Document:

exv10w54

 

Exhibit 10.54

REVOLVING NOTE

(Wachovia Bank, National Association)

			
	 	 	 
	$2,000,000
	 	St. Louis, Missouri

September 26, 2006

     FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation, and
SYNERGETICS USA, INC., a Delaware corporation (individually, a “Borrower” and together, the
“Borrowers”), hereby jointly and severally promise to pay on the Termination Date to the order of
Wachovia Bank, National Association (the “Lender”), at the main office of Regions Bank in St.
Louis, Missouri, or at any other place designated at any time by the holder hereof, in lawful money
of the United States of America and in immediately available funds, the principal sum of Two
Million and 00/100 ($2,000,000) or, if less, the aggregate unpaid principal amount of
all Advances made by the Lender to the Borrowers under the Credit Agreement (defined below),
together with interest on the principal amount hereunder remaining unpaid from time to time,
computed on the basis of the actual number of days elapsed and a 360-day year, from the date hereof
until this Note is fully paid at the rate from time to time in effect under the Credit and Security
Agreement dated as of March 13, 2006, as amended by First Amendment of even date herewith
(together, the “Credit Agreement”) by and among the Lender, Regions Bank and the Borrowers. The
principal hereof and interest accruing thereon shall be due and payable as provided in the Credit
Agreement. This Note may be prepaid only in accordance with the Credit Agreement.

     This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Revolving Note referred to in the Credit
Agreement.

     This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.

     The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

     This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.

     This Note is a replacement for, but not a novation or refinancing of the Revolving Note dated
as of March 13, 2006 by Borrowers payable to the order of Regions Bank. This Note does not
evidence or effect a release, or relinquishment of the priority, of the security interests in any
Collateral (as defined in the Credit Agreement).

 

 

     ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.

	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 
	 	 	SYNERGETICS, INC.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ Pamela G. Boone
	 

	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone
	 

	 	 	 	TITLE: Chief Financial Officer
	 
	 	 	 	 
	 	 	and
	 
	 	 	 	 
	 	 	SYNERGETICS USA, INC.
	 
	 	 	 	 
	 

	 	BY:
	 	/s/ Pamela G. Boone
	 

	 	 	 	 
	 

	 	 	 	NAME: Pamela G. Boone
	 

	 	 	 	TITLE: Chief Financial Officer

2exv10w55

 

Exhibit 10.55

September 28, 2006

Synergetics, Inc.

3845 Corporate Centre Drive

O’Fallon, MO 63368

	 	Re: 	 	Loan to Synergetics, Inc. (the “Borrower”),
dated 09/30/2005, in the Original

Principal Amount of $1,000,000.00; Loan Account
No. 378-8079382-0002 (the 

“Loan”)

     Dear Mrs. Boone:

     This letter confirms our agreement to extend the maturity date for this Loan from 09/30/06
(the “Old Maturity”) to 10/31/2006 (the “New Maturity”), subject to the following terms and
conditions:

	 	1.	 	We must receive payment in full of all accrued and unpaid interest in the
amount of $6,538.14 and all unpaid late fees and other charges in the amount of $00.00,
which amounts are outstanding on the Loan as of the date of this letter, by no later
than ten (10) days from the date of this letter.
	 
	 	2.	 	We must receive a copy of this letter, executed by Borrower in the space
provided below, by no later than ten (10) days from the date of this letter.

     If Borrower should fail to satisfy any of the conditions listed above, the New Maturity shall
be null and void, and the Old Maturity shall be deemed to be in full force and effect.

     By executing this letter below, Borrower affirms the indebtedness owed to us regarding the
Loan and agrees that as of the date of this letter the outstanding principal balance on the Loan is
$920,325.25, with accrued and unpaid interest, late fees and other charges in the amounts shown
above. Borrower further covenants, represents and warrants that, as of the date Borrower executes
this letter, Borrower has no defenses, setoffs, rights of recoupment, counterclaims or claims of
any nature whatsoever in respect of the Loan (including, but not limited to, claims arising from
fraud, misrepresentation, breach of contract, breach of commitment, impairment of collateral or
waiver of any terms or provisions of any documents executed or delivered in connection with the
Loan), Borrower hereby releasing any such defenses, claims, etc. Borrower agrees to execute such
other instruments or documents as we may reasonably request in order to further document the New
Maturity.

     This letter is not intended to be, and shall not be deemed or construed to be, a novation with
regard to the Loan, and except as expressly modified by this letter, all terms, conditions, and
provisions of the Loan (including, without limitation, Borrower’s obligation to make monthly
payments of interest, or principal and interest, as the terms of the Loan documents may provide),

 

 

Synergetics, Inc.

September 28, 2006

Page 2

and all documents and instruments evidencing the Loan, remain and continue in full force and
effect. This letter constitutes no obligation on our part to renew or refinance the Loan, or to
further extend the maturity date, upon the New Maturity, and we have not waived any, and we reserve
all of, our rights and remedies under any and all of the Loan documents with respect to any
existing or future default, whether known or unknown to us.

	 	 	 	 	 
	 	Sincerely,

 

Regions Bank

 

 	 
	 	By:  	/s/ Anne D. Silvestri
 	 

	 
	 	Title:  	SVP 	 
	 	 	 	 
	 

Acknowledged and Agreed:

	 	 	 	 	 
	 	 	 
	By:  	 	/s/ Pamela G. Boone
 	 

	 
	Title: 	 	EVP and CFO 	 

	 
	Date: 	 	September 30, 2006EX-10.1

 

Exhibit 10.1

SEPARATION AGREEMENT AND WAIVER AND RELEASE

     This Separation Agreement and Waiver and Release (this “Agreement”) is entered into by
and between BPI Energy Holdings, Inc., a British Columbia corporation (together with its affiliates
and subsidiaries, “BPI”), and George J. Zilich (“Zilich”) as of this 12th day of
October, 2006.

     A. Zilich has been employed by BPI as its Chief Financial Officer and General Counsel pursuant
to a letter agreement between BPI and Zilich dated as of January 6, 2005 (the “Employment
Agreement”) and has also served as a member of the board of directors of BPI.

     B. Zilich will resign as an employee, officer, and director of BPI, and this Agreement sets
forth the terms upon which Zilich’s employment by, and term as a director of, BPI will cease.

     NOW, THEREFORE, in consideration of the agreements, warranties, and covenants contained in
this Agreement and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, BPI and Zilich agree as follows:

     1. Resignation. Effective as of October 12, 2006, or such other date as the parties
may agree (the “Separation Date”), Zilich will and hereby does resign as an employee,
officer, and director of BPI and resigns from any and all other positions, if any, held by him with
respect to BPI and its subsidiaries and affiliates.

     2. Consideration. In consideration of Zilich entering into this Agreement, BPI will:

	 	(a)	 	pay to Zilich the sum of $250,000.00 within three business days after
receiving a letter from Zilich in the form attached hereto as Exhibit A but no
earlier than seven days after the date first entered above;
	 
	 	(b)	 	issue to Zilich 250,000 unrestricted common shares of BPI (the
“Unrestricted Shares”), provided, however, that (i) 210,000 of the Unrestricted
Shares will be deemed to have been transferred by Zilich to BPI contemporaneous with
the issuance of such shares in payment of the $138,600.00 price for the exercise of
warrants by Zilich on April 28, 2006, and (ii) 40,000 of the Unrestricted Shares will
be deemed to have been transferred by Zilich to BPI contemporaneous with the issuance
of such shares in partial satisfaction of the withholding and deductions for income
and payroll taxes associated with the consideration transferred to Zilich in
accordance with this Agreement;
	 
	 	(c)	 	pay to Zilich the sum of $8,333.33 on each of the following dates: October
15, 2006; October 31, 2006; November 15, 2006; November 30, 2006; December 15, 2006;
and December 31, 2006;
	 
	 	(d)	 	pay to Zilich the sum of $100,000.00, on each of the following dates:
January 2, 2007; August 1, 2007; and January 2, 2008;
	 
	 	(e)	 	take any and all actions required to assure and provide that the 380,720
shares of BPI restricted stock currently held by Zilich vest as of the Separation
Date; and
	 
	 	(f)	 	provide medical and dental insurance coverage to Zilich through the second
anniversary of the Separation Date on the same terms as provided to Zilich as of the
date of this Agreement (the “Continuing Medical Coverage”), which terms
provide that BPI pay all premiums for such insurance coverage; provided, however,
that if, at any time prior to the

 

 

	 	 	 	second anniversary of the Separation Date, Zilich becomes eligible to participate in
an employer sponsored and fully paid medical and dental insurance plan or policy
with coverage that is comparable to the Continuing Medical Coverage, BPI’s
obligation to provide the Continuing Medical Coverage will terminate effective as of
the date that Zilich becomes eligible to enroll in such plan or policy.

     BPI will make each of the payments and take each of the actions contemplated by this Section 2
notwithstanding the death or disability of Zilich prior to January 2, 2008. BPI and Zilich agree
that the payments to be made to Zilich pursuant to this Section 2 are allocated as follows: the
payments provided for in (a) of this Section to BPI’s obligations under the Employment Agreement,
the payments provided for in (c) of this Section for Zilich’s obligations under Section 4 of this
Agreement, and the payments provided for in (d) and (e) of this Section for Zilich’s obligations
and undertakings under Sections 3, 5(a) and 10 of this Agreement. BPI and Zilich further agree
that the other consideration to be provided to Zilich pursuant to this Section 2 is allocated as
follows: the consideration provided for in (f) of this Section to BPI’s obligations under the
Employment Agreement and the consideration provided for in (b) of this Section for Zilich’s
obligations under Section 4 of this Agreement. BPI and Zilich further agree that as of the date of
this Agreement Zilich holds 475,000 shares of BPI restricted stock and that any purported transfer
of any shares of such restricted stock by Zilich to BPI prior to the date of this Agreement is and
will be deemed null and void. BPI and Zilich further agree that all federal, state and local
income and payroll taxes associated with the consideration to be transferred to Zilich hereunder
and which may be subject to withholding and deductions will be deemed satisfied in full as follows:
(i) the transfer by Zilich to BPI of 40,000 of the Unrestricted Shares pursuant to (b) of this
Section; and (ii) the surrender by Zilich of 94,280 shares of the BPI restricted stock currently
held by Zilich. The consideration paid under (a) of this Section will be reported by BPI on an IRS
Form W-2. To the extent reportable by BPI, all other consideration paid hereunder will be reported
as income to Zilich with applicable taxing authorities by way of an IRS Form 1099.

     3. Non-Competition; Non-Solicitation. Between the Separation Date and the second
anniversary of the Separation Date, Zilich will not (a) engage, either directly or indirectly, as
an employee, officer, director, shareholder (other than as a shareholder of less than five percent
(5%) of the issued and outstanding stock of a publicly-traded corporation), or partner in a
business that is competitive with the coal bed or coal mine methane gas extraction, exploration,
analysis, or development business of BPI in the geographical territory known as the “Illinois
Basin,” or (b) solicit or attempt to solicit, either on Zilich’s behalf or on behalf of any of
third party, or assist any third party in soliciting, any employee of BPI to leave or terminate
their employment with BPI; provided, however, that Zilich may respond affirmatively to any requests
from employees of BPI that he act as an employment reference for any such employee.

     4. Continuing Services. Between the Separation Date and January 2, 2008, Zilich will
provide BPI with consulting services as may be reasonably requested by BPI from time to time in
order to facilitate the continuing operation of BPI and the transition of his duties and
responsibilities; provided, however, that Zilich will not be required (a) to travel from his
residence or any future place of employment or (b) to devote more than five hours during any
calendar month in providing such consulting services. BPI and Zilich will, in good faith,
coordinate the time and manner of the consulting services to be provided by Zilich to avoid
conflicts with Zilich’s personal or business activities or schedule. BPI will reimburse Zilich for
any reasonable out-of-pocket expenses incurred by Zilich in providing any consulting services
requested by BPI in accordance with BPI’s expense reimbursement policy. In the event that BPI
requests that Zilich perform consulting services that would be inconsistent with the limitations
contained in (a) and (b) of this Section, Zilich may condition providing such services upon payment
by BPI of reasonable additional compensation.

 

 

     5. Waiver and Release.

	 	(a)	 	In consideration of the payments to be made to Zilich on and after the
Separation Date, Zilich, for himself, his heirs, administrators, executors, and
assigns, knowingly and voluntarily waives, releases, and discharges BPI and its
affiliates, successors, and assigns and the shareholders, employees, officers,
directors, agents, and representatives of any of them (the “BPI Released
Parties”), from any and all claims, liabilities, demands, and causes of action,
known and unknown, which Zilich has or may have against BPI as of the Separation
Date, including, without limitation, any and all claims arising out of or relating to
Zilich’s employment with BPI, his status as a director of BPI, and Zilich’s departure
from that employment and that status based upon or related to any contention (i) that
his employment or his status as a director terminated or ended because of any
wrongful, unlawful, or improper reason or in violation or breach of any express or
implied contract or agreement, or (ii) that the BPI Released Parties, or any of them,
engaged in any unlawful or discriminatory act, event, pattern, or practice involving
age, religion, sex, national origin, ancestry, handicap, veteran status, race, or
color, including without limitation, the federal Age Discrimination in Employment
Act, 29 U.S.C. §621 et seq., or any similar state or local law. The foregoing is not
intended to and shall not be construed or deemed to release, discharge or waive any
rights of Zilich under this Agreement or the obligation of BPI to indemnify, defend
or advance expenses or the rights to indemnification, defense or advancement of
expenses Zilich has pursuant to (i) any director and officer or other insurance
policy BPI maintains or has maintained, (ii) the applicable laws of British Columbia,
Canada, (iii) the articles of incorporation or code of regulations of BPI, or (iv)
the Employment Agreement, for and from any action, suit or liability that may be
threatened or asserted against Zilich in connection with his service as an officer or
director of BPI.
	 
	 	(b)	 	BPI, on its behalf and on behalf of its affiliates, subsidiaries, officers,
directors, successors and assigns, knowingly and voluntarily waives, releases, and
discharges Zilich, and his heirs, administrators, and executors (the “Zilich
Released Parties”), from any and all claims, liabilities, demands, and causes of
action, known and unknown, which BPI or its officers or directors have or may have
against the Zilich Released Parties as of the Separation Date, including, without
limitation, any and all claims arising out of or relating to Zilich’s employment with
BPI, his status as a director of BPI, and Zilich’s departure from that employment and
that status.
	 
	 	(c)	 	Zilich warrants that (i) no promise or inducement has been offered to him
other than as set forth in this Agreement and that he is entering into this Agreement
voluntarily, (ii) he is relying on no statement or representation by the BPI Released
Parties other than as set forth in this Agreement, (iii) he has read this Agreement,
has had a full opportunity to consider it (including the opportunity to consult with
an attorney of his choice) and that he understands that by signing this Agreement he
is giving up important rights, including any right to sue under federal, state, or
local law.
	 
	 	(d)	 	Zilich further warrants that:

	 	(i)	 	He understands that he is specifically waiving rights or claims
under the federal Age Discrimination in Employment Act, 29 U.S.C. §621 et seq.;
	 
	 	(ii)	 	He understands that he is not hereby waiving any rights or
claims that may arise after the Separation Date;

 

 

	 	(iii)	 	He understands that this Agreement is being signed by him in
exchange for consideration that is more valuable to him than what he is
entitled to without this Agreement and the waiver and release contained in this
Agreement;
	 
	 	(iv)	 	He has been advised in writing by BPI that he should have, at
his expense, an attorney of his choice review this Agreement;
	 
	 	(v)	 	He has been advised by BPI that he may take up to 21 days from
receipt of this Agreement to determine whether to execute the same;
	 
	 	(vi)	 	He has been advised by BPI that this Agreement may be revoked
by him within seven days following execution of this Agreement whereupon this
Agreement will be null and void; and
	 
	 	(vii)	 	The effect of this Agreement will be to preclude him from
bringing any action against any of the BPI Released Parties for any claims of
any kind relating to any matter whatsoever occurring on or before the
Separation Date other than as specified in Section 5(a) hereof with respect to
any obligation of BPI to indemnify, defend or advance expenses to Zilich for
and from any action, suit or liability that may be threatened or asserted
against him in connection with his service as an officer or director of BPI.

     6. Rights or Obligations as Shareholder. In addition to having been employed by and
serving as an officer and director of BPI, Zilich is a shareholder of BPI. Between the Separation
Date and October 1, 2011, Zilich will not (a) initiate any action against BPI in his capacity as a
shareholder of BPI or (b) initiate, encourage, help to finance, or otherwise actively participate
in any proxy contest or any effort to take control of BPI. Except as provided in this Section 6,
this Agreement does not alter Zilich’s rights or obligations vis-à-vis BPI in his capacity as a
shareholder of BPI, including Zilich’s right to tender his common shares in connection with a
tender offer, participate in the conversion of his common shares in connection with any merger or
consolidation of BPI, to receive dividends and distributions, or to exercise appraisal rights on
the same basis as any other shareholder.

     7. Effect on Employment Agreement. From and after the execution of this Agreement,
BPI will not have any obligation to Zilich under the Employment Agreement except for such
obligations as may arise pursuant to Section 8 of the Employment Agreement.

     8. No Disclosure Regarding This Agreement. The parties will, in good faith, endeavor
to agree upon the wording of a press release to be issued by BPI regarding Zilich’s resignation.
Until the issuance of the press release and filing of a copy of this Agreement with the Securities
and Exchange Commission, neither Zilich nor BPI will disclose any information regarding the
existence or terms of this Agreement without the prior written consent of the other party, except
(a) as may be necessary for BPI to comply with its disclosure obligations as a publicly held
company (whether by law, regulation, rule, or otherwise, including any requirement or rule of the
American Stock Exchange), (b) to an attorney with whom a party chooses to consult regarding this
Agreement, (c) to Zilich’s spouse and children, (d) to Zilich’s tax advisers, (e) if and only to
the extent necessary to secure enforcement of this Agreement, and (f) if and only to the extent
required by a valid subpoena or court order, in which case the party subject to such subpoena or
court order will first afford the other party the opportunity to raise any objection that the other
party may have to the purported requirement to disclose such information. To the extent such
disclosure is made to any of the individuals identified in (b), (c), or (d) of this Section 8, the
disclosing party shall inform such individual of the terms of this Section 8 and instruct such
individual not to disclose any information regarding this Agreement to any other person or entity.

 

 

     9. Confidentiality. Zilich will keep confidential and not divulge to any third party,
without BPI’s express written consent or under legal compulsion, any confidential, proprietary,
and/or trade secret information of BPI, including, without limitation, information regarding BPI’s
practices, policies, financial data, marketing strategies, business plans, scientific and technical
information, and customers. Zilich further agrees not to use any confidential, proprietary, or
trade secret information of BPI for Zilich’s own or another’s benefit.

     10. Non-Disparagement.

	 	(a)	 	Zilich will not make any comment or statement that is negative or
disparaging of the business, products, reputation, competence, or character of BPI or
any of the BPI Released Parties. The prohibition in the immediately preceding
sentence applies to all statements that disparage, discredit, or otherwise call into
disrepute, without regard to the truth or falsity of the statement. Zilich will not
initiate any communications (whether written or oral) with any governmental or
regulatory authority concerning or relating to BPI or any of the BPI Released Parties
other than as may be required by statute or regulation. Notwithstanding the
foregoing, Zilich is free to answer, in a forthright and truthful manner, any
inquiries made by or on behalf of the Audit Committee of BPI’s Board of Directors or
any governmental or regulatory authority or pursuant to compulsory legal process.
	 
	 	(b)	 	BPI and its officers, directors, employees, agents and representatives will
not make any comment or statement that is negative or disparaging of the reputation,
competence, or character of Zilich or any of the Zilich Released Parties. The
prohibition in the immediately preceding sentence applies to all statements that
disparage, discredit, or otherwise call into disrepute, without regard to the truth
or falsity of the statement. BPI and its officers, directors, employees, agents, and
representatives will not initiate any communications (whether written or oral) with
any governmental or regulatory authority concerning or relating to Zilich other than
as may be required by statute or regulation. Notwithstanding the foregoing, BPI and
its officers, directors, employees, agents, and representatives are free to answer,
in a forthright and truthful manner, any inquiries made by or on behalf of any
governmental or regulatory authority or pursuant to compulsory legal process.

     11. Return of Records. Zilich represents and warrants that, as of the Separation
Date, he is not in possession or control of any records, reports, written or electronic data, or
memoranda relating to or regarding BPI or any employee, officer, or director of BPI that were
generated or acquired by Zilich during the term of Zilich’s employment with BPI other than (a) any
documents filed with the Securities and Exchange Commission prior to the Separation Date, (b) any
documents posted on BPI’s website prior to the Separation Date, (c) copies of electronic
correspondence (“Emails”) concerning or relating to BPI, (d) documents distributed to and received
by Zilich in his capacity as a director of BPI, and (e) memoranda, correspondence, notes and other
documents relating to or regarding BPI that Zilich prepared or generated at the request or
direction of his personal legal counsel, for the guidance of such counsel in assisting and advising
Zilich, or in anticipation of possible litigation with BPI, or that were prepared or generated by
such counsel in the course of representing Zilich. Zilich will return to BPI, destroy, or delete
all copies of Emails (including copies in electronic form) referred to in (c) of this Section and
all documents referred to in (d) of this Section. Zilich may retain all documents referred to in
(a), (b) and (e) of this Section; provided, however, that all documents referred to in (e) of this
Section retained by Zilich shall be subject to the confidentiality provisions of Section 9 hereof.

 

 

     12. Return of Property. On dates to be arranged and agreed to by legal counsel for
the parties, but no later than seven business days after the Separation Date, (a) Zilich will
provide BPI with access to his residence, at which time BPI will remove and transport all personal
property owned by BPI located at Zilich’s residence, and (b) BPI will provide Zilich with access to
his office at BPI’s corporate headquarters, at which time Zilich will remove and transport all
personal property owned by Zilich located on BPI’s premises.

     13. Governing Law and Interpretation. This Agreement will be governed by, and will be
construed in accordance with, the laws of the State of Ohio, notwithstanding any conflict of law
provision to the contrary. Zilich and BPI agree that the state and federal courts located in the
State of Ohio have exclusive jurisdiction in any action, suit, or proceeding based on or arising
out of this Agreement, and Zilich and BPI hereby (a) submit to the exclusive personal jurisdiction
of such courts, (b) consent to the service of process in connection with any such action, suit, or
proceeding and (c) waive any other requirement (whether imposed by statute, rule of court, or
otherwise) with respect to personal jurisdiction, venue, or service of process.

     14. Severability. If any provision contained in this Agreement is determined to be
invalid, illegal, or unenforceable in any respect for any reason, the validity, legality, and
enforceability of any such provision in every other respect and the remaining provisions of this
Agreement will not in any way be impaired. Notwithstanding any of the foregoing, if any such
provision that is determined to be invalid, illegal, or unenforceable may be made valid, legal, or
enforceable by modification thereof, then the parties will amend or modify this Agreement as may be
necessary to make such provision valid, legal, or enforceable to the maximum extent permitted by
law. If Zilich claims or asserts that any portion of Section 5 above regarding the waiver and
release by Zilich should be ruled to be unenforceable for any reason other than BPI’s breach of any
of the provisions of Section 5 above, then Zilich will be liable for the return to BPI of all of
the consideration paid to him under this Agreement.

     15. No Admission of Wrongdoing. Neither this Agreement nor the furnishing of the
consideration provided in Section 2 hereof will be deemed or construed at any time for any purpose
as an admission by BPI or Zilich of any wrongful or unlawful conduct of any kind. This Agreement is
made in compromise of disputed claims and nothing herein is intended to be, nor shall it be deemed,
construed or treated in any respect as an admission of liability with respect to such disputed
claims or with respect to any claims asserted by third parties. The parties expressly agree that
neither this Agreement nor any of its terms , including the recitals herein, shall be offered or
asserted by any of them as an admission of any fact or as evidence of any liability except for the
purpose of enforcing the covenants, warranties and releases contained herein

     16. Amendment. This Agreement may not be modified, altered, or changed except as
provided in Section 14 above or upon the written consent of both parties with specific reference to
this Agreement.

     17. Entire Agreement. This Agreement sets forth the entire agreement between the
parties hereto and supersedes any prior agreements or understandings (whether written or oral)
between the parties with respect to the subject matter of this Agreement. BPI and Zilich
acknowledge and agree that this Agreement was the product of negotiations between them and that any
rule of construction that ambiguities are to be resolved against the drafting party shall not apply
in the interpretation of this Agreement.

     18. Authority and Binding Effect. BPI represents and warrants that David Preng,
chairman of the Compensation Committee of BPI’s Board of Directors, has been duly authorized and
has the requisite authority to execute and deliver this Agreement on behalf of and to bind BPI to
the terms and

 

 

conditions of this Agreement. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors, assigns and heirs, as applicable.

     19. Counterparts. This Agreement may be executed in one or more counterparts,
including by facsimile, each of which shall be deemed an original, but all of which together
constitute one and the same instrument.

     IN WITNESS WHEREOF, Zilich and BPI have executed this Agreement on the date first written
above.

	 	 	 	 	 
	 	 	/s/ George J. Zilich
	 	 	 
	 

	 	George
	 	J. Zilich
	 
	 	 	 	 
	 	 	BPI Energy Holdings, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Preng
	 

	 	 	 	 
	 

	 	 	 	David Preng, Chairman of
	 

	 	 	 	Compensation Committee

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]