Document:

Unassociated Document

    

    EXHIBIT
      10.2

    GlenRose
      Instruments Inc.

    

    4%
      Convertible Debenture Due 2013

    Investor
      Rights Agreement

    

     

    To
      the
      purchaser of a Debenture (as such term is defined below) of GlenRose Instruments
      Inc., a Delaware corporation (the "Company"), identified on the signature page
      of this Agreement.

    

    Dear
      Sir
      or Madam:

    

    This
      will
      confirm that in consideration of your purchase of the Debenture, the Company
      covenants and agrees with you as follows:

     

    

    1. Certain
      Definitions.
      As used
      in this Agreement, the following terms shall have the following respective
      meanings:

    

    “2008
      Private Placement”
shall
      mean the private placement of the Debentures conducted by the Company commencing
      ____________, 2008.

    

    “Commission”
      shall
      mean the Securities and Exchange Commission, or any other federal agency at
      the
      time administering the Securities Act.

    

    “Common
      Stock”
      shall
      mean the Common Stock, $0.01 par value per share, of the Company, as constituted
      as of the date of this Agreement.

    

    “Conversion
      Shares”
shall
      mean shares of Common Stock issued upon conversion of the
      Debentures.

    

    “Debentures”
shall
      mean the 4% Convertible Debentures Due 2013 of the Company issued pursuant
      to
      the Subscription Agreement.

    

    “Exchange
      Act”
      shall
      mean the Securities Exchange Act of 1934, as amended, or any similar federal
      statute, and the rules and regulations of the Commission thereunder, all as
      the
      same shall be in effect at the time.

    

    “Holder”
shall
      mean each purchaser of a Debenture pursuant to the Subscription Agreement and
      each transferee of such securities or any Registrable Securities to whom any
      such securities or Registrable Securities are transferred in compliance with
      Section 2 of this Agreement.

    

    “Outstanding
      Options”
shall
      have the meaning set forth in Section 10.

    

    “Registration
      Expenses”
      shall
      mean the expenses so described in Section 6.

    

    “Registrable
      Securities”
      shall
      mean the Conversion Shares or any shares issued upon any stock split, stock
      dividend, recapitalization or similar event with respect to such Conversion
      Shares, excluding Conversion Shares which have been (a) registered under the
      Securities Act pursuant to an effective registration statement filed thereunder
      and disposed of in accordance with the registration statement covering them,
      or
      (b) publicly sold pursuant to Rule 144 under the Securities
      Act.

    
      
         

      

      
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    “Securities
      Act”
      shall
      mean the Securities Act of 1933, as amended, or any similar federal statute,
      and
      the rules and regulations of the Commission thereunder, all as the same shall
      be
      in effect at the time.

    

    “Selling
      Expenses”
      shall
      mean the expenses so described in Section 6.

    

    “Subscription
      Agreement”
shall
      mean the Subscription Agreement dated as of _____________, 2008 with respect
      to
      your purchase of the Debentures 

    

    2. Restrictions
      on Transfer.
      

    

    (a)
      The
      Holder agrees not to make any disposition of all or any portion of the
      Registrable Securities unless and until:

     

    (i) there
      is
      then in effect a registration statement under the Securities Act covering such
      proposed disposition and such disposition is made in accordance with such
      registration statement; or

     

    (ii) (A) the
      transferee has agreed in writing to be bound by the terms of this Agreement,
      (B) the Holder shall have notified the Company of the proposed disposition
      and shall have furnished the Company with a detailed statement of the
      circumstances surrounding the proposed disposition, and (C) if reasonably
      requested by the Company, the Holder shall have furnished the Company with
      an
      opinion of counsel, reasonably satisfactory to the Company, that such
      disposition will not require registration of such shares under the Securities
      Act. 

    

    (b) Notwithstanding
      the provisions of subsection (a) above, no such restriction shall apply to
      a
      transfer by a Holder that is (A) a partnership transferring to its partners
      or former partners in accordance with partnership interests, (B) a
      corporation transferring to a wholly-owned subsidiary or a parent corporation
      that owns all of the capital stock of the Holder, (C) a limited liability
      company transferring to its members or former members in accordance with their
      interest in the limited liability company, (D) a Holder transferring to its
      affiliates provided such transfer is first approved by the Company and such
      approval not to be unreasonable withheld or delayed, or (E) an individual
      transferring to the Holder’s family member or trust for the benefit of an
      individual Holder; provided
      that in
      each case the transferee will agree in writing to be subject to the terms of
      this Agreement to the same extent as if he were an original Holder
      hereunder.

    

    (c) Each
      certificate representing Registrable Securities shall be stamped or otherwise
      imprinted with legends substantially similar to the following (in addition
      to
      any legend required under applicable state securities laws):

    

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED. THESE SHARES HAVE BEEN ACQUIRED FOR
      INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY NOT BE SOLD,
      MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
      REGISTRATION STATEMENT FOR SUCH SALES UNDER THE SECURITIES ACT OF 1933, OR
      AN
      OPINION OF COUNSEL FOR THE CORPORATION THAT REGISTRATION IS NOT REQUIRED UNDER
      SUCH ACT. 

    

    THE
      SHARES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT TO THE PROVISIONS OF
      A
      CERTAIN INVESTOR RIGHTS AGREEMENT DATED _______________, 2008 AND MAY NOT BE
      TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THAT
      AGREEMENT.”

    
      
         

      

      
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    (d) The
      Company shall be obligated to reissue promptly unlegended certificates at the
      request of the Holder if the Company has completed its Qualified Offering and
      the Holder shall have obtained an opinion of counsel (which counsel may be
      counsel to the Company) reasonably acceptable to the Company to the effect
      that
      the securities proposed to be disposed of may lawfully be so disposed of without
      registration, qualification and legend.

    

    (e) Any
      legend endorsed on an instrument pursuant to applicable state securities laws
      and the stop-transfer instructions with respect to such securities shall be
      removed upon receipt by the Company of an order of the appropriate blue sky
      authority authorizing such removal.

    

    3. Required
      Registration.
       The
      Company shall use all reasonable efforts to file within one hundred twenty
      (120)
      days following the earlier of: (i) the date that shares of the Common Stock
      are
      first quoted on the OTC Bulletin Board, (ii) the Company’s shares of Common
      Stock are first listed on a U.S. national securities exchange or (iii) the
      written request of the Holders who beneficially own $6,000,000 principal amount
      of the Debentures or 857,143 shares of Common Stock, a registration statement
      covering the sale of the Registrable Securities, and shall take all action
      necessary to qualify the Registrable Securities under state “blue sky” laws as
      hereinafter provided. The Company shall be entitled to include in any
      registration statement referred to in this Section 3 shares of Common Stock
      to
      be sold by the Company for its own account. 

    

    4. Registration
      Procedures.
      Whenever the Company is required by the provisions of Section 3 to use
      reasonable best efforts to effect the registration of any Registrable Securities
      under the Securities Act, the Company will, as soon as reasonably
      possible:

    

    (a) prepare
      and file with the Commission a registration statement on “shelf” registration
      statement on Form S-1 or such other form of general applicability satisfactory
      to Company providing for the registration and sale on a continuous or delayed
      basis with respect to such securities and use its best efforts to cause such
      registration statement to become and remain effective for the period of the
      distribution contemplated thereby (determined as hereinafter
      provided);

    

    (b) prepare
      and file with the Commission such amendments and supplements to such
      registration statement and the prospectus used in connection therewith as may
      be
      necessary to keep such registration statement effective until the earliest
      to
      occur of (i) the date that all of the securities registered thereunder have
      been
      sold pursuant thereto or (ii) until, by reason of Rule 144(k) under the
      Securities Act or any other rule of similar effect, the securities registered
      thereunder are no longer required to be registered for the sale thereof by
      the
      Holder without restriction. 

    

    (c) furnish
      to each seller of Registrable Securities and to each underwriter, if any, such
      number of copies of the registration statement and the prospectus included
      therein (including each preliminary prospectus) as such persons reasonably
      may
      request in order to facilitate the public sale or other disposition of the
      Registrable Securities covered by such registration statement;

    

    (d) use
      its
      best efforts to register or qualify the Registrable Securities covered by such
      registration statement under the securities or "blue sky" laws of such
      jurisdictions as the sellers of the Shares and the Registrable Securities or,
      in
      the case of an underwritten public offering, the managing underwriter reasonably
      shall request, provided,
      however,
      that
      the Company shall not for any such purpose be required to qualify generally
      to
      transact business as a foreign corporation in any jurisdiction where it is
      not
      so qualified or to consent to general service of process in any such
      jurisdiction;

    
      
         

      

      
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    (e) use
      its
      best efforts to cause the Registrable Securities to be quoted on the OTC
      Bulleting Board or to list the Registrable Securities covered by such
      registration statement with any securities exchange on which the Common Stock
      of
      the Company is then listed; and

    

    (f) make
      available for inspection by each seller of Registrable Securities, any
      underwriter participating in any distribution pursuant to such registration
      statement, and any attorney, accountant or other agent retained by such seller
      or underwriter, all financial and other records, pertinent corporate documents
      and properties of the Company, and cause the Company's officers, directors
      and
      employees to supply all information reasonably requested by any such seller,
      underwriter, attorney, accountant or agent in connection with such registration
      statement.

    

    (g) provide
      and cause to be maintained a transfer agent and registrar for all Registrable
      Securities from and after a date not later than the effective date of such
      Registration Statement.

    

    (h) cooperate
      with Holders including Registrable Securities in such registration and the
      managing underwriters, if any, to facilitate the timely preparation and delivery
      of amending or supplementing any prospectus supplement and any certificates
      representing Registrable Securities to be sold.

    

    (i) in
      the
      case of an underwritten offering, cause any one of the senior executive officers
      of the Company to participate in the customary “road show” presentations that
      may be reasonably requested by the underwriters and otherwise to facilitate,
      cooperate with and participate in each proposed offering contemplated herein
      and
      customary selling efforts related thereto.

    

    (j) in
      connection with each registration hereunder, each seller of Registrable
      Securities will furnish to the Company in writing such information with respect
      to such seller and the proposed distribution by such seller as reasonably shall
      be necessary in order to assure compliance with federal and applicable state
      securities laws.

     

    (k) in
      connection with each registration pursuant to Section 3 covering an underwritten
      public offering, the Company and the Holder agree to enter into a written
      agreement with the managing underwriter selected by the Company containing
      such
      provisions as are customary in the securities business for such an arrangement
      between such underwriter and companies of the Company's size and investment
      stature.

    

    5. Suspension
      of Use of Registration Statement.
      The
      Holder agrees that, upon receipt of any notice from the Company of (A) the
      happening of any event which makes any statements made in the registration
      statement or related prospectus filed pursuant to this Investor Rights
      Agreement, or any document incorporated or deemed to be incorporated therein
      by
      reference, untrue in any material respect or which requires the making of any
      changes in such registration statement or prospectus so that, in the case of
      such registration statement, it will not contain any untrue statement of a
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein, in light of the circumstance under
      which they were made, not misleading or (B) that, in the judgment of the
      Company’s Board of Directors, it is advisable to suspend use of the prospectus
      for a discrete period of time due to pending corporate developments which are
      or
      may be material to the Company but have not been disclosed in the registration
      statement or in relevant public filings with the Commission, or (C) the
      Commission has issued a stop order suspending the effectiveness of the
      registration statement, such Holder will forthwith discontinue disposition
      of
      such Registrable Securities covered by such registration statement or prospectus
      until it is advised in writing by the Company that use of the applicable
      prospectus may be resumed, and has received copies of any additional or
      supplemented filings that are incorporated or deemed to be incorporated by
      reference in such prospectus; provided, however, that the Company may not
      suspend use of the prospectus pursuant to the foregoing clause (B) more than
      90
      consecutive calendar days or an aggregate of 120 calendar days in any
      twelve-month period without incurring or accruing the obligation to pay
      additional interest pursuant to Section 10. The Company shall use all reasonable
      best efforts to insure that the use of the prospectus may be resumed as soon
      as
      practicable.

    
      
         

      

      
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    6. Expenses.
      All
      expenses incurred by the Company in complying with Section 3, including, without
      limitation, all registration and filing fees, printing expenses, fees and
      disbursements of counsel and independent public accountants for the Company,
      fees and expenses (including counsel fees) incurred in connection with complying
      with state securities or “blue sky” laws, fees of the National Association of
      Securities Dealers, Inc., transfer taxes, fees of transfer agents and
      registrars, costs of insurance and fees and disbursements of one counsel for
      the
      sellers of Registrable Securities, but excluding any Selling Expenses, are
      called “Registration Expenses”. All underwriting discounts and selling
      commissions applicable to the sale of Registrable Securities are called “Selling
      Expenses”.

    

    The
      Company will pay all Registration Expenses in connection with the registration
      statement under Section 3. All Selling Expenses in connection with each
      registration statement under Section 3 shall be borne by the participating
      sellers in proportion to the number of shares sold by each, or by such
      participating sellers other than the Company (except to the extent the Company
      shall be a seller) as they may agree.

    

    7. Indemnification
      and Contribution.
      (a) In
      the event of the registration of any Registrable Securities under the Securities
      Act pursuant to Section 3, the Company will indemnify and hold harmless the
      Holder and each other seller of such Shares and Registrable Securities
      thereunder, each underwriter of such Registrable Securities thereunder and
      each
      other person, if any, who controls such seller or underwriter within the meaning
      of the Securities Act, against any losses, claims, damages or liabilities,
      joint
      or several, to which such seller, underwriter or controlling person may become
      subject under the Securities Act or otherwise, insofar as such losses, claims,
      damages or liabilities (or actions in respect thereof) arise out of or are
      based
      upon any untrue statement or alleged untrue statement of any material fact
      contained in any registration statement under which such Registrable Securities
      were registered under the Securities Act pursuant to Section 3, any preliminary
      prospectus or final prospectus contained therein, or any amendment or supplement
      thereof, or arise out of or are based upon the omission or alleged omission
      to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein not misleading, and will reimburse each such seller,
      each
      such underwriter and each such controlling person for any legal or other
      expenses reasonably incurred by them in connection with investigating or
      defending any such loss, claim, damage, liability or action, provided, however,
      that the Company will not be liable in any such case if and to the extent that
      any such loss, claim, damage or liability arises out of or is based upon an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished by any such seller, any such
      underwriter or any such controlling person in writing specifically for use
      in
      such registration statement or prospectus.

    
      
         

      

      
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    (b) In
      the
      event of a registration on behalf of the Holder of any of the Registrable
      Securities under the Securities Act pursuant to Section 3, the Holder, severally
      and not jointly, will indemnify and hold harmless the Company, each person,
      if
      any, who controls the Company within the meaning of the Securities Act, each
      officer of the Company who signs the registration statement, each director
      of
      the Company, each underwriter and each person who controls any underwriter
      within the meaning of the Securities Act, against all losses, claims, damages
      or
      liabilities, joint or several, to which the Company or such officer, director,
      underwriter or controlling person may become subject under the Securities Act
      or
      otherwise, insofar as such losses, claims, damages or liabilities (or actions
      in
      respect thereof) arise out of or are based upon any untrue statement or alleged
      untrue statement of any material fact contained in the registration statement
      under which such Registrable Securities was registered under the Securities
      Act
      pursuant to Section 3, any preliminary prospectus or final prospectus contained
      therein, or any amendment or supplement thereof, or arise out of or are based
      upon the omission or alleged omission to state therein a material fact required
      to be stated therein or necessary to make the statements therein not misleading,
      and will reimburse the Company and each such officer, director, underwriter
      and
      controlling person for any legal or other expenses reasonably incurred by them
      in connection with investigating or defending any such loss, claim, damage,
      liability or action, provided, however, that the Holder will be liable hereunder
      in any such case if and only to the extent that any such loss, claim, damage
      or
      liability arises out of or is based upon an untrue statement or alleged untrue
      statement or omission or alleged omission made in reliance upon and in
      conformity with information pertaining to the Holder furnished in writing to
      the
      Company by the Holder specifically for use in such registration statement or
      prospectus, and provided, further, however, that the liability of the Holder
      hereunder shall be limited to the proportion of any such loss, claim, damage,
      liability or expense which is equal to the proportion that the public offering,
      price of the shares sold by the Holder under such registration statement bears
      to the total public offering price of all securities sold thereunder, but not
      in
      any event to exceed the proceeds received by the Holder from the sale of
      Registrable Securities covered by such registration statement.

    

    (c) Promptly
      after receipt by an indemnified party hereunder of notice of the. commencement
      of any action, such indemnified party shall, if a claim in respect thereof
      is to
      be made against the indemnifying party hereunder, notify the indemnifying party
      in writing thereof, but the omission so to notify the indemnifying party shall
      not relieve it from any liability which it may have to such indemnified party
      other than under this Section 6 and shall only relieve it from any liability
      which it may have to such indemnified party under this Section 6 if and to
      the
      extent the indemnifying party is prejudiced by such omission. In case any such
      action shall be brought against any indemnified party and it shall notify the
      indemnifying party of the commencement thereof, the indemnifying party shall
      be
      entitled to participate in and, to the extent it shall wish, to assume and
      undertake the defense thereof with counsel satisfactory to such indemnified
      party, and, after notice from the indemnifying party to such indemnified party
      of its election so to assume and undertake the defense thereof, the indemnifying
      party shall not be liable to such indemnified party under this Section 6 for
      any
      legal expenses subsequently incurred by such indemnified party in connection
      with the defense thereof other than reasonable costs of investigation and of
      liaison with counsel so selected, provided,
      however,
      that,
      if the defendants in any such action include both the indemnified party and
      the
      indemnifying party and the indemnified party shall have reasonably concluded
      that there may be reasonable defenses available to it which are different from
      or additional to those available to the indemnifying party or if the interests
      of the indemnified party reasonably may be deemed to conflict with the interests
      of the indemnifying party, the indemnified party shall have the right to select
      a separate counsel and to assume such legal defenses and otherwise to
      participate in the defense of such action, with the expenses and fees of such
      separate counsel and other expenses related to such participation to be
      reimbursed by the indemnifying party as incurred.

    

    (d) In
      order
      to provide for just and equitable contribution to joint liability under the
      Securities Act in any case in which either (i) the Holder exercising rights
      under this Agreement, or any controlling person of the Holder, makes a claim
      for
      indemnification pursuant to this Section 6 but it is judicially determined
      (by
      the entry of a final judgment or decree by a court of competent jurisdiction
      and
      the expiration of time to appeal to the denial of the last right of appeal)
      that
      such indemnification may not be enforced in such case notwithstanding the fact
      that this Section 6 provides for indemnification in such case, or (ii)
      contribution under the Securities Act may be required on the part of any the
      Holder or any such controlling person in circumstances for which indemnification
      is provided under this Section 6; then, and in each such case, the Company
      and
      the Holder will contribute to the aggregate losses, claims, damages or
      liabilities to which they may be subject (after contribution from others) in
      such proportion so that the Holder is responsible for the portion represented
      by
      the percentage that the public offering price, if any, of its Registrable
      Securities offered by the registration statement bears to the public offering
      price, if any, of all securities offered by such registration statement, and
      the
      Company is responsible for the remaining portion; provided, however, that,
      in
      any such case, (A) the Holder will not be ruled to contribute any amount in
      excess of the public offering price, if any, of all such Registrable Securities
      offered by it pursuant to such registration statement; and (B) no person or
      entity guilty of fraudulent misrepresentation (within the meaning of Section
      11(f) of the Securities Act) will be entitled to contribution from any person
      or
      entity who was not guilty of such fraudulent misrepresentation.

    
      
         

      

      
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    (e) No
      indemnifying party shall, without the prior written consent of the indemnified
      party, effect any settlement, compromise or consent to the entry of judgment
      in
      any pending or threatened action, suit or proceeding in respect to which any
      indemnified party is or could have been a party and indemnity was or could
      have
      been sought hereunder by such indemnified party, unless such settlement,
      compromise or consent (x) includes an unconditional release of such indemnified
      party from all liability on claims that are the subject matter of such action,
      suit or proceeding and (y) does not include a statement as to or an admission
      of
      fault, culpability or a failure to act by or on behalf of any indemnified
      party.

    

    8. Rule
      144 Reporting. With
      a
      view to making available the benefits of certain rules and regulations of the
      Commission which may at any time permit the sale of the Registrable Securities
      to the public without registration, at all times after 90 days after the
      Qualified Offering or the Qualified Registration shall have become effective,
      the Company agrees to:

    

    (a) make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144 under the Securities Act;

    

    (b) use
      reasonable efforts to file with the Commission in a timely manner all reports
      and other documents required of the Company under the Securities Act and the
      Exchange Act; and

    

    (c) furnish
      to the Holder forthwith upon request a written statement by the Company as
      to
      its compliance with the reporting requirements of such Rule 144 and of the
      Securities Act and the Exchange Act, a copy of the most recent annual or
      quarterly report of the Company, and such other reports and documents so filed
      by the Company as the Holder may reasonably request in availing the Holder
      of
      any rule or regulation of the Commission allowing the Holder to sell any
      Registrable Securities without registration.

    

    9. “Lockup”
      Agreement.
      The
      Holder hereby agrees that such Holder shall not sell, transfer, make any short
      sale of, grant any option for the purchase of, or enter into any hedging or
      similar transaction with the same economic effect as a sale, any shares of
      Common Stock (or other securities) of the Company held by the Holder for a
      period specified by the representative of the underwriters of Common Stock
      (or
      other securities) of the Company not to exceed one hundred eighty (180) days
      following the effective date of the Company’s Qualified Offering or Qualified
      Registration.

    

    10. Additional
      Interest.
      In the
      event that a registration statement has not become effective by the deadline
      specified in Section 3, additional interest will accrue on the Debentures at
      a
      rate per annum of 0.25% of the principal amount of the Debentures, payable
      quarterly in arrears on the 15th
      day of
      October, January, April and July of each year.

    

    11. Board
      Designee and Information.
      The
      undersigned Holder shall have the right to nominate one nominee to the Company’s
      board of directors (the “Board Designee”). The initial Board Designee of the
      Holder shall be John Park. At the meeting of the board of directors of the
      Company scheduled for July 30, 2008 or within one month thereafter, the Company
      shall appoint the Board Designee to the board of directors and shall, if
      necessary, expand the board of directors by one member to create a vacancy
      for
      such purpose. In the event that the Board Designee ceases to be a member of
      the
      board of directors, so long as the undersigned Holder and its affiliates
      collectively beneficially own at least $6,000,000 principal amount of the
      Debentures or 857,143 shares of Common Stock, the undersigned Holder may select
      another person as a nominee for the Board Designee to fill the vacancy created
      thereby. All obligations of the Company pursuant to this Section 11 shall
      terminate at such time as the undersigned and its affiliates collectively
      beneficially own less than $6,000,000 principal amount of the Debentures or
      857,143 shares of Common Stock. In the event that the Company is no longer
      subject to the reporting requirements of Section 13 or 15(d) of the Exchange
      Act, the Company shall continue to provide the Holder, annual, quarterly and
      current reports or other information and documents containing substantially
      the
      same information as would have been required to be filed with the Commission
      had
      the Company continued to be subject to such reporting
      requirements.

    
      
         

      

      
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    12. Miscellaneous.

     

    (a) All
      covenants and agreements contained in this Agreement by or on behalf of any
      of
      the parties hereto shall bind and inure to the benefit of the respective
      successors and assigns of the parties hereto (including without limitation
      permitted transferees of any Shares or Registrable Securities), whether so
      expressed or not.

    

    (b) All
      notices, requests, consents and other communications hereunder shall be in
      writing and shall be mailed by certified or registered mail, return receipt
      requested, postage prepaid, or telexed, in the case of non-U.S. residents,
      addressed as follows:

    

    if
      to the
      Company or any other party hereto, at the address of such party set forth in
      the
      Subscription Agreement;

    

    if
      to the
      Holder, at the address of the Holder set forth in the Subscription
      Agreement;

    

    or,
      in
      any case, at such other address or addresses as shall have been furnished in
      writing to the Company (in the case of the Holder) or to the Holder (in the
      case
      of the Company) in accordance with the provisions of this
      paragraph.

    

    (c) Notwithstanding
      the place where this Agreement may be executed by any of the parties hereto,
      all
      the terms and provisions hereof shall be construed in accordance with and
      governed by the laws of the Commonwealth of Massachusetts, without giving effect
      to its conflict of law principles. Any dispute which may arise out of or in
      connection with this Agreement shall be adjudicated before a court located
      in
      Boston, Massachusetts and the parties hereby submit to the exclusive
      jurisdiction of the courts of the Commonwealth of Massachusetts located in
      Boston, Massachusetts and of the federal courts in Boston, Massachusetts with
      respect to any action or legal proceeding commenced by any party, and
      irrevocably waive any objection they now or hereafter may have respecting the
      venue of any such action or proceeding brought in such a court or respecting
      the
      fact that such court is an inconvenient forum, relating to or arising out of
      this Agreement or any acts or omissions relating to the sale of the Shares,
      and
      each of the undersigned consents to the service of process in any such action
      or
      legal proceeding by means of registered or certified mail, return receipt
      requested, in care of the address set forth below or such other address as
      the
      undersigned shall furnish in writing to the Company. In the event any such
      action is brought, whether at law or in equity, then the prevailing party shall
      be paid its reasonable attorney's fees, expenses and disbursements arising
      out
      of such action. Each of the undersigned hereby waives trial by jury in any
      action or proceeding involving, directly or indirectly, any matter (whether
      sounding in tort, contract, fraud or otherwise) in any way arising out of or
      in
      connection with this Agreement or the Holder’s purchase of a
      Debenture.

     

    (d) This
      Agreement may not be amende or modified, and no provision hereof may be waived,
      without the written consent of the Company and the Holders of at least a
      majority of the outstanding Registrable Securities, including Blum Strategic
      Partners IV, L.P. to the extent that Blum Strategic Partners IV, L.P.
      beneficially owns any Registrable Securities. 

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    

    (e) This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

    

    (f) The
      obligations of the Company to register the Registrable Securities under this
      Agreement shall terminate on the date that the Holders or any transferees of
      such Holders who would require such registration to effect a sale of Registrable
      Securities no longer beneficially own Registrable Securities.

    

    (g) If
      any
      provision of this Agreement shall be held to be illegal, invalid or
      unenforceable, such illegality, invalidity or unenforceability shall attach
      only
      to such provision and shall not in any manner affect or render illegal, invalid
      or unenforceable any other provision of this Agreement, and this Agreement
      shall
      be carried out as if any such illegal, invalid or unenforceable provision were
      not contained herein.

    

    Please
      indicate your acceptance of the foregoing by signing and returning the enclosed
      counterpart of this letter, whereupon this Agreement shall be a binding
      agreement between the Company and you.

    

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              GlenRose
                Instruments Inc.

            
	 	 
	 	 
	 	
              By:
                _________________________

            
	 	 
	 	
              Name:
                Anthony S. Loumidis

            
	 	
              Title:
                Chief Financial Officer

            

    

    

    AGREED
      TO
      AND ACCEPTED as of

    the
      date
      first above written.

    

    By: ________________________

    

    Name:
      ________________________

    

    Title: ________________________

    

    
      
         

      

      
        9Exhibit
      10.1

    

    

    

    June
      30,
      2008

    

    Mr.
      Gary
      Grinsfelder

    777
      E.
      Sonterra Blvd, Suite 350

    San
      Antonio, Texas 78258

    

    Dear
      Mr.
      Grinsfelder:

    

    In
      its
      meeting on June 26, 2008, the Board of Directors (the “Board”) of the Company
      voted to amend the Change in Control Agreement dated May 15, 2007 (the “Prior
      Agreement”), between the Company and you, in order to increase the amount you
      would be paid in the event of a Change in Control. This Agreement amends,
      restates and wholly replaces the Prior Agreement, as previously
      amended.

    

    The
      Board
      of the Company recognizes that your contribution to the past and future growth
      and success of the Company has been and will be substantial, and the Board
      desires to assure the Company of your continued services for the benefit of
      the
      Company, particularly in the face of a change in control.

    

    This
      Agreement therefore sets forth those benefits which the Company will provide
      to
      you in the event of a "Change in Control of the Company" [as defined in
      paragraph 2] under the circumstances described below.

    

    1. Term.
      If a
      Change in Control of the Company should occur while you are still an employee
      of
      the Company, then this Agreement shall continue in effect from the date of
      such
      Change in Control of the Company for so long as you remain an employee of the
      Company, but in no event for more than one full calendar year following a Change
      in Control of the Company; provided, however, that the expiration of the term
      of
      this Agreement shall not adversely affect your rights under this Agreement
      which
      have accrued prior to such expiration. If no Change in Control of the Company
      occurs before your status as an employee of the Company is terminated, this
      Agreement shall expire on your termination date. Prior to a Change in Control
      of
      the Company, your employment may be terminated by the Company with or without
      cause at any time upon written notice to you, and in such event, you shall
      not
      be entitled to any of the benefits provided hereunder. 

    

      777
        East
        Sonterra Boulevard • Suite 350 • San Antonio, Texas 78258 • (210) 496-5300 • fax
        (210) 496-5300 • www.txco.com

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Mr.
        Gary
        Grinsfelder

      June
        30,
        2008

      Page
        2

       

      2. Change
        in Control.
        For
        purposes of this Agreement, a "Change in Control of the Company" shall be
        deemed
        to have occurred if (A) there shall be consummated (I) any consolidation
        or
        merger of the Company in which the Company is not the continuing or surviving
        corporation, or pursuant to which shares of the Company's Common Stock would
        be
        converted in whole or in part into cash, securities or other property, other
        than a merger
        of
        the Company in which the holders of the Company's Common Stock immediately
        prior
        to the merger have substantially the same proportionate ownership of common
        stock of the surviving corporation immediately after the merger, or (II)
        any
        sale, lease, exchange or transfer (in one transaction or a series of related
        transactions) of all or substantially all the assets of the Company, or (B)
        the
        shareholders of the Company shall approve any plan or proposal for the
        liquidation or dissolution of the Company, or (C) any "person" [as such term
        is
        used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of
        1934,
        as amended (the "Exchange Act")] other than the Company or a subsidiary thereof
        or any employee benefit plan sponsored by the Company or a subsidiary thereof
        or
        a corporation owned, directly or indirectly, by the shareholders of the Company
        in substantially the same proportions as their ownership of stock of the
        Company, shall become the beneficial owner (within the meaning of Rule 13d-3
        under the Exchange Act) of securities of the Company representing 20% or
        more of
        the combined voting power of the Company's then outstanding securities
        ordinarily (and apart from rights accruing in special circumstances) having
        the
        right to vote in the election of directors, as a result of a tender or exchange
        offer, open market purchases, privately negotiated purchases or otherwise,
        or
        (D) at any time during a period of two consecutive years, individuals who
        at the
        beginning of such period constituted the Board of Directors of the Company
        shall
        cease for any reason to constitute at least a majority thereof, unless the
        election or the nomination for election by the Company's shareholders of
        each
        new director during such two-year period was approved by a vote of at least
        two-thirds of the directors then still in office who were directors at the
        beginning of such two-year period, or (E) any other event shall occur that
        would
        be required to be reported in response to Item 6(e) (or any successor provision)
        of Schedule 14A of Regulation 14A promulgated under the Exchange
        Act.

    

    

    3. Entitlement
      Following Change in Control.
      If a
      Change in Control of the Company shall occur while you are still an employee
      of
      the Company, you shall be entitled to the payments and benefits provided in
      paragraph 4 delivered to you on or before 30 days following the date of the
      Change in Control of the Company. However, the Company may defer such delivery
      to you until March 15th
      of the
      year following the year in which the Change in Control occurs by continuing
      to
      employ you in the same geographic location and with the same or substantially
      the same salary and benefits and comparable duties and responsibilities as
      were
      in effect at the time of the Change in Control of the Company. Should the
      Company terminate your employment prior to March 15th
      of the
      year following the year in which the Change in Control occurs, the payments
      and
      benefits to which you are entitled under paragraph 4 shall be delivered to
      you
      on or before 10 days following the date of your termination. In the event your
      employment is not terminated by the Company prior to March 15th
      of the
      year following the year in which the Change in Control occurs, you shall
      nevertheless become entitled to the payments and benefits provided in paragraph
      4 on March 15th
      of the
      year following the year in which the Change in Control occurs.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Mr.
        Gary
        Grinsfelder

      June
        30,
        2008

      Page
        3

       

      4. Payments
        and Benefits Due.
        (i)
        Subject to the provisions of paragraph 3 above, in the event of a Change
        in
        Control of the Company, you shall be entitled to an amount equal to the sum
        of
        the following: 

    

    

    (x) your
      full
      base salary through the date on which your employment by the Company is
      terminated at the rate in effect on the date of the Change in Control of the
      Company; plus 

    

    (y) an
      amount
      equal to the product of (a) the sum of your annual base salary at the highest
      rate in effect during the 12-month period immediately preceding the date of
      the
      Change in Control of the Company, multiplied by (b) the number
      three.

    

    (ii) You
      shall
      not be required to mitigate the amount of any payment provided for in this
      paragraph 4 or in paragraphs 6 or 15 by seeking other employment or otherwise,
      nor shall the amount of any payment provided for in this paragraph 4 be reduced
      by any compensation earned by you as the result of employment by another
      employer after the date of termination of your employment by the Company, or
      otherwise.

    

    (iii) The
      provisions of this Agreement, and any payment provided for hereunder, shall
      not
      reduce any amounts otherwise payable, or in any way diminish your existing
      rights, or rights which would accrue solely as a result of the passage of time,
      under any employee benefit plan of the Company, any employment agreement or
      other contract, plan or arrangement of the Company, except to the extent
      necessary to prevent double payment under any other severance plan or program
      of
      the Company in effect at the date of termination of your
      employment.

    

    5. Gross-Up
      Provision.
      If any
      portion of any payments received by you from the Company (whether payable
      pursuant to the terms of this Agreement or any other plan, agreement or
      arrangement with the Company, its successors or any person whose actions result
      in a Change in Control of the Company) shall be subject to the tax imposed
      by
      Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"),
      or
      any successor statutory provision ("Excess Parachute Payments"), the Company
      shall pay to you such additional amounts as are necessary so that, after taking
      into account any tax imposed by such Section 4999 or any successor statutory
      provision only on any Net Excess Parachute Payments (as hereinafter defined),
      as
      well as on payments made pursuant to this sentence, and any federal and state
      income taxes payable as a result of any payments due you pursuant to this
      sentence, you are in the same after-tax position that you would have been in
      if
      such Section 4999 or any successor statutory provision did not apply and no
      payments were made pursuant to this sentence. "Net Excess Parachute Payments"
      shall mean that amount equal to the difference between (i) all Excess Parachute
      Payments and (ii) all "parachute payments" (as that term is defined in Section
      280G of the Code) attributable to the acceleration of the exercisability of
      stock options (or any right to receive cash in lieu thereof) under any plan
      of
      the Company or any successor or person whose actions result in a Change in
      Control of the Company.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Mr.
        Gary
        Grinsfelder

      June
        30,
        2008

      Page
        4

       

      6. Successor's
        Binding Agreement.
        (i) The
        Company will require any successor (whether direct or indirect, by purchase,
        merger, consolidation or otherwise) to all or substantially all of the business
        and/or assets of the Company, by agreement in form and substance satisfactory
        to
        you, expressly to assume and agree to perform this Agreement in the same
        manner
        and to the same extent that the Company would be required to perform if no
        such
        succession had taken place. Failure of the Company to obtain such agreement
        prior to the effectiveness of any such succession shall be a breach of this
        Agreement and shall entitle you to compensation from the Company in the same
        amount and on the same terms as you would be entitled hereunder if you
        terminated your employment on the date of the Change in Control of the Company
        (whether or not you terminate your employment). As used in this Agreement,
        "Company" shall mean the Company as herein before defined and any successor
        to
        its business and/or assets as aforesaid which executes and delivers the
        agreement provided for in this paragraph 6 or which otherwise becomes bound
        by
        all the terms and provisions of this Agreement by operation of law. If you
        received payments pursuant to this paragraph 6 prior to termination of your
        employment, you shall not be entitled to any benefits hereunder at the time
        of
        any subsequent termination of your employment.

    

    

    (ii) This
      Agreement shall inure to the benefit of, and be enforceable by, your personal
      or
      legal representatives, executors, administrators, successors, heirs,
      distributes, devisees and legatees. If you should die while any amounts would
      still be payable to you hereunder if you had continued to live, all such
      amounts, unless otherwise provided herein, shall be paid in accordance with
      the
      terms of this Agreement to your devisee, legatee or other designee or, if there
      be no such designee, to your estate.

    

    7. Employment.
      In
      consideration of the foregoing obligations of the Company, you agree to be
      bound
      by the terms and conditions of this Agreement and to remain in the employ of
      the
      Company during any period following any public announcement by any person of
      any
      proposed transaction or transactions which, if effected, would result in a
      Change in Control of the Company until a Change in Control of the Company has
      taken place or, in the opinion of the Board, such person has abandoned or
      terminated its efforts to effect a Change in Control of the Company. Subject
      to
      the foregoing, nothing contained in this Agreement shall impair or interfere
      in
      any way with your right to terminate your employment or the right of the Company
      to terminate your employment with or without cause prior to a Change in Control
      of the Company. Nothing contained in this Agreement shall be construed as a
      contract of employment between the Company and you or as a right for you to
      continue in the employ of the Company, or as a limitation of the right of the
      Company to discharge you with or without cause prior to a Change in Control
      of
      the Company.

    
       

      8. Injunctive
        Relief.
        You
        acknowledge and agree that the remedy of the Company at law for any breach
        of
        the covenants and agreements contained in paragraph 8 of this Agreement will
        be
        inadequate, and that the Company shall be entitled to injunctive relief as
        its
        sole and exclusive remedy against any such breach or any threatened breach.
        You
        represent and agree that such injunctive relief shall not prohibit you from
        earning a livelihood acceptable to you. The Company waives all right to any
        claim for damages or set-off in connection with any such breach of such
        covenants and agreements.

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Mr.
        Gary
        Grinsfelder

      June
        30,
        2008

      Page
        5

       

    

    9. Notice.
      For the
      purpose of this Agreement, notices and all other communications provided for
      in
      this Agreement shall be in writing and shall be deemed to have been duly given
      when delivered or mailed by United States registered mail, return receipt
      requested, postage prepaid, addressed to the respective addresses set forth
      on
      the first page of this Agreement, provided that all notices to the Company
      should be directed to the attention of the Chief Financial Officer of the
      Company, or to such other address as either party may have furnished to the
      other in writing in accordance herewith, except that notices of change of
      address shall be effective only upon receipt.

    

    10. Indemnification.
      The
      Company will indemnify you to the fullest extent permitted by the laws of the
      State of Delaware and the by-laws of the Company as in effect on the date of
      the
      Change in Control of the Company, in respect of all your services rendered
      to
      the Company and its subsidiaries prior to the date on which your employment
      is
      terminated. You shall be entitled to the protection of any insurance policies
      the Company now or hereafter maintains generally for the benefit of its
      directors, officers and employees (but only to the extent of the coverage
      afforded by the existing provisions of such policies) to protect against all
      costs, charges and expenses whatsoever incurred or sustained by you in
      connection with any action, suit or proceeding to which you may be made a party
      by reason of your being or having been a director, officer or employee of the
      Company or any of its subsidiaries during your employment
      therewith.

    

    11. Further
      Assurances.
      Each
      party hereto agrees to furnish and execute such additional forms and documents,
      and to take such further action, as shall be reasonable and customarily required
      in connection with the performance of this Agreement or the payment of benefits
      hereunder.

    

    12. Miscellaneous.
      No
      provision of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing signed by you and
      such
      officer as may be specifically designated by the Board of the Company. No waiver
      by either party hereto at any time of any breach by the other party hereto
      of,
      or compliance with, any condition or provision of this Agreement to be performed
      by such other party shall be deemed a waiver of similar or dissimilar provisions
      or conditions at the same or at any prior or subsequent time. No agreements
      or
      representations, oral or otherwise, express or implied, with respect to the
      subject matter hereof have been made by either party which are not set forth
      expressly in this Agreement. The validity, interpretation, construction and
      performance of this Agreement shall be governed by the laws of the State of
      Texas.

    

    13. Validity.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provision of this Agreement,
      which shall remain in full force and effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      Mr.
        Gary
        Grinsfelder

      June
        30,
        2008

      Page
        6

       

      14. Counterparts.
        This
        Agreement may be executed in one or more counterparts, each of which shall
        be
        deemed to be an original but all of which together will constitute one and
        the
        same instrument.

    

    

    15. Legal
      Fees and Expenses.
      In
      addition to any other benefits to which you may be entitled hereunder, the
      Company shall pay all legal fees and expenses which you may incur as a result
      of
      the Company's contesting the validity, enforceability or your interpretation
      of,
      or determinations under, this Agreement or otherwise as a result of
      any

    termination
      as a result of which you are entitled to the benefits set forth in this
      Agreement.

    

    16. Arbitration.
      Any
      dispute or controversy arising under or in connection with this Agreement shall
      be settled exclusively by arbitration in San Antonio, Texas, in accordance
      with
      the rules of the American Arbitration Association then in effect. Judgment
      may
      be entered on the arbitrator's award (which the parties agree may include any
      measure or type of damages or other remedy available at law or in equity) in
      any
      court having jurisdiction; provided, however, that you shall be entitled to
      seek
      specific performance of your right to be paid until the date on which your
      employment is terminated during the pendency of any dispute or controversy
      arising under or in connection with this Agreement.

    

    If
      this
      Agreement correctly sets forth our agreement on the subject matter hereof,
      kindly sign and return to the Company the enclosed copy of this Agreement which
      will then constitute our agreement on this subject.

    

      
        	
                Sincerely,

              
	 	 
	
                TXCO
                  RESOURCES INC.

              
	 	 
	
                By:

              	
                /s/
                  JAMES E. SIGMON

              
	 	
                James
                  E. Sigmon,

              
	 	
                Chief
                  Executive Officer

              

      

    

    

    AGREED
      TO
      this 1st
      day of

    July,
      2008.

    

      
        	
                /s/
                  GARY GRINSFELDER

              
	
                Gary
                  Grinsfelder

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