Document:

Exhibit 10.15

 

 

60 East 42nd Street, Suite 1160, New York, New York 10165

 

September 15, 2014

 

Fabian Tenenbaum

63 Trafalgar Road

Tenafly, NJ 07670

 

Re: Employee Offer Letter 

 

Dear Fabian:

 

Anterios, Inc. (the “Company”) is pleased to offer you the position of Chief Financial Officer and Chief Business Officer, reporting to the Company’s President and Chief Executive Officer. By signing this letter agreement, you represent and warrant to the Company that you are under no contractual commitments inconsistent with your obligations to the Company.

 

1. Compensation.

 

(a)    Base Salary. You will be paid a salary at the annual rate of $300,000, payable in accordance with the Company’s standard payroll practices for salaried employees. If the Company has an Initial Public Offering of its stock, your base salary (and bonus potential) wilt be reevaluated with the goal of bringing it in line with market rates for comparable officers of comparable public biopharmaceuticals companies. This will be accomplished by the review of data regarding compensation of such officers, and, if the Board of Directors deems it necessary, the engagement of a compensation consultant to determine such rates.

 

(b)    Stock Options. Company’s management will recommend to the Company’s Board of Directors that you be granted options (each a “Stock Option”) to purchase up to a total of 90,000 shares of the Company’s Common Stock. The exercise price per share will be equal to the fair market value per share on the date each option is granted as determined by the Board of Directors. The current fair market value is $3.02. These options shall vest over four (4) years from your employment start date, with one quarter of the options vesting on the first anniversary of your start date and thereafter monthly at a rate of 1/48th per month until all such options are vested.

 

In the event the Company concludes a mezzanine financing prior to an initial public offering, and you are at that time still employed by the Company, you will be granted an additional number of options (the “True-Up Grant”) such that you have opportunity to hold in aggregate one percent (1%) of the outstanding issued Company equity following that financing, which number shall include the aforementioned grant of options to acquire 90,000 shares of Common Stock. At the time of the True-Up Grant, you will be granted an additional separate grant of 8,000 stock options. For each of these additional grants, the options will have a vesting schedule identical to the aforementioned option grant and a strike price equal to the then fair market value of the Common Stock as determined by the Board.

 

The Stock Option shall be an incentive stock option to the extent permitted by applicable law. The Stock Option will be subject to the terms and conditions applicable to options granted under the

 

Tenenbaum Employment Offer

 

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Company’s 2006 Equity Incentive Plan, and as described in that plan and the applicable stock option agreement.

 

(c) Bonus. You may be able to earn a performance bonus in a target amount of 25% of your then-current base salary based on your meeting certain performance criteria set by Company from time to time. Nothing in this offer letter shall entitle you to receive a bonus. The amount of any bonus and your satisfaction of any performance criteria will be determined by the Company’s Board of Directors or its designee(s), in their sole discretion.

 

2.         Benefits. You shall be entitled to the Company’s basic employment benefits available to all Company employees, as the same currently exists or may exist in the future. You acknowledge that participation in Company benefit programs may require payroll deductions and/or direct contributions by you. You will be entitled to vacation days, and/or personal days and/or sick days for a total of 15 days per year (in effect ratably in the first year of employment) in accordance with the Company’s policies and procedures.

 

3.         Expenses. You shall be entitled to reimbursement for pre-approved expenses, including car travel, that you incur as part of your work for the Company consistent with the Company’s then-current expense policy. Car travel that constitutes travel to and from your office at Company headquarters is not included in covered expenses.

 

4.         Severance.

 

(a)                       Termination Without Cause or for Good Reason. If your employment is terminated by the Company at any time Without Cause (as defined in clause (d) below) or by you for Good Reason (as defined in clause (f) below) after the date of execution of this offer letter (a “Covered Termination”), (i) you shall receive any annual base salary and bonus compensation that has accrued but is unpaid as of the date of such termination plus all other amounts to which you are entitled under this offer letter, any compensation plan or practice of the Company at the time of such termination, and (ii) upon execution of the Release described in clause (iii) below, 26 week’s pay as scheduled for other employees. If your employment is terminated by the Company under the circumstances of a Change in Control without Cause or by you for Good Reason after a Change in Control after the date of execution of this offer letter (a “Covered Termination”), (i) you shall receive any annual base salary and bonus compensation that has accrued but is unpaid as of the date of such termination plus all other amounts to which you are entitled under this offer letter, any compensation plan or practice of the Company at the time of such termination, and (ii) upon execution of the Release described in clause (iii) below, 52 week’s pay as scheduled for other employees.

 

(b)                                 Acceleration of Options. In the event you are employed by the Company on the effective date of a Change of Control (as defined in clause (e) below), you will have a full acceleration of the vesting of your options.

 

(c)                                  Release. Prior to your receipt of any benefits under Section 4(a) (except pursuant to clause (i) thereof), you shall execute a Release in substantially the form attached hereto as Exhibit 1.

 

(d)                                 Definition of Cause. “Cause” means (a) your gross negligence or willful misconduct in the performance of duties to the Company where such gross negligence or willful misconduct has resulted or is likely to result in substantial and material damage to the Company or its subsidiaries; (b) the commission by you of a material breach of any of the provisions of this Agreement;

 

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(c) your willful and habitual neglect of your duties of employment, including your intentional refusal or intentional failure to act on any lawful and proper direction of CEO, President or the Board, (d) your commission of an act of fraud with respect to the Company; or (e) your conviction for any felony crime involving moral turpitude. Notwithstanding the foregoing, no “Cause” for termination shall be deemed to exist with respect to your acts described in clauses (a) or (b) or (c) above, unless the Company shall have given written notice to you specifying the “Cause” with reasonable particularity and, within thirty (30) calendar days after such notice, you shall not, if possible, have cured or eliminated the problem or thing giving rise to such “Cause;” provided, however, that a repeated breach after notice and cure of any provision of clauses (a) or (b) or (c) above involving the same or substantially similar actions or conduct, shall be grounds for termination for “Cause” without any additional notice from the Company.

 

(e)                             Definition of Change of Control. “Change of Control” is any transaction or series of transactions in which (i) the majority of the Board in place after such transactions is different than the majority in place immediately prior to the transactions, (ii) all or substantially all of the assets of the Company are sold or transferred, the Company is wound down, or the Company is acquired via stock purchase or merger or (iii) any person or entity other than the Company and/or any officers or directors of the Company as of the date of this Agreement acquires securities of the Company other than from you or your family members and affiliates thereof (in one or more transactions) having 50% or more of the total voting power of all the Company’s securities then outstanding unless the acquisition of the securities is through a venture capital preferred stock investment; provided, however, such a preferred stock investment does not involve the removal of a representative of Ascent Biomedical Ventures or a representative of the Series A or B Preferred investors from the Board.

 

(f)                              Definition of Good Reason. A termination by you for “Good Reason” shall mean the occurrence of any of the following circumstances without your prior express written consent: (a) a material breach of this Agreement by the Company, including, but not limited to, the assignment to you of any duties or responsibilities that results in a material diminution or adverse change of your position or scope of responsibilities; (b) a failure by the Company to make any payment to you when due, unless the payment is not material and is being contested by the Company, in good faith; (c) a material and adverse change in your base salary described in Section 1(a) of this Agreement to which you did not give your prior written consent; (d) the requirement for you to work out of an office that is not in the greater New York City metropolitan area encompassing regions of New York, New Jersey and Connecticut; notwithstanding the foregoing, “Good Reason” shall not be deemed to exist with respect to the Company’s acts described in clauses (a), (b), (c), or (d) above, unless you shall have given written notice to the Company specifying the Good Reason with reasonable particularity and, within thirty (30) calendar days after such notice, the Company shall not have cured or eliminated the problem or thing giving rise to such Good Reason; provided, however, that a repeated breach after notice and cure of any provision of clauses (a), (b), (c), or (d) above involving the same or substantially similar actions or conduct, shall be grounds for termination for Good Reason without any additional notice from you.

 

5. Noncompetition. During the term of your employment by the Company, and for six (6) months immediately following the date on which your employment relationship with the Company ends, you shall not directly or indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant (except for consulting arrangements previously approved in writing by the Company), or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any other person, corporation, firm, partnership or other entity whatsoever which were known by you to compete with the Company, throughout the world, in any line of business engaged in (or planned to be engaged in) relating to topical or injectable botulinum or the use of a nanoemulsion to deliver a pharmaceutical or cosmeceutical by the Company

 

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at the time of the your termination; provided, however, that anything above to the contrary notwithstanding, you may own, as a passive investor, securities of any competitor corporation, so long as your direct holdings in any one such corporation shall not in the aggregate constitute more than 1% of the voting stock of such corporation. During this one (6) month period following termination of employment, you will have the obligation to inform the Company of your work activities for compliance purposes with this non-competition agreement. Your duties under this Section 5 shall survive termination of your employment with the Company.

 

6.         Employment Terms. All Company employees are required, as a condition to employment with the Company, to (i) acknowledge receipt and understanding, and sign the Company’s standard Employee Proprietary Information and Inventions Agreement, attached hereto as Exhibit 2; (ii) sign and return a satisfactory 1-9 Immigration form providing sufficient documentation establishing your employment eligibility in the United States, and (iii) satisfactory proof of your identity as required by United States law.

 

7.         At-Will Employment. Your employment with the Company will be “at-will,” meaning that either you or the Company will be entitled to terminate your employment at any time and for any reason, with or without cause. Any contrary representations that may have been made to you are superseded by this offer. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company.

 

8.         Outside Activities. While you render services to the Company, you will not engage in any other gainful employment, business or activity without the written consent of the Company. While you render services to the Company, you also will not assist any person or organization in competing with the Company, in preparing to compete with the Company or in hiring any employees of the Company.

 

9.         Start Date. Your start date shall be on October 13, 2014 or as mutually agreed upon between you and the Company’s CEO. This offer, if not accepted, will expire at the close of business on September 19, 2014.

 

We hope that you find the foregoing terms acceptable. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter and the enclosed Employee Proprietary Information and Inventions Agreement and returning them to me.

 

If you have any questions, please call me at (212) 303 1683.

 

(The remainder of this page has been left intentionally blank.)

 

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Very truly yours,

 

 

	
/s/ Jon Edelson
    	
 
    
	
Jon   Edelson, M.D.
    	
 
    
	
President   and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
AGREED   AND ACCEPTED:
    	
 
    
	
 
    	
 
    
	
I   have read and accept this employment offer:
    	
 
    
	
 
    	
 
    
	
/s/ Fabian Tenenbaum
    	
 
    
	
Fabian   Tenenbaum
    	
 
    
	
 
    	
 
    
	
Dated:   9/15/2014
    	
 
    

 

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Exhibit 2

 

Employee Proprietary Information and Inventions Agreement

 

EMPLOYEE CONFIDENTIALITY AND INVENTION ASSIGNMENT AGREEMENT

 

In partial consideration and as a condition of my employment by Anterios, Inc., a Delaware corporation (the “Company”), and any equity interest I may be offered in the Company, and effective as of the date that employment by the Company first commenced, the undersigned agrees as follows:

 

1.                                      Nondisclosure of Confidential Information. I will not, without the prior written consent of (i) an executive officer of the Company, in the event that I am not an executive officer of the Company, and (ii) the Board of Directors of the Company, in the event that I am an executive officer of the Company, divulge to unauthorized persons, or use for any unauthorized purpose, either during or after the term of my employment, any “Confidential Information” (as defined below) connected with the business of the Company or any of its suppliers or customers.

 

“Confidential Information” shall mean (i) any trade secrets and proprietary information of the Company which shall include, but not be limited to, all drug and cosmeceutical formulations and research plans and results related to the testing of these formulations, plans and activities related to the manufacture of these formulations, and all of the computer software and programs (including object and source code), the computer software and database technologies, systems, structures and architectures and the processes, formulae, compositions and improvements developed, acquired, owned or produced at any time by the Company or its affiliates; (ii) information marked or designated by the Company as confidential; (iii) information, whether or not in written form and whether or not designated as confidential, which is known to me as being treated by the Company as confidential which shall include all information and material relating to the business of the Company, or any affiliate thereof, including information as to plans, policies, corporate developments, products, services, methods of doing business, procedures, suppliers and customers, that is competitively sensitive and is not generally available to the public; and (iv) information provided to the Company by third parties which the Company is obligated to keep confidential. The term “Confidential Information” shall also include, but is not limited to, all inventions, improvements, discoveries, devices, compositions, formulae, ideas, designs, drawings, specifications, techniques, data, computer programs, processes, know-how, customer lists, marketing, product development and other business plans, legal affairs and financial and technical information. Notwithstanding the foregoing, Confidential Information shall not include any information which is or hereafter becomes known to the public through no fault of my own, from and after the date of such public disclosure.

 

2.                                      Property of the Company. All notes, memoranda, reports, drawings, blueprints, manuals, materials, data and other papers and records of every kind which shall come into my

 

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possession at any time after the commencement of my employment with the Company, relating to any Inventions or Confidential Information, shall be the sole and exclusive property of the Company. This property shall be surrendered to the Company upon termination of my employment with the Company, or upon request by the Company, at any other time either during or after the termination of such employment. I further agree that in the event of termination of my employment with the Company I will execute a Termination Certificate, substantially in the form attached hereto as Exhibit 1.

 

3.                                      Inventions.

 

3.1                               Disclosure. I shall disclose promptly to an officer or to attorneys of the Company in writing any idea, invention, work of authorship, whether patentable or unpatentable, copyrightable or uncopyrightable, including, but not limited to, any computer program, software, command structure, code, documentation, compound, genetic or biological material, formula, manual, device, improvement, method, process, discovery, concept, algorithm, development, secret process, machine or contribution (any of the foregoing items hereinafter referred to as an “Invention”) I may conceive, make, develop or work on that relates to any product (whether in development or otherwise), delivery system or intellectual property of the Company, in whole or in part, solely or jointly with others. The disclosure required by this Section applies (a) during the period of my employment with the Company and for one year thereafter; (b) with respect to all Inventions whether or not they are conceived, made, developed or worked on by me during my regular hours of employment with the Company; (c) whether or not the Invention was made at the suggestion of the Company; and (d) whether or not the Invention was reduced to drawings, written description, documentation, models or other tangible form. The Company agrees that it will take reasonable precautions to keep Inventions disclosed to it pursuant to this Section 3.1 in strictest confidence and shall not use any Inventions for its own advantage unless those Inventions are assigned to the Company pursuant to Section 3.2 or otherwise.

 

3.2                               Assignment of Inventions to Company; Exemption of Certain Inventions. I hereby assign to the Company without royalty or any other further consideration my entire right, title and interest in and to all Inventions which I conceive, make, develop or work on during the period of my employment and for one year thereafter which relate to any product (whether in development or otherwise), delivery system or intellectual property of the Company, except those Inventions that I develop entirely on my own time after the date of this Agreement without using the Company’s equipment, supplies, facilities or trade secret information unless those Inventions either (a) relate at the time of conception or reduction to practice of the Invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company; or (b) result from any work performed by me for the Company. I acknowledge and agree that the Company has hereby notified me that the assignment provided for in Section 3.2 does not apply to any Invention which qualifies fully for exemption from assignment under the provisions of Section 2870 of the California Labor Code, a copy of which is attached as Exhibit 3.

 

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3.3.                            Records. I will make and maintain adequate and current written records of all Inventions covered by Section 3.1. These records shall be and remain the property of the Company.

 

3.4                               Patents. Subject to Section 3.2, I will assist the Company in obtaining, maintaining and enforcing patents and other proprietary rights in connection with any Invention covered by Section 3.1. I further agree that my obligations under this Section 3.4 shall continue beyond the termination of my employment with the Company, but if I am called upon to render such assistance after the termination of such employment, I shall be entitled to a fair and reasonable rate of compensation for such assistance. I shall, in addition, be entitled to reimbursement of any expenses incurred at the request of the Company relating to such assistance.

 

3.5                               Prior Contracts and Inventions: Information Belonging to Third Parties. I represent that, except as set forth on Exhibit 4 hereto, there are no other contracts to assign Inventions that are now in existence between any other person or entity and me. I further represent that (a) I am not obligated under any consulting, employment or other agreement which would affect the Company’s rights or my duties under this Agreement, (b) there is no action, investigation, or proceeding pending or threatened, or any basis therefor known to me involving my prior employment or any consultancy or the use of any information or techniques alleged to be proprietary to any former employer, and (c) the performance of my duties as an employee of the Company will not breach, or constitute a default under any agreement to which I am bound. I will not, in connection with my employment by the Company, use or disclose to the Company any confidential, trade secret or other proprietary information of any previous employer or other person to which I am not lawfully entitled. As a matter of record, I attach as Exhibit 5 of this Agreement a brief description of all Inventions made or conceived by me prior to my employment with the Company which I desire to be excluded from this Agreement.

 

4.                                      Noncompetition. During the term of my employment by the Company, I will not without the prior written approval of (i) an executive officer of the Company, in the event that I am not an executive officer of the Company, and (ii) the Board of Directors of the Company, in the event that I am an executive officer of the Company, (a) engage in any other professional employment or consulting, or (b) directly or indirectly participate in or assist any business which is a current or potential supplier, customer or competitor of the Company.

 

5.                                      Nonsolicitation.  During the term of my employment with the Company and for a period of two (2) years thereafter, I will not solicit or encourage, cause others to solicit or encourage, any employees of the Company to terminate their employment with the Company.

 

6.                                      Miscellaneous.

 

6.1                               Governing Law. This Agreement shall be construed under and governed by the laws of the State of New York applicable to contracts entered into and wholly to be performed in New York by New York residents.

 

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6.2                               Enforcement. If any portion of this Agreement shall be determined to be invalid or unenforceable, the remainder shall be valid and enforceable to the maximum extent possible.

 

6.3                               Injunctive Relief; Consent to Jurisdiction. I acknowledge that the Company will suffer substantial damages not readily ascertainable or compensable in terms of money in the event of the breach of any of my obligations under this Agreement. I therefore agree that the Company shall be entitled (without limitation of any other rights or remedies otherwise available to the Company) to obtain an injunction from any court of competent jurisdiction prohibiting the continuance or recurrence of any breach of this Agreement. I hereby submit myself to the jurisdiction and venue of the courts of the State of New York for purposes of any such action. I further agree that service upon me in any such action or proceeding may be made by first class mail, certified or registered, to my address as last appearing on the records of the Company. I agree that the prevailing party in any action or proceeding to enforce or interpret this Agreement shall be entitled to reasonable attorney’s fees and costs in addition to all other relief to which it may be entitled.

 

6.4                               Waiver. The waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of the same or any other provision hereof.

 

6.5                               Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the successors, executors, administrators, heirs, representatives and assigns of the parties.

 

6.6                               Headings. The Section headings herein are intended for reference and shall not by themselves determine the construction or interpretation of this Agreement.

 

6.7                               Modifications. All modifications to this Agreement must be in writing and signed by the party against whom enforcement of such modification is sought.

 

6.8                               Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

 

IN WITNESS WHEREOF, I have executed this document as of the 15th day of September 2014.

 

 

	
 
    	
/s/   Fabian Tenenbaum
    
	
 
    	
Fabian   Tenenbaum
    

 

 

	
 
    	
AGREED   AND ACKNOWLEDGED:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Anterios, Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
/s/   Jon Edelson
    
	
 
    	
Name:   
    	
Jon   Edelson, MD
    
	
 
    	
Title:
    	
President   and CEO
    

 

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EXHIBIT 3

 

California Labor Code 2870. Application of provision providing that employee shall assign or offer to assign rights in invention to employer.

 

(a)                            Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:

 

(1)                                 Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or

 

(2)                                 Result from any work performed by the employee for the employer.

 

(b)                            To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.

 

(Amended by Stats. 1991, c. 647 (S.B.879), § 5)

 

15Exhibit 10.109

 

EIGHTH AMENDMENT

 

This EIGHTH AMENDMENT
dated as of November 9, 2010 (this “Eighth Amendment”), is between RB International Finance (USA) LLC (formerly
known as RZB Finance LLC) (the “Lender”) and Regional Enterprises, Inc., a Virginia corporation (as successor by assumption
of obligations to Rio Vista Energy Partners L.P., the “Borrower”).

 

WITNESSETH:

 

WHEREAS, Lender and the
Borrower are parties to the Loan Agreement dated as of July 26, 2007 (as amended, supplemented or otherwise modified from time
to time prior to the date hereof, the “Loan Agreement”; capitalized terms used herein having the meanings given thereto
in the Loan Agreement unless otherwise defined herein);

 

WHEREAS, the Borrower
has requested the Lender to agree to certain amendments to the Loan Agreement; and 

 

WHEREAS, the Lender is
willing to agree to such amendments, subject to the terms and conditions set forth herein.

 

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

 

Section 1. Amendments.

 

Subsection 7.1(F)(i) of
the Loan Agreement is hereby amended and restated in its entirety, effective on the Effective Date referred to in Section 2 hereof,
as follows:

 

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“(i) (v) RVEP ceases to own and
control directly 100% of the capital stock of the Borrower, (w) Rio Vista GP, LLC ceases to be the sole general partner of RVEP,
(x) POC, Central Energy, LP, a Delaware limited partnership (“CE LP”) or Central Energy, LLC, a Delaware limited liability
company (“CE LLC”) ceases to own and control directly or indirectly, at least 51% of the membership interests of Rio
Vista GP, LLC, (y) Carter R. Montgomery and Imad Anbouba cease to own and control at least 100% of the membership interests of
CE LLC, the sole general partner of CE LP or (z) CE LLC ceases to be the sole general partner of CE LP; or”

 

Section 2.          Effectiveness.

 

This Eighth Amendment shall
become effective on the date (the “Effective Date”) on which Lender shall have received:

 

(a)           this
Eighth Amendment duly executed by the Borrower and the Lender;

  

(b)          a
Consent, duly executed by RVEP, substantially in the form of Exhibit A hereto;

  

(c)          (i) 
payment of all of Lender’s out of pocket costs and expenses;

 

(ii)         payment
to the Lender of all accrued and unpaid interest and fees owing under the Loan Agreement immediately prior to giving effect to
this Eighth Amendment; and

 

(iii)        payment
to the Lender of a non-refundable amendment fee in the amount of $5,000 in cash; and

 

(d)          such
corporate, partnership or other authorization documents of RVEP and the Borrower, as required by Lender.

 

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Section
3.          Effect of Amendment; Ratification; Representations;
etc.

 

(a)          On
and after the date hereof, when counterparts of this Eighth Amendment shall have been executed by all parties hereto,  this
Eighth Amendment shall be a part of the Loan Agreement,  all references to the Loan Agreement in the Loan Agreement and the
other Loan Documents shall be deemed to refer to the Loan Agreement as amended by this Eighth Amendment, and the term “this
Agreement”, and the words “hereof”, “herein”, “hereunder” and words of similar import,
as used in the Loan Agreement, shall mean the Loan Agreement as amended hereby.

 

(b)          Except
as expressly set forth herein, this Eighth Amendment shall not constitute an amendment, waiver or consent with respect to any provision
of the Loan Agreement, as amended hereby, and the Loan Agreement, as amended hereby, is hereby ratified, approved and confirmed
in all respects.

 

(c)          In
order to induce Lender to enter into this Eighth Amendment, the Borrower represents and warrants to Lender that before and after
giving effect to the execution and delivery of this Eighth Amendment:

 

(i)          the
representations and warranties of the Borrower set forth in the Loan Agreement (other than Section 4.17, to the extent of the exception
in clause (ii) below) and in the other Loan Documents are true and correct as if made on the date hereof; and

 

(ii)         no
Default or Event of Default has occurred and is continuing, except for the Events of Default that have occurred and are continuing
as a result of the failure by the Borrower to deliver to the Lender on or prior to (x) September 30, 2010, the annual audited financial
statements for the Fiscal Year ended December 31, 2009, required to be delivered pursuant to Section 5.1(A) of the Credit Agreement
and (y) the date that was 30 days after the month ended September 30, 2010, the monthly financial statements for such month, required
to be delivered pursuant to Section 5.1(J) of the Credit Agreement.

 

(d)          The
Borrower hereby represents and warrants to Lender that:

 

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(i)          as
of the date hereof (before giving effect to the principal payment required under Section 2(c)(iii) above), the principal
amount outstanding of the Loan is $3,470,000;

 

(ii)         interest
and fees have accrued thereon as provided in the Loan Agreement; and

 

(iii)          the
obligation of the Borrower to repay the Loan and the other Obligations, together with all interest and fees accrued thereon, is
absolute and unconditional, and there exists no right of set off or recoupment, counterclaim or defense of any nature whatsoever
to the payment of the Obligations.

 

(e)          The
Borrower hereby agrees and acknowledges that in accordance with Section 1(g) of the Third Amendment to Loan Agreement dated as
of January 27, 2009 between the Borrower and the Lender, notwithstanding anything to the contrary contained in the Loan Agreement
or any of the other Loan Documents, no Loans shall be LIBOR Loans and Loans shall not be converted into LIBOR Loans under any circumstances.

 

(f)          This
Eighth Amendment is a Loan Document.

 

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Section 4.          Release;
Covenant not to Sue.

 

(a)          EACH
OF THE BORROWER AND RVEP (IN ITS OWN RIGHT AND ON BEHALF OF ITS OFFICERS, EMPLOYEES, INDEPENDENT CONTRACTORS, ATTORNEYS AND AGENTS)
HEREBY REPRESENTS, ACKNOWLEDGES AND AGREES THAT IT DOES NOT HAVE ANY DEFENSES, COUNTERCLAIMS, OFFSETS, CROSS-COMPLAINTS, CLAIMS
OR DEMANDS OF ANY KIND OR NATURE WHATSOEVER INCLUDING, WITHOUT LIMITATION, ANY SUCH DEFENSES, COUNTERCLAIMS, OFFSETS, CROSS-COMPLAINTS,
CLAIMS OR DEMANDS THAT CAN BE ASSERTED (I) TO REDUCE OR ELIMINATE ALL OR ANY PART OF THE OBLIGATIONS OR (II) TO SEEK AFFIRMATIVE
RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE LENDER OR ANY OF ITS PREDECESSORS, SUCCESSORS AND ASSIGNS, OFFICERS, EMPLOYEES,
INDEPENDENT CONTRACTORS, ATTORNEYS AND AGENTS (COLLECTIVELY WITH THE LENDER, THE "“RELEASED PARTIES”). EACH OF THE
BORROWER AND RVEP HEREBY UNCONDITIONALLY AND IRREVOCABLY, VOLUNTARILY AND KNOWINGLY WAIVES, REMISES, ACQUITS, AND FULLY AND FOREVER
RELEASES AND DISCHARGES THE RELEASED PARTIES FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, OR
EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT,
OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS EIGHTH AMENDMENT IS EXECUTED,
WHICH THE BORROWER OR RVEP MAY NOW OR HEREAFTER HAVE AGAINST ANY OF THE RELEASED PARTIES (COLLECTIVELY, THE “RELEASED CLAIMS”)
AND IRRESPECTIVE OF WHETHER ANY SUCH RELEASED CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE,
INCLUDING, WITHOUT LIMITATION, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION
AND EXECUTION OF THIS EIGHTH AMENDMENT.

 

(b)          EACH
OF THE BORROWER AND RVEP AGREES NEVER TO COMMENCE, VOLUNTARILY AID IN ANY WAY, FOMENT, PROSECUTE OR CAUSE TO BE COMMENCED OR PROSECUTED
AGAINST ANY OF THE RELEASED PARTIES ANY ACTION OR OTHER PROCEEDING BASED UPON ANY OF THE RELEASED CLAIMS WHICH MAY HAVE ARISEN
AT ANY TIME ON OR PRIOR TO THE DATE OF THIS EIGHTH AMENDMENT AND WERE IN ANY MANNER RELATED TO ANY OF THE LOAN DOCUMENTS. 

 

Section 5.          New
York Law.

 

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

 

Section 6.          Severability.

 

If any provision hereof
is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions hereof
shall remain in full force and effect in such jurisdiction and shall be liberally construed in order to carry out the intentions
of the parties hereto as nearly as may be possible, and (ii) the invalidity or unenforceability of any provision hereof in any
jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction.

 

    	5

    	 

    

  

Section 7.          Counterparts.

 

This Eighth Amendment may
be executed by the parties hereto individually or in any combination, in one or more counterparts, each of which shall be an original
and all of which shall together constitute one and the same agreement. Signatures of the parties may appear on separate counterparts.

 

    	6

    	 

    

  

IN WITNESS WHEREOF, the
parties hereto have caused this Eighth Amendment to be duly executed as of the day and year first above written.

 

	REGIONAL ENTERPRISES, INC.	 	RB International Finance (USA) LLC (formerly known as RZB Finance LLC)
	 	 	 
	By:	 	 	By:	 
	 	Name: Ian Bothwell	 	 	Name:
	 	Title: 	 	 	Title:
	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

    	7

    	 

    

 

EXHIBIT A

 

CONSENT

 

The undersigned refers to
the Loan Agreement dated as of July 26, 2007 (as amended, supplemented or otherwise modified from time to time, the “Loan
Agreement”) between Regional Enterprises, Inc. (as successor by assumption of obligations to Rio Vista Energy Partners L.P.
(“RVEP”), the “Borrower”) and RB International Finance (USA) LLC (formerly known as RZB Finance LLC) (the
“Lender”). Terms used but not defined herein have the meanings given to them in the Loan Agreement.

 

The undersigned has executed
one or more Loan Documents to which it remains a party, including, without limitation, (i) the Pledge Agreement dated as of July
26, 2007 between RVEP and the Lender (as amended, supplemented or otherwise modified from time to time, the “Pledge Agreement”)
and (ii) the Agreement of Subordination and Assignment dated June 15, 2009 between the Borrower and RVEP (as amended, supplemented
or otherwise modified from time to time, the “Subordination Agreement”). In order to induce the Lender to enter into
the Eighth Amendment dated as of November 9, 2010 (the “Eighth Amendment”), the undersigned hereby consents to the
Eighth Amendment (including, without limitation, the terms of Section 7 thereof), ratifies each Loan Document to which it is a
party (including, without limitation, the Pledge Agreement and the Subordination Agreement) and confirms that all of its obligations
under such Loan Documents are and shall remain in full force and effect, after giving effect to the Eighth Amendment, and shall
and do apply to the Loan and all other obligations and liabilities now and at any time hereafter outstanding under the Loan Agreement.

 

IN WITNESS WHEREOF, the undersigned
has caused this Consent to be duly executed.

 

    	8

    	 

    

 

Date: November 9, 2010 

	RIO VISTA ENERGY PARTNERS L.P.	 
	 	 
	By:  Rio Vista GP LLC, its General Partner	 
	 	 
	By	 	 
	 	Name:  Ian Bothwell	 
	 	Title:	 

 

    	9

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