Document:

Exhibit 10.3

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK
ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THIS WARRANT UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO MICRO COMPONENT TECHNOLOGY,
INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

Right to Purchase up to 5,000,000 Shares of Common Stock of

Micro Component Technology, Inc.

(subject to adjustment as provided herein)

COMMON STOCK PURCHASE
WARRANT

	
  No.
  _________________

  	
  Issue Date: March 29,
  2007

  

 

MICRO COMPONENT TECHNOLOGY, INC., a corporation organized under the
laws of the State of Minnesota (the “Company”),
hereby certifies that, for value received, LAURUS MASTER FUND, LTD., or assigns
(the “Holder”), is entitled, subject to the
terms set forth below, to purchase from the Company (as defined herein) from
and after the Issue Date of this Warrant and at any time or from time to time
before 5:00 p.m., New York time, through the close of business March 31, 2017
(the “Expiration Date”), up to 5,000,000
fully paid and nonassessable shares of Common Stock (as hereinafter defined),
$0.01 par value per share, at the applicable Exercise Price per share (as
defined below).  The number and character
of such shares of Common Stock and the applicable Exercise Price per share are
subject to adjustment as provided herein.

As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

(a)           The term “Common Stock”
includes (i) the Company’s Common Stock, par value $0.01 per share; and (ii)
any other securities into which or for which any of the securities described in
the preceding clause (i) may be converted or exchanged pursuant to a plan of
recapitalization, reorganization, merger, sale of assets or otherwise.

(b)           The term “Company”
shall include Micro Component Technology, Inc. and any person or entity which
shall succeed, or assume the obligations of, Micro Component Technology, Inc.
hereunder.

(c)           The “Exercise
Price” applicable under this Warrant shall be $0.01 per share.

(d)           The term “Other
Securities” refers to any stock (other than Common Stock) and other
securities of the Company or any other person (corporate or otherwise) which
the holder of the Warrant at any time shall be entitled to receive, or shall
have received, on the exercise of the Warrant, in lieu of or in addition to
Common Stock, or which at any time shall be issuable or shall have been issued
in exchange for or in replacement of Common Stock or Other Securities pursuant
to Section 4 or otherwise.

(e)           The term “Purchase
Agreement” means the Securities Purchase Agreement dated as of the
date hereof among the Holder and the Company, as amended, modified, restated
and/or supplemented from time to time.

17.           Exercise of
Warrant.

17.1         Number
of Shares Issuable upon Exercise.

(a)           From and after the date hereof
through and including the Expiration Date, the Holder shall be entitled to
receive, upon exercise of this Warrant in whole or in part, by delivery of an
original or fax copy of an exercise notice in the form attached hereto as
Exhibit A (the “Exercise Notice”), shares of Common Stock of the Company,
subject to adjustment pursuant to Section 4.

(b)           Restrictions. 
Notwithstanding anything to the contrary contained herein, the Holder
hereby agrees that, so long as no Event of Default (as defined in any of
(x) that certain Security and Purchase Agreement dated as of February 17, 2006
among the Holder, the Company and various subsidiaries of the Company, as
amended, restated, modified and/or supplemented from time to time, (y) that
certain 10% Senior Subordinated Convertible Note, dated February 17, 2004
issued by the Company to Amaranth Trading, L.L.C. in the original principal
amount of $1,229,919 and assigned to the Holder pursuant to that certain Note
Sale Agreement dated as of December 20, 2006 by and between Amaranth Trading
L.L.C. and the Holder, as amended, restated, modified and/or supplemented from
time to time and/or (z) that certain Secured Term Note, dated March 29, 2007,
issued by the Company to the Holder, as amended, restated, modified and/or
supplemented from time to time) has
occurred and is continuing, (i) during the period on or after the Issue Date
and prior to the date that is the one year anniversary of the Issue Date, it
shall not sell any Common Stock acquired upon exercise of this Warrant (such
Common Stock, “Exercised Common Stock”) and (ii) at any time on or after the
one year anniversary of the Issue Date, the Holder shall not, on any trading
day, be permitted to sell Exercised Common Stock in excess of twenty percent
(20%) of the aggregate number of shares of the Common Stock traded on such
trading day.

17.2         Fair
Market Value.  For purposes hereof,
the “Fair Market Value” of a share of Common Stock as of a particular date (the
“Determination Date”) shall mean:

(a)           If the Company’s Common Stock is
traded on the American Stock Exchange or 
another national exchange or is quoted on the National or Capital Market
of The Nasdaq Stock Market, Inc. (“Nasdaq”), then the closing or last sale
price, 

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respectively,
reported for the last business day immediately preceding the Determination
Date.

(b)           If the Company’s Common Stock is not
traded on the American Stock Exchange or another national exchange or on the
Nasdaq but is traded on the NASD Over The Counter Bulletin Board, then the mean
of the average of the closing bid and asked prices reported for the last
business day immediately preceding the Determination Date.

(c)           Except as provided in clause (d)
below, if the Company’s Common Stock is not publicly traded, then as the Holder
and the Company agree or in the absence of agreement by arbitration in
accordance with the rules then in effect of the American Arbitration
Association, before a single arbitrator to be chosen from a panel of persons
qualified by education and training to pass on the matter to be decided.

(d)           If the Determination Date is the date
of a liquidation, dissolution or winding up, or any event deemed to be a
liquidation, dissolution or winding up pursuant to the Company’s charter, then
all amounts to be payable per share to holders of the Common Stock pursuant to
the charter in the event of such liquidation, dissolution or winding up, plus
all other amounts to be payable per share in respect of the Common Stock in
liquidation under the charter, assuming for the purposes of this clause (d)
that all of the shares of Common Stock then issuable upon exercise of the
Warrant are outstanding at the Determination Date.

17.3         Company
Acknowledgment.  The Company will, at
the time of the exercise of this Warrant, upon the request of the holder hereof
acknowledge in writing its continuing obligation to afford to such holder any
rights to which such holder shall continue to be entitled after such exercise
in accordance with the provisions of this Warrant. If the holder shall fail to
make any such request, such failure shall not affect the continuing obligation
of the Company to afford to such holder any such rights.

17.4         Trustee
for Warrant Holders.  In the event
that a bank or trust company shall have been appointed as trustee for the
holders of this Warrant pursuant to Subsection 3.2, such bank or trust company
shall have all the powers and duties of a warrant agent (as hereinafter described)
and shall accept, in its own name for the account of the Company or such
successor person as may be entitled thereto, all amounts otherwise payable to
the Company or such successor, as the case may be, on exercise of this Warrant
pursuant to this Section 1.

18.           Procedure for
Exercise.

18.1         Delivery
of Stock Certificates, Etc., on Exercise. 
The Company agrees that the shares of Common Stock purchased upon
exercise of this Warrant shall be deemed to be issued to the Holder as the
record owner of such shares as of the close of business on the date on which
this Warrant shall have been surrendered and payment made for such shares in
accordance herewith.  As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within three (3) business days thereafter, the Company at its expense
(including the payment by it of any applicable issue taxes) will cause to be
issued in the name of and delivered to the Holder, or as such Holder (upon
payment by such Holder of any applicable transfer taxes) 

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may direct in compliance with applicable securities laws, a certificate
or certificates for the number of duly and validly issued, fully paid and
nonassessable shares of Common Stock (or Other Securities) to which such Holder
shall be entitled on such exercise, plus, in lieu of any fractional share to
which such holder would otherwise be entitled, cash equal to such fraction
multiplied by the then Fair Market Value of one full share, together with any
other stock or other securities and property (including cash, where applicable)
to which such Holder is entitled upon such exercise pursuant to Section 1 or
otherwise.

18.2         Exercise.

(a)           Payment may be made either (i) in
cash of immediately available funds or by certified or official bank check
payable to the order of the Company equal to the applicable aggregate Exercise
Price, (ii) by delivery of this Warrant, or shares of Common Stock and/or
Common Stock receivable upon exercise of this Warrant in accordance with the
formula set forth in subsection (b) below, or (iii) by a combination of any of
the foregoing methods, for the number of Common Shares specified in such
Exercise Notice (as such exercise number shall be adjusted to reflect any
adjustment in the total number of shares of Common Stock issuable to the Holder
per the terms of this Warrant) and the Holder shall thereupon be entitled to
receive the number of duly authorized, validly issued, fully-paid and
non-assessable shares of Common Stock (or Other Securities) determined as provided
herein.

(b)           Notwithstanding any provisions herein
to the contrary, in the event that either (i) there is no effective
registration statement with respect to the shares of Common Stock issuable upon
exercise of this Warrant or (ii) an Event of Default (as defined in any of (x)
that certain Security and Purchase Agreement dated as of February 17, 2006
among the Holder, the Company and various subsidiaries of the Company, as
amended, restated, modified and/or supplemented from time to time, (y) that certain
10% Senior Subordinated Convertible Note, dated February 17, 2004 issued by the
Company to Amaranth Trading, L.L.C. in the original principal amount of
$1,229,919 and assigned to the Holder pursuant to that certain Note Sale
Agreement dated as of December 20, 2006 by and between Amaranth Trading L.L.C.
and the Holder, as amended, restated, modified and/or supplemented from time to
time and/or (z) that certain Secured Term Note, dated March 29, 2007, issued by
the Company to the Holder, as amended, restated, modified and/or supplemented
from time to time) has occurred and is continuing, if the Fair Market Value of
one share of Common Stock is greater than the Exercise Price (at the date of
calculation as set forth below), in lieu of exercising this Warrant for cash,
the Holder may elect to receive shares equal to the value (as determined below)
of this Warrant (or the portion thereof being exercised) by surrender of this
Warrant at the principal office of the Company together with the properly
endorsed Exercise Notice in which event the Company shall issue to the Holder a
number of shares of Common Stock computed using the following formula:

	
  X

  	
  =

  	
  Y(A-B)

  	
   

  
	
   

  	
   

  	
  A

  	
   

  

 

Where X =   the number of shares of Common Stock to be issued to
the Holder

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Y =                              the
number of shares of Common Stock purchasable under this Warrant or, if only a
portion of this Warrant is being exercised, the portion of this Warrant being
exercised (at the date of such calculation)

A =                            the
Fair Market Value of one share of the Company’s Common Stock (at the date of
such calculation)

B =                              the
Exercise Price per share (as adjusted to the date of such calculation)

19.           Effect of
Reorganization, Etc.; Adjustment of Exercise Price.

19.1         Reorganization,
Consolidation, Merger, Etc.  In case
at any time or from time to time, the Company shall (a) effect a
reorganization, (b) consolidate with or merge into any other person, or (c)
transfer all or substantially all of its properties or assets to any other
person under any plan or arrangement contemplating the dissolution of the
Company, then, in each such case, as a condition to the consummation of such a
transaction, proper and adequate provision shall be made by the Company whereby
the Holder, on the exercise hereof as provided in Section 1 at any time after
the consummation of such reorganization, consolidation or merger or the
effective date of such dissolution, as the case may be, shall receive, in lieu
of the Common Stock (or Other Securities) issuable on such exercise prior to
such consummation or such effective date, the stock and other securities and
property (including cash) to which such Holder would have been entitled upon
such consummation or in connection with such dissolution, as the case may be,
if such Holder had so exercised this Warrant, immediately prior thereto, all
subject to further adjustment thereafter as provided in Section 4.

19.2         Dissolution.  In the event of any dissolution of the
Company following the transfer of all or substantially all of its properties or
assets, the Company, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder pursuant to Section 3.1, or, if the Holder
shall so instruct the Company, to a bank or trust company specified by the
Holder and having its principal office in New York, NY as trustee for the
Holder.

19.3         Continuation
of Terms.  Upon any reorganization,
consolidation, merger or transfer (and any dissolution following any transfer)
referred to in this Section 3, this Warrant shall continue in full force and
effect and the terms hereof shall be applicable to the shares of stock and other
securities and property receivable on the exercise of this Warrant after the
consummation of such reorganization, consolidation or merger or the effective
date of dissolution following any such transfer, as the case may be, and shall
be binding upon the issuer of any such stock or other securities, including, in
the case of any such transfer, the person acquiring all or substantially all of
the properties or assets of the Company, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4.  In the event this Warrant does not continue
in full force and effect after the consummation of the transactions described
in this Section 3, then the Company’s securities and property (including 

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cash, where applicable) receivable by the Holder will be delivered to
the Holder or the Trustee as contemplated by Section 3.2.

20.           Extraordinary
Events Regarding Common Stock.  In
the event that the Company shall (a) issue additional shares of the Common
Stock as a dividend or other distribution on outstanding Common Stock or any
preferred stock issued by the Company, (b) subdivide its outstanding shares of
Common Stock, (c) combine its outstanding shares of the Common Stock into a
smaller number of shares of the Common Stock, then, in each such event, the
number of shares of Common Stock that the holder shall thereafter, on the
exercise hereof as provided in Section 1, be entitled to receive shall be
adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
number of issued and outstanding shares 
of Common Stock immediately after such Event, and (b) the denominator is
the number of issued and outstanding shares immediately prior to such Event.

21.           Certificate as to
Adjustments.  In each case of any
adjustment or readjustment in the shares of Common Stock (or Other Securities)
issuable on the exercise of this Warrant, the Company at its expense will
promptly cause its Chief Financial Officer or other appropriate designee to
compute such adjustment or readjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment or readjustment
and showing in detail the facts upon which such adjustment or readjustment is
based, including a statement of (a) the consideration received or receivable by
the Company for any additional shares of Common Stock (or Other Securities)
issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
and (c) the Exercise Price and the number of shares of Common Stock to be
received upon exercise of this Warrant, in effect immediately prior to such
adjustment or readjustment and as adjusted or readjusted as provided in this
Warrant.  The Company will forthwith mail
a copy of each such certificate to the holder and any warrant agent of the
Company (appointed pursuant to Section 11 hereof).

22.           Reservation of
Stock, Etc., Issuable on Exercise of Warrant.  The Company will at all times reserve and
keep available, solely for issuance and delivery on the exercise of this
Warrant, shares of Common Stock (or Other Securities) from time to time
issuable on the exercise of this Warrant.

23.           Assignment;
Exchange of Warrant.  Subject to
compliance with applicable securities laws, this Warrant, and the rights
evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”)
in whole or in part.  On the surrender
for exchange of this Warrant, with the Transferor’s endorsement in the form of
Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with
evidence reasonably satisfactory to the Company demonstrating compliance with
applicable securities laws, which shall include, without limitation, a legal
opinion from the Transferor’s counsel (at the Company’s expense) that such
transfer is exempt from the registration requirements of applicable securities
laws, the Company at its expense (but with payment by the Transferor of any
applicable transfer taxes) will issue and deliver to or on the order of the
Transferor thereof a new Warrant of like tenor, in the name of the Transferor
and/or the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”),
calling in the aggregate on the face or faces thereof for the number 

 6
 

of shares of
Common Stock called for on the face or faces of the Warrant so surrendered by
the Transferor.

24.           Replacement of
Warrant.  On receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant and, in the case of any such loss, theft or
destruction of this Warrant, on delivery of an indemnity agreement or security
reasonably satisfactory in form and amount to the Company or, in the case of
any such mutilation, on surrender and cancellation of this Warrant, the Company
at its expense will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

25.           Registration
Rights.  The Holder has been granted
certain registration rights by the Company. 
These registration rights are set forth in a Registration Rights
Agreement entered into by the Company and Holder dated as of the date hereof,
as the same may be amended, modified and/or supplemented from time to time.

26.           Maximum Exercise.  Notwithstanding anything herein to the
contrary, in no event shall the Holder be entitled to exercise any portion of
this Warrant in excess of that portion of this Warrant upon exercise of which
the sum of (1) the number of shares of Common Stock beneficially owned by the
Holder and its Affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unexercised portion of
the Warrant or the unexercised or unconverted portion of any other security of
the Holder subject to a limitation on conversion analogous to the limitations
contained herein) and (2) the number of shares of Common Stock issuable upon
the exercise of the portion of this Warrant with respect to which the
determination of this proviso is being made, would result in beneficial
ownership by the Holder and its Affiliates of any amount greater than 9.99% of
the then outstanding shares of Common Stock (whether or not, at the time of
such exercise, the Holder and its Affiliates beneficially own more than 9.99%
of the then outstanding shares of Common Stock). As used herein, the term “Affiliate”
means any person or entity that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with a
person or entity, as such terms are used in and construed under Rule 144 under
the Securities Act.   For purposes of the second preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulations 13D-G thereunder,
except as otherwise provided in clause (1) of such sentence.  For any
reason at any time, upon written or oral request of the Holder, the Company
shall within one (1) business day confirm orally and in writing to the Holder
the number of shares of Common Stock outstanding as of any given date.  The limitations set forth herein (x) may be
waived by the Holder upon provision of no less than sixty-one (61) days prior
notice to the Company and (y) shall automatically become null and void
following notice to the Company upon the occurrence and during the continuance
of an Event of Default (as defined in any of (x) that certain Security and
Purchase Agreement dated as of February 17, 2006 among the Holder, the Company
and various subsidiaries of the Company, as amended, restated, modified and/or
supplemented from time to time, (y) that certain 10% Senior Subordinated Convertible
Note, dated February 17, 2004 issued by the Company to Amaranth Trading, L.L.C.
in the original principal amount of $1,229,919 and assigned to the Holder
pursuant to that certain Note Sale Agreement dated as of December 20, 2006 by
and between Amaranth Trading L.L.C. and the 

 7
 

Holder, as
amended, restated, modified and/or supplemented from time to time and/or (z)
that certain Secured Term Note, dated March 29, 2007, issued by the Company to
the Holder, as amended, restated, modified and/or supplemented from time to
time).

27.           Warrant Agent.  The Company may, by written notice to the
each Holder of the Warrant, appoint an agent for the purpose of issuing Common
Stock (or Other Securities) on the exercise of this Warrant pursuant to Section
1, exchanging this Warrant pursuant to Section 7, and replacing this Warrant
pursuant to Section 8, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.

28.           Transfer on the
Company’s Books.  Until this Warrant
is transferred on the books of the Company, the Company may treat the
registered holder hereof as the absolute owner hereof for all purposes,
notwithstanding any notice to the contrary.

29.           Rights of
Shareholders.  No Holder shall be
entitled to vote or receive dividends or be deemed the holder of the shares of
Common Stock or any other securities of the Company which may at any time be
issuable upon exercise of this Warrant for any purpose (the “Warrant Shares”), nor shall anything contained herein be
construed to confer upon the Holder, as such, any of the rights of a
shareholder of the Company or any right to vote for the election of directors
or upon any matter submitted to shareholders at any meeting thereof, or to give
or withhold consent to any corporate action (whether upon the recapitalization,
issuance of shares, reclassification of shares, change of nominal value,
consolidation, merger, conveyance or otherwise) or to receive notice of
meetings, or to receive dividends or subscription rights or otherwise, in each
case, until the earlier to occur of (x) the date of actual delivery to Holder
(or its designee) of the Warrant Shares issuable upon the exercise hereof or
(y) the third business day following the date such Warrant Shares first become
deliverable to Holder, as provided herein.

30.           Notices, Etc.  All notices and other communications from the
Company to the Holder shall be mailed by first class registered or certified
mail, postage prepaid, at such address as may have been furnished to the
Company in writing by such Holder or, until any such Holder furnishes to the
Company an address, then to, and at the address of, the last Holder who has so
furnished an address to the Company.

31.           Miscellaneous.  This Warrant and any term hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAWS.  ANY ACTION BROUGHT
CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY
IN STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF
NEW YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION
AND BRING AN ACTION OUTSIDE THE STATE OF NEW YORK.  The individuals executing this Warrant on
behalf of the Company agree to submit to the jurisdiction of such courts and
waive trial by jury.  The prevailing
party shall be entitled to recover from the other party its reasonable
attorneys’ fees and costs.  In the event
that any provision of this 

 8
 

Warrant is invalid
or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law.  Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or
enforceability of any other provision of this Warrant.  The headings in this Warrant are for purposes
of reference only, and shall not limit or otherwise affect any of the terms
hereof.  The invalidity or unenforceability
of any provision hereof shall in no way affect the validity or enforceability
of any other provision hereof.  The
Company acknowledges that legal counsel participated in the preparation of this
Warrant and, therefore, stipulates that the rule of construction that
ambiguities are to be resolved against the drafting party shall not be applied
in the interpretation of this Warrant to favor any party against the other
party.

[BALANCE OF PAGE
INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Company has executed this Warrant as of the
date first written above. 

	
  

  	
  MICRO COMPONENT TECHNOLOGY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Gower

  
	
   

  	
   

  	
  Name:

  	
  Roger Gower

  
	
  /s/ Lori Faber

  	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 

 10

EXHIBIT A

FORM OF SUBSCRIPTION

(To Be Signed Only On Exercise Of Warrant)

TO:                            Micro
Component Technology, Inc.

_____________________

_____________________

Attention:              Chief
Financial Officer

The undersigned, pursuant to the provisions set forth in the attached
Warrant (No.____), hereby irrevocably elects to purchase (check applicable
box):

________             ________
shares of the common stock covered by such warrant; or

________             the maximum
number of shares of common stock covered by such warrant pursuant to the cashless
exercise procedure set forth in Section 2.

The undersigned herewith makes payment of the full Exercise Price for
such shares at the price per share provided for in such Warrant, which is
$___________.  Such payment takes the
form of (check applicable box or boxes):

________             $__________
in lawful money of the United States; and/or

________             the
cancellation of such portion of the attached Warrant as is exercisable for a
total of _______ shares of Common Stock (using a Fair Market Value of $_______
per share for purposes of this calculation); and/or

________             the
cancellation of such number of shares of Common Stock as is necessary, in
accordance with the formula set forth in Section 2.2, to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable
pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned requests that the certificates for
such shares be issued in the name of, and delivered to
______________________________________________ whose address is
______________________________ _____________________________________________.

The undersigned represents and warrants that all offers and sales by
the undersigned of the securities issuable upon exercise of the within Warrant
shall be made pursuant to registration of the Common Stock under the Securities
Act of 1933, as amended (the “Securities Act”) or pursuant to an exemption from
registration under the Securities Act.

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature must conform to name of holder as
  specified on the face of the Warrant)

  
	
   

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 11

EXHIBIT B

FORM OF TRANSFEROR
ENDORSEMENT

(To Be Signed Only On Transfer Of Warrant)

For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading “Transferees” the
right represented by the within Warrant to purchase the percentage and number
of shares of Common Stock of Micro Component Technology, Inc. into which the
within Warrant relates specified under the headings “Percentage Transferred”
and “Number Transferred,” respectively, opposite the name(s) of such person(s)
and appoints each such person Attorney to transfer its respective right on the
books of Micro Component Technology, Inc. with full power of substitution in
the premises.

	
  Transferees

  	
   

  	
   

  	
   

  	
   

  	
  Address

  	
   

  	
   

  	
   

  	
  Percentage

  Transferred

  	
   

  	
   

  	
   

  	
  Number

  Transferred

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
																						

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Signature must conform
  to name of holder as specified on the face of the Warrant)

  
	
   

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  SIGNED IN THE PRESENCE
  OF:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED AND AGREED:

  	
   

  	
   

  
	
  [TRANSFEREE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Name)

  	
   

  	
   

  

 

IRREVOCABLE PROXY

For good and valuable consideration, receipt of which is hereby
acknowledged, Laurus Master Fund, Ltd. (“Laurus”), hereby appoints Micro
Component Technology, Inc. (the “Proxy Holder” or the “Company”), with a
mailing address at 2340 West County Road C, St. Paul, Minnesota 55113-2528,
with full power of substitution, as proxy, to vote all shares of Common Stock
of the Company, now or in the future owned by Laurus to the extent such shares
are issued to Laurus upon its exercise of (a) the Common Stock Purchase Warrant
(the “Warrant”), issued by the Company to Laurus as of the date hereof and (b)
all other warrants and/or options issued by the Company in favor of Laurus with
an exercise price equal to or less than the greater of $0.01 and the par value
of the Company’s common stock (the “Other Options and Warrants”) (collectively,
the “Shares”).

This proxy is irrevocable and coupled with an interest.  Upon the sale or other transfer of the
Shares, in whole or in part, or the assignment of the Warrant or any of the
Other Options and Warrants, this proxy shall automatically terminate (x) with
respect to such sold or transferred Shares at the time of such sale and/or
transfer, and (y) in the case of an assignment of the Warrant and/or Other Options
and Warrants, at the time of such assignment in respect of the Shares issuable
upon exercise of such assigned Warrant and/or Other Options and Warrants, in
each case, without any further action required by any person.

Laurus shall use its best efforts to forward to Proxy
Holder within two (2) business days following Laurus’ receipt thereof, at the
address for Proxy Holder set forth above, copies of all materials received by
Laurus relating, in each case, to the solicitation of the vote of shareholders
of the Company.

This proxy shall remain in effect with respect to the Shares of the
Company during the period commencing on the date hereof and continuing until
the payment in full of all obligations and liabilities owing by the Company to
Laurus (as the same may be amended, restated, extended or modified from time to
time).

IN WITNESS WHEREOF, the undersigned has executed this irrevocable proxy
as of the 29th day of March 2007.

	
   

  	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Grin

  
	
   

  	
   

  	
  Name: David Grin

  
	
   

  	
   

  	
  Title: Director

  

 

 13Exhibit 10.4

AMENDMENT

This AMENDMENT (this “Amendment”) is entered into by and between
MICRO COMPONENT TECHNOLOGY, INC., a Minnesota corporation (the “Parent”), and LAURUS MASTER FUND, LTD., a
Cayman Islands company (“Laurus”)
as of March 29, 2007, for the purpose of amending the terms of (i) that certain
Security and Purchase Agreement, dated as of February 17, 2006, by and among
the Parent, such other
subsidiaries of MCTI which hereafter become a party to such Security and
Purchase Agreement (together with the Parent, collectively, each a “Company”
and collectively, the “Companies”) and Laurus (as amended, restated,
modified and/or supplemented from time to time, the ”Security and Purchase Agreement”), (ii)
that certain Secured Non-Convertible Term Note, dated February 17, 2006 issued
by the Parent to Laurus in the original principal amount of $5,250,000 (as
amended, restated, modified and/or supplemented from time to time, the ”Term Note”), (iii) that certain 10% Senior Subordinated
Convertible Note, dated February 17, 2004 issued by the Parent to Amaranth
Trading, L.L.C. in the original principal amount of $1,229,919 and assigned to
Laurus pursuant to that certain Note Sale Agreement dated as of December 20,
2006 by and between Amaranth Trading L.L.C. and Laurus (as amended, restated,
modified and/or supplemented from time to time, the ”10% Note”), (iv)
that certain Common Stock Purchase Warrant, dated March 9, 2004, issued by the
Parent to Laurus and exercisable into 400,000 shares of the Parent’s common stock
(as amended, restated, modified and/or supplemented from time to time, the “March
2004 Warrant”), (v) that certain Option, dated April 29, 2005, issued by the
Parent to Laurus and exercisable into 2,556,651 shares of the Parent’s common
stock (as amended, restated, modified and/or supplemented from time to time,
the “April 2005 Option”), (vi) that certain Common Stock Purchase Warrant,
dated January  28,  2005, issued by the Parent to Laurus and
exercisable into 150,000 shares of the Parent’s common stock (as amended,
restated, modified and/or supplemented from time to time, the “January 2005
Warrant”) and (vii) that certain Warrant, dated February 17, 2006, issued by
the Parent to Laurus and exercisable into 2,500,000 shares of the Parent’s
common stock (as amended, restated, modified and/or supplemented from time to
time, the “February 2006 Warrant”and, together with the Security and Purchase
Agreement, the Term Note, the 10% Note, the March 2004 Warrant, the April 2005
Option and the January 2005 Warrant , the “Documents”
and each, a “Document”).  Capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Security and
Purchase Agreement, the Term Note, the 10% Note, the March 2004 Warrant, the
April 2005 Option, the January 2005 Warrant and the February 2006 Warrant, as
applicable.

WHEREAS, the Parent and
Laurus have agreed to make certain changes to the Documents as set forth
herein;

NOW, THEREFORE, in
consideration of the above, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

 1
 

1.         The definition of “Accounts
Availability” set forth in the Security and Purchase Agreement is hereby
deleted in its entirety and the following new definition of “Accounts
Availability” is hereby inserted in lieu thereof:

““Accounts Availability” means the sum of (i) ninety
percent (90%) of the net face amount of each Company’s Eligible Accounts plus
(ii) the lesser of (x) fifty percent (50%) of the value of each Company’s
Eligible Inventory (calculated on the basis of the lower of cost or market, on
a first-in, first out basis) and (y) One Million Five Hundred Thousand Dollars
($1,500,000) plus (iii) thirty percent (30%) of the Eligible Purchase Orders
not to exceed the lesser of (A) fifty percent (50%) of the value of each
Company’s Eligible Inventory (calculated on the basis of the lower of cost or
market, on a first-in, first out basis) and (B) One Million Five Hundred
Thousand Dollars ($1,500,000), minus amounts currently borrowed under
subsection (ii) of this definition above.”

2.         Section 19(n) of the
Security and Purchase Agreement is hereby deleted in its entirety and the
following new Section 19(n) is hereby inserted in lieu thereof:

“(n) an Event of Default
or similar term shall occur under, and as defined in, (i) any Note or any other
Ancillary Agreement, (ii) that certain Securities Purchase Agreement, dated as
of March 29, 2007, by and between the Parent and Laurus (as amended, restated,
modified and/or supplemented from time to time, the “March 2007 Purchase
Agreement”), (iii) any Related Agreement (as defined in the March 2007 Purchase
Agreement), (iv) that certain 10% Senior Subordinated Convertible Note, dated
February 17, 2004 issued by the Parent to Amaranth Trading, L.L.C. in the
original principal amount of $1,229,919 and assigned to Laurus pursuant to that
certain Note Sale Agreement dated as of December 20, 2006 by and between
Amaranth Trading L.L.C. and Laurus (as amended, restated, modified and/or
supplemented from time to time, the ”10% Note”) and/or (vi) all documents, instruments and
agreements related to the documents, instruments and agreements referred to in
the immediately preceding clauses (i) through (v), inclusive.”

3.         Section 1.3 of the Term
Note is hereby amended by deleting the date “March 1, 2007” set forth therein
and inserting the date “March 3, 2008” in lieu thereof.

4.
        Section 2(a) of the 10% Note is
hereby amended by deleting the date “December 24, 2006” set forth therein and
inserting the date “March 31, 2008” in lieu thereof.

5.
        Section 9 of the 10% Note is
hereby amended by adding a new clause (l) at the end thereof:

“(l) an Event of Default
or similar term shall occur under, and as defined in, (i) that certain
Securities Purchase Agreement, dated as of March 29, 2007, by and between the
Company and Laurus (as amended, restated, modified and/or supplemented from
time to time, the “March 2007 Purchase Agreement”), (ii) any Related Agreement
(as defined in the March 2007 Purchase Agreement), (iii) that certain Security
and Purchase 

 2
 

Agreement, dated as of February 17, 2006, by and among
the Company, such other
subsidiaries of Company which become a party to such Security and Purchase
Agreement and Laurus (as amended, restated, modified and/or supplemented
from time to time, the “Security and Purchase Agreement”), (iv) the Ancillary
Agreements referred to in, and defined in, the Security and Purchase Agreement,
and/or (v) all documents, instruments and agreements related to the documents,
instruments and agreements referred to in the immediately preceding clauses (i)
through (iv), inclusive.”

6.             Effective upon the Waiver Effective
Date (as defined below), each of Section 10 of the March 2004 Warrant, Section
10 of the January 2005 Warrant, Section 1.1 of the April 2005 Option and
Section 1.1(a) of the February 2006 Warrant is hereby deleted in its entirety
and the following new Sections 10, 1.1 and 1.1(a), as the case may be, is
inserted in lieu thereof:

“Maximum Exercise.  Notwithstanding anything herein to the
contrary, in no event shall the Holder be entitled to exercise any portion of
this Warrant in excess of that portion of this Warrant upon exercise of which
the sum of (1) the number of shares of Common Stock beneficially owned by the
Holder and its Affiliates (other than shares of Common Stock which may be
deemed beneficially owned through the ownership of the unexercised portion of
the Warrant or the unexercised or unconverted portion of any other security of
the Holder subject to a limitation on conversion analogous to the limitations
contained herein) and (2) the number of shares of Common Stock issuable upon
the exercise of the portion of this Warrant with respect to which the
determination of this proviso is being made, would result in beneficial
ownership by the Holder and its Affiliates of any amount greater than 9.99% of
the then outstanding shares of Common Stock (whether or not, at the time of
such exercise, the Holder and its Affiliates beneficially own more than 9.99%
of the then outstanding shares of Common Stock). As used herein, the term “Affiliate” means any person or entity that, directly or
indirectly through one or more intermediaries, controls or is controlled by or
is under common control with a person or entity, as such terms are used in and
construed under Rule 144 under the Securities Act.   For purposes of the
second preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended, and Regulations 13D-G thereunder, except as otherwise provided in
clause (1) of such sentence.  For any
reason at any time, upon written or oral request of the Holder, the Company
shall within one (1) business day confirm orally and in writing to the Holder
the number of shares of Common Stock outstanding as of any given date.
 The limitations set forth herein (x) may be waived by the Holder upon
provision of no less than sixty-one (61) days prior written notice to the Company
and (y) shall automatically become null and void following notice to the
Company upon the occurrence and during the continuance of an Event of Default
(as defined in any of (x) that certain Security and Purchase Agreement dated as
of February 17, 2006 among the Holder, the Company and various subsidiaries of
the Company, as amended, restated, modified and/or supplemented from time to
time, (y) that certain 10% Senior Subordinated Convertible Note, dated February
17, 2004 issued by the Company to Amaranth Trading, L.L.C. in the original
principal amount of $1,229,919 and assigned to the Holder pursuant to that
certain Note Sale Agreement dated as of December 20, 2006 by and between
Amaranth Trading L.L.C. and the Holder, as amended, restated, modified and/or supplemented
from time to time and/or (z) that certain Secured Term Note, dated March 29,
2007, issued by the Company to the Holder, as amended, restated, modified
and/or supplemented from time to time).”

 3
 

7.             The Parent and Laurus agree that, upon execution of this
Amendment by the Parent and Laurus, the Parent will be deemed to have received
notice from Laurus of Laurus’ waiver of the 4.99% conversion limitation set
forth in Section 10 of the Warrant, which waiver shall become effective on the
76th day following the date hereof (the “Waiver Effective Date”).

8.             Section 1.1(b) of the February 2006
Warrant is hereby amended by deleting said Section in its entirety and
inserting the following new Section 1.1(b) in lieu thereof:

“Restrictions.  Notwithstanding anything to the contrary
contained herein, the Holder hereby agrees that, so long as no Event of Default
(as defined in any of (x) that certain Security and Purchase Agreement dated as
of February 17, 2006 among the Holder, the Company and various subsidiaries of
the Company, as amended, restated, modified and/or supplemented from time to
time, (y) that certain 10% Senior Subordinated Convertible Note, dated February
17, 2004 issued by the Company to Amaranth Trading, L.L.C. in the original
principal amount of $1,229,919 and assigned to the Holder pursuant to that
certain Note Sale Agreement dated as of December 20, 2006 by and between
Amaranth Trading L.L.C. and the Holder, as amended, restated, modified and/or
supplemented from time to time and/or (z) that certain Secured Term Note, dated
March 29, 2007, issued by the Company to the Holder, as amended, restated,
modified and/or supplemented from time to time) has occurred and is continuing,
(i) during the period on or after the Issue Date and prior to the date that is
the one year anniversary of the Issue Date, it shall not sell any Common Stock
acquired upon exercise of this Warrant (such Common Stock, “Exercised Common
Stock”) and (ii) at any time on or after the one year anniversary of the Issue
Date, the Holder shall not, on any trading day, be permitted to sell Exercised
Common Stock in excess of twenty percent (20%) of the aggregate number of
shares of the Common Stock traded on such trading day.”

9.             The Parent and Laurus hereby agree that the Demo Equipment
(as defined in that certain Securities Purchase Agreement, dated as of March
29, 2007, by and between the Parent and Laurus, as amended, restated, modified
and/or supplemented from time to time) shall not be included within the
definition of “Eligible Inventory” (as defined in the Security and Purchase
Agreement).

10.           This Amendment shall be effective as
of the date hereof following the execution of same by each of the Parent and
Laurus.

11.           Except as specifically set forth in
this Amendment, there are no other amendments to any of the Documents, and all
of the other forms, terms and provisions of each of the Documents shall remain
in full force and effect.

 4
 

12.       The Parent hereby represents and warrants
to Laurus that as of the date hereof all representations, warranties and
covenants made by the Parent in connection with the Documents and the agreement
related thereto are true, correct and complete and all of Parent’s covenant
requirements set forth in such Documents and the agreements related thereto
have been met.  The Parent understands
that the Parent has an affirmative obligation to make prompt public disclosure
of material agreements and material amendments to such agreements. It is the
Parent’s determination that this Amendment is material.  The Parent agrees to file an 8-K within the
period prescribed by the Securities and Exchange Commission.

13.       This Amendment shall be binding upon the
parties hereto and their respective successors and permitted assigns and shall
inure to the benefit of and be enforce­able by each of the parties hereto and
its successors and permitted assigns.  THIS AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  This Amendment may be executed in any number
of counterparts, each of which shall be an original, but all of which shall
constitute one instrument.

[The remainder of this page is
intentionally blank]

 5
 

IN
WITNESS WHEREOF, each of the Parent and Laurus has caused
this Amendment to be signed in its name effective as of this 29th day of March
2007.

	
  

  	
  MICRO COMPONENT TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Roger Gower

  
	
   

  	
   

  	
  Name:

  	
  Roger Gower

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ David
  Grin

  
	
   

  	
  Name:

  	
  David Grin

  
	
   

  	
  Title:

  	
  Director

  

 

 6

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