Neither Representative nor any individual, whose compensation for services is paid for by Representative, is in any way employed by POWIN, nor shall any of them be deemed to be employed by POWIN for any purpose.  Representative accepts exclusive liability for any and all payroll taxes or contributions according to Federal, state or local tax laws with respect to sales agents and/or other individuals whose compensation is paid by Representative.

 

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(c)                   COMMISSION

 

(i)         Sole Compensation.  Representative's sole compensa­tion under the terms of this Agreement shall be a commission com­puted in accordance with (the schedule set forth in Exhibit B attached hereto).

 

(ii)        Basis of Commission.  The commission shall apply to all purchase orders solicited by Representative from the Territory that have been accepted by POWIN and for which shipment has occurred. No commissions shall be paid on (i) purchase orders solicited by POWIN within the Territory from the reserved accounts listed in Exhibit D, or (ii) purchase orders received from outside the Territory (even if Representative receives the initial inquiry from outside the Territory) unless otherwise agreed in writing by POWIN.  Commissions shall be computed on the amounts received by POWIN from the customer, less (i) freight, packaging, handling or other shipment expenses; (ii) sales, use, value-added, excise and other taxes; (iii) C.O.D. charges; (iv) insur­ance; (v) customs duties and other governmental charges; (vi) cash or trade discounts; (vii) Product returns or credits; (viii) bad debt; and (ix) other similar costs and expenses.  No commission shall be paid with respect to repairs or other services provided by POWIN to Representative.

 

(iii)       Commission Adjustments.  POWIN and Representative may mutually agree to a the commission on a case-by-case basis prior to POWIN's acceptance of a particular purchase order.

 

(iv)       Disputes.  POWIN has final authority to resolve disputes regarding commissions. If Representative has questions about Representative's commission payment, within thirty (30) days after the date POWIN sends the commission payment to Representative, Representative shall send POWIN a notice containing all of the following information: (i) Representative's name and address; (ii) the check number on the commission payment; (iii) the period of time covered by the commission payment; and (iv) a description and explanation of the alleged discrepancy.  POWIN shall have no obligation to address any alleged discrepancy with respect to Representative's commission not reported to POWIN within such sixty (60) day period.

 

(v)        Payment.  Payment of commissions shall be in United States dollars and shall be subject to all applicable governmental regulations and rulings, including the withholding of any taxes required by law.

 

(vi)       Time of Payment.  The commission on a given purchase order shall be due and payable net thirty (30) days after the end of the calendar month in which POWIN receives payment from the customer.  Commissions shall be earned and paid pro rata on partial payments received.

 

(vii)      Commission Charge-Back.  POWIN shall have the absolute right to set such cash discounts, make such allowances and adjustments, accept such returns from its customers, and write off as bad debts such overdue customer accounts as it deems advisable.  In each such case, POWIN shall charge back to Representative's account any amounts previously paid or credited to it with respect to such cash discounts, allowances, adjustments, returns or bad debts. At no time shall Representative owe POWIN any money if Charge-Backs for any reason exceed commissions due and payable. If Charge-Backs are greater than commissions due for 2 consecutive months this agreement will be cancelled or balance reset to zero.

 

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(viii)     Monthly Statements.  POWIN shall submit to Representative periodic statements of the commissions due and payable to Representative under the terms of this Agreement, with reference to the specific invoices on which the commissions are being paid.

 

(ix)        Inspection of Records.  Representative shall have the right, at its own expense and not more than once in any twelve (12) month period, to authorize an independent auditor reasonably acceptable to both parties to inspect those accounting records necessary to verify the accuracy of commissions paid by POWIN under the terms of this Agreement, provided, that such independent auditor has executed a confidentiality agreement with respect to such records that is reasonably acceptable to POWIN.  Such inspections shall take place upon not less than thirty (30) days prior written notice to POWIN during POWIN’s normal business hours and on a date mutually agreed upon by the parties.

 

(d)                   SALE OF THE PRODUCTS

    

(i)          Prices and Terms of Sale.  POWIN shall pro­vide Representative with copies of its current price lists, its delivery schedules, and its standard terms and conditions of sale, as estab­lished from time to time.  Representative shall request POWIN to quote to customers.  POWIN may alter at will the prices, delivery schedules, and terms and conditions.  Each purchase order shall be governed by POWIN's prices, delivery schedules, and other terms and condi­tions of sale in effect at the time the purchase order is accepted by POWIN.

 

(ii)         Quotations.  Representative shall request quotations directly from POWIN to be submitted to the Representative for submission to customers. All purchase orders for the Products shall be in writing, and the originals shall be submitted to POWIN.

 

(iii)        Forecasts.  Within the last five (5) days of every month, Representative shall provide POWIN with a 6 month rolling forecast of orders showing each prospective sale by potential customer, Product model, volume of Product units, intended close date, and probability.

 

(iv)        Acceptance.  All purchase orders obtained by Representative shall be subject to acceptance by POWIN at its principal office currently located at the address listed for POWIN at the beginning of this Agreement POWIN specifically reserves the right to reject any purchase order or any part thereof for any reason.

 

(v)         Credit and Payment.  POWIN shall have the sole right of credit approval or credit refusal for customers in all cases.  POWIN shall render all invoices directly to the customers and shall send copies of all invoices subject to com­mission to Representative.  Payments shall be made directly to POWIN  and full responsibility for all collection rests with POWIN.

 

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(e)                   PRODUCT WARRANTY AND PRODUCT AVAILABILITY

 

(i)          Product Warranty.  Any warranty for the Products shall run directly from POWIN to the customer, and pursuant to the warranty the customer shall return any allegedly defective Pro­ducts to POWIN or a service representative designated by POWIN.  Representative shall have no authority or intent to accept any returned Products.

 

 

 

(ii)         POWIN MAKES NO WARRANTIES OR CONDITIONS TO REPRESENTATIVE, EXPRESS, STATUTORY, IMPLIED, OR OTHERWISE, AND POWIN SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

(iii)        Product Availability.  Under no circumstances shall POWIN be liable to Representative or any other party for its failure to fill accepted purchase orders, or for its delay in filling accepted purchase orders, when such failure or delay is due to any cause beyond POWIN's rea­sonable control.

 

(f)                    OTHER REPRESENTATIVE OBLIGATIONS

 

(i)          Promotion of the Products.  Representative shall, at its own expense, use its best efforts to maximize the sale of the Products within the Territory.

 

(ii)         Forecast.  Representative agrees to use its best efforts to solicit purchase orders for Products indicated in Exhibit A (“Forecast”).

 

(iii)        Services.  Representative shall provide the following services to all customers of POWIN in the Territory:

 

     (1)           Extending prompt, efficient and courteous response  to customers .

 

 

     (2)           Following up all advertising inquiries from customers and customer prospects within the Territory and calling on existing customers and customer prospects in the Territory at reasonably frequent intervals.

 

     (3)           Providing POWIN with the results of Representative's periodic follow-up on all quotations and advertising leads and with all correspondence relating to the Products between Representative and its agreed to target opportunities..

 

     (4)           Making periodic calls and follow-up calls at reasonable intervals..

 

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     (5)           Distributing current Product literature, catalogues, and other sales aids furnished to Representative by POWIN..

 

     (6)           Maintaining and periodically furnishing customer and marketing data to POWIN to assist POWIN in preparation of customer mailing lists and other sales and marketing efforts, including without limitation the names, addresses, and contacts of customers and customer prospects.

 

     (7)           Attend POWIN sponsored national, regional, and/or local trade shows, if so requested by POWIN, either at POWIN's home office or at another location designated by POWIN at its own expense.

 

     (8)           Investigating customer complaints and providing POWIN with reasonable assistance in responding to any complaints or disputes arising in the Territory with respect to sales or servicing of the Products.

 

     (9)           If requested by POWIN, providing POWIN with reasonable assistance with the collection of customer accounts.

 

(iv)        Facilities.  Representative shall provide itself with, and be solely responsible for (i) such facilities, employees, and business organization, and (ii) such permits, licenses, and other forms of clearance from governmental or regulatory agencies, if any, as it deems neces­sary for the conduct of its business opera­tions in accordance with this Agreement.

 

(v)        Advising of Changes.  Representative shall promptly advise POWIN of (i) any changes in Representative's status, organization, personnel, and similar matters, (ii) any changes in the key personnel, organization, and status of customers in the Territory, and (iii) any political, financial, legisla­tive, industrial or other events in the Territory that could affect the mutual business interests of Representative and POWIN.

 

(vi)        Books and Records.  Representative shall maintain and make available to POWIN accurate books, records, and accounts relating to the business of Representative with respect to the Products.  Representative shall also maintain a record of any customer complaints regarding either the Products or POWIN and immediately forward to POWIN the information regarding those complaints.  POWIN shall have the right, to inspect at reasonable times all of the foregoing books, records and accounts.

 

(vii)       Repair Services; Support. [To be customized]

 

 

(viii)      Proprietary Markings.  Representative agrees not to remove, alter or destroy any proprietary, trademark, patent or copyright markings placed upon or contained within the Products or any related materials or documentation.  Representative acknowledges to the best of its knowledge, and agrees that POWIN and its licensors retain all right, title and interest in the Products and any related materials and documentation, and all trademark rights, copyrights, patents, mask work rights and other intellectual property rights therein throughout the world.

 

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(g)                   PROMOTIONAL MATERIALS

 

POWIN shall furnish Representative with reasonable quantities of samples, catalogs, literature and any other materials POWIN deems necessary for proper promotions and sales presentations of its Products in the Territory.  Any literature, which is not used, or samples provided to Representative by POWIN hereunder shall be the property of the POWIN, and returned upon POWIN's request.

 

(h)                   LIMITATION ON LIABILITY

 

IN NO EVENT SHALL POWIN BE LIABLE TO REPRESENTA­TIVE FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCI­DENTAL, OR INDIRECT DAMAGES, HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCTS LIABILITY OR ANY OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER POWIN HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

 

(i)                    CONFIDENTIALITY

 

Representative acknowledges that by reason of its rela­tion­ship to POWIN hereunder it will have access to certain informa­tion and materials concerning POWIN's business, plans, customers, technology, and products that are confidential and of substantial value to POWIN, which value would be impaired if such informa­tion were disclosed to third parties.  Representative agrees that it shall not use in any way for its own account or the account of any third party other than to fulfill its express obligations under this Agreement, nor disclose to any third party, any such confidential information revealed to it by POWIN. Representative shall take every reasonable pre­caution to protect the confidentiality of such information.  Upon request by Represen­ta­tive, POWIN shall advise whether or not it considers any particular information or materials to be confi­dential.  All marketing and financial information, business plans, and technical information disclosed to Representative by POWIN whether orally or in writing, and all customer lists, shall be deemed confidential information of POWIN.  Representa­tive shall not publish any technical description of the Products beyond the description published by POWIN.  In the event of termination of this Agreement, there shall be no use or disclosure by Representative of any confidential information of POWIN, and Representative shall not manufacture or have manufactured any devices, components or assemblies utilizing POWIN's confidential information.

 

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(j)                    TRADEMARKS AND TRADE NAMES

 

(i)      Trademarks.  During the term of this Agreement, Representative shall have the right to indicate to the public that it is an authorized representative of POWIN's Products and to advertise such Products under the trademarks, marks, and trade names of POWIN that POWIN may adopt from time to time (“POWIN's Trademarks”) and in the promotion of the Products; provided, however, that upon thirty (30) days prior written notice to Representative, POWIN may substitute alternative marks for any or all of the POWIN's Trademarks.  All representations of POWIN's Trademarks that Representative intends to use shall first be submitted to POWIN for approval (which shall not be unreasonably withheld) of design, color and other details or shall be exact copies of those used by POWIN.  In addition, Representative shall fully comply with all reasonable guidelines, if any, communicated by POWIN concerning the use of POWIN's Trademarks.

 

(ii)      Use.  Representative shall not alter or remove any of POWIN's Trademarks affixed to the Products by POWIN.  Except as set forth in Section (j)(i) above, nothing contained in this Agreement shall grant or shall be deemed to grant to Representative any right, title or interest in or to POWIN's Trademarks.  All uses of POWIN's Trademarks will inure solely to POWIN and Representative shall obtain no rights with respect to any of POWIN's Trademarks, other than the right to distribute Products as set forth herein, and Representative irrevocably assigns to POWIN all such right, title and interest, if any, in any of POWIN's Trademarks.  At no time during or after the term of this Agreement shall Representative challenge or assist others to challenge POWIN's Trademarks (except to the extent expressly prohibited by applicable law) or the registration thereof or attempt to register any trademarks, marks or trade names confusingly similar to those of POWIN.

 

 

 

(k)                   TERM OF AGREEMENT

 

This Agreement shall commence on the Effective Date and shall remain in full force and effect for an initial term of ten (10) years.  This Agreement may be renewed for successive one-year terms by written agreement of the parties prior to the anniversary date on which the Agreement would otherwise expire.

 

(l)                    TERMINATION

 

(i)      Termination for Convenience.  Either party may terminate this Agreement for any or no reason upon thirty (30) days prior written notice to the other party.

 

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(m)                  RIGHTS UPON TERMINATION

 

(i)          Additional Commissions.  Upon termination, subject to all the provisions of this Agreement and to Representative's compliance with this Agreement, POWIN shall pay com­mis­sions to Representative on all purchase orders meeting all of the following requirements: (i) the purchase order is solicited by Representative, and (ii) the purchase order is accepted by POWIN within ninety (90) days after the date of termination of this Agreement, and (iii) POWIN receives payment with respect to all Products ordered under the purchase order within one hundred fifty (150) days after the date of termination of this Agreement.  POWIN's obligation to pay commissions for shipments made during any period after the effective date of termination is subject to and conditional upon Representative's cooperation with any replacement representative organization and Representative's continued support of any Products.  POWIN may withhold, for up to six (6) months, the payment of commission for shipments made after the effective date of termination if POWIN determines that there may be sufficient credits or other adjustments which warrant such action.  If POWIN is owed any amounts by Representative, POWIN shall have the right, in its absolute discretion, to offset any commission payable by POWIN to Representative by such obligation owed to POWIN by Representative.  Under any circumstance (except in the event of fraud or equivalent unethical conduct), Representative will never owe POWIN monies previously paid. Upon termina­tion, POWIN's sole obligation to Representative under the terms of this Agreement shall be for any unpaid commissions under this Section and Section (c) above.

 

(ii)         Return of Materials.  All trademarks, trade names, patents, copyrights, designs, drawings, formulas or other data, financial information, business plans, photographs, samples or demonstration units, literature, and sales aids of every kind shall remain the property of POWIN.  Within thirty (30) days after the termination of this Agreement, Representa­tive shall prepare all such items in its possession for ship­ment, as POWIN may direct, at POWIN's expense.  Representative shall not make or retain any copies of any confi­dential items or informa­tion that may have been entrusted to it.  Effective upon the termina­tion of this Agree­ment, Representative shall cease to use POWIN’s Trademarks.  Any listing by Representative of POWIN’s name in any telephone book, directory, and public record or like publication shall be removed by Representative as soon as possible, but no later than the subsequent issue of such publication.

 

(iii)        Sales Representative Claims.  Upon termination or expiration of this Agreement, all claims of Representative against POWIN including without limitation those pertaining to sales compensation hereunder are hereby waived unless made in writing to POWIN by Representative within ninety (90) days of when the compensation would have been payable.

 

(n)                   SURVIVAL OF CERTAIN TERMS

 

The provisions of Section (j),(ii) shall survive the termination or expiration of this Agreement for any reason.  All other rights and obligations of the parties shall cease upon termination of this Agreement.

 

(o)                   MISCELLANEOUS

 

(i)          Governing Law; Jurisdiction.  This Agreement shall be governed by and construed under the laws of the State of Oregon without reference to conflicts of laws principles. The parties hereby expressly consent to the exclusive jurisdiction and venue of the federal and state courts within the State of Oregon to adjudicate any dispute arising out of or related to this Agreement.

 

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(ii)         Notices. Any notice required or permitted to be given under this Agreement shall be delivered (i) by hand, (ii) by registered or certified mail, postage prepaid, return receipt requested, to the address of the other party first set forth above, or to such other address as a party may designate by written notice in accordance with this Section , (iii) by overnight courier, or (iv) by fax with confirming letter mailed under the conditions described in (ii).  Notice so given shall be deemed effective when received, or if not received by reason of fault of addressee, when delivered.

 

(iii)        Force Majeure.  Nonperformance of either party shall be excused to the extent that performance is rendered impossible by strike, fire, flood, governmental acts, delay in component supply, equipment failure, orders or restrictions, or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence of the non-performing party.

 

(iv)        Non-Assignability and Binding Effect.  A mutually agreed consideration for POWIN's enter­ing into this Agreement is the reputation, business standing, and goodwill already honored and enjoyed by Representative under its present ownership, and, accordingly, Repre­sentative agrees that its rights and obligations under this Agree­ment may not be trans­ferred or assigned directly, indirectly or by a change in control without POWIN's prior written consent.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.

 

(v)         Modification.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the party to be charged, and the waiver of any breach or default shall not constitute a waiver of any other right hereunder or any subsequent breach or default.

 

(vi)        Severability.  In the event that it is determined by a court of competent jurisdiction as part of a final nonappealable ruling, government action or binding arbitration, that any provision of this Agreement (or part thereof) is invalid, illegal, or otherwise unenforceable, such provision shall be enforced as nearly as possible in accordance with the stated intention of the parties, while the remainder of this Agreement shall remain in full force and effect and bind the parties according to its terms.  To the extent any provision (or part thereof) cannot be enforced in accordance with the stated intentions of the parties, such provision (or part thereof) shall be deemed not to be a part of this Agreement.

 

(vii)       Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original.

 

(viii)      Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter hereof and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the party to be charged.  The parties agree that the terms and conditions of this Agreement shall prevail, notwithstanding contrary or additional terms in any purchase order.

 

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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to execute this Agreement, effective as of the Effective Date.

	
AGREED BY POWIN:

	AGREED BY REPRESENTATIVE:
	 	 	 
	 	/s/ Terry Davis	/s/ Harvey Weiss
	  	
Signature

	
Signature

	 	 	 
	 	
Terry Davis, Vice President 

Sales & Marketing

	Harvey Weiss
	 	
Name, Title

	
Name, Title

 

 

 

 

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 EXHIBIT A

 

PRODUCTS AND TERRITORY

 

Products

 

Representative may solicit purchase orders only for the following Products:

 

Energy Storage Bank

 

 

Territory

 

Representative may solicit purchase orders only in the following geographical areas:

 

The states of Maine, Vermont, New Hampshire, New York, Pennsylvania, Massachusetts, Rhode Island, Conneticut, New Jersey, West Virginia, Virginia, Delaware, Maryland, District of Columbia, North Carolina, South Carolina, Alabama, Georgia and Florida.

 

Or to mutually agreed to in writing accounts and targets of opportunites

 

Forecast

 

Product Units of Product

 

 

 

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 EXHIBIT B

 

COMMISSION SCHEDULE

 

	
  

	
Commissions for total cumulative net connector sales billed per Customer per calendar year shall be in accordance with the following schedule:

 

	
US $ Billed Per Customer Per Calendar Year

	
Rate

	 	 
	  	  
	
$0 to $2M

	
5%

	 	 
	
$2M to $3M

	
4%

	 	 
	
$3M to $4M

	
3%

	 	 
	
$4M and up

	
2%

 

	
  

	
1.1

	
Sales of products not listed will be handled on a case by case basis.

 

 

 

 

 

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 EXHIBIT C

 

PRODUCT LINES

 

Energy Storage Bank

 

 

EXHIBIT D

 

RESERVED ACCOUNTS

 

NextEra Energy, Iberdrola, Edison Mission Group and enXco.

 

 

 

 

  

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