Document:

ncoat8ka061907ex10-5.htm

    
      

      

    

    Addendum
      A

    

    Consulting
      Fees and Performance Bonuses

    

    For
      Consulting Services rendered to the Company by Consultant pursuant to this
      Agreement, the Company shall pay or cause to be paid, subject to the termination
      provisions of this Agreement, Consulting Fees and/or Performances Bonuses to
      Consultant while Consultant provides Consulting Services as set forth in this
      Addendum
      A.

    

    
      	
               

            	
              1.

            	
              Consulting
                Fee.  An annual base consulting fee ("Annual
                Base Consulting
                Fee") equal to One Hundred Twenty Thousand Dollars ($120,000)
                shall
                be paid to Consultant by the Company for his Consulting Services
                in
                monthly increments equal to $10,000 per month. The monthly installment
                payments shall be paid by the 1st
                day of each month following the month in which said Consulting Fee
                was
                earned. 

            

    

    

    
      	
               

            	
              2.

            	
              Performance
                Bonus for New Accounts.  For the period from the
                Effective Date through December 31, 2009 and for each subsequent
                twelve
                (12) month Renewal Period, Consultant shall be eligible to earn a
                first
                year Performance Bonus for New Accounts equal to two and one-half
                (2.5%)
                percent of  the Gross Revenue (as defined below)
                from  New Accounts (as defined below). Pricing on all New
                Accounts must be approved by the Company’s Pricing Committee prior to
                acceptance of any New Account by the Company. Consultant shall be
                paid the
                full amount of the Performance Bonus for New Accounts quarterly,
                within 30
                days after the end of the Company’s applicable fiscal quarter. For
                purposes of this Agreement, “New Accounts”
                shall be defined as (i) any new customer account which results in
                recurring monthly revenue (as defined below) for the Company which
                account
                is not in the Company’s pipeline as of the Effective Date; (ii) any
                customer account which results in recurring monthly revenue and which
                had
                not provided any recurring monthly revenue for the Company for the
                twelve
                (12) calendar months prior to the submission of new orders and (iii),
                in
                the case of both (i) and (ii), Consultant has been solely responsible
                for
                securing the new customer accounts or the new orders, as
                applicable.  Should other sales and marketing personnel or
                representatives of the Company be involved with or provide material
                assistance to Consultant in securing the New Accounts, then Consultant
                shall work out a sharing arrangement for a portion of Consultant’s
                Performance Bonus for New Accounts with such personnel and/or
                representatives.  “Gross
                Revenue”
                shall mean gross revenues from sales to New Customers net of returns,
                discounts, refunds, rebates, or any other similar charges incurred
                by the
                Company in connection with the sale or distribution of the goods,
                products
                and services of the Company. “Recurring
                monthly
                revenue” shall mean revenue received from at least three (3) orders
                placed with the Company during the Contract Term or any Renewal Term.
                

            

    

    

    
      	
               

            	
              3.

            	
              Performance
                Bonus for Qualified Accounts. Consultant shall be paid a
                Performance Bonus for Qualified Accounts equal to one (1%) percent
                of the
                Gross Revenue from all Qualified Accounts (as defined below) and
                as listed
                under the Qualified Accounts section of this Addendum. The Performance
                Bonus on Qualified Accounts shall be paid to Consultant on Qualified
                Accounts for a period of five (5) years from the Effective Date in
                respect
                of Qualified Accounts described in Section 5 of this Addendum A or
                for a
                period of five (5) years after an account becomes a Qualified Accounts
                of
                the Company. Pricing on all Qualified Accounts must be approved by
                the
                Company’s Pricing Committee prior to acceptance of said account by the
                Company. For purposes of this Agreement, “Qualified
                Accounts” shall be those recurring annual revenue accounts listed
                in Section 5 below that were either (i) generating recurring annual
                Gross
                Revenue for the Company or were contracted or specified to use the
                Company’s coatings as of the Effective Date, or (ii) became Qualified
                Accounts after being a New Account with the Company upon the one
                (1) year
                anniversary of those accounts.  Consultant shall be paid the
                full amount of the Performance Bonus on Qualified Accounts quarterly,
                within 30 days after the end of the Company’s applicable fiscal quarter.
                

            

    

    

    

    Initialed
      by nCoat __________ Dated __________, Initialed by Consultant _________ Dated
      __________

    Addendum
      A - Page 1 of 4

    nCoat
      Confidential and Proprietary Information - Rel. 6-19-07

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              4.

            	
              Quarterly
                Performance Bonuses Calculation and Payment
                Example.  Following is an example of how the Performance
                Bonus for Qualified Accounts and New Accounts would be calculated
                each
                quarter (by using numbers for the appropriate quarters) to determine
                the
                Performance Bonuses owed to Consultant by the Company:
                

            

    

     

    
      
        	
                a. 
                  Collected and deposited Gross Revenue from New Accounts

              	 	
                =

              	 	$	1,000,000	 
	
                b. 
                  Multiply the amount in line (a) above by 2.5%

              	 	
                =

              	 	 	X .025	 
	
                c. 
                  Performance Bonus to be paid 30 days following quarter

              	 	
                =

              	 	$	25,000.00	 
	             
                	 	 	 	 	 	 
	
                d.  Collected
                  and deposited Gross Revenue from Qualified Accounts

              	 	
                =

              	 	$	1,250,000	 
	
                e. 
                  Multiply the amount in line (d) by 1%

              	 	
                =

              	 	 	X .01	 
	
                f. 
                   Performance Bonus to be paid 30 days following
                  quarter

              	 	
                =

              	 	$	12,500.00	 
	              
                	 	 	 	 	 	 
	
                g. 
                  Total Performance Bonuses earned for the quarter

              	 	
                =

              	 	$	37,500.00	 

      

       

    

    
      	
               

            	
              5.

            	
              Qualified
                Accounts. Following is Consultant’s list of Qualified Accounts, as
                accepted by the Company, as of the Effective Date.
                

            

    

    

                               
      See Attached
      List                                                                         
 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Initialed
      by nCoat __________ Dated __________, Initialed by Consultant _________ Dated
      __________

    Addendum
      A - Page 2 of 4

    nCoat
      Confidential and Proprietary Information - Rel. 6-19-07

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              LIST
                OF QUALIFIED ACCOUNTS

            	 	
              Belanger’s
                Headers

            	 	
              Clover
                Leaf Auto

            
	 	 	
              Bender’s
                Custom Exhaust

            	 	
              Cobras
                N Vettes

            
	
              5R
                Restorations

            	 	
              Bernie
                Edging

            	 	
              Competition
                Heads

            
	
              928
                Motorsports

            	 	
              Beverly
                Hills Ducati

            	 	
              Confederate
                Motorsports

            
	
              A
                Plus Powder Coaters

            	 	
              Bill
                Dempsey

            	 	
              Corvette
                Masters

            
	
              AC
                Car Craft

            	 	
              Bill
                Richert

            	 	
              County
                Corvette

            
	
              Acky
                Surcz/AM Performance

            	 	
              Bimmer
                World

            	 	
              Cox
                Motorsports

            
	
              Action
                Brass Co.

            	 	
              Blast
                From The Past

            	 	
              CTS
                Enterprises

            
	
              Action
                Powder Coating

            	 	
              Blouch
                Turbo Inc.

            	 	
              Custom
                Engineering

            
	
              Adrian
                Thor

            	 	
              BME
                Industrial Powder Company

            	 	
              Custom
                Speed Sound

            
	
              AG
                Automotive

            	 	
              BMW
                of Manhattan

            	 	
              Dale
                Fultz

            
	
              AHM
                Performance

            	 	
              BNT
                Performance

            	 	
              Dale
                Klein

            
	
              Air-Tech

            	 	
              Bob
                Lucia

            	 	
              Danny
                Addington

            
	
              AJRS

            	 	
              Bob/Midway
                Service

            	 	
              Danville
                Engine

            
	
              Al
                Pruiett & Sons

            	 	
              Bob’s
                Automotive Racing

            	 	
              DAS

            
	
              Alex’s
                Exhaust

            	 	
              Boosted
                Brad’s

            	 	
              Dave
                Arundel

            
	
              Allen
                Lowery

            	 	
              Boss
                Hoss

            	 	
              Dave
                Haas Hot Rods

            
	
              Amarillo
                Specialty Car

            	 	
              Bowmansville
                Maintenance

            	 	
              David
                Wooding

            
	
              American
                Chopper FX

            	 	
              Brad
                Callander

            	 	
              Delorean
                Motor Company

            
	
              American
                Cylinder

            	 	
              Brad
                Jeter Racing

            	 	
              Delorean
                Motor Company

            
	
              American
                Racing

            	 	
              Brady’s
                High Performance

            	 	
              Dennis
                Newell

            
	
              American
                Sport Bike

            	 	
              Brauning
                Motorsports

            	 	
              Devek
                Performance

            
	
              AMP
                Custom Motorcycles

            	 	
              Brian
                Garrett

            	 	
              Dezod
                Motorsports

            
	
              Andrew
                Rousos

            	 	
              Brian
                Greco

            	 	
              Diamond
                Marine

            
	
              Andrew’s
                Powder CTG.

            	 	
              Brian
                Lumberg

            	 	
              Dick
                Miller Racing

            
	
              Andy
                Raiss

            	 	
              Brian
                Reinhart Wilder

            	 	
              Don’s
                Hot Rod

            
	
              Antrim
                Diesel

            	 	
              British
                Motor Company

            	 	
              Don’s
                Hot Rod

            
	
              Apex
                Motorsports

            	 	
              Broadfoot
                Racing

            	 	
              Donald
                Houchin

            
	
              Archer
                Racing

            	 	
              BRP

            	 	
              Doug
                Butler

            
	
              Arizona
                Z Car

            	 	
              Bruce
                Kerrigan

            	 	
              Doug
                Jenkin’s Custom

            
	
              Arkansas
                Performance

            	 	
              Bruce
                Rossmeyer HD

            	 	
              Doug
                Wilkes

            
	
              Arnie
                Beswick

            	 	
              Brunton
                Automotive

            	 	
              Drago’s
                Corvette

            
	
              ATA

            	 	
              CA
                Harley Davidson

            	 	
              DTS

            
	
              Auto
                Sport

            	 	
              Calvin’s
                Automotive

            	 	
              Dynatech

            
	
              Automotive
                Spec.

            	 	
              Camaro
                Concepts

            	 	
              E
                & R Grinding

            
	
              B
                & B Performance

            	 	
              Canepa
                Design

            	 	
              East
                Coast Chevy

            
	
              B
                & M Performance

            	 	
              Cantwell
                Cullen

            	 	
              Eastcoast
                Performance

            
	
              Ballistic
                Cycles

            	 	
              Carter’s
                Powder Coating

            	 	
              ECP
                Powdercoating

            
	
              Banzai
                Motorsports

            	 	
              CH
                Motorcars LLC

            	 	
              ECR

            
	
              Barloworld

            	 	
              Chris
                Gaston

            	 	
              Eddie
                South

            
	
              Baton
                Rouge Powdercoating

            	 	
              Chris
                Kato

            	 	
              Elan
                Motorsports

            
	
              Bavarian
                Motorsport

            	 	
              Chuck
                Miller Restoration

            	 	
              Electro
                Forming System

            
	
              Beach
                Hawg

            	 	
              CJC
                Auto Parts

            	 	
              Elliot
                Thompson

            
	
              Becker’s
                Powder House

            	 	
              Clean
                Air

            	 	
              Elsinger
                Machine Service

            
	
              Belanger
                Custom

            	 	
              Clients
                Racing

            	 	
              Elyria
                HD

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              Emmons
                Motorsports

            	 	
              Haledon
                Auto Parts

            	 	
              Jersey
                Muscle Cars

            
	
              ESP
                Products

            	 	
              Hannum’s
                Harley Davidsohn

            	 	
              Jim
                Dunn Racing

            
	
              European
                Service Center

            	 	
              Harbor
                Restoration

            	 	
              Jim
                Ewing

            
	
              Evans
                Automotive

            	 	
              Harley
                Davidson Cool Springs

            	 	
              Jim
                Gulrich

            
	
              Every
                Last Detail

            	 	
              Harley
                Davidson of Reno

            	 	
              Jim
                Taylor Engine

            
	
              Exotic
                Cars USA

            	 	
              Harv
                Hennington

            	 	
              Jim’s
                Cycle & Performance

            
	
              Exotic
                Performance

            	 	
              Hauck
                Power Sports

            	 	
              JMS
                Chip & Performance

            
	
              F
                Body Central

            	 	
              Haulin
                Speed

            	 	
              Joe
                Coleman

            
	
              F
                Body Motorsports

            	 	
              Hawaya
                Racing

            	 	
              Joe
                Gerst

            
	
              F.E.N.
                Enterprises

            	 	
              Hawkins
                Auto Stores

            	 	
              Joe
                King

            
	
              Fast
                Forward Motorsports

            	 	
              Heffner
                Performance

            	 	
              Joe
                Rankin

            
	
              Fast
                Lane Race Cars

            	 	
              Henry
                Crader

            	 	
              Joe
                Slaughter

            
	
              Felker
                Racing

            	 	
              Henry
                Thomas

            	 	
              John
                Beekely

            
	
              Fig
                Speed

            	 	
              High
                Country Harley

            	 	
              John
                Deere

            
	
              Finish
                Line Performance

            	 	
              High
                Speed Composites

            	 	
              John
                Spurlock

            
	
              First
                Class Rides

            	 	
              High-Tech
                Performance

            	 	
              Johnny’s
                Custom Shop

            
	
              Flames
                Unlimited

            	 	
              Hill
                Side Street Rods

            	 	
              Johnny’s
                Rod Shop

            
	
              Flatlander’s

            	 	
              Hollywood’s
                Specialty

            	 	
              JW
                Customs

            
	
              Force
                Motor Products

            	 	
              Horsepower
                Freaks

            	 	
              K
                & M

            
	
              Ford
                Six Performance

            	 	
              Horsepower
                Unlimited

            	 	
              K
                & S Auto Stores

            
	
              Forged
                Performance

            	 	
              Hot
                Rod Construction

            	 	
              K.L.J.
                Automotive

            
	
              Forrester’s
                Chrome

            	 	
              Hot
                Rod Garage Parts

            	 	
              Ken
                Johnson

            
	
              Fortress
                Performance

            	 	
              HP
                Performance

            	 	
              Kenneth
                McKenna

            
	
              Fourintune

            	 	
              HP
                Products

            	 	
              Kevin
                Kay Restorations

            
	
              Fred
                Snipes

            	 	
              Hughes
                Air Aviation

            	 	
              Keyes
                Fiber Corp

            
	
              Full
                Tilt Auto

            	 	
              Hugo
                Bartell

            	 	
              Kook

            
	
              Gary
                Huston

            	 	
              Humble
                Equipment

            	 	
              Kurt
                Logan

            
	
              Gary
                Mulher

            	 	
              Huntsville
                Engine

            	 	
              Lamar
                Walden Auto

            
	
              GDLS

            	 	
              Hurricane
                Motorsports

            	 	
              Lane
                Custom Products

            
	
              Gearhead
                Garage

            	 	
              ICS
                Motorsports

            	 	
              Larry
                Thomas

            
	
              Gellner
                Engineering

            	 	
              Icy
                Phoenix Racing

            	 	
              Larry’s
                Hot Rod

            
	
              General
                Atomic

            	 	
              Insane
                Custom Cycles

            	 	
              Laust
                Pedersen

            
	
              Gessford
                Machine

            	 	
              Intense
                Motorsports Racing

            	 	
              Lee
                on Track Performance

            
	
              Gessler
                Head Porting

            	 	
              Iron
                Man 4WD

            	 	
              Leon’s
                Exhaust

            
	
              G-Force

            	 	
              ISIS
                Imports

            	 	
              Leroy
                Enterprises

            
	
              Gilmore
                Performance

            	 	
              Island
                Racing

            	 	
              Levy
                Racing

            
	
              Glenn’s
                Alignment

            	 	
              J
                & S Performance

            	 	
              Lew’s
                Vinton Auto

            
	
              Gollers
                Hot Rods

            	 	
              JAE
                Lotus Parts

            	 	
              LG
                Motorsports

            
	
              Gordie’s
                Speed

            	 	
              Jaguars
                Unlimited

            	 	
              Lizzard
                Racing

            
	
              Great
                Lakes Diesel

            	 	
              James
                Roberts

            	 	
              Lloyd
                Rascoe

            
	
              Greg
                Hibbits

            	 	
              Jarvis
                Marine Performance

            	 	
              LM
                Performance

            
	
              Griffin
                Custom

            	 	
              JBZ
                Race Cars

            	 	
              Loop
                LLC

            
	
              Gruppe-s
                Engineering

            	 	
              JD
                Kurzmann

            	 	
              Lorenzo
                Carter

            
	
              GT
                Spec Auto Sport

            	 	
              Jeff
                Walton Restoration

            	 	
              Lucky
                Charm Chopper’s

            
	
              Gulf
                Coast Powder Coating

            	 	
              Jerry
                Avery

            	 	
              Lucky
                Cycle

            
	
              GVs
                Racing

            	 	
              Jerry
                James

            	 	
              Lucky’s
                Race Cars

            
	
              H
                & J Motorsports

            	 	
              Jerry’s
                Speed Shop

            	 	
              Lynn
                Speed & Custom

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      
        	
                M2
                  Race Systems

              	 	
                Northwestern
                  Service

              	 	
                Ray
                  Lehberger

              
	
                M3
                  Motorwerks

              	 	
                Nostalgic
                  Cars & Parts

              	 	
                Ray
                  Palmantera

              
	
                MAAS
                  Tech

              	 	
                Ohio
                  Dept. Of Transportation

              	 	
                RC
                  Cycle

              
	
                Marietta
                  RV

              	 	
                OMC
                  Services

              	 	
                RCE

              
	
                Mario’s
                  Metalcraft

              	 	
                Paccar
                  – and suppliers of

              	 	
                Red
                  Hot Rides

              
	
                Maryland
                  Speed

              	 	
                Freightliner
                  – and suppliers of

              	 	
                REF
                  Unlimited

              
	
                Max
                  Gross

              	 	
                Pacesetter

              	 	
                Renn-Art

              
	
                Medina
                  Motorsports

              	 	
                Paint
                  By Gary

              	 	
                Rennsport

              
	
                Meineke
                  of Mt Kisco

              	 	
                Patrick’s
                  Antique Cars

              	 	
                Reno’s
                  Yamaha

              
	
                Melrose
                  T-Top

              	 	
                Paul
                  Yaffee Originals

              	 	
                Renu
                  Powdercoating

              
	
                Menzel
                  Motorsports

              	 	
                Pemco
                  Engineering

              	 	
                Rev
                  Extreme

              
	
                Midwest
                  Cobras

              	 	
                Performance
                  Plus

              	 	
                Rhelm
                  Automotive

              
	
                Mike
                  Blasey

              	 	
                Performance
                  Welding

              	 	
                Richard
                  Stephens

              
	
                Mike
                  Goldman Customs

              	 	
                Pete
                  Mandell

              	 	
                Rick
                  Doerr

              
	
                Mike
                  Wilson’s Restoration

              	 	
                Petro
                  Classic Cars

              	 	
                Riker
                  Products – Volvo

              
	
                Mike’s
                  Custom

              	 	
                PJ
                  Body

              	 	
                Rinehart’s
                  Racing

              
	
                Mitchel
                  Weldon

              	 	
                PM
                  Racing

              	 	
                RJ
                  Cars

              
	
                Moe’s
                  Motorsports

              	 	
                Powder
                  Craft

              	 	
                RM
                  Classic Cars

              
	
                Morrison
                  Clark Garage

              	 	
                Powder
                  Tech

              	 	
                Robert
                  DelSanto

              
	
                Motorcycle
                  Parts & Service

              	 	
                Powdercoat
                  Junction

              	 	
                Rocket
                  Motorcycles

              
	
                Motorsport
                  Image

              	 	
                Powell
                  Muffler

              	 	
                Rockwell
                  Cycles

              
	
                Mountain
                  States Warehouse

              	 	
                Power
                  Engineering

              	 	
                Rod
                  1 Shop

              
	
                MP
                  Motorsports

              	 	
                Power
                  Flow Systems

              	 	
                Roger
                  Hillsdale

              
	
                M-Squared

              	 	
                Power
                  Play

              	 	
                Ron
                  Baker’s Race Cars

              
	
                Muncie
                  Imports

              	 	
                Precision
                  Autoworks

              	 	
                Ronnie
                  Morgan

              
	
                Murphy’s
                  Classic

              	 	
                Precision
                  Performance

              	 	
                Rudy
                  Rinderer

              
	
                Muscle
                  Car Specialties

              	 	
                Precision
                  Powder Coating

              	 	
                Rusty
                  Total Performance

              
	
                Muscle
                  Motors

              	 	
                Predator
                  Performance

              	 	
                Ryken
                  SPX Contech – Volvo

              
	
                Napier
                  Enterprises

              	 	
                Price
                  Racing

              	 	
                S
                  & H Chrome Plating

              
	
                Nastasi
                  Race Kars

              	 	
                Pro
                  Coat

              	 	
                S
                  & S Headers

              
	
                Nate
                  Rubinkam

              	 	
                Pro
                  Dyno

              	 	
                S
                  & S Motorsports

              
	
                National
                  Tube Form

              	 	
                Proformance/Richard
                  York

              	 	
                S
                  & S Racing

              
	
                Nevada
                  Performance

              	 	
                Promar

              	 	
                Sam
                  Smart

              
	
                Nevarez
                  Racing Products

              	 	
                PVM
                  Racing

              	 	
                Sand
                  Bullet

              
	
                Never
                  Lift Motorsports

              	 	
                Qualified
                  Fastener’s

              	 	
                Savannah
                  Powder Coating

              
	
                Niagara
                  Custom Powder

              	 	
                Quality
                  Tire Company

              	 	
                Schmidt
                  Aviation

              
	
                Niagara
                  Hydraulic

              	 	
                Quick
                  Time Motorsports

              	 	
                Schwartz
                  Premium Rides

              
	
                Nick
                  Ianuzzi

              	 	
                Quintin
                  Brothers Auto

              	 	
                Scot
                  McKinley

              
	
                Nitemare
                  Motorsports

              	 	
                R.R.
                  Auto Supply

              	 	
                Scott
                  Collins

              
	
                No
                  Limit Performance

              	 	
                Race
                  Parts 2000

              	 	
                Scott
                  Lewis Hemi Shop

              
	
                Nolan
                  Miller

              	 	
                Race
                  Pipes

              	 	
                Scott’s
                  Headers

              
	
                North
                  Shore Import

              	 	
                Race2win
                  Motorsports

              	 	
                Sean
                  Morley

              
	
                North
                  Wing

              	 	
                Randy
                  Oxendine

              	 	
                Shelton
                  Ferrari

              
	
                Northrop
                  Gruman

              	 	
                Randy
                  Walker

              	 	
                Skip
                  Sciple

              
	 	 	 	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
          	
                  Skyes
                    the Limit

                	 	
                  VAC
                    Motorsports

                	 	 
	
                  SLP
                    Performance Parts

                	 	
                  Vanderbeck
                    Race Cars

                	 	 
	
                  Smokey
                    Hill Restoration

                	 	
                  Victory
                    Mesa

                	 	 
	
                  SMS
                    Products

                	 	
                  W.S.
                    Darley

                	 	 
	
                  Specialty
                    Cars

                	 	
                  Wade
                    Banks

                	 	 
	
                  Spectrum
                    Powder Coating

                	 	
                  Walt
                    Hruszczak

                	 	 
	
                  Speed
                    Engineering

                	 	
                  Watson
                    Engineering

                	 	 
	
                  Speed
                    Unlimited

                	 	
                  West
                    Side Cycles

                	 	 
	
                  Speed
                    Unlimited

                	 	
                  Willi
                    Alexander

                	 	 
	
                  Speedsouth

                	 	
                  Willison
                    Werkstatt

                	 	 
	
                  Speedstar

                	 	
                  Wilson
                    Headers

                	 	 
	
                  Sport
                    Flight Int’l

                	 	
                  Withers
                    Motorsports

                	 	 
	
                  Sport
                    Shack

                	 	
                  Wong’s
                    Performance

                	 	 
	
                  Stan
                    Schafeitel

                	 	
                  WS6
                    Stores

                	 	 
	
                  Steve
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                    & Z Restoration

                	 	 
	
                  Street
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                  Super
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                  T
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                  Terry
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                  Tesar
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                  The
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                  United
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                  US
                    ATVExhibit 10.1

 

Answers Corporation

237 West 35th Street, Suite 1101

New York, NY 10001

 

January 23, 2008

 

Interlachen Convertible Investments Limited 

c/o Interlachen Capital Group LP

800 Nicollet Mall, Suite 2500 

Minneapolis, MN 55402-2034

Attention: Gregg Colburn/Lance Breiland

 

Re:  Amendment
to Securities Purchase Agreement

 

Ladies and Gentlemen:

 

Reference is made to that certain Securities Purchase
Agreement by and among Answers Corporation (the “Company”)
and Interlachen Convertible Investments Limited (the “Investor”),
dated as of January 15, 2008 (the “Securities Purchase
Agreement”).

 

The Company and the Investor hereby agree that any
Termination Fee payable under the Securities Purchase Agreement shall be
payable in cash and that no Termination Notes will be issued under the
Securities Purchase Agreement.

 

The Company and the Investor hereby agree that clause
(i) of the definition of “Termination Fee” set forth in
Section 8(a) of the Securities Purchase Agreement is hereby amended
and replaced in its entirety to read as follows:

 

“in the event of a Notes
Termination Event, an amount in cash equal to 5% of the principal amount of the
Follow-On Notes that were to be issued to such Buyer, as is set forth opposite
such Buyer’s name in Column (3) on the Schedule of Buyers (the “Notes Termination Fee”).”

 

Upon execution of this Letter Agreement, except as
modified by the provisions hereof, the Securities Purchase Agreement will
remain in full force and effect in accordance with its terms.

 

This Letter Agreement may be executed in two or more
identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party; provided that a facsimile signature
shall be considered due execution and shall be binding upon the signatory
thereto with the same force and effect as if the signature were an original,
not a facsimile signature.

 

 

 

 

 

This Letter Agreement may not be amended or otherwise
modified in any respect without the written consent of each of the Company and
the Investor. This Letter Agreement shall be construed and enforced in
accordance with the laws of the State of New York, without regard to the
principles of conflicts of laws.

 

If this Letter Agreement accurately reflects the
understanding and agreement of the Investor, please sign below and return an
executed copy of this Letter Agreement to the undersigned.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ANSWERS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven Steinberg

  
	
   

  	
   

  	
  Name:

  	
  Steven Steinberg

  
	
   

  	
   

  	
  Title:

  	
  CFO

  

 

 

	
  Acknowledged and Agreed

  
	
  as of this 23rd day of January, 2008

  
	
   

  
	
   

  
	
  INTERLACHEN CONVERTIBLE 

  INVESTMENTS LIMITED

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Gregg T. Colburn

  	
   

  
	
   

  	
  Name:

  	
  Gregg T. Colburn

  
	
   

  	
  Title:

  	
  Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]