Document:

exv10w1

 

Exhibit 10.1

AGREEMENT

     This Agreement is dated as of the 1st day of February, 2007, and is made by Daniel W. Parke
and Michelle A. Parke, not individually but as the trustees (the “Trustees”) of The Parke
Family Trust (Restated), a trust created September 24, 1992 and restated under agreement dated
October 11, 1996 (such Trust being herein referred to as the “Stockholder”), and Lime
Energy Co., a Delaware corporation (the “Company”).

W I T N E S S E T H:

     WHEREAS, the Company, Parke Acquisition, LLC, the Stockholder, Daniel Parke and Parke
P.A.N.D.A. Corporation are parties to that certain Agreement and Plan of Merger dated as of May 19,
2006 (the “Merger Agreement”; capitalized terms which are used herein and are defined in
the Merger Agreement and not otherwise defined herein are used with the meanings given such terms
in the Merger Agreement); and

     WHEREAS, on June 7, 2006, the Company’s board of directors approved a 1 for 15 reverse split
of the Company’s common stock (the “Reverse Split”), such that every 15 outstanding shares
would be combined into one share, with such Reverse Split to be effective on June 15, 2006; and

     WHEREAS, on June 29, 2006, the parties closed the transactions contemplated by the Merger
Agreement and the Company issued to the Stockholder 5,000,000 shares of the Company’s common stock,
par value $0.0001 per share, as part of the consideration thereunder; and

     WHEREAS, at the time of entering into, and closing the transactions under, the Merger
Agreement, the Company and the Stockolder believed that the Reverse Split had become effective and
the issuance of shares of common stock to the Stockholder under the Merger Agreement was premised
on that understanding; and

     WHEREAS, the parties now understand that the Reverse Split did not become effective on June
15, 2006 and only became effective when it was set forth in an amendment to the Company’s
certificate of incorporation duly adopted by the directors and stockholders of the Company in
accordance with the Delaware General Corporation Law and filed with the Secretary of State of
Delaware, which did not occur until January 23, 2007; and

     WHEREAS, as a result of the foregoing, the Reverse Split became effective after the closing
under the Merger Agreement and the shares of common stock issued to the Stockholder under the
Merger Agreement have been subjected to the Reverse Split, such that every 15 of such shares have
been combined into one share of common stock on January 23, 2007; and

     WHEREAS, the Stockholder may have rights against the Company by reason of the Reverse Split
not having been effective prior to closing under the Merger Agreement, and the

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Company has offered to issue additional shares of common stock to the Stockholder, as more
fully described below, to bring the Stockholder up to the number of shares which were acquired
under the Merger Agreement, in return for the Stockholder’s waiving any claims which it may have
against the Company arising by reason of the Reverse Split not having been effective prior to the
closing under the Merger Agreement, except as provided hereinbelow, and the Stockholder has agreed
to accept such offer as set forth herein;

     NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, the
parties hereby agree as follows:

     1. Offer to Issue Catch Up Shares; Release of Claims. The Stockholder acquired
5,000,000 shares of common stock on June 29, 2006 pursuant to closing under the Merger Agreement.
On January 23, 2007 such shares were combined into 333,333 shares of common stock pursuant to the
Reverse Split becoming effective on that date. Accordingly, the Company has offered to issue to
the Stockholder 4,666,667 shares of common stock in return for the Stockholder’s entering into this
Agreement and waiving any claims, except as otherwise provided herein, which it may have against
the Company by reason of the Reverse Split not having been effective prior to the closing under the
Merger Agreement and becoming effective on January 23, 2007:

     The Stockholder agrees to accept from the Company such 4,666,667 shares of common stock, and,
in consideration for the Company’s issuance of such shares, hereby agrees that it relinquishes,
releases and waives any claims it may have against the Company under the Merger Agreement or
otherwise in respect of the Reverse Split not having been effective prior to closing under the
Merger Agreement and becoming effective on January 23, 2007, including any claim for breach of any
warranty of the Company as to its outstanding capital stock: provided, however, that the foregoing
release and waiver shall not apply to any claims that the Stockholder might have against the
Company if any taxing authority, including, without limitation, the Internal Revenue Service or the
California Franchise Tax Board, asserts that the merger effected pursuant to the Merger Agreement
does not qualify as a tax free reorganization because of the Reverse Split not having been
effective prior to the Closing or that the receipt of shares pursuant to this Agreement creates a
taxable event for the Stockholder and the Company hereby agrees to indemnify, defend and hold
harmless the Stockholder with respect thereto.

     The Company agrees to issue to such additional shares to the Stockholder within five (5)
business days after the date of execution of this Agreement by the Stockholder, and delivery by the
Stockholder to the Company of the certificates evidencing the shares issued on June 29, 2006 for
replacement. The Stockholder agrees to deliver such certificates to the Company as soon as
practicable following execution of this Agreement by the parties. All certificates evidencing the
additional shares shall be legended to the extent applicable under the Merger Agreement with
respect to the shares issued thereunder.

     2. Stockholder’s Representation and Warranty. The Stockholder hereby represents and
warrants to the Company that the Stockholder has not sold, transferred or otherwise disposed of any
of the shares which were issued to it under the Merger Agreement, as such shares have

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been combined pursuant to the Reverse Split, and the Stockholder continues to own all such
shares. The Stockholder acknowledges that the number of shares of common stock which the Company
has agreed to issue to the Stockholder hereunder has been determined in reliance upon this
representation and warranty, and accordingly that in the event that this representation and
warranty is untrue, the Company shall be entitled to an equitable reduction to the number of shares
issued to the Stockholder under this Agreement.

     3. Registration Obligation. This Agreement shall not be construed to affect or modify
the Company’s obligation to have a registration statement declared effective in accordance with
Section 1.8 of the Merger Agreement. Such obligation continues as provided in the Merger
Agreement, and the Company agrees to include in such registration statement the shares issued to
the Stockholder pursuant to this Agreement, except as may be otherwise agreed by the Company and
the Stockholder.

     4. Miscellaneous.

     (a) All of the WHEREAS clauses and other recitals at the beginning of this Agreement are
hereby incorporated into and made part of this Agreement.

     (b) This Agreement shall be binding upon, and shall inure solely to the benefit of, each of
the parties hereto, and each of their respective heirs, executors, administrators, successors and
permitted assigns, and no other person shall acquire or have any right under or by virtue of this
Agreement.

     (c) This Agreement may be amended only by written execution by all parties.

     (d) This Agreement may be executed in one or more counterparts, all of which shall be deemed
but one and the same agreement and each of which shall be deemed an original. Delivery by
facsimile of an executed counterpart of this Agreement shall be effective as an original executed
counterpart hereof and shall be deemed a representation that an original executed counterpart
hereof will be delivered.

     (e) THE PARTIES HERETO, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH
COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT.

[Balance of page intentionally left blank; signature page follows.]

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first
above written.

LIME ENERGY CO.

By:
/s/ Jeffrey R. Mistarz          

Name: Jeffrey R. Mistarz

Title: Executive Vice President and Chief Financial Officer

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THE PARKE FAMILY TRUST (RESTATED)

	 	 	 	 	 
	By:
/s/ Daniel W. Parke

	 	and
	 	/s/Michelle Parke
	 

	 	 	 	 
	Name: Daniel W. Parke

	 	 	 	Name: Michelle Parke
	Title: Trustee

	 	 	 	Title: Trustee

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Exhibit 10.2

AGREEMENT

     This Agreement is dated as of the 1st day of February, 2007, and is made by the undersigned
entities and individuals (the “Stockholders”), acting severally and not jointly, and Lime
Energy Co., a Delaware corporation (the “Company”).

W I T N E S S E T H:

     WHEREAS, the Stockholders are parties with the Company to that certain Securities Purchase
Agreement dated as of June 29, 2006 (the “Purchase Agreement”; capitalized terms which are
used herein and are defined in the Purchase Agreement and not otherwise defined herein are used
with the meanings given such terms in the Purchase Agreement); and

     WHEREAS, on June 7, 2006, the Company’s board of directors approved a 1 for 15 reverse split
of the Company’s common stock (the “Reverse Split”), such that every 15 outstanding shares
would be combined into one share, with such Reverse Split to be effective on June 15, 2006; and

     WHEREAS, on June 29, 2006, the parties closed the transactions contemplated by the Purchase
Agreement and the Company issued to the Stockholders shares of the Company’s common stock, par
value $0.0001 per share, in the amounts set forth on Schedule I to the Purchase Agreement (with
respect to Purchasers) and in the amounts set forth on Schedule II to the Purchase Agreement (with
respect to Series E Holders); and

     WHEREAS, at the time of entering into, and closing the transactions under, the Purchase
Agreement, the Company and the Stockholders believed that the Reverse Split had become effective
and the purchases of shares of common stock by the Purchaser and the conversion of shares of Series
E Preferred into shares of common stock by the Series E Holders under the Purchase Agreement were
premised on that understanding; and

     WHEREAS, the parties now understand that the Reverse Split did not become effective on June
15, 2006 and only became effective when it was set forth in an amendment to the Company’s
certificate of incorporation duly adopted by the directors and stockholders of the Company in
accordance with the Delaware General Corporation Law and filed with the Secretary of State of
Delaware, which did not occur until January 23, 2007; and

     WHEREAS, as a result of the foregoing, the Reverse Split became effective after the closing
under the Purchase Agreement and the shares of common stock issued to the Stockholders under the
Purchase Agreement have been subjected to the Reverse Split, such that every 15 of such shares have
been combined into one share of common stock on January 23, 2007; and

     WHEREAS, the Stockholders may have rights against the Company by reason of the Reverse Split
not having been effective prior to closing under the Purchase Agreement, and the Company has
offered to issue additional shares of common stock to each of the Stockholders, as

 

 

more fully described below, to bring each Stockholder up to the number of shares which such
Stockholder acquired from the Company on June 29, 2006, in return for each Stockholder’s waiving
any claims which he, she or it may have against the Company arising by reason of the Reverse Split
not having been effective prior to the closing under the Purchase Agreement, and the Stockholders
have severally agreed to accept such offer as set forth herein;

     NOW, THEREFORE, in consideration of the premises and mutual agreements contained herein, each
Stockholder, for itself only, hereby agrees with the Company as follows:

     1. Offer to Issue Catch Up Shares; Release of Claims. Set forth below is a table
which lists each Stockholder and shows the number of shares of common stock issued to such
Stockholder by the Company on June 29, 2006 pursuant to closing under the Purchase Agreement (such
Stockholder’s “June 29 Shares”), the number of shares into which the June 29 Shares of such
Stockholder were combined on January 23, 2007 pursuant to the Reverse Split becoming effective on
that date, and the number of shares which the Company has offered to issue to such Stockholder
(such Stockholder’s “Catch-Up Shares”) in return for such Stockholder’s entering into this
Agreement and waiving any claims which he, she or it may have against the Company by reason of the
Reverse Split not having been effective prior to the closing under the Purchase Agreement and
becoming effective on January 23, 2007:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Number Of "Catch	 
	 	 	No. Of June 29	 	 	Number Of Shares	 	 	Up" Shares To Be	 
	Stockholder	 	Shares Acquired	 	 	After Reverse-Split	 	 	Issued	 
	David R. Asplund
	 	 	1,854,200	 	 	 	123,613	 	 	 	1,730,587	 
	Augustine Fund LP
	 	 	2,628,000	 	 	 	175,200	 	 	 	2,452,800	 
	Chris Capps
	 	 	25,000	 	 	 	1,667	 	 	 	23,333	 
	Cinergy Ventures II, LLC
	 	 	3,002,293	 	 	 	200,153	 	 	 	2,802,140	 
	John Donohue
	 	 	294,000	 	 	 	19,600	 	 	 	274,400	 
	Gregory Ekizian
	 	 	400,000	 	 	 	26,667	 	 	 	373,333	 
	Robert L. Gipson
	 	 	2,363,600	 	 	 	157,573	 	 	 	2,206,027	 
	Thomas Gipson
	 	 	1,500,000	 	 	 	100,000	 	 	 	1,400,000	 
	Julia Gluck
	 	 	100,000	 	 	 	6,667	 	 	 	93,333	 
	John Thomas Hurvis
	 	 	 	 	 	 	 	 	 	 	 	 
	Revocable Trust
	 	 	540,053	 	 	 	36,004	 	 	 	504,049	 
	Rebecca Kiphart
	 	 	200,000	 	 	 	13,333	 	 	 	186,667	 
	Richard P. Kiphart
	 	 	14,603,400	 	 	 	973,560	 	 	 	13,629,840	 
	Laurus Master Fund Ltd.
	 	 	1,343,461	 	 	 	89,564	 	 	 	1,253,897	 
	Leaf Mountain Company, LLC
	 	 	3,315,900	 	 	 	221,060	 	 	 	3,094,840	 
	Martin Mellish
	 	 	250,000	 	 	 	16,667	 	 	 	233,333	 
	Nikolaos D. Monoyios
	 	 	2,363,600	 	 	 	157,573	 	 	 	2,206,027	 
	Nettlestone Enterprise Ltd.
	 	 	1,500,000	 	 	 	100,000	 	 	 	1,400,000	 
	SF Capital Partners
	 	 	4,237,600	 	 	 	282,507	 	 	 	3,955,093	 
	David W. Valentine
	 	 	345,700	 	 	 	23,047	 	 	 	322,653	 

 

 

     Each Stockholder, as to himself, herself or itself only, hereby acknowledges and agrees
to the correctness of the information in the table set forth above as to such Stockholder, and
agrees to accept from the Company the designated number of Catch-Up Shares indicated for such
Stockholder in such table. In consideration for the Company’s issuance to such Stockholder of the
indicated number of Catch-Up Shares, such Stockholder hereby relinquishes, releases and waives any
claims he, she or it may have against the Company under the Purchase Agreement or otherwise in
respect of the Reverse Split not having been effective prior to closing under the Purchase
Agreement and becoming effective on January 23, 2007, including any claim for breach of any
warranty of the Company as to its outstanding capital stock.

     The Company agrees with each Stockholder, severally, to issue to such Stockholder such
Stockholder’s Catch-Up Shares promptly (and in any event within five (5) business days) following
the execution of this Agreement by such Stockholder and delivery by such Stockholder to the Company
of the existing certificates evidencing his, her or its June 29 Shares for replacement. Each
Stockholder agrees to deliver such certificates to the Company as soon as practicable following
execution of this Agreement by such Stockholder. All certificates evidencing any Catch-Up Shares
shall be legended to the extent applicable under the Purchase Agreement with respect to the shares
issued thereunder.

     2. Stockholders’ Representation and Warranty. Each Stockholder, for himself, herself
or itself only, hereby represents and warrants to the Company that such Stockholder has not sold,
transferred or otherwise disposed of any of the shares which were issued to it under the Purchase
Agreement, as such shares have been combined pursuant to the Reverse Split, and such Stockholder
continues to own all such shares. Each Stockholder acknowledges that the number of such
Stockholder’s Catch-Up Shares has been determined in reliance upon this representation and
warranty, and accordingly that in the event that this representation and warranty is untrue with
respect to such Stockholder, the Company shall be entitled to an equitable reduction to the number
of Catch-Up Shares issued to such Stockholder under this Agreement.

     3. Registration Obligation. This Agreement shall not be construed to affect or modify
the Company’s obligation to have the Registration Statement declared effective in accordance with
Section 5.1 of the Purchase Agreement. Such obligation continues as provided in the Purchase
Agreement, and the Company agrees to include in such registration statement the Catch-Up Shares
issued to each Stockholders pursuant to this Agreement, except as has been otherwise agreed by the
Company and such Stockholder.

     4. Miscellaneous.

     (a) All of the WHEREAS clauses and other recitals at the beginning of this Agreement are
hereby incorporated into and made part of this Agreement.

     (b) This Agreement shall be binding upon, and shall inure solely to the benefit of, each of
the parties hereto, and each of their respective heirs, executors, administrators, successors and
permitted assigns, and no other person shall acquire or have any right under or by virtue of this
Agreement.

 

 

     (c) This Agreement may be amended only by written execution by all parties.

     (d) THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE
PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF ILLINOIS. FURTHERMORE, EACH PARTY HERETO
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND THE
UNITED STATES OF AMERICA FOR THE NORTHERN DISTRICT OF ILLINOIS IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT.

     (e) This Agreement is an agreement between the Company and each of the Stockholders which
executes this Agreement, without regard to whether any other Stockholders execute this Agreement.
As between the Company and each Stockholder, this Agreement may be executed in one or more
counterparts, all of which shall be deemed but one and the same agreement between the Company and
such Stockholder and each of which shall be deemed an original. Delivery by facsimile by any
Stockholder to the Company of an executed counterpart of this Agreement shall be effective as an
original executed counterpart hereof and shall be deemed a representation that an original executed
counterpart hereof will be delivered. Delivery by facsimile by the Company to any Stockholder of
an executed counterpart of this Agreement shall be effective as an original executed counterpart
hereof and shall be deemed a representation that an original executed counterpart hereof will be
delivered to such Stockholder. It shall not be necessary for any Stockholder to deliver to any
other Stockholder, by facsimile or otherwise, an executed counterpart of this Agreement for the
signature of such signing Stockholder to be effective.

     (f) THE PARTIES HERETO, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH
COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT.

     [Balance of page intentionally left blank; signature pages follow.]

 

 

     IN WITNESS WHEREOF, the undersigned have severally executed this Agreement as of the day and
year first above written.

      

LIME ENERGY CO.

 

By:
 /s/ Jeffrey R. Mistarz

Name: Jeffrey R. Mistarz

Title: Executive Vice President and Chief Financial Officer

 

GREGORY H. EKIZIAN REVOCABLE TRUST

 

By: /s/ Gregory H. Ekizian

Name: Gregory H. Ekizian

Title: Trustee

 

CINERGY VENTURES II, LLC

 

By: /s/ Brian Stallman

Name: Brian Stallman

Title: Vice President

 

LEAF MOUNTAIN COMPANY, LLC

 

By: /s/ John J. Jiganti

Name: John J. Jiganti

Title: Manager

 

AUGUSTINE FUND LP

 

By: /s/ John Porter

Name: John Porter

Title: President

 

 

 

SF CAPITAL PARTNERS, LTD.

 

By: /s/Brian H. Davidson

Name: Brian H. Davidson

Title: Managing Director

 

NETTLESTONE ENTERPRISES, LTD

 

By: /s/ Michael Betley

Name: Michael Betley

Title: Director

 

JOHN THOMAS HURVIS REVOCABLE TRUST

 

By: /s/ John Thomas Hurvis

Name: John Thomas Hurvis

Title: Trustee

 

/s/ Richard P. Kiphart

 

Richard P. Kiphart

 

/s/ David R. Asplund

 

David R. Asplund

 

/s/ David Valentine

 

David Valentine

 

/s/ Robert L. Gipson

 

Robert L. Gipson

 

/s/ Thomas L. Gipson

 

Thomas L. Gipson

 

 

/s/ Nikolaos D. Monoyios

 

Nikolaos D. Monoyios

 

/s/ Martin Mellish

 

Martin Mellish

 

/s/ Christopher W. Capps

 

Christopher W. Capps

 

/s/ Rebecca Kiphart

 

Rebecca Kiphart

 

/s/ Julia Gluck

 

Julia Gluck

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