Document:

Exhibit 10.21

Exhibit 10.21

Letter Agreement dated October 5, 2011 amending Credit Facility under 2009 and 2010 Securities Purchase Agreements

Vision Opportunity Master Fund, Ltd.

c/o Vision Capital Advisors, LLC;

Harborview Master Fund LP; and

Platinum – Montaur Life Sciences, LLC

Gentlemen:

Reference is made to (a) that certain Securities Purchase Agreement, dated as of July 30, 2009, between NewCardio, Inc., a Delaware corporation (the “Company”), and each purchaser identified on the signature pages thereto (collectively, the “Purchasers”), pursuant to which the Purchasers were issued the Company’s 12% Secured Revolving Debentures due, subject to the terms therein, September 30, 2011 (the “2009 Debentures”), in the aggregate principal amount of $3,000,000, as amended by amendments dated September 14, 2009, December 22, 2009, May 3, 2010, and July 28, 2010 (as amended, the “2009 Purchase Agreement”), and (b) that certain Securities Purchase Agreement, dated as of July 28, 2010, between the Company and the Purchasers, pursuant to which the Purchasers were issued the Company’s 12% Secured Revolving Debentures due, subject to the terms therein, September 30, 2011 (the “2010 Debentures”), in the aggregate principal amount of $900,000 (the “2010 Purchase Agreement” and, together with the 2009 Purchase Agreement, the “Purchase Agreements”).

Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Purchase Agreements or the Debentures, as the case may be.

Whereas the Company and Purchasers holding at least a majority in interest of the Securities presently outstanding under each of the Purchase Agreements have determined that it is in the best interests of the Company and the Purchasers to amend the Purchase Agreements and, to the extent applicable, the Transaction Documents, in certain respects, the purpose of this letter is to amend the Purchase Agreement and the Transaction Documents, as follows:

1.

The term “Debentures” in each of the Purchase Agreements shall be amended and restated in its entirety to mean the 12% Secured Revolving Debentures due, subject to the terms therein, five (5) business days after demand, issued by the Company to the Purchasers.

2.

The term “Stated Maturity” in the Debentures shall be amended and restated in its entirety to mean the payment date specified in a written demand for payment, signed by the holders of at least sixty percent (60%) of the aggregate principal amount of 2009 Debentures and 2010 Debentures then outstanding and given to the Company at least five (5) business day prior to such payment date, or such earlier date as this Debenture is required or permitted to be repaid as provided hereunder.

3.

Except as amended hereby, the Purchase Agreements and the Transaction Documents remain in force and effect.

4.

This amendment may be executed in counterparts that, together, shall have the same effect as if all parties signed this amendment on the same signature page.

Sincerely,  

AGREED TO BY:

VISION OPPORTUNITY MASTER FUND, LTD.

/s/ Richard D. Brounstein

By: /s/ Adam Benowitz 

Title: CFO

Title: Director

HARBORVIEW MASTER FUND LP

By: /s/ Peter Cooper and Terri-Lee McGregor

Name:  Navigator Management Ltd.

Title:  Authorized Signatories

PLATINUM-MONTAUR LIFE SCIENCES, LLC

By: /s/ Michael M. Goldberg, M.D.

Title: PrincipalExhibit 4.1

 

AMENDMENT NO. 6

to

RIGHTS AGREEMENT

between

 

BEACON POWER CORPORATION

and

COMPUTERSHARE TRUST COMPANY, N.A.

(fka EQUISERVE TRUST COMPANY, N.A.)

 

Dated as of October 7, 2011

 

This AMENDMENT NO. 6, dated as of October 7, 2011 to Rights Agreement, dated as of September 25, 2002, as previously amended by Amendment No. 1 dated as of December 27, 2002, Amendment No. 2 dated as of August 8, 2007, Amendment No. 3 dated as of October 24, 2007, Amendment No. 4 dated as of February 18, 2009 and Amendment No. 5 dated as of June 19, 2009 (as amended, the “Rights Agreement”), is between Beacon Power Corporation, a Delaware corporation (the “Company”), and Computershare Trust Company, N.A. (fka EquiServe Trust Company, N.A.), as Rights Agent (the “Rights Agent”).  Capitalized terms used but not defined herein have the meanings ascribed to such terms in the Rights Agreement.

 

WHEREAS, the Board of Directors of the Company (the “Board”) has resolved to remove the beneficial ownership exception for Seaside 88, LP; and

 

WHEREAS the Board has resolved to exclude from the beneficial ownership of Group Robinson LLC, a California limited liability company (“Robinson”) the shares it has a right to acquire pursuant to common stock warrant issuable under that certain Engagement Letter dated as of October 5, 2011 between Robinson and the Company;

 

NOW THEREFORE, in consideration of the premises and mutual agreements contained herein, the parties hereto pursuant to Section 27 of the Rights Agreement agree as follows:

 

1.                                       Amendments. The Rights Agreement is amended as follows:

 

1.1                                 Paragraph (ii) of Section 1(d) (whose preamble is “(d) A Person shall be deemed the “Beneficial Owner” of, a Person’s “Beneficial Ownership” shall include and a Person shall be deemed to “beneficially own” any securities:”) is amended and restated in its entirety to read as follows: 

 

“(ii) which such Person or any of such Person’s Affiliates or Associates has (1) the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (other than customary agreements with and between underwriters and selling group member with respect to a bona fide public offering of securities), or upon the exercise of conversion rights, exchange rights, rights (other than these Rights), warrants or options, or otherwise; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, (x) securities tendered pursuant to a tender or

 

 

exchange offer made by or on behalf of such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for purchase or exchange or (y) securities which might be otherwise be acquired through exercise of a warrant but for a limitation in such warrant or elsewhere that limits exercise to those securities that would not (when added to those otherwise beneficially owned) cause the holder to become an Acquiring Person; and provided further that Group Robinson LLC shall not pursuant to either paragraph (i) or this paragraph (ii) be deemed the Beneficial Owner of, or to beneficially own, common stock of the Company that it is entitled to acquire or that is acquires pursuant to the common stock warrants issuable under that certain Engagement Letter dated as of October 5, 2011, as subsequently amended from time to time, between it and the Company; or (2) the right to vote, or the right to direct the vote, pursuant to any agreement, arrangement or understanding; provided, however, that a Person shall not be deemed the Beneficial Owner of, or to beneficially own, any security, if the agreement, arrangement or understanding to vote, or direct the vote of, such security (x) arises solely from a revocable proxy or consent given to such Person in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and regulations promulgated under the Exchange Act and (y) is not also then reportable on Schedule 13D under the Exchange Act (or any comparable or successor report); or”

 

2.                                       Miscellaneous. 

 

2.1                                 No Further Amendments. Except as specifically amended hereby, the Rights Agreement shall remain unmodified and in full force and effect, and the Rights Agreement is hereby ratified and affirmed in all respects.

 

2.2                                 Governing Law. This Amendment No. 6 shall be governed by and construed in accordance with the laws of the State of Delaware.

 

2.3                                 Counterparts. This Amendment No. 6 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

 

[remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 6 to be duly executed and delivered on October 7, 2011.

 

 

	
 
    	
BEACON POWER CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James M. Spiezio
    
	
 
    	
 
    	
Name:   James M. Spiezio
    
	
 
    	
 
    	
Title:   Chief Financial Officer
    

 

 

	
 
    	
COMPUTERSHARE TRUST COMPANY, N.A.
    
	
 
    	
(fka EQUISERVE TRUST COMPANY, N.A.)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dennis V. Moccia
    
	
 
    	
 
    	
Name:   Dennis V. Moccia
    
	
 
    	
 
    	
Title:   Manager, Contract AdministrationExhibit 10.1

 

 

October 5, 2011

 

 

Mr. John C. Robinson

Chairman and CEO

Group Robinson LLC

3000 Sand Hill Road

Building Two, Suite 110

Menlo Park, California 94025

 

Dear John:

 

This engagement letter sets forth our mutual understanding concerning the retention by Beacon Power Corporation (the “Company”) having a place of business at 65 Middlesex Road, Tyngsboro, MA, 01879 of Group Robinson LLC (“Robinson”), having a place of business at 3000 Sand Hill Road, Building Two, Suite 110, Menlo Park CA 94025 on an exclusive basis (subject to Section 1) to assist the Company in financing the US Project and Foreign Project(s) referenced below) for one or more of its Frequency Regulation Plants (“Plant”) on the terms set forth herein.

 

1.                                       Scope of Engagement.

 

(a)                                  Robinson will assist the Company in raising and negotiating approximately $25-$30 million in third-party funding (most likely in the form of equity and/or debt financing) to fund a portion of the manufacturing, construction and certain operating costs for a 20MW Plant in Pennsylvania (the “US Project”). Robinson shall work with investors the Company has already spoken to about this US Project (including but not limited to those previously disclosed by the Company to Robinson) as well as potential investors not yet contacted by the Company.  Robinson acknowledges and agrees to cooperate if the Company favors an approach that entails a coordinated financing both for the US Project and for the Company, perhaps with some overlap in the investor(s) for each and thus certainly requiring coordinated and collaborative efforts by all the Company’s financial advisers, of which Robinson is one.

 

(b)                                 Robinson will assist the Company in developing one or more deferred payment financing models (“Lease Model”) and, where applicable, an associated Information Memorandum to be used in Company proposals for manufacturing, constructing and operating Plants in non-US locations (individually a “Foreign Project”). As part of this work, Robinson shall work with the ExIm Bank, the IFC, the EBRD and other national or multi-lateral funding groups as well as potential private sector institutional investors to i) obtain their preliminary

 

Beacon Power Corporation · 65 Middlesex Road, Tyngsboro, MA 01879 · Phone: 978.694.9121 Fax: 978.694.9127

www.beaconpower.com

 

 

Lease Model financing quotes in response to the Lease Model for each Foreign Project, and ii) obtain financing commitments for and negotiate a Robinson Lease Package (as defined below) for the manufacturing, construction and operation of mandated projects (ie, Foreign Projects for which the Company has engaged in material, targeted sales discussions).  The combination of the foregoing Lease Model and the associated financing are known herein as the “Robinson Lease Package.”

 

Robinson’s tasks will also include assisting the Company in each such Foreign and U.S. Project by providing financial advisory services such as, but not limited to: (i) analyzing the various financial commitments for the Project, the timing of construction, equipment delivery and expenditures, and projected cash flows in order to determine the optimal structures, (ii) consulting to the Company on how to optimize the various agreements (e.g., proposed operating agreements) for the Project so as to best match the expectations of the investors for the Project at issue,, (iii) making the Robinson Lease Package spreadsheets and their underlying formulas available to the Company, with no hidden cells or formulas, to enable the Company to understand, work and plan with the Robinson Lease Package, (iv) assisting the Company if it prepares an Information Memorandum, descriptive of the Project, to be distributed to Robinson Investors as part of the Lease Model, (v) contacting Robinson Investors that are on the above list that may be likely to participate in the Project and making the Lease Model available to them, and then assisting in representing the Company in the negotiations with respect to the Project, (vi) participating in the due diligence process conducted by Robinson Investors and (vii) assisting in the closing of a Project and the associated Robinson Lease Package.

 

(c)                                  For a period of 16 months from the execution date of this agreement, Robinson shall have the advisory exclusive to assist the Company in obtaining financing commitments for and negotiating a Robinson Lease Package with respect to any Foreign Project, including the proposed plants in Turkey and Ireland, for which the Company is engaged in material, targeted sales discussions that the Company has stated may include a Lease Model financing option.  Although the Company already has an engagement with other advisers previously disclosed to Robinson for possible project investment by certain financial firms (also previously disclosed), collectively known herein as the “Other Financial Firms”), the compensation elements of which the Company intends to honor, Robinson is authorized to treat the Other Financial Firms as Robinson Investors in the sense that Robinson may contact and negotiate with them and will be compensated hereunder for any involvement by those firms in Projects as if they were solely Robinson Investors.   The Company shall assume the responsibility to pay the claims, if any, from any agent(s) which had previously worked on the Company’s behalf for the US Project or a Foreign Project.

 

(d)                                 For purposes of this agreement, the term “Robinson’s Investors” shall refer to those of the potential third party investors that are referenced above in clauses (a), (b)

 

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and (c), and which are pre-approved by the Company from a list supplied from time to time by Robinson and to which Robinson has supplied information such as an executive summary on a US or Foreign Project.  For clarity, except as described in paragraph 1(a) above, this engagement is for financing projects, and not, for example, for raising funds at the parent company level nor for merger or acquisition transactions, nor transactions with third parties that are commercial transactions (that is, not primarily a financing transaction).  Robinson acknowledges, for example, that the Company has had (and may have or may have in the future) engagements with other advisers for parent company financing.    The Parties acknowledge that potential investors in the projects are likely to require additional financing at the Company level in order assure that the Company has adequate resources to construct and operate one or more projects.

 

2.                                       Compensation and Expenses.

 

(a)                                  Upfront Retainer:  Robinson shall be paid by wire transfer a one-time upfront retainer equal to an aggregate of $60,000, $15,000 having been paid prior to the execution date of this agreement and the balance of $45,000 to be paid by October 6, 2011.    This retainer is to cover work by Robinson on the US Project and the projects in Turkey and Ireland over the next 4 months and no other retainers shall be owed to Robinson in 2011.

 

(b)                                 Monthly Retainers:  No monthly retainer shall be payable in respect to the US Project. For a Foreign Project, but not before July 2012, Robinson shall be paid a monthly retainer equal to a total of $10,000 for work on one or more Foreign Projects where the Company has asked Robinson to develop a Robinson Lease Package.  For Foreign Projects for which the Company has obtained a contractual commitment to build a Plant, and which will utilize a Robinson Lease Package to be arranged by Robinson, the monthly retainer will be $20,000 payable commencing in the month which the Company receives the sales or similar contract to build a Plant.  The monthly retainer total paid to Robinson shall not exceed $20,000 in the aggregate per month, and any monthly retainers paid to Robinson under this paragraph (b) for a particular project shall be deducted from the success fee payable to Robinson for that project.  The $20,000 retainer will decline to $10,000 if the first Foreign Project closes without a second Foreign Project having yet received a contractual commitment to build a Plant (later increasing back to $20,000 if such a second commitment is obtained).   Retainers cease at the end of the term.

 

(c)                                  Success Fee:

 

(i)                                     US Project: Robinson shall be paid a lump sum success fee equal to 2.5% of the total financing amount (“Financing Amount”) committed by Robinson’s Investors under executed financing documentation.  This fee shall be payable to Robinson no later than five (5) business days after the first disbursement to the Company of funding of the US

 

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Project by Robinson’s Investors (the “Funding Date”).  The entire lump sum shall be paid in that manner so long as such sum is disbursed to the Company at the Funding Date by the investors without reduction of other elements of the Project to be covered by such disbursement; or, if not, then it shall be paid from time to time proportionate to each such disbursement of funds to the Company.  The Company shall use its best efforts to have the success fee paid upfront in a lump sum.

 

(ii)                                  Foreign Project: For each project successfully closed with a Robinson Lease Package arranged by Robinson, Robinson shall be paid a lump sum success fee equal to 3% of the total project cost actually invested by the Robinson Investors (“Project Cost”). The Success Fee shall be payable to Robinson no later five (5) business days after the first disbursement to the Company of funding of the Foreign Project by Robinson’s Investors.  The entire lump sum shall be paid in that manner so long as such sum is disbursed to the Company at such Foreign Project Funding Date by the investors without reduction of other elements of the Project to be covered by such disbursement; or, if not, then it shall be paid from time to time proportionate to each such disbursement of funds to the Company. The Company shall use its best efforts to have the success fee paid upfront in a lump sum.

 

(iii)                               Non-utilization Fee: If the Company submits to a potential customer a Robinson Lease Package proposal developed by Robinson under this agreement for a Foreign Project and the customer for that project elects instead to pay for the Plant under a traditional sales agreement or similar contract then Robinson shall be paid a fee equal to 1.50% of the total project cost that is actually paid by the Foreign Project buyer to purchase the Plant (or, in the event of a lease that is not a Lease Model and not financed by Robinson Investors, the Project Cost actually invested by those non-Robinson Investors).  Project Cost excludes any amounts that are not for purchase of the Plant (e.g., costs for services), and also does not include options for expansion or for other plants in the future.  In situations where there is a Non-utilization Fee, there will be no deduction of monthly retainers paid to Robinson for that project.  This fee shall be payable to Robinson no later than five (5) business days after the first disbursement of funds to the Company for such a project.   The entire lump sum shall be paid in that manner so long as such sum is disbursed to the Company at such Funding Date by the investors without reduction of other elements of the Project to be covered by such disbursement; or, if not, then it shall be paid from time to time proportionate to each such disbursement of funds to the Company. The Company shall use its best efforts to have the Non-Utilization fee paid upfront in a lump sum.

 

(d)                                 Warrant Coverage:   In further consideration of the services described in 1(a) above, within 30 days after the execution of this Agreement, Robinson will be issued warrants to purchase 3,000,000 shares of Company common stock at an exercise price of the higher of book value (which the Company believes is $1.03 as of 9.23.2011 or $0.70 (or the last

 

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reported closing price of the common stock at the time of the execution of this agreement if higher).  These warrants will vest on the first funding date by Robinson’s Investors at a rate of 85,000 warrants per $million of the total amount committed by Robinson’s Investors for the US Project or any Foreign Project.  As an example, 2,000,000 of the warrants would vest with an aggregate commitment of $23.529 milllion and all the warrants would be vested with an aggregate commitment of $35.294 million in the first Project or Projects that close.

 

On the date when at least 2,000,000 of the foregoing warrants have vested, the Company will issue a second tranche of warrants for a number of shares equal to $3,000,000 of Beacon common stock (6% of $50 million) but not to exceed a number such that when combined with all shares underlying the preceding warrant as well as others that may be then owned by Robinson equal 19.9% of the shares outstanding at that time.  The exercise price of this second warrant shall be the higher of book value or $0.70 (or the last reported closing price of the common stock at the time of execution of this agreement, if higher). This second tranche of warrants will commence vesting after the first tranche has fully vested, at a rate that is proportionate to additional aggregate commitment amounts by Robinson’s Investors so that they would be fully vested once there is a Funding Date for an additional aggregate amount of $50 million. In no event will the warrants be exercisable for any amount that would cause Robinson to beneficially own (when combined with other securities, as described above) more than 19.9% of the shares outstanding at the time, nor for an amount which would require stockholder approval under Nasdaq’s change of control rules.

 

Both tranches of warrants would expire on October 1, 2016, and they will become exercisable to the extent vested from time to time.  Any unvested warrants will expire at the expiration of the Tail described in paragraph 4.

 

(e)                                  Out of Pocket Expenses:   In addition to any compensation described above, whether or not any financing is consummated, the Company shall reimburse Robinson, on a monthly basis, for all reasonable out-of-pocket travel and entertainment expenses incurred by Robinson in providing the services contemplated hereby.  All air travel shall be in the same class of service as used by Company representatives except for international travel which may be in business class.  Robinson shall obtain preapproval of expenses that are anticipated to exceed $5,000 per month (except for the trip to Turkey on September 10-15, 2011), as well as of international itineraries.  All such individual expenses in excess of seventy-five ($75) shall be evidenced by receipts or other written documentation.

 

3.                                       Investor Contact

 

(a) During the term of this agreement, the Company shall promptly refer to Robinson all potential investors for the US Project (including those already contacted) or a

 

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Foreign Project and Robinson shall be the principal point of contact for all potential Project investors on Project matters unless the Company and Robinson agree otherwise

 

(b)                                 Robinson agrees to consult regularly with the Company regarding which potential investors will be solicited, as well as the status of the solicitation process.  Subject to the terms of this agreement, there will be no exceptions or exclusions of investors for purposes of determining Robinson’s Investors.

 

4.                       Term and Termination.

 

The term of this engagement shall be for a maximum period of 16 months from the execution date of this agreement unless terminated in accordance with this section 4.  Upon any such termination, Robinson shall cooperate with the Company in the transition of pending opportunities to such other arrangement as the Company may specify.  The Company may terminate this Agreement in the first four months only for Cause.  In the event after the first four months that the Company terminates this agreement other than for Cause, Robinson shall be entitled to the payment of the success fees set forth in paragraph 2(c&d) for any Project financing that the Company closes within 12 months (the “Tail”) following the notice date of such termination with any of Robinson’s Investors. “Cause” shall be defined as (i) Robinson’s continued willful failure, after 30 days’ advance written notice, substantially to perform its duties and responsibilities to the Company, (ii) Robinson’s commission of any act of fraud, embezzlement or any other willful misconduct that has caused or is reasonably expected to result in material injury to the Company, or (iii) unauthorized use or disclosure by Robinson of any proprietary information or trade secrets. Other than compensation that is owed, or that may become owed, to Robinson as set forth in this letter agreement, any termination of this engagement pursuant to this paragraph 4 shall otherwise be without liability or continuing obligation for either party.

 

5.                                       Responsibility for Disclosure.  The Company shall provide Robinson all information material to its business and operations as well as any other relevant information which Robinson reasonably requests in connection with the performance of its services hereunder. The Company represents and warrants to Robinson that all such information, and all information released to the public or filed by the Company with any relevant government agency or regulatory body, will be accurate and complete at the time it is furnished or filed, and the Company agrees to keep Robinson advised of all material developments affecting the Company through the term of Robinson’s engagement.  The Company recognizes that, in rendering its services hereunder, Robinson will be using information provided by the Company, as well as information available from other sources deemed appropriate by Robinson.  The Company further acknowledges that Robinson does not assume responsibility for and may rely, without

 

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independent verification, on the accuracy or completeness of any such information that is supplied by the Company.

 

6.                                       Indemnification and Contribution.

 

(a)                                  The Company agrees that in the event Robinson or any of Robinson’s officers, employees, agents, affiliates or controlling persons, if any (each of the foregoing, including Robinson, an “Indemnified Person”), become involved in any capacity (whether or not as a party) in any actual or threatened action, claim, proceeding or investigation (including any security holder action or claim or any action brought by or in the right of the Company, but excluding any material breach or alleged material breach of Robinson’s obligations hereunder) related to or arising out of its engagement, including any related services already performed under this Agreement and any modifications or future additions to such engagement, the Company will promptly upon demand advance to such Indemnified Person, or reimburse each such Indemnified Person for, the legal and other reasonable expenses (including the cost of any investigation and preparation) for a single law firm for all Indemnified Persons as and when they are to be incurred, or are incurred, in connection therewith.

 

(b)                                 In addition, the Company will indemnify and hold harmless each Indemnified Person from and against, and no Indemnified Person shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or its security holders or creditors for, any losses, claims, damages, judgments, fines, liabilities or expenses (including, without limitation, attorney’s fees and expenses) related to or arising out of its engagement, any services provided thereunder or any transactions or proposed transactions related thereto (other than material breach or alleged material breach of Robinson’s obligations hereunder), including any related services already performed (as mentioned above) and any modifications or future additions to such engagement, whether or not any pending or threatened action, claim, proceeding or investigation giving rise to such losses, claims, damages, liabilities or expenses is initiated or brought by or on behalf of the Company and whether or not in connection with any action, claim, proceeding or investigation in which the Company or any Indemnified Person is a party, except to the extent that any such loss, claim, damage, judgment, fine, liability or expense is found by a court of competent jurisdiction in a judgment that has become final in that it is no longer subject to appeal or review to have resulted directly from such Indemnified Person’s bad faith, willful misconduct or gross negligence.

 

(c)                                  If for any reason the foregoing indemnification is held unenforceable, then the Company shall contribute to the loss, claim, damage, liability or expense for which such indemnification is held unenforceable in such proportion as is appropriate to reflect the relative benefits received, or sought to be received, by the Company and its security holders on the one hand and the party entitled to contribution on the other hand in the matters contemplated by this

 

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engagement, as well as the relative fault of the Company and such party with respect to such loss, claim, damage, liability or expense and any other relevant equitable considerations.  The Company agrees that, to the extent permitted by applicable law, in no event shall the Indemnified Persons be responsible for or be required to contribute amounts which in the aggregate exceed the fees, if any, actually paid or committed to be paid to Robinson for such financial advisory services.

 

(d)                                 The Company’s reimbursement, indemnity and contribution obligations under this letter shall be in addition to any liability which the Company may otherwise have and shall not be limited by any rights Robinson or any other Indemnified Person may otherwise have.  The Company agrees that, without Robinson’s prior written consent, which will not be unreasonably withheld, the Company will not settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action, proceeding or investigation in respect of which indemnification or contribution could be sought hereunder (whether or not Robinson or any other Indemnified Person is an actual or potential party to such claim, action, proceeding or investigation), unless such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action, proceeding or investigation.

 

(e)                                  The provisions of this paragraph 6 shall remain in effect indefinitely, notwithstanding the completion of this engagement, the expiration of the term hereof or any other termination of this engagement.

 

7.                                       Late Payments

 

Any payments due Robinson under this agreement and not paid by the due date shall accrue interest at 1% per month (or, if lower, the highest amount allowed by law) until paid.

 

8.                                       Miscellaneous.  No waiver, amendment or other modification of this agreement shall be effective unless in writing and signed by each party to be bound hereby.  This agreement, and any claim related directly or indirectly to this agreement, shall be governed by, and construed in accordance with, the laws of the State of New York without reference to the conflict of laws provisions thereof.  The parties agree to submit any dispute under this agreement to binding arbitration in San Mateo County, California, in accordance with the rules of the American Arbitration Association. The obligations of this agreement shall be binding upon and shall inure to the benefit of the parties hereto, the Indemnified Persons hereunder and any of their successors, assigns, heirs and personal representatives.

 

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Please confirm that the foregoing is in accordance with your understanding of the terms of your engagement by signing and returning to us the enclosed duplicate of this letter, which shall thereupon constitute a binding agreement between us.

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   F. William Capp
    
	
 
    	
 
    	
Name:
    	
F.   William Capp
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
Accepted   and agreed to
    	
 
    	
 
    
	
as   of the date first above written:
    	
 
    	
 
    
	
GROUP   ROBINSON LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   John C. Robinson
    	
 
    	
 
    
	
Name:
    	
John   C. Robinson
    	
 
    	
 
    
	
Title:
    	
Chairman   and CEO
    	
 
    	
 
    

 

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