Document:

exv10w19

 

Exhibit 10.19

LEASE MODIFICATION AGREEMENT

     THIS LEASE MODIFICATION AGREEMENT (this “Agreement”) is made and entered into to be effective
as of the 1st day of March, 2007, by and between BROOKS PROPERTIES I, LLC, a Delaware limited
liability company (“Landlord”), and EFTC OPERATING CORP., a Delaware corporation (“Tenant”).

     WHEREAS, Brooks, LLC, as landlord, and EFTC Corporation, a Colorado corporation, as tenant,
entered into that certain Lease Agreement dated April [the exact day is left blank], 2001, as
amended (collectively, the “Lease”), covering the Leased Premises located at 104 Glenn Street,
Lawrence, MA;

     WHEREAS, EFTC Corporation, a Colorado corporation, changed its name to EFTC Operating
Corporation;

     WHEREAS, effective March 7, 2002, EFTC Operating Corporation, a Colorado corporation, merged
with and into EFTC Operating Corp., a Delaware corporation;

     WHEREAS, Landlord is now the owner and holder of the landlord’s right, title and interest
under the Lease, and Tenant is now the owner and holder of the tenant’s right, title and interest
under the Lease;

WHEREAS, the term of the Lease expires on March 31, 2011 (the “Expiration Date”); and

     WHEREAS, Landlord and Tenant mutually desire to modify the Lease prior to the Expiration Date,
subject to and upon the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants between the parties
contained herein, the parties hereby agree as follows:

     1. Vacated Premises; Newly Occupied Premises. On or before the Completion Date (as
that term is defined in Section 3 below), Tenant will vacate fifty six thousand three hundred
twenty five square feet (56,325) of the Premises (the “Vacated Premises”) and continue to occupy
sixteen thousand six hundred seventy five (16,675) square feet of the Premises (the “Newly Occupied
Premises”). The Newly Occupied Premises are shown as “A” in Exhibit A and the Vacated Premises are
shown as “B” in Exhibit A. Upon vacating the Vacated Premises, Tenant’s obligations, duties and
liabilities with respect to the Vacated Premises shall terminate. From and after March 1, 2007,
Tenant shall not be obligated to pay base rent or additional rent with respect to the Vacated
Premises. From and after March 1, 2007, monthly base rent for the Newly Occupied Premises shall be
$12,849.00, subject to adjustment in base rent, if any, as expressly provided in the Lease.
Effective as of March 1, 2007, Tenant’s adjusted Pro Rata Share (relative to the leasing of the
Newly Occupied Premises) shall be 8.10%.

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     2. Modification of Lease; Lease Modification Payment. The Lease shall be modified as
of March 1, 2007, subject to the terms of this Agreement. Tenant shall pay to Landlord an amount
equal to $1,080,205 in consideration for Landlord’s agreement to modify the Lease (the “Lease
Modification Payment”). On February 27, 2007, Tenant paid $56,250.00 for March 2007 rent pursuant
to the Lease. Landlord agrees to allocate $43,401.00 of this payment to reduce the Lease
Modification Payment, resulting in a net payment to Landlord of $1,036,804.00. The net Lease
Modification Payment is due no later than April 2, 2007, and in the event Tenant fails to pay the
net Lease Modification Payment by such date, this Lease Modification Agreement and the agreements
contained herein shall be null and void as if the Lease were never modified.

     3. Improvements. Tenant will pay for the Improvements and costs required to demise
Tenant’s Newly Occupied Premises. A description of those improvements and a summary of those costs
is included as Exhibit B. Landlord will allow Tenant to utilize a portion of the Vacated Premises
(at no charge to Tenant) for the purpose of minimizing disruption to Tenant’s manufacturing
operations during the construction of such improvements. The date when regulatory approvals are
obtained to occupy the Newly Occupied Premises is referred to herein as the “Completion Date.”

     4. Removal of Tenant’s Property; Repair of Damage. Within ten (10) days of the
Completion Date, Tenant shall remove all of Tenant’s furniture, equipment, trade fixtures and
inventory from the Vacated Premises and repair any material damage to the Vacated Premises
including that caused by Tenant’s removal of its furniture, equipment, trade fixtures and inventory
(it being the understanding of the parties that Tenant shall not be required to repair minor
damages to the Leased Premises, including dents, nail holes, scrapes and scratches).

     5. Additional Rent. Notwithstanding anything in this Agreement to the contrary,
Tenant (to the extent of any deficiencies) and Landlord (to the extent of any overpayments) shall
remain liable for all year-end adjustments relative to the calendar year ending December 31, 2006,
as provided in Sections 7.4 and 7.5 of the Lease, with respect to Tenant’s Pro Rata Share of
Operating Costs and insurance costs, which obligations shall survive the termination of the Lease.
Such adjustments shall be paid at the time, in the manner and otherwise in accordance with the
terms of the Lease, unless otherwise specified herein. Any refunds resulting from Tenant’s
reduction, protest or refund proceedings under Section 7.2 of the Lease shall belong to Tenant,
which shall survive the termination of the Lease.

     6. Defined Terms. Any capitalized term not defined herein shall have the meaning
assigned to it in the Lease.

     7. Entire Agreement. This Agreement contains all of the agreements of the parties
hereto with respect to the subject matter hereof and no prior agreement, understanding, or
representation pertaining to any such matter shall be effective for any purpose. No provision of
the Lease or this Agreement may be amended or added to except by an express agreement in writing
signed by the parties hereto or their respective successors in interest.

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     8. Counterparts. For convenience of the parties hereto, this Agreement may be
executed in any number of counterparts with the same effect as if all parties hereto had signed the
same document. All such counterparts shall be construed together and shall constitute one
instrument, but in making proof hereof it shall only be necessary to produce one such counterpart.

     9. Invalidity. If any covenant, condition, or provision herein contained is held to
be invalid by final judgment of any court of competent jurisdiction, the invalidity of such
covenant, condition, or provision shall not in any way affect any other covenant, condition, or
provision herein contained.

     10. Binding Contract. The terms and provisions hereof shall be binding upon and
inure to the benefit of the parties hereto, their transferees, representative, successors and
assigns.

     11. Authority. Tenant represents to Landlord as follows: Tenant has full right and
authority to enter into this Agreement; Tenant’s execution of this Agreement does not result in the
violation of any law or the breach of any agreement to which Tenant may be bound; and upon
execution by Tenant and Landlord, this Agreement shall be an enforceable agreement binding upon
Tenant in accordance with the terms hereof. Landlord represents to Tenant as follows: Landlord has
full right and authority to enter into this Agreement; Landlord’s execution of this Agreement does
not result in the violation of any law or the breach of any agreement to which Landlord may be
bound; and upon execution by Tenant and Landlord, this Agreement shall be an enforceable agreement
binding upon Landlord in accordance with the terms hereof.

     12. Governing Law. This Agreement and the rights and duties of the parties hereto
shall be controlled by and interpreted in accordance with the laws of the State in which the Leased
Premises are located.

     13. Security Deposit. Landlord will return a portion of the Security Deposit in the
amount of $26,540.00 to Tenant no later than 30 days after the occurrence of the Completion Date
provided that any repairs required to be made by Tenant have been made.

     14. Representations. As of the date of this Agreement, neither Landlord nor Tenant
are in breach or default of any of their respective duties or obligations under the Lease. As of
the date of this Agreement, Landlord owns the Property and the Leased Premises, and Landlord is not
prohibited from entering into this Agreement or from modifying the Lease. Landlord hereby confirms
that Landlord holds no liens or security interests in any of Tenant’s property, equipment or
inventory. Without limiting the foregoing, Landlord hereby confirms that Tenant has paid Base Rent
and Additional Rent under the Lease through and including March 31, 2007.

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement as of the date first
above written.

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LANDLORD:

BROOKS PROPERTIES I, LLC, a Delaware limited liability company

By: /s/ Joseph Friedman

Name: Joseph Friedman

Title: Authorized Agent

TENANT:

EFTC OPERATING CORP., a Delaware corporation

By: /s/ James A. Doran

Name: James A. Doran

Title: Treasurer

4Exhibit 10.1

    Exhibit
      10.1

     

     

    
      ALLONGE
        TO 6% SENIOR SECURED CONVERTIBLE NOTES DUE 2007-2008 

      DATED
        JULY 21, 2006

    

     

    Reference
      is hereby made to the 6% Senior Secured Convertible Notes Due 2007-2008 of
      eMagin Corporation dated July 21, 2006 (the “Notes”). Terms used herein and not
      otherwise defined herein shall have the meaning set forth in the
      Notes.

     

    The
      Company and the holder set forth on the signature page attached hereto hereby
      agree to amend
      the
      terms of the Notes in accordance with the following terms:

     

    1.The
      first
      sentence of Section 3.2 of the Notes shall be amended in its entirety to
      provide
      as
      follows:

     

    “The
      Company shal at all times maintain Cash and Cash Equivalents
      Balances
      at least equal to $600,000; provided, however, that the Company
      may maintain Cash and Cash Equivalents Balances of only $200,000
      from the date of this Allonge through and including July 21,
      2007.
      Subsequent to July 21, 2007, the Company must maintain Cash and Cash Equivalents
      Balances of at least equal to $600,000.”

     

    2.
      The
      undersigned hereby confirms that the execution of this letter agreement shall
      serve as the undersigned’s waiver of any previous claim that may have otherwise
      been made regarding the potential breach by the Company of the Minimum Cash
      Balance requirement as set forth in Section 3.2 of the Notes.

     

    
      	3.  	
              The
                parties hereto acknowledge and agree that the breach of this Allonge
                would
                cause irreparable damage to the non-breaching parties and that the
                non-breaching parties will not have an adequate remedy at law. Therefore,
                the obligations of each of the parties under this Allonge, shall
                be
                enforceable by a decree of specific performance issued by any court
                of
                competent jurisdiction, and appropriate injunctive relief may be
                applied
                for and granted in connection therewith. Such remedies shall, however,
                be
                cumulative and not exclusive and shall be in addition to any other
                remedies which any party may have under this Allonge or
                otherwise.

            

    

     

    
      	4.  	
              This
                Allonge may be executed in counterparts, each of which when executed
                by
                any party will be deemed to be an original and all of which counterparts
                will together constitute one and the same agreement. Delivery of
                executed
                copies of this Allonge by telecopier will constitute proper
                delivery.

            

    

     

    
      	5.  	
              This
                Allonge is irrevocable and shall be binding upon and inure to the
                benefit
                of the parties and their respective successors and permitted assigns.
                Except as set forth herein, all other provisions of the Notes shall
                remain
                in full force and effect.

            

    

     

    
      	                          
              6.	
              This
                Allonge will come into force immediately upon the date set forth
                below.

            

    

     

     

     

    

      ALLONGE
        TO 6% SENIOR SECURED CONVERTIBLE NOTES DUE 2007-2008 DATED JULY 21,
        2006

    

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
          

        

      

    

    
      	 	 	 
	 	EMAGIN
              CORPORATION
	 
 	 
 	 
 
	Date: May
              10, 2007	By:  	/s/ K.
              C. Park
	 	
              
Name
              Dr. K. Park
	 	Title:
              Interim Chid Executive Officer

    

     

     

    AGREED
      AND ACCEPTED:

     

    ALEXANDRA
      GLOBAL MASTER FUND LTD.

     

    By:
      ALEXANDRA INVESTMENT MANAGEMENT LLC, as Investment Advisor

     

    
       

    

    By: 
      /s/ Mikhail Filimonov
      

    

    Name:
      Mikhail Filimonov

    Title:
      Chairman and Chief Executive Officer

     

     

    RAINBOW
      GATE CORPORATION

     

    By:
      /s/
      Mortimer D.A. Sackler

    
      
        

      

    

    Name:
      Mortimer D.A. Sackler

    Title:
      Investment Manager

     

    GINOLA
      LIMITED

     

     

      By:
        /s/
        Jonathan Withe

      
        

      

    

    Name:Jonathan
      Withe

    Title:
      Director

     

    STILLWATER
      LLC

     

     

     

    By:  /s/
      Mortimer D.A. Sackler 

    
      

    

    Name:
      Mortimer D.A. Sackler 

    Title:
      President

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