Document:

Employment Agreement

    Exhibit
      10.1

     

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the
      18th
      day of
      July 2007, by and between U.S. Dry Cleaning Corporation, a Delaware corporation
      (the “Company”), and F. Kim Cox (“Employee”).

     

    RECITALS

     

    WHEREAS,
      the Company intends to embark upon a series of acquisitions in the highly
      fragmented dry cleaning industry which will require significant additional
      financing for the Company plus financial and operational
      experience;

     

    WHEREAS,
      the Company desires to engage the services of a Chief Financial Officer (the
      “CFO”) who can assist its Chief Executive Officer (the “CEO"”) in accomplishing
      the Company’s goals; and

     

    WHEREAS,
      Employee has successfully carried out such responsibilities; and

     

    WHEREAS,
      Employee is experienced in managing corporate operations and finance functions
      in a public environment; and

     

    WHEREAS,
      for all of the reasons set forth above, the Board of Directors of the Company
      wishes to employ Employee as the Company’s CFO; and

     

    WHEREAS,
      Employee is willing to be so employed under the terms set forth in this
      Agreement;

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing, and of the mutual covenants and
      conditions set forth herein, the parties hereto agree as follows:

     

    1.    Term
      of Employment.
      The
      Company hereby employs Employee, and Employee hereby agrees to serve the
      Company, under and subject to all of the terms, conditions and provisions
      of this Agreement for a period of three (3) years from the date hereof, in
      the
      capacity of CFO of the Company, or to serve in such other executive capacity
      with the Company as the Company’s CEO may from time to time designate, provided
      such assignment is consistent with Employee’s current position, level of
      experience and expertise. This Agreement may be extended for up to three
      additional years upon mutual written agreement of the Company and the Employee.
      The Company shall give Employee six months advance notice of its intentions
      regarding such extension. In the performance of his duties and the exercise
      of
      his discretion, Employee shall report only to the CEO. Employee’s duties shall
      be designated by the CEO and shall be subject to such policies and discretions
      as may be established or given by the Company from time to time.

     

    2.    Devotion
      of Time to Company Business.
      Employee shall devote substantially all of his productive time, ability and
      attention to the business of the Company during the term of this Agreement.
      Employee shall not, without the prior written consent of the CEO, directly
      or
      indirectly render any services of a business, commercial or professional nature
      to any other person or organization, whether for compensation or otherwise,
      which may compete or conflict with the Company’s business or with Employee’s
      duties to the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    3.    Compensation.

     

    3.1.    Base
      Salary. For all services rendered by Employee under this Agreement, the Company
      shall pay Employee a base salary ("Base Salary") payable semi-monthly, at the
      rate of $16,666,667 per month until the Company achieves monthly revenues from
      normal operations in excess of $4,166,667 and positive four-wall income for
      all
      stores considered in the aggregate for any 30 day period, and $20,850.00 per
      month thereafter.

     

    3.2.    Employee
      shall be included in the bonus plans, if any, provided other executives and
      such
      other bonus awards as approved by the CEO and/or Board of
      Directors.

     

    3.3.    For
      purposes of this Agreement, the term “four-wall income” shall mean Operating
      Income computed in accordance with generally accepted accounting principles
      plus Administrative Expenses and Professional Fees. In the sole discretion
      of
      the Board of Directors (with Employee not voting and not present during the
      deliberations of the Board of Directors), the Company may award discretionary
      additional cash bonuses to Employee for significant accomplishments that produce
      material benefits for the Company. In considering whether to award any such
      discretionary bonus, the Board shall take into account the size of such
      discretionary bonus, the size and nature of the matter, the extra efforts of
      Employee, the difficulty of attaining the result that has attained, the time
      required to accomplish the result, the merits and benefits to the Company,
      the
      effect on the market price of the Company’s stock, and such other factors as the
      Board may deem appropriate. The Board shall not be required to award any such
      additional bonus, and neither the Company nor the directors shall have any
      liability to Employee for any action or non-action with respect to any such
      discretionary additional bonus under this Section 3.3.

     

    3.4.   In
      addition to his Base Salary and cash bonuses, if any, the Employee shall receive
      the following fully vested options under the Company’s stock option
      plan:

     

    Such
      options shall be granted under the Company’s stock option plan and shall be
      evidenced by a stock option agreement containing terms and conditions
      satisfactory to the Board of Directors (with Employee not voting and not present
      during the deliberations of the Board of Directors).

     

    (a)    Incentive
      stock options to purchase 100,000 shares of the Company’s common stock at $3.50
      per share;

     

    (b)    Incentive
      stock options to purchase an additional 100,000 shares of the Company’s common
      stock at $5.00 per share,

     

    (c)    Incentive
      stock options to purchase an additional 100,000 shares of the Company’s common
      stock at $7.00 per share.

     

    
      
        
        

      

      
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    4.    Benefits.

     

    4.1.   The
      Company shall maintain Employee’s existing life and disability insurance
      policies provided such cost shall not exceed $25,000 annually.

     

    4.2.    It
      is
      anticipated that Employee will spend considerable amount of time traveling
      to
      the Company’s headquarters and on behalf of the Company in the discharge of his
      duties. During the period of his employment hereunder, a Company credit card
      will be available for reasonable business, travel and entertainment expenses
      incurred in accordance with Company policy on behalf of the Company in
      connection with his employment. Additional out-of-pocket expenses will be
      reimbursed when necessary. Employee will be required to submit appropriate
      expense reports for approval by signature of the CEO as a condition of
      reimbursement of such expenses. Frequent traveler bonus points thus earned
      will
      accrue to the personal account of Employee as additional
      compensation.

     

    4.3.    In
      lieu
      of a Company provided automobile, the Company will pay an expense allowance
      for
      an automobile owned by Employee, in an amount of $2,000 per month.

     

    4.4.    Employee
      shall be entitled to one (1) week vacation upon completion of every three (3)
      full months of employment under this Agreement. To the extent that Employee
      does
      not take vacation, Employee may accumulate such vacation time throughout the
      term of this Agreement up to a maximum of six (6) weeks. Upon the termination
      of
      this Agreement, with or without cause, and to the extent that Employee has
      accumulated vacation time up to the maximum allowed, the Company shall pay
      to
      Employee, in addition to all other consideration due Employee in the event
      of
      termination herein, the full value of such accumulated vacation time
      commensurate with the Base Salary provided above.

     

    4.5.    The
      Company acknowledges that Employee maintains his principal residence in
      Portland, Oregon. Employee shall not be required to move his principal
      residence. Recognizing that Employee will perform his duties at the Company’s
      headquarters, the Company will provide Employee with reimbursement for housing
      in Palm Springs, California at such times as Employee determines necessary
      or
      appropriate of up to $4,000.00 per month. If Employee agrees to change his
      permanent residence at the request of the Company, the Company shall pay
      reasonable relocation costs, including but not limited to moving
      expenses.

     

    4.6.    Employee,
      due to his professional degrees in both accounting and finance, is required
      to
      meet certain training classes required by the relevant licensing authorities.
      The Company shall treat the cost of classes as a reimbursable business expense
      so long as reasonable and approved.

     

    5.    Authority.
      So long
      as Employee serves as CFO of the Company under this Agreement, he shall have
      the
      authority specified by the CEO, except that he shall not proceed with any
      matters, or permit the Company to take any actions, which are prohibited by,
      or
      are in conflict with, resolutions or guidelines adopted by the Board of
      Directors; and under no circumstances shall Employee, without express prior
      authorization by the Board of Directors, make any change in capital structure
      or
      issue any stock of the Company, incur additional debt, change the Company’s
      lines of business, or make any other material changes to the corporate structure
      and provided further that any payments or checks in excess of $100,000, shall
      require the signature of two persons designated by resolution of the Board
      of
      Directors.

     

    
      
        
        

      

      
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    6.    Termination.
      This
      Agreement shall terminate in advance of the time specified in Section 1 above
      (and except as provided herein, Employee shall have no right to receive any
      compensation due and payable to him or his estate at the time of such
      termination) under any of the following circumstances:

     

    6.1.    Upon
      the
      death of Employee during the term of this Agreement, the Company shall pay
      to
      the estate of Employee Base Salary, bonuses, and any other compensation accrued
      or earned by Employee as of the date of death, plus an amount equal to the
      lesser of (a) six (6) months of Base Salary or (b) the Base Salary that Employee
      would have received up to the expiration of the Agreement.

     

    6.2.    In
      the
      event that Employee shall become either physically or mentally incapacitated
      so
      as to not be capable of performing his duties as required hereunder, and if
      such
      incapacity shall continue for a period of three months consecutively, the
      Company may, at its option, terminate this Agreement by written notice to
      Employee at that time or at any time thereafter while such incapacity continues.
      In case of termination under this Section, Employee or his estate shall be
      entitled to receive Base Salary, bonuses and any other compensation accrued
      or
      earned as of the date of termination, and for six months following such
      termination or until the expiration of the term of this Agreement, whichever
      is
      earlier. In addition, the Company shall permit Employee to participate in
      Company’s medical, dental, and long term disability and long term care insurance
      plans, if any, at Employee’s cost, for a period of one (1) year following
      termination herein and to the extent permitted by law.

     

    6.3.    By
      Employee, if the Company shall have materially breached any of the provisions
      of
      this Agreement and failed to cure such breach within 15 calendar days after
      the
      Board of Directors of the Company receives written notice of such breach from
      Employee, or by the Company without Cause; provided, that the Company shall
      pay
      Employee his Base Salary through the remaining term of this
      Agreement.

     

    6.4.    By
      the
      Company for Cause. The term “Cause” used in this Section 6.4 means that
      Employee, (i) after repeated written notices and warnings and a reasonable
      opportunity for cure, fails to perform his reasonably assigned duties as
      reasonably determined by the CEO, (ii) is convicted of any felony involving
      moral turpitude, or (iii) commits any intentional act which materially damages
      or may damage the Company’s business or reputation. If the Company terminates
      Employee for Cause, no payments or benefits under this Agreement shall become
      payable after the date of Employee’s termination.

     

    6.5.    Notwithstanding
      anything in this Agreement to the contrary:

     

    (a)    If
      payment or provision of any amount or other benefit to Employee that is
“deferred compensation” subject to Section 409A of the internal Revenue Code
      (“Code”) at the time otherwise specified in this Agreement would subject such
      amount or benefit to additional tax pursuant to Section 409A(a)(1)(B) of the
      Code, and if payment or provision thereof at a later date would avoid any such
      additional tax, then the payment or provision thereof shall be postponed to
      the
      earliest date on which such amount or benefit can be paid or provided without
      incurring such additional tax.

     

    
      
        
        

      

      
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    (b)    If
      any
      payment or benefit permitted or required under this Agreement is reasonably
      determined by either party to be subject for any reason to a material risk
      of
      additional tax pursuant to Section 409A(a)(1)(B) of the Code, then the parties
      shall promptly agree in good faith on appropriate provisions to avoid such
      risk
      without materially changing the economic value of this Agreement to either
      party.

     

    7.    Loyalty,
      Non-Competition and Confidentiality.

     

    7.1.    Non-Competition.
      Employee agrees and covenants that, except for the benefit of the Company
      (and/or successor, parent or subsidiary) during the Non-Competition Period
      (as
      defined in Section 7(b)) he will not engage, directly or indirectly (whether
      as
      an officer, director, consultant, employee, representative, agent, partner,
      owner, stockholder, or otherwise), in any business engaged in by the Company
      in
      the Non-Competition Area (as defined in Section 7.3) nor will Employee compete
      against the Company for any transaction or corporate opportunity which the
      Company has or may have an interest in pursuing. It is the parties’ express
      intention that if a court of competent jurisdiction finds or holds the
      provisions of this Section 7 to be excessively broad as to time, duration,
      geographical scope, activity or subject, this Section 7 shall then be construed
      by limiting or reducing it so as to comport with then applicable
      law.

     

    7.2.    Non-Competition
      Period. As used herein, the “Non-Competition Period” means the period beginning
      on the date hereof and ending on a date which is three years from the date
      of
      this Agreement; provided, however, that if Employee’s employment is terminated
      by the Company without Cause, the Non-Competition Period shall end on the date
      of such termination.

     

    7.3.    Non-Competition
      Area. As used herein, the term “Non-Competition Area” means any county within
      the United States in which any store is operated by the Company during the
      term
      of this Agreement.

     

    7.4.    Other
      Employees. Employee agrees that during the Non-Competition Period he shall
      not,
      directly or indirectly, for his own account or as agent, servant or employee
      of
      any business entity, engage, hire or offer to hire or entice away or in any
      other manner persuade any officer, employee or agent of the Company or any
      subsidiary to discontinue his relationship with the Company or any subsidiary
      of
      the Company.

     

    7.5.    Confidentiality.
      Employee acknowledges that he has learned and will learn Confidential
      Information, as defined in Section 7.6, relating to the business of the Company.
      Employee agrees that he will not, except in the normal and proper course of
      his
      duties, disclose or use, either during the Non-Competition Period or
      subsequently thereto, any such Confidential Information without prior written
      approval of the Board of Directors of the Company.

     

    7.6.    Confidential
      Information. “Confidential Information” shall mean contractual arrangements,
      plans, locations, strategies, tactics, potential acquisitions or business
      combinations or joint venture possibilities, policies and negotiations;
      marketing information, including sales, purchasing and inventory plans,
      strategies, tactics, methods, customers, advertising, promotion or market
      research data; financial information, including operating results and
      statistics, costs and performance data, projections, forecasts, investors,
      and
      holdings; and operational information, including trade secrets, secret formulae,
      control and inspection practices, accounting systems and controls, computer
      programs and data, personnel lists, resumes, personal data, organizational
      structure and performance evaluations and other information of the Company
      which
      derives economic value from not being generally known to the public or the
      Company’s competitors. Confidential Information does not include skills,
      knowledge and experience acquired by Employee during his employment with any
      prior employer.

     

    
      
        
        

      

      
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    7.7.    Corporate
      Documents. Employee agrees that all documents of any nature pertaining to
      activities of the Company or to any of the Company’s Confidential Information in
      his possession now or at any time during the Non-Competition Period, including,
      without limitation, memoranda, notebooks, notes, computer records, disks,
      electronic information, data sheets, records and blueprints, are and shall
      be
      the property of the Company and that they and all copies of them shall be
      surrendered to the Company whenever requested by the Board of Directors from
      time to time during the Non-Competition Period and thereafter and with or
      without request upon termination of Employee’s employment with the
      Company.

     

    8.    Equitable
      Remedies.
      In the
      event of a breach by Employee of any of the provisions of Section 7, the
      Company, in addition to any other remedies it may have, shall be entitled to
      an
      injunction restraining Employee from doing or continuing to do any such act
      in
      violation of Section 7.

     

    9.    Attorney
      Fees.
      Employee and Company agree that any controversy or issue arising under this
      Agreement shall be submitted to arbitration. The successful party in any
      arbitration or litigation relating to matters covered by this Agreement shall
      be
      entitled to an award of reasonable attorneys’ fees in such action.

     

    10.    Assignment.
      Neither
      this Agreement nor any of the rights or obligations of either party hereunder
      shall be assignable by either Employee or the Company, except that this
      Agreement shall be assignable by the Company to and shall inure to the benefit
      of and be binding upon (i) any successor of the Company by way of merger,
      consolidation or transfer of all or substantially all of the assets of the
      Company to an entity other than any parent, subsidiary or affiliate of the
      Company and (ii) any parent, subsidiary or affiliate of the Company to which
      the
      Company may transfer its rights hereunder.

     

    If
      to the
      Company, to:

     

    U.S.
      Dry
      Cleaning Corporation

    125
      E.
      Tahquitz Canyon, Suite 203

    Palm
      Springs, CA 92262

    Attn:
      Chairman of the Board

    Fax:
      (760) 323-3390

     

    
      
        
        

      

      
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    If
      to
      Employee, to:

     

    F.
      Kim
      Cox

    11806
      S.E. Eastbourne Lane

    Portland,
      Oregon 97086

    Phone:
      503-658-5596

    Fax:
      503-658-2783

     

    11.    Binding
      Effect.
      The
      terms, conditions, covenants and agreements set forth herein shall inure to
      the
      benefit of, and be binding upon, the heirs, administrators, successors and
      assigns of each of the parties hereto, and upon any corporation, entity or
      person with which the Company may become merged, consolidated, combined or
      otherwise affiliated.

     

    12.    Amendment.
      This
      Agreement may not be altered or modified except by further written agreement
      by
      the parties.

     

    13.    Prior
      Agreements.
      This
      Agreement supersedes and replaces all prior agreements between the parties
      hereto.

     

    14.    Notices.
      Any
      notice required or permitted to be given under this Agreement by one party
      to
      the other shall be sufficient if given or confirmed in writing and delivered
      personally or mailed by first class mail, registered or certified, return
      receipt requested (if mailed from the United States), postage prepaid, or sent
      by facsimile transmission addressed to such party as respectively indicated
      below or as otherwise designated by such party in writing.

     

    15.    California
      Law.
      This
      Agreement is being executed and delivered and is intended to be performed and
      shall be governed by and construed in accordance with the laws of the State
      of
      California.

     

    16.    Indemnification.
      The
      Company has entered or shall enter into an Indemnification Agreement with
      Employee indemnifying him against personal liability to the fullest extent
      permissible under applicable corporate law and shall, to the extent it is
      reasonably economical to do so, maintain Side A and Side B Directors and
      Officers liability insurance for obligations of indemnification.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      date
      and year first above written.

     

    U.S.
      DRY CLEANING CORPORATION

     

             
      /s/ Anthony A.
      Bryan                                  
 

    ANTHONY
      A. BRYAN

    Name:
      Anthony J.A. Bryan

    Title:
      Chairman of the Board

     

            
      /s/ F. Kim
      Cox                                                    

    F.
      Kim
      Cox

     

    7Exhibit 10.34  

CONFIDENTIAL  

May 1,
2007 

Jeffrey
Mayer

President & Chief Executive Officer

MXenergy Holdings Inc.

595 Summer Street

Suite 300

Stamford, CT 06901 

Dear
Jeffrey: 

The
purpose of this letter is to confirm the engagement of Greenhill & Co., LLC ("Greenhill") to act as financial advisor to MXenergy Holdings Inc. (together with its affiliates and
subsidiaries, the "Company") in connection with a potential Transaction. For purposes hereof, a "Transaction" shall mean the sale of all or a significant portion of the stocks, assets or business of
the Company or any other business combination transaction involving the sale of the Company, whether in one or a series of transactions, including, without limitation, by way of a negotiated sale,
merger or consolidation. 

	1.
	In
connection with its engagement hereunder, Greenhill proposes to undertake certain services on behalf of the Company, including, to the extent requested by the Company (which request
shall be in writing, in the case of clause (f) below):

	a.
	identifying
and contacting selected qualified acquirors acceptable to the Company;

	b.
	arranging
for potential acquirors to conduct business investigations;

	c.
	evaluating
and recommending financial and strategic alternatives with respect to a proposed Transaction;

	d.
	advising
the Company as to the timing, structure and pricing of a proposed Transaction;

	e.
	assisting
the Company in negotiating and consummating a proposed Transaction;

	f.
	providing
such other financial advisory and investment banking services as are customary for similar transactions and as may be mutually agreed upon by the Company and Greenhill. 

Greenhill
agrees that it will not contact any potential buyer of the Company without first having identified the potential buyer to the Company and having received the approval of Jeffrey Mayer or
Chaitu Parikh to make such contact. Greenhill will inform the Company promptly of all substantive contact and communications between representatives of Greenhill and the representatives of any such
potential buyer. Subject to the foregoing, the Company hereby authorizes (i) the negotiation and execution by Greenhill, on behalf of the Company, of confidentiality agreements in form and
substance approved by the Company to be entered into with third parties in connection with a proposed Transaction and (ii) the use of data furnished to Greenhill by the Company and authorized
by the Company for distribution by Greenhill to potential acquirors in a proposed Transaction. 

	2.
	As
compensation for Greenhill's services hereunder, the Company hereby agrees to pay Greenhill the following fees: 

Transaction Fee  

	a.
	A
Transaction Fee (the "Transaction Fee"), calculated by multiplying 0.75% and the Transaction Value (as defined below), shall be payable in cash if, during the term of this letter
agreement, or within 12 months thereafter if this agreement terminates at the end of its 12-month stated term or, if this letter agreement is terminated by the Company prior to the
end of its 12-month stated term, within 12 months of such termination, a Transaction is consummated or a definitive agreement is entered into that subsequently results in a 

 

Transaction
that closes within 12 months of the date that the definitive agreement is entered into. 

For
the purpose of calculating a Transaction Fee, "Transaction Value" shall equal the aggregate value of the proceeds and other consideration, net of Company cash, received or to be received by the
Company and/or its shareholders in connection with a Transaction, including, without limitation: (i) cash; (ii) notes, securities and other property; (iii) liabilities, including
all funded debt of the Company assumed by the buyer or paid off at the closing of the Transaction (the date of such closing being hereinafter referred to as the "Closing Date"); (iv) payments
made in installments; (v) contingent payments (whether or not related to future earnings or operations); and (vi) any portion of the purchase price deposited in escrow at the closing of
the Transaction. For purposes of computing any fees payable to Greenhill hereunder, (x) shares issuable upon exercise of options, warrants or other rights of conversion shall, to the extent
exercised or converted on or prior to the Closing Date, be deemed outstanding and Transaction Value shall include, without duplication, all consideration payable to holders of options, warrants, stock
appreciation rights, preferred stock or other rights of conversion issued by the Company and not exercised or converted on or prior to the Closing Date, and (y) non-cash
consideration shall be valued as follows: (A) publicly traded securities shall be valued at the average of their closing prices (as reported in The Wall Street Journal) for five trading days
prior to the closing of the Transaction and (B) any other non-cash consideration shall be valued at the fair market value thereof on the Closing Date as determined by the Company
and Greenhill; provided that if such parties are unable to agree on a fair market value for such non-cash consideration, the parties shall submit such issue to a single arbitrator located
in New York, New York under the rules of the American Arbitration Association, for determination, which determination shall be binding upon each of the Company and Greenhill. 

If
less than 5% of the aggregate consideration actually received and paid to the Company or its security holders (as the case may be) is payable into escrow, payable in installments, or subject to
contingency or otherwise paid subsequent to the consummation of the Transaction, then such amount of the Transaction Fee relating thereto shall be shall be valued by agreement between the Company and
Greenhill based upon the estimated net present value thereof using an appropriate discount rate as determined by the Company and Greenhill and paid at closing. 

If
all or any portion in excess of 5% of the aggregate consideration actually received and paid to the Company or its security holders (as the case may be) is payable into escrow, payable in
installments, or subject to contingency or otherwise paid subsequent to the consummation of the Transaction, the amount of the Transaction Fee relating thereto shall be calculated based on the
aggregate consideration actually received and paid as and when such payments are paid to the Company or its security holders (as the case may be). 

For
purposes of this letter agreement, a Transaction shall be deemed to have been consummated upon the earliest of any of the following events to occur: (i) the acquisition by another person of
a majority of the outstanding common stock of, or voting power in, the Company calculated on a fully-diluted basis (it being understood that the issuance by the Company of additional shares of common
stock or other shares conferring voting power to existing security holders of the Company, without more, shall not constitute a "Transaction"); (ii) a merger or consolidation of the Company in
which the Company is in effect being acquired by another person; or (iii) the acquisition by another person of assets of the Company representing a majority of the Company's book value other
than in the ordinary course of the Company's business. 

2

 

	b.
	Notwithstanding
the foregoing, in the event that the Company shall execute a definitive agreement providing for a Transaction, and such agreement shall subsequently be terminated and
the Company shall be paid a termination, "break-up", liquidated damages or similar fee ("Reverse Break-Up Fee") upon such termination, then the Company shall pay to Greenhill,
on the first anniversary of the Company's receipt of such Reverse Break-Up Fee (provided that the Company has not on or prior to such anniversary entered into another Transaction in
connection with which the Company has paid or is required to pay to Greenhill a Transaction Fee hereunder) an amount equal to the difference between (i) one-third of such Reverse
Break-Up Fee and (ii) all out-of-pocket expenses incurred by the Company in connection with the Transaction (provided, however, that the amount payable to
Greenhill shall not in any event exceed $1,500,000 per Transaction); provided, however, that a portion of the Reverse Break-Up Fee shall be paid only if the payor thereof is a party with
respect to whom a Transaction Fee would have been due to Greenhill in the event a Transaction were completed with such party. 

Incentive Fee  

	c.
	An
Incentive Fee shall be payable at the sole discretion of the Company's Board of Directors in cash if, during the 12-month stated term of this letter agreement, or within
12 months thereafter if this agreement terminates at the end of its 12-month stated term or, if this letter agreement is terminated by the Company prior to the end of its
12-month stated term, within 12 months of such termination, a Transaction is consummated or a definitive agreement is entered into that subsequently results in a Transaction that
closes within 12 months of the date that the definitive agreement is entered into. 

The
Incentive Fee shall be an amount determined by the Board of Directors not to exceed the product of 0.20% and the Transaction Value. 

	3.
	In
addition to any fees that may be payable to Greenhill hereunder (and regardless of whether a Transaction occurs), the Company hereby agrees from time to time upon request, to
promptly reimburse Greenhill for reasonable travel and other reasonable out-of-pocket expenses incurred by Greenhill in performing its services hereunder, including the
reasonable fees and expenses of legal counsel to the extent approved in advance by the Company (such approval not to be unreasonably withheld or delayed); provided that the Company shall not be
obligated to reimburse Greenhill hereunder for expenses in excess in the aggregate of $25,000 without the Company's prior written approval.

	4.
	The
term of Greenhill's engagement as financial advisor and agent to the Company shall commence on the date hereof and continue until the earlier of (i) the consummation of a
Transaction and (ii) 12 months after the date hereof, unless extended by mutual written consent or earlier terminated by either party by written notice delivered to the other party
hereto; provided, however, that no such termination shall affect (i) the indemnification,
contribution and confidentiality obligations of the Company, (ii) the right of Greenhill to receive any fees payable hereunder (including the right of Greenhill to receive, for the applicable
period after any expiration or termination of this letter agreement, the Transaction Fee) or fees that have accrued prior to such termination or (iii) the right of Greenhill to receive
reimbursement for its out-of-pocket expenses as described above.

	5.
	The
Company agrees to indemnify Greenhill and related persons in accordance with the indemnification letter attached hereto as Schedule A, the provisions of which are
incorporated herein by reference in their entirety.

	6.
	The
Company agrees to provide to Greenhill all financial and other information requested by it for the purpose of its assignment hereunder and reasonably available to the Company. The
Company agrees and represents that information furnished to Greenhill pursuant to this letter agreement 

3

 

shall,
to the best of its knowledge, be accurate and complete in all material respects at the time provided; provided that the Company confirms and acknowledges that Greenhill will assume that any
financial forecasts that may be furnished to or discussed with Greenhill by the Company have been reasonably prepared and reflect the best then currently available estimates and judgments of the
Company's management as to the expected future financial performance of the Company. The Company shall notify Greenhill of any material inaccuracy and incompleteness in any information previously made
available to Greenhill by the Company that becomes known to the Company. In performing its services hereunder, Greenhill shall be entitled to rely upon and assume, without assuming any responsibility
for independent verification, the accuracy and completeness of all information that is publicly available and of all information that has been furnished to it by the Company or otherwise reviewed by
Greenhill, and Greenhill shall not assume any responsibility or have any liability therefor. Greenhill shall have no obligation to conduct any valuation or appraisal of any assets or liabilities. For
the execution of its assignment, Greenhill shall establish a team of qualified individuals from appropriate specialty areas within Greenhill. 

Any
financial advice rendered by Greenhill or its representatives pursuant to this letter agreement is intended solely for the benefit and use of management and the Board of Directors of the Company
in considering and evaluating a Transaction, is not on behalf of, and shall not confer rights or remedies upon, any person other than the Board of Directors of the Company, and may not be used or
relied upon for any other purpose. Except as provided in the following sentence, no such financial advice may be disclosed publicly in any manner without Greenhill's prior written consent and all such
advice will be treated by the Company as confidential. Greenhill understands that its financial advice may be reproduced in full or described in a proxy or information statement mailed to shareholders
of the Company and agrees to provide its written approval for such use as appropriate, such approval not to be unreasonably withheld; provided, that
Greenhill has previously reviewed and approved the form and substance of all references to or descriptions of Greenhill or Greenhill's financial advice in any such proxy or information statement. 

	7.
	Following
the closing of a Transaction, Greenhill may, with the prior approval of the Company as to content (which approval shall not be unreasonably withheld), and at Greenhill's own
expense, place announcements or advertisements in financial newspapers and journals describing its services hereunder.

	8.
	This
letter agreement (including Schedule A) (a) shall be governed by and construed in accordance with the laws of the State of New York, regardless of the laws that
might otherwise govern under applicable principles of conflicts of law thereof and no proceeding related directly or indirectly to this letter agreement shall be commenced, prosecuted, or continued in
any court other than the courts of the State of New York located in the City and County of New York or in the United States District Court for the Southern District of New York,
(b) incorporates the entire understanding of the parties with respect to the subject matter hereof and supersedes all previous agreements should they exist with respect thereto, (c) may
not be amended or modified except in a writing executed by the Company and Greenhill and (d) shall be binding upon and inure to the benefit of the Company, Greenhill, the other Indemnified
Parties and their respective successors and assigns. The Company (on the Company's behalf and, to the extent permitted by applicable law, on behalf of the Company's securityholders and creditors) and
Greenhill agree to waive, to the fullest extent permitted by law, any objection it may now or hereafter have to the laying of venue of any such proceeding brought in any New York court specified in
this paragraph 8 and any claim that any such proceeding brought in any such court has been brought in an inconvenient forum and to waive all rights to trial by jury in any action, proceeding or
counterclaim brought by or on behalf of either party with respect to any matter whatsoever relating to or arising out of any actual or proposed Transaction or the engagement of or performance by
Greenhill hereunder. The Company acknowledges that Greenhill, in connection with its engagement hereunder, is acting as 

4

 

an
independent contractor with duties owing solely to the Company and that nothing in this letter agreement is intended to confer upon any other person any rights or remedies hereunder or by reason
hereof. 

If
at any time during our engagement or thereafter you have any questions relating to billing or to regulatory compliance matters, you should contact either the undersigned or Hal Rodriguez,
Greenhill's Chief Compliance Officer, who handles financial and administrative matters for Greenhill in our New York office. 

This
letter agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Please confirm that
the foregoing is in accordance with your understanding of our agreement by signing and returning to us a copy of this letter. 

	 	 	 	 	Very best regards,
	 	 	 	 	 	 	 
	 	 	 	 	GREENHILL & CO., LLC
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/  GREGORY G. RANDOLPH      
 Gregory G. Randolph

Managing Director
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Accepted and agreed to as of

the date set forth above:	 	 	 	 
	 	 	 	 	 	 	 
	MXenergy Holdings Inc.	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	/s/  JEFFREY MAYER      
 Jeffrey Mayer

Chief Executive Officer	 	 	 	 

5

SCHEDULE A

INDEMNIFICATION

        Recognizing
that transactions of the type contemplated in the attached letter agreement sometimes result in litigation and that Greenhill's role is advisory, the Company agrees to
indemnify and hold harmless Greenhill, its affiliates and their respective officers, directors, employees, agents and each other entity or person, if any, controlling Greenhill or any of its
affiliates (collectively, the "Indemnified Parties"), from and against any losses, claims, damages, demands and liabilities (or actions or proceedings in respect thereof), joint or several, related to
or arising in any manner out of any activities performed or services furnished pursuant to the attached letter agreement, the transactions contemplated thereby or Greenhill's role in connection
therewith (the "Indemnified Activities"). In addition, the Company will promptly reimburse the Indemnified Parties for all reasonable expenses (including, without limitation, reasonable fees and
expenses of legal counsel), as incurred, in connection with the investigation of, preparation for or defense or pursuit of any pending or threatened investigative, administrative, judicial, or
regulatory or other claim, action or proceeding or any arbitration or investigation in any jurisdiction related to or arising in any manner out of any Indemnified Activities, whether or not in
connection with pending or threatened litigation to which Greenhill (or any other Indemnified Party) or the Company or any of its securityholders is a party (collectively, "Proceedings").
Notwithstanding the foregoing, the Company shall not be liable in respect of any losses, claims, damages, demands, liabilities or expenses that a court of competent jurisdiction shall have determined
by final nonappealable judgment resulted solely from the gross negligence or willful misconduct of an Indemnified Party. 

        Upon
receipt by an Indemnified Party of actual notice of a Proceeding against such Indemnified Party in respect of which indemnity may be sought hereunder, such Indemnified Party shall
promptly notify the Company with respect thereto. In addition, an Indemnified Party shall promptly notify the Company after any Proceeding is commenced (by way of service with a summons or other legal
process giving information as to the nature and basis of the claim) against such Indemnified Party in respect of which indemnity may be sought hereunder. In any event, failure to notify the Company
shall not relieve the Company from any liability which the Company may have on account of this indemnity or otherwise, except to the extent the Company shall have been prejudiced by such failure. The
Company shall have the right to assume the defense of any Proceeding in respect of which indemnity may be sought hereunder, including the employment of counsel reasonably satisfactory to Greenhill and
the payment of the fees and expenses of such counsel, in which event, except as provided below, the Company shall not be liable for the fees and expenses of any other counsel retained by any
Indemnified Party in connection with such Proceeding. In any such Proceeding the defense of which the Company shall have so assumed, any Indemnified Party shall have the right to participate in such
Proceeding and to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (i) the Company and such Indemnified Party shall
have mutually agreed in writing to the retention of such counsel or (ii) the named parties to any such Proceeding (including any impleaded parties) include the Company and such Indemnified
Party and
representation of both parties by the same counsel would, in the reasonable opinion of counsel to such Indemnified Party, be inappropriate due to actual or potential differing interests between the
Company and such Indemnified Party. The Company shall not be liable for any settlement of any Proceeding effected without its written consent, but if settled with such consent or if there is a final
judgment against an Indemnified Party, the Company agrees to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement or judgment. The Company will not
settle any Proceeding to which any Indemnified Party is a party and in respect of which indemnity may be sought hereunder unless such settlement includes an unconditional release of the Indemnified
Party from all claims made against such Indemnified Party in connection with such Proceeding without any admission of liability or wrongdoing. 

        The
Company agrees that if any indemnification or reimbursement sought pursuant to this Schedule A were for any reason other than in accordance with the term of this agreement not
to be available to any Indemnified Party or insufficient to hold it harmless as and to the extent contemplated 

 

by
this Schedule A, then the Company shall contribute to the amount paid or payable by such Indemnified Party in respect of losses, claims, damages and liabilities in such proportion as is
appropriate to reflect the relative benefits to the Company and its shareholders on the one hand, and Greenhill on the other, in connection with the transactions contemplated by the attached letter
agreement (whether or not consummated) as well as any other equitable considerations. It is hereby agreed that the relative benefits to the Company and/or its shareholders and to Greenhill with
respect to transactions contemplated by the attached letter agreement shall be deemed to be in the same proportion as (i) the total value received or contemplated to be received by the Company
and/or its shareholders pursuant to transactions contemplated by the attached letter agreement (whether or not consummated) bears to (ii) the fees paid or to be paid to Greenhill under the
attached letter agreement. In no event shall the Indemnified Parties be required to contribute or otherwise be liable for an amount in excess of the aggregate amount of fees actually received by
Greenhill pursuant to the attached letter agreement (excluding amounts received by Greenhill as reimbursement of expenses). 

        The
Company further agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company or any of its securityholders
or creditors for or in connection with Greenhill's engagement hereunder or the transactions contemplated by the attached letter agreement except for losses, claims, damages, liabilities or expenses
that a court of competent jurisdiction shall have determined by final nonappealable judgment resulted solely from the gross negligence or willful misconduct of such Indemnified Party. The indemnity,
reimbursement and contribution obligations of the Company shall be in addition to any liability which the Company may otherwise have to an Indemnified Party, shall not be limited by any rights that an
Indemnified Party may otherwise have and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company or an Indemnified Party. 

        The
indemnity, reimbursement and contribution provisions set forth herein shall remain operative and in full force and effect regardless of (i) any withdrawal, termination or
consummation of or failure to initiate or consummate any transaction contemplated by the attached letter agreement, (ii) any investigation made by or on behalf of any party hereto or any person
controlling (within the meaning of Section 15 of the Securities Act of 1933, as amended, or Section 20 of the Securities Exchange Act of 1934, as amended) any party hereto,
(iii) any amendment or other modification or termination or the completion or expiration of the attached letter agreement or Greenhill's engagement and (iv) whether or not Greenhill
shall, or shall not be called upon to, render any formal or informal advice in the course of such engagement. 

	 	 	Very best regards,
	

 	
 	

GREENHILL & CO., LLC
	

 	
 	

By:	

/s/  GREGORY G. RANDOLPH      
 Gregory G. Randolph

Managing Director

Accepted
and agreed to as of

the date set forth above: 

MXenergy
Holdings Inc. 

	

By:	
 	

/s/  JEFFREY MAYER      
 Jeffrey Mayer

President & Chief Executive Officer	
 	

 	
 	

 

2

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