Side Letter Agreement
This Side Letter Agreement (the “
Agreement ”), dated as of July 14, 2009, is made by
and among RINO International Corporation, a Nevada corporation (the
“ Company ”), and Blue Ridge Investments LLC
(“ Blue Ridge ”). Reference is made to that
certain Securities Purchase Agreement, dated September 27, 2007, by
and among the Company, Innomind Group Limited, Dalian Innomind
Environment Engineering Co., Ltd. (“ WOFE ”),
Dalian RINO Environmental Engineering Science and Technology Co.,
Ltd. (“ Dalian Rino ”, and together with WOFE
and the Company, collectively, the “ Rino Group
”) and the investors signatories thereto, as amended (the
“ Securities Purchase Agreement ”).
WHEREAS, pursuant to Section 4.13 of the
Securities Purchase Agreement, Blue Ridge has the right to
designate one member to the Board of Directors of the Company or,
at Blue Ridge’s option, of WOFE or of Dalian Rino and the
Rino Group is required to take, all necessary corporate and other
action to have any such designee elected to the Board of the
Company, WOFE or Dalian Rino, as applicable within 10 business days
of receipt of a request to cause such designee to be elected (the
“ Board Designation Right ”); and
WHEREAS, as of the date hereof, Blue Ridge has
not exercised the Board Designation Right and the parties hereto
desire to replace Blue Ridge’s Board Designation Right with a
board observation right under the terms and conditions provided in
this Agreement.
NOW, THEREFORE, IN CONSIDERATION of the mutual
covenants contained in this Agreement, and for other good and
valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and Blue Ridge agree as
follows:
Commencing on the date hereof, Blue Ridge hereby
waives and relinquishes the Board Designation Right in exchange for
a Board Observation Right as follows: for so long as Blue Ridge
shall hold 100,000 shares of the Company’s common stock, par
value $.0001 per share, it shall be entitled to have one
representative of it attend all meetings of the Board of Directors
of the Company in a nonvoting observer capacity and to be notified
of all meetings of the Company's Board of Directors; provided, that
Blue Ridge shall, and shall cause each of its representatives who
may have access to any of the information made available at any
meeting of the Company's Board of Directors or provided by the
Company to its Board of Directors, agree to be subject to the
Company’s Policy Statements on Non-public Information
Disclosure and Communications in substantially the form attached
hereto as Exhibit A , which policy statements shall hereby
be incorporated as part of this Agreement; provided further, that
the Company reserves the right not to provide information to Blue
Ridge or its representatives and to exclude them from any meeting
or portion thereof if attendance at such meeting by them would
adversely affect the attorney-client privilege between the Company
and its counsel or if any of Blue Ridge or its representatives is
or becomes a competitor, or affiliated in any manner with a
competitor, of the Company.
RINO International
Corporation
Side Letter Agreement with Blue
Ridge Investments LLC
All notices, requests, demands, and other
communications provided herein shall be in writing, shall be
delivered by hand or by first-class mail, facsimile, or electronic
mail and shall be sent to the parties hereto at their respective
addresses, facsimile numbers or electronic mail addresses set forth
below their respective signatures on the signature
pages.
All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be
governed by and construed and enforced in accordance with the
internal laws of the State of New York, without regard to the
principles of conflicts of law thereof.
This Agreement may be executed in two or more
counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign
the same counterpart. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a
valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect
as if such facsimile or “.pdf” signature page were an
original thereof.
RINO International
Corporation
Side Letter Agreement with Blue
Ridge Investments LLC
IN WITNESS
WHEREOF, the parties have executed and delivered this Side Letter
Agreement as of the date first written above.
RINO
INTERNATIONAL CORPORATION
By:_________________________________
Title: Chief Executive
Officer
Date of
Signature: _____________________
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11 Youquan
Road, Zhanqian Street,
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Jinzhou
District, Dalian,
People’s
Republic of China 116100
BLUE RIDGE
INVESTMENTS, LLC
By:_________________________________
Attn:
RINO 0807 Deal Team.
Email:
ISSG@bankofamerica.com
Fax
+1-212-377-7972,
RINO INTERNATIONAL CORPORATION
POLICY STATEMENTS
ON
NON-PUBLIC INFORMATION DISCLOSURE
AND COMMUNICATIONS
July 2009
The purpose of
this policy (hereinafter the “ Policy ”)
of RINO International Corporation (the “
Company ”) is to comply with federal and state
securities laws governing (a) trading in Company securities while
in the possession of "material nonpublic information" concerning
the Company, and (b) tipping or disclosing material nonpublic
information to outsiders, and in order to prevent improper insider
trading or tipping by any of its directors, officers and employees,
their family members, and specially designated outsiders who have
access to the Company's material nonpublic information.
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This policy
shall be applicable to all directors, officers and employees of the
Company, their family members and certain outsiders who have access
to material nonpublic information concerning the Company
(collectively referred to as " Insiders " as defined
below).
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The policy
applies to any and all transactions in the Company's securities,
including its common stock and options to purchase common stock,
and any other type of securities that the Company may issue, such
as preferred stock, convertible debentures, warrants and
exchange-traded options or other derivative securities.
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The policy will
be delivered to all directors, officers, employees and designated
outsiders upon its adoption by the Company, and to all new
directors, officers, employees and designated outsiders at the
start of their employment or relationship with the
Company.
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Any person who
possesses material nonpublic information is considered an insider
as to that information. Insiders include the Company’s
board members, officers, employees, independent contractors and
those persons in a special relationship with the Company (e.g., its
auditors, consultants or attorneys). The definition of insider is
specific to each transaction. In other words, an individual is an
insider with respect to each item of material nonpublic information
of which he or she is aware.
For purposes of
this Policy, a Related Person includes:
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your spouse,
minor children and anyone else living in your household,
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partnerships in
which you are a general partner;
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