Document:

Subordinated Installment Promissory Note

 Exhibit 10.12 
  
 SUBORDINATED INSTALLMENT PROMISSORY NOTE 
  
 Cranford, New Jersey    
 Dated:
August 10, 2005 
  
 FOR VALUE RECEIVED, THE NEWARK GROUP, INC.
(“Maker”) promises to pay to the order of FREDERICK G. VON ZUBEN (“Payee”) the sum of Seven Million Eighty Seven Thousand Five Hundred Dollars ($7,087,500) with the principal balance being due in forty
(40) equal principal and consecutive quarterly installments, together with interest as calculated pursuant to Section 1 below, commencing on October 1, 2005 and continuing thereafter on the first day of the months of January, April, July and
October, subject to the following additional terms and conditions: 
  
 1. Interest.—Maker promises to pay interest to Payee at the per annum rate of the prime rate of interest as in effect from time to time as published in the “Money Rates” column of The Wall Street Journal on the
unpaid balance of the principal sum of each quarterly principal installment payment date. 
  
 2. Place of Payment.—All payment of principal and interest owing hereon shall be payable at the principal office of Maker, 20 Jackson Drive, Cranford, New Jersey, or by check mailed to the address
designated by Payee by written notice to Maker or, if so requested by Payee, by wire transfer to an account designated by Payee to Maker in writing from time to time. 
  
 3. Optional Prepayment.—Maker shall have the right to prepay one or more of the installment payments in the
inverse order of their maturities with interest to the date of prepayment, without penalty and without liability for interest after the date of prepayment with respect to the amount prepaid, except that no such prepayment shall be made without the
Payee’s consent during the taxable year of the Payee within which this Note is delivered to the Payee. 
  
 4. Subordination.—Payee agrees, by his acceptance of this Note, that the payment of principal and interest hereon is subject to the prior
payment of all indebtedness or obligations now owing or hereafter incurred by Maker or any of its present or future subsidiaries to banking institutions, life insurance companies, similar financial institutions, and subsidiaries or affiliates

 
of the foregoing, and to Robert B. Lewis and Margaret McEwan Lewis (hereinafter called “Senior Indebtedness”), as follows:

  
 4.1 No amount shall be paid by Maker, and
Payee shall not receive or accept any amount in respect of the principal of, or interest on, this Note unless and until such Senior Indebtedness shall have been paid in full— 
  
 4.1-1 if the making of any such payment on this Note would constitute an event of default with respect to
such Senior Indebtedness, or 
  
 4.1-2 during the
continuance of any default in the payment of principal (whether at the expressed maturity thereof or upon acceleration) or interest on any Senior Indebtedness or any other default in the performance of any term or condition contained in an agreement
under which any Senior Indebtedness is created or issued if the effect of such default is to cause, or permit the holder of such Senior Indebtedness to cause, such Senior Indebtedness to become due prior to its stated maturity. 
  
 If Payee shall receive any payment of principal or interest on this Note which, under the
provisions of this Section 4.1, he is not entitled to receive, Payee will hold such payment in trust for the holders of Senior Indebtedness and will, upon demand, forthwith turn over such payment to said holders, ratably according to the
aggregate amount remaining unpaid on account of the principal, premium and interest on Senior Indebtedness owed by each such holder. 
  
 4.2 In the event of a distribution of assets of Maker pursuant to any dissolution, winding up, liquidation, or reorganization of Maker,
whether in bankruptcy, insolvency, or receivership proceedings, or upon an assignment for the benefit of creditors, or any other marshalling of the assets and liabilities of Maker, or otherwise— 
  
 4.2-1 the holders of all Senior Indebtedness shall first be
entitled to receive payment in full of the principal, premium and interest thereon, before Payee shall be entitled to receive any payment of principal or interest on this Note; 
  

 -2- 

 4.2-2 any payment or distribution of assets of Maker of any kind or character (other than
the shares of stock of Maker, as reorganized or readjusted, or securities of Maker or any other corporation provided for by a plan of reorganization or adjustment the payment of which is subordinate to the payment of all Senior Indebtedness which
may be outstanding at such time) to which Payee would be entitled except for the provisions of Section 4.2-1 shall be paid by the liquidating trustee, or agent, or other person making such payment or distribution directly to the holders of
Senior Indebtedness, ratably according to the aggregate amounts remaining unpaid on account of the principal, premium and interest on Senior Indebtedness held by each such holder, to the extent necessary to make payment in full of all Senior
Indebtedness remaining unpaid; and 
  
 4.2-3 in
the event that, notwithstanding the foregoing, any payment or distribution of assets of Maker, of any kind or character (other than shares of stock of Maker as reorganized or readjusted, or securities of Maker or any other corporation provided for
by a plan of reorganization or readjustment of all Senior Indebtedness which may be outstanding at such time) shall be received by Payee before all Senior Indebtedness is paid in full, Payee will hold such payment or distribution in trust for the
holders of Senior Indebtedness and will, upon demand, forthwith turn over such payment or distribution to said holders, ratably according to the aggregate amounts remaining unpaid on account of the principal, premium and interest on Senior
Indebtedness held by each such holder. 
  
 4.3
Payee further agrees, by acceptance of this Note, to execute upon request of one or more holders of Senior Indebtedness, an agreement with such holder or holders containing the subordination provisions herein contained. In the event that Payee shall
fail to take such action upon request, any officer of Maker may, as attorney-in-fact for Payee, execute such subordination agreement on behalf of Payee. 
  

 -3- 

 4.4 Payee further agrees, by acceptance of this Note, that the holders of Senior
Indebtedness may, without the consent of or notice to Payee, without incurring any responsibility to Payee and without impairing or releasing the obligations of Payee— 
  
 4.4-1 change the manner, place or terms of payment, or change or extend the time of payment of, or renew or
alter Senior Indebtedness; 
  
 4.4-2 sell,
exchange, release, or otherwise deal with any property by whomsoever at any time pledged or mortgaged to secure Senior Indebtedness; 
  
 4.4-3 release anyone liable in any manner for the payment or collection of Senior Indebtedness; 
  
 4.4-4 exercise or refrain from exercising any rights against
Maker and others; and 
  
 4.4-5 apply any sum by
whomsoever paid or however realized to the Senior Indebtedness. 
  
 5. Acceleration of Maturity.—Any default for thirty (30) days in the payment of any quarterly installment of interest or principal shall cause all the remaining installments to become immediately due and payable, provided
that Payee may not accelerate the due date of this Note unless Maker shall fail to pay such interest or principal within thirty (30) days after Payee shall give written notice of such nonpayment to Maker. 
  

			
	THE NEWARK GROUP, INC.
		
	By:	 	/s/    ROBERT H. MULLEN        
	 	 	Robert H. Mullen, President

  

 -4-Employment Offer Letter

 Exhibit 10.16 
  
 

 
  
 May 7, 2005 
  
 Richard Davidson 
 1812 Santa Fe Avenue 
 Del Mar, CA 92014 
  

	Re:	Offer of Employment 

  
 Dear Richard, 
  
 Kintera, Inc. is pleased
to offer you the position of Chief Financial Officer reporting to Harry Gruber, Chief Executive Officer. Your anticipated starting date will be May 11, 2005. This offer and your employment relationship is subject to the terms and
conditions of this letter. 
  
 If you decide to join us, your initial salary will
be $200,000 per year, less applicable withholdings, paid in accordance with Kintera, Inc.’s normal payroll practices. You will be eligible for an annual performance based bonus up to 50% of your annual salary. 
  
 You will also be eligible for all benefits available to other Kintera, Inc. full time
employees in accordance with Kintera, Inc.’s benefits plans. Kintera, Inc. reserves the right to modify or eliminate these benefits on a prospective basis at any time. 
  
 As an additional incentive, and subject to the Kintera, Inc. Board of Directors’ approval, Kintera, Inc. will grant you the right to
purchase 200,000 shares of Kintera, Inc.’s Common Stock in accordance with Kintera, Inc.’s stock options documents. These documents will be provided to you under separate cover and you will be required to sign Kintera, Inc.’s
standard Stock Option Agreement. The Board of Directors will determine the exercise price of the options at the time the grant is approved. The grant will be subject to a four-year vesting schedule. Twenty-five percent (25%) of the options will vest
on the first anniversary of your start date, and the balance of the options will vest on a daily basis for three years thereafter. However, in the event of a Change in Control (as such term is defined in the Kintera 2003 Equity Incentive Plan) of
Kintera, then 50% of the shares underlying the stock option referenced herein (the “Option”) which remain unvested immediately prior to the consummation of the Change of Control, shall vest upon the consummation of the Change in Control;
provided that you have been continuously employed with Kintera from the date hereof through the time that is immediately prior to the consummation of the Change of Control. Other than as may be amended by the preceding sentence, the terms of your
Stock Option Agreement shall remain in full force and effect and otherwise govern the terms and conditions of your Option. 
  
 You will also be able to participate in Kintera, Inc.’s Employee Stock Purchase Plan. Documents regarding the plan and eligibility will be provided separately.

  
 If you accept our offer, your employment with Kintera, Inc. will be
“at-will.” This means your employment is not for any specified period of time and can be terminated by you at any time for any reason. Likewise, Kintera, Inc. may terminate the employment relationship at any time, with or without cause or
advance notice. In addition, Kintera, Inc. reserves the right to modify your position or duties to meet business needs and to use discretion in deciding on appropriate discipline. Any change to the at-will employment relationship must be by a
specific, written agreement signed by you and Kintera, Inc.’s CEO. 
  

 9605 Scranton Road, Suite 240, San Diego, CA 92121    Phone (858) 795-3000    Fax (858)
795-3010    www.kintera.com 

 This offer is contingent upon the following: 
  

	 	•	 	Approval by Kintera Inc.’s Board of Directors. 

  

	 	•	 	Signing Kintera, Inc.’s Employee Innovations and Proprietary Rights Assignment Agreement and Securities Trading Policy; 

  

	 	•	 	Compliance with federal I-9 requirements (please bring suitable documentation with you on your first day of work verifying your identity and legal authorization to work in the
United States; an example of suitable documentation includes, but is not limited to, a U.S. passport or both a driver’s license and U.S. Social Security card.); 

  

	 	•	 	Verification of the information contained in your employment application, including satisfactory references; and 

  

	 	•	 	Agreement that you will be paid via direct deposit. 

  
 This letter, including the enclosed Employee Innovations and Proprietary Rights Assignment Agreement, Securities Trading Policy and the options purchase documents
referenced above, constitute the entire agreement between you and Kintera, Inc. relating to this subject matter and supersedes all prior or contemporaneous agreements, understandings, negotiations or representations, whether oral or written, express
or implied, on this subject. This letter may not be modified or amended except by a specific, written agreement signed by you and Kintera, Inc.’s CEO. 
  
 To indicate your acceptance of Kintera, Inc.’s offer on the terms and conditions set forth in this letter, please sign and date this letter in the space provided
below and return it to me, along with the other forms referenced above. 
  
 This
offer is valid until the end of business on May 10, 2005. 
  
 We hope your
employment with Kintera, Inc. will prove mutually rewarding, and we look forward to having you join us. On behalf of the entire organization, we are very pleased by the opportunity to have you join the Kintera, Inc. team, and we look forward to your
contribution. If you have any questions, please contact me at 858-795-3022. 
  

	
	 Sincerely,

	
	 /s/ Harry Gruber

	 Harry Gruber

	 Chief Executive Officer

  
 * * * * * * * * * *

 I have read this offer letter in its entirety and agree to the terms and conditions of employment described in these
documents. I understand and agree that my employment with Kintera, Inc. is at-will. 
  

									
					
	Dated 	 	May 7, 2005	 	 	 	By:	 	 /s/ Richard Davidson

	 	 	 	 	 	 	 	 	Richard Davidson

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