Document:

Exhibit
          10.1

         

          

        August
          14, 2007

         

        

        VIA
          OVERNIGHT COURIER AND 

        FACSIMILE
          - 301-944-6700

        

        MiddleBrook
          Pharmaceuticals, Inc.

        20425
          Seneca Meadows Parkway 

        Germantown,
          MD 20876

        Attn:
          Mr. Robert Low

        

        Re: Merrill
          Lynch Capital - MiddleBrook

        

        Mr.
          Low:

         

        Reference
          is made to that certain Credit and Security Agreement
          dated June 30, 2006 (as amended, modified, restated or supplemented from
          time to
          time, the “Credit Agreement”) between MIDDLEBROOK PHARMACEUTICALS, INC., f/k/a
          Advancis Pharmaceutical Corporation (“Borrower”), and MERRILL LYNCH CAPITAL, a
          division of Merrill Lynch Business Financial Services Inc., individually
          as a
          lender and as agent (“Merrill Lynch”). All capitalized terms used herein and not
          defined herein shall have the meaning ascribed to such terms in the Credit
          Agreement.

         

        Pursuant
          to the Credit Agreement and the other Financing
          Documents, Borrower is required to abide by certain agreements, covenants
          and
          warranties, all as required by Merrill Lynch in consideration for making
          the
          Revolving Loans and as more particularly set forth in the Credit Agreement.
          Borrower has requested Merrill Lynch’s consent for certain actions, which if
          made without Merrill Lynch’s consent, would be a violation of the Credit
          Agreement and an Event of Default thereunder. 

         

        Borrower
          has requested that Merrill Lynch agree that the financial
          covenant contained in Section 6.1 of the Credit Agreement (Revenue/Invoiced
          Products) shall not be tested for the fiscal quarter ending September 30,
          2007
          (it being understood that any failure to comply with such covenants for
          such
          quarter shall not cause or result in any Default or Event of Default) (the
          “Consent Item”).

        

        Borrower
          represents and warrants to Merrill Lynch that: (a) after
          giving effect to this Letter Agreement, no Default or Event of Default
          has
          occurred and is continuing, and (b) all of the terms and conditions of
          the
          Credit Agreement and other Financing Documents are hereby ratified and
          confirmed
          and continue unchanged and in full force and effect. Borrower hereby confirms
          and agrees that all security interests and liens granted to Merrill Lynch
          on
          behalf of Lenders continue to be perfected, first priority liens and remain
          in
          full force and effect and shall continue to secure the Obligations. All
          Collateral remains free and clear of any liens other than liens in favor
          of
          Merrill Lynch or otherwise permitted under the Credit Agreement. 

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        As
          a condition to the effectiveness of this letter agreement,
          Borrowers shall pay to Merrill Lynch a non-refundable waiver fee (“Consent Fee”)
          in an amount equal to Twenty Thousand Dollars ($20,000.00), which Consent
          Fee
          shall be fully earned upon the execution by Merrill Lynch of this letter
          agreement and such Consent Fee shall be due and payable in immediately
          available
          funds.

        

        In
          reliance upon Borrower’s confirmation of the above
          representations and warranties and upon (i) Borrower’s delivery of a fully
          executed original of this letter agreement and (ii) payment in full of
          the
          Consent Fee, Merrill Lynch hereby consents to the Consent Item. Such consent
          shall in no way constitute a waiver or consent of any Default or Event
          of
          Default which may occur or have occurred but which is not specifically
          referenced as a “Consent Item” nor shall it obligate Merrill Lynch to provide
          any further waiver or consent of any Default or Event of Default (whether
          similar or dissimilar, including any subsequent Events of Default resulting
          from
          a failure to comply with Section 6.1 of the Credit Agreement).

        

        Without
          limiting in any manner any of the indemnification
          provisions set forth in the Credit Agreement, Borrower hereby indemnifies
          and
          agrees to defend and hold harmless Merrill Lynch and its partners, officers,
          agents and employees from and against any liability, loss, cost, expense
          (including reasonable attorneys’ fees and expenses for both in-house and outside
          counsel), claim, damage, suit, action or proceeding ever suffered or incurred
          by
          Merrill Lynch or in which Merrill Lynch may ever be or become involved
          (whether
          as a party, witness or otherwise) arising out of, resulting from or in
          any way
          relating to the Consent Item, which indemnification shall survive the payment
          in
          full of the Obligations and the termination of the Credit Agreement.

        

        Borrower,
          voluntarily, knowingly, unconditionally and irrevocably,
          with specific and express intent, for and on behalf of itself and its agents,
          attorneys, heirs, successors, and assigns (collectively the “Releasing
          Parties”), does hereby fully and completely release, acquit and forever
          discharge each of Merrill Lynch and its partners, officers, directors,
          employees, agents, affiliates, representatives, successors and assigns
          (the
“Released Parties”) of and from any and all actions, causes of action, suits,
          debts, disputes, damages, claims, obligations, liabilities, costs, expenses
          and
          demands of any kind whatsoever, at law or in equity, whether matured or
          unmatured, liquidated or unliquidated, vested or contingent, choate or
          inchoate,
          known or unknown that the Releasing Parties (or any of them) has against
          the
          Released Parties or any of them (whether directly or indirectly). Borrower
          acknowledges that the foregoing release is a material inducement to Merrill
          Lynch’s decision to consent and has been relied upon by Merrill Lynch in
          consenting to the Consent Item contemplated hereunder.

        

        Borrower
          shall be responsible for the payment of all reasonable
          fees of Merrill Lynch’s counsel incurred in connection with the preparation of
          this letter agreement.

        

        Please
          acknowledge your receipt of this letter and your agreement
          with the terms set forth herein by signing below where indicated, and forward
          an
          execution copy to me via facsimile and overnight courier.  

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        Nothing
          in this letter agreement shall be deemed to modify, amend
          or supplement anything contained in the Credit Agreement and the other
          Financing
          Documents, or be deemed to be a consent to any action by Borrower, or waiver
          of
          any default under the Credit Agreement, except as expressly and specifically
          stated herein. This letter may be executed in any number of counterparts
          and by
          different parties on separate counterparts, each of which, when executed
          and
          delivered, shall be deemed to be an original, and all of which, when taken
          together, shall constitute but one the same agreement. Delivery of an executed
          counterpart of this letter by facsimile shall be equally as effective as
          delivery of an original executed counterpart by this
          letter.

      

    

    
      	 	Very
              truly yours,
	 	 	 
	 	 	 
	 	
              MERRILL
                LYNCH CAPITAL,
                a
                division of Merrill Lynch Business Financial Services Inc., as
                Administrative Agent and a Lender

            
	 
 	 
 	 
 
	
            	By:  	 
              /s/ Maurice
              Amsellem
	 	Name:
              	
               
                Maurice Amsellem

            
	 	Title:
              	 
              Vice President

    

     

     

    
      	 Acknowledged and Agreed:
	 	 
	MIDDLEBROOK PHARMACEUTICALS,
              INC.
	 	 
	 	 
	By:	/s/ Robert C. Low
	Name:	Robert C. Low
	Title:	Vice President, Finance and CFO

    

     

    
      
        
        

      

      
        6PRIVATE
      AND CONFIDENTIAL

    May
      1,
      2007

    

    Mr.
      Peter
      DeVecchis

    President
      

    Solomon
      Technologies, Inc.

    1401
      L&R Industrial Blvd

    Tarpon
      Springs, FL 

    

    SUBJECT:
      2007 Performance Targets

    

    Dear
      Peter: 

    

    As
      discussed, 2006 was a significant year for Solomon Technologies as we completed
      the acquisition of Technipower LLC, and aggressively pursued the patent
      litigation against Toyota. Technipower’s solid operating results combined with
      the anticipated synergies from the pending Deltron acquisition will provide
      a
      good base from which Solomon Technologies can develop and grow its Motive Power
      Division revenues. Looking forward into 2007, we would like to build off of
      this
      base by stimulating revenue growth related to the Electric Wheel and Electric
      Transaxle across a broader range of applications. Your continued support in
      maximizing our financial returns is appreciated and in order to motivate and
      reward you and your team for these efforts we have established the following
      incentive plan.

    

    
      	
              Participants

            	
              Stock
                Options

            	
              Cash
                Bonus Eligibility

            
	
              Peter
                DeVecchis

            	
              40,000

            	
              $75,000

            

    

     

    The
      stock
      options are expected to vest annually over the next three years but the vesting
      will accelerate in the event you and your team achieve the performance
      objectives below. The cash bonuses will only be earned upon achievement of
      these
      performance objectives below and the filing of Solomon Technologies’ 2007
      audited financial statements by March 31, 2008. 

    

    This
      bonus plan is subject to Board approval at the next Board meeting upon approval
      of the 2007 consolidated financial budget. 

    

    The
      primary targets for 2007 are as follows:

     

    REVENUE:
      Achieve
      $0.3 million in annual revenue for Solomon Motive Power Division (MPD) and
      $0.2
      million in fourth quarter 2007 MPD revenue. Achieve consolidated pro-forma
      revenue in excess of $6 million for the fourth quarter 2007, based upon $3
      million of revenue from Technipower/Deltron plus $3 million in revenues from
      yet-to-be-determined acquisitions.

    

    EBITDA:
      Restrict
      cash-based EBITDA loss for Solomon corporate, including MPD, to $2.0 million,
      for 2007 and $0.4 million in the fourth quarter 2007. Achieve consolidated
      pro-forma EBITDA of breakeven or better for the fourth quarter 2007, based
      upon,
      both realized and realizable, synergies from acquisitions.

    

    CORPORATE
      DEVELOPMENT: Secure
      at
      least one IP transaction through UTEK which boosts MPD drive train portfolio
      and
      provides working capital. Establish at least two strategic alliance partners
      which result in deployment of the Electric Wheel or Electric Transaxle resulting
      in revenue for prototypes. Develop market strategy and business plan in
      conjunction with Ardour Capital to maximize revenue from Electric Wheel and
      Electric Transaxle including but not limited to licensing the technology to
      defined industries or partners.

    

    INTEGRATION:
      Support
      the integration of Deltron with Technipower by September 30, 2007 including
      but
      not limited to the consolidation of the MRP systems and General
      Ledger.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    ORGANIZATION:
      Support
      the establishment of a corporate finance function and centralization of certain
      administrative functions.  Establish
      a transfer pricing mechanism between divisions and implement a mechanism to
      fully distribute the corporate cost across the divisions/subsidiaries keeping
      the banking facility in tact. 

    

    Achievement
      of these objectives is well within the means of your current management team
      and
      I look forward to helping you achieve these targets AND build on this platform
      to enable us to raise the bar in 2008. Your efforts are appreciated.

    

    Sincerely,

    

    

    /s/
      Gary G.
      Brandt                 
             

    Gary
      G.
      Brandt

    Chief
      Executive Officer

    

    

    Acknowledged:

    

    

    /s/
      Peter
      DeVecchis                              

    Mr.
      Peter
      DeVecchis

    President
      

    Solomon
      Technologies, Inc.

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