Document:

Exhibit 4.4

 

AMENDMENT TO SERIES B CONVERTIBLE NOTES

 

THIS AMENDMENT (this “Amendment”),
dated as of April 16, 2008, by and among Open Energy
Corporation, a Nevada corporation (the “Company”), and
each of the Holders of Series B Notes issued pursuant to and as defined in
that certain securities purchase agreement, dated September 19,
2007, as amended (the “SPA”), amends
certain of the terms of the Series B Notes issued from time to time
pursuant to the SPA.  All capitalized
terms not otherwise defined herein shall have the definitions ascribed to them
in the SPA or the Series B Notes.

 

WITNESSTH

 

A.            WHEREAS, each
of the Holders and the Company are parties to the Agreement;

 

B.            WHEREAS, each
of the Holders is a holder of a Series B Note; and

 

C.            WHEREAS, the
Holders and the Company now desire to amend the terms of the Series B
Notes upon the terms and conditions as are set forth herein.

 

NOW, THEREFORE, in consideration of the mutual covenants
and other agreements contained in this Amendment, the Company and each of the
Holders hereby agree as follows:

 

                1.             AMENDMENT TO SECTION 2. Section 2 of
the Series B Notes shall be amended to read in its entirety as follows:

 

“(2)         INTEREST; INTEREST RATE. During
the term of this Note, Interest shall accrue on outstanding Principal at an
interest rate equal to six percent (6%) per annum (the “Interest
Rate”) commencing on the Issuance Date. Interest shall be calculated
on the basis of a 365-day year and the actual number of days elapsed, to the
extent permitted by applicable law. Any Interest that shall accrue hereunder
shall be payable quarterly in arrears on each January 1, April 1, July 1
and October 1 (each an “Interest Payment Due Date”),
beginning on the first such date after the Issuance Date hereof, to be paid, at
the election of the Company, in cash, shares of Common Stock (“Interest Shares”), or warrants to acquire shares of Common
Stock (“Interest Warrants”) provided that,
unless waived by Holder or Holder’s assignee(s), (i) the Common Stock
shall have traded an average of at least 300,000 shares per day for each of the
five trading days prior to the applicable Interest Payment Due Date, and (ii) no
Trigger Event, as defined below, in accordance with Section 4(a)(v), shall
have occurred and not been cured or waived. If the Company elects to pay all or
any portion of any Interest due in shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”),
such Interest to be paid in Interest Shares shall be paid in a number of fully
paid and nonassessable shares (rounded to the nearest whole cent) equal to the
quotient of (a) the amount of Interest payable on such 

 

 

1

 

Interest
Date less any such Interest to be paid in cash or Interest Warrants on such Interest
Date divided by (b) an amount equal to 95% of the 5-day Weighted Average
Price (as defined in Section 27) of the Common Stock ending on the Trading
Day prior to such Interest Payment Due Date. If the Company elects to pay all
or any portion of any Interest due in Interest Warrants, such Interest Warrants
shall be in substantially the form of the Series B Warrants and shall have
an exercise price equal to the greater of (A) $0.506 per share and (B) the
5-day Weighted Average Price of the Common Stock ending on the Trading Day
prior to such Interest Payment Date.  Any
such Interest Warrants shall be exercisable for a number of shares equal to the
quotient of (a) the amount of Interest payable on such Interest Date less
any such Interest to be paid in cash or Interest Shares on such Interest Date
divided by (b) an amount equal to the Black-Scholes value per Interest
Warrant as of the Trading Day prior to such Interest Payment Date, utilizing
the Black-Scholes formula set forth on Exhibit A hereto.  Interest hereunder will be paid to the Holder
or its assignee(s) in whose name(s) this Note is registered on the
records of the Company regarding registration and transfers of Notes.”

 

                                                2.                                       SATISFACTION OF
INTEREST ARREARAGE.    Upon the
payment in full of all Interest that is accrued, unpaid and currently due
pursuant to the Series B Notes through the issuance of Interest Warrants
in accordance with Section 2 of the Series B Notes (as amended
hereby), the Trigger Events and all effects thereof, including any application
of a Trigger Event Reset Price, or other breaches or defaults resulting from
the Company’s failure to pay such Interest shall be deemed to be waived in full
and any breach of or default under the Series B Notes as a result thereof
shall be deemed to have been cured in full. 
The parties agree that the respective amounts set forth on Exhibit B
opposite the name of each Holder represent all accrued and unpaid Interest that
are currently due pursuant to the Series B Notes and the Interest Warrants
issuable in satisfaction thereof and that the Conversion Price of the Series B
Notes remains at $.50 per share.

 

                                                3.                                       MISCELLANEOUS.

 

(a)           Continued Effectiveness.
Except as otherwise provided herein, all of the representations, warranties,
covenants, conditions and other provisions of the Series B Notes are
hereby ratified and confirmed and shall continue in full force and effect,
enforceable in accordance with the terms thereof.

 

(b)           Authorization. The parties
hereby represent and warrant that each has full power and authority to enter
into this Amendment and that this Amendment constitutes the legal, valid and
binding obligation of each such party, enforceable against such party in
accordance with its terms.

 

(c)           Counterparts. This Amendment
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 

 

 

2

 

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.

 

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

 

 

3

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed by their respective
authorized signatories as of the date first indicated above.

 

	
  OPEN ENERGY CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE FOR HOLDERS FOLLOWS]

 

 

4

 

[HOLDER
SIGNATURE PAGES TO OPEN ENERGY CORPORATION AMENDMENT]

 

IN WITNESS WHEREOF, the undersigned have
caused this Amendment to be duly executed by their respective authorized
signatories as of the date first indicated above.

 

	
  Name of Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature of Authorized Signatory of Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name of Authorized Signatory:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
								

 

 

5

 

EXHIBIT A

 

Black-Scholes Formula

 

	
  Term:

  	
   

  	
  7
  years

  
	
   

  	
   

  	
   

  
	
  Risk
  Free Rate:

  	
   

  	
  3
  month US Treasury rate as quoted in the Wall Street Journal on the date of
  calculation.

  
	
   

  	
   

  	
   

  
	
  Volatility:

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  Strike
  Price:

  	
   

  	
  $.506

  
	
   

  	
   

  	
   

  
	
  Market
  Price:

  	
   

  	
  Previous
  trading day closing bid price as reported by Bloomberg LP.

  

 

 

6

 

EXHIBIT B

 

Accrued Interest

 

	
  Holder

  	
   

  	
  Interest

  	
   

  
	
  The Quercus Trust

  	
   

  	
  $

  	
  641,096

  	
   

  
	
  Europanel AB

  	
   

  	
  9,534.50

  	
   

  
	
  Styrbjorn AS

  	
   

  	
  9,534.50

  	
   

  
					

 

Interest Warrants to be Issued in Satisfaction of Accrued Interest

 

	
  Holder

  	
   

  	
  Interest Warrants

  	
   

  
	
  The Quercus Trust

  	
   

  	
   

  	
  3,003,370

  	
   

  
	
  Europanel AB

  	
   

  	
  44,667

  	
   

  
	
  Styrbjorn AS

  	
   

  	
  44,667

  	
   

  
					

 

 

7Exhibit 10.1

 

CONSULTING AGREEMENT

 

This
agreement made as of the 26th day of December 2007, by and between Open
Energy Corporation, hereinafter referred to as Open Energy, a Nevada
Corporation, having its office at 514 De La Valle, Suite 200, Solana Beach,
California, 92075  and Patricia Eckert
and Associates, having its office at 224 Abalone Avenue, Newport Beach, CA  92662, hereinafter referred to as “Consultant”.

 

ARTICLE ONE

 

Consultant
shall undertake strategic advisory and consultant services in connection with
the business interests of Open Energy Corporation in consultation and
accordance with the directives given by Open Energy Corporation
executives.   It is understood that
Consultant will be available upon reasonable request for advice and consultation
and will provide services outlined in “Attachment A”.

 

ARTICLE TWO

 

The
fee authorized under this agreement is a maximum of $45,000 per fiscal year of
Open Energy Corporation for the services of Patricia M. Eckert, which services
shall be billed to Open Energy Corporation at market rates.  The fee is payable on a monthly basis within
fifteen days immediately following receipt of an invoice for services rendered.

 

Open
Energy agrees to reimburse travel expenses for authorized and requested travel.

 

ARTICLE THREE

 

It
is understood that Consultant shall not be deemed an employee or agent of Open
Energy but is a member of the Board of Directors of Open Energy. Consultant is
acting solely as an independent Consultant for all purposes and at all times
under this agreement which is separate and apart from services rendered as a
member of the Board of Directors.  It is
further understood that our agreement is NOT a legal services agreement.  In the event legal documents, applications,
replies, comments or other legal filings

 

 

are
required at the California Public Utilities Commission (CPUC), Open Energy
general counsel will make such filings or separate authorization for outside
legal counsel will be provided by Open Energy.

 

ARTICLE FOUR

 

The
term of this agreement is one year. This agreement continues in effect until
the thirtieth day (30th) day after notice is given. Payment under
this agreement shall not exceed $45,000. in any Open Energy fiscal year.

 

ARTICLE FIVE

 

Consultant
shall keep strictly confidential all non-public information  provided by or on behalf of Open Energy
respecting its business, assets, finances, strategies and plans and Consultant’s
advice hereunder.  Open Energy shall keep
strictly confidential all advice provided by Consultant relating to this
engagement.  Notwithstanding the
foregoing each party shall be permitted to make such disclosures required by
applicable law, regulation, stock exchange rule and legal process provided
that the parties will cooperate reasonably to minimize such disclosures.  The Covenants contained in this Agreement
shall remain in effect for 3 years from the date hereof.

 

ARTICLE SIX

 

This
agreement constitutes the entire agreement between Open Energy and Consultant
with respect to the subject matter hereof. 
This agreement is governed and construed under California law without
regard to the conflict of law rules thereof.  Any dispute arising out of or relating to
this agreement shall be settled by arbitration to be held in Orange County,
California under the American Arbitration Association rules.

 

ARTICLE SEVEN

 

Any
notice to be given hereunder by either party to the other shall be in writing
and shall be deemed given when sent by reputable overnight courier next
business day delivery to the address first listed herein for each party.

 

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective, duly-authorized representatives as of the day and year
first above written.

 

 

	
  CONSULTANT

  	
  OPEN
  ENERGY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
  Patricia
  Eckert, Consultant

  	
   

  
	
  Dated

  	
   

  	
   

  	
  Dated:

  	
   

  
								

 

 

ATTACHMENT  “A”

 

Scope
of Services:

 

I.                                       Provide strategic advisory services in
connection with:

 

a.     Matters before the California Public
Utilities Commission (CPUC) related to Open Energy’s Solar Community program
and federal matters related to national legislation;

 

b.     Introduce Open Energy executives to CPUC
Commissioners as appropriate;

 

c.     Remain available to Open Energy on an as
needed and as requested basis.

 

II.                                   Review CPUC decisions, communications and
orders

 

a.     Confer and coordinate with Open Energy
outside legal counsel as requested;

 

b.     Confer and coordinate with Open Energy public
affairs consultants in Sacramento as requested.

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