Document:

ex10-1.htm

Exhibit 10.1

 

WAIVER

This Waiver (“Waiver”) is entered into as of May 1, 2012 by and between Imaging3, Inc., a corporation organized under the laws of the State of California (the “Company”), on the one hand, and Gemini Master Fund, Ltd., Alpha Capital Anstalt, Brio Capital, L.P. and Context Partners Fund, L.P. (collectively, the “Purchasers”), on the other hand.

 

WHEREAS, pursuant to that certain Securities Purchase Agreement (“Purchase Agreement”) dated as of October 3, 2011 by and between the Company and the Purchasers, on or about such date the Company sold and issued to the Purchasers (i) Senior Secured Notes Due October 3, 2012 in the aggregate original principal amount of $1,200,000 (“Notes”) and (ii) Warrants to purchase up to 12 million shares of Common Stock in the aggregate (“Warrants”); capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in the Purchase Agreement, the Notes or the Warrants, as the case may be;

WHEREAS, the Company may wish to engage in additional financing transactions which are restricted by the terms of the Notes; and

WHEREAS, on March 28, 2012 (“Settlement Date”) the Company entered into (i) that certain Claims Exchange Agreement with Cranshire Capital, L.P., and (ii) that certain Settlement Agreement (together with such Claims Exchange Agreement, the “Settlement Agreements”) with Freestone Advantage Partners, L.P. (together with Cranshire Capital, L.P., the “Prior Investors”), pursuant to which the Company, among other things, reduced the exercise price under warrants (together with any warrants issued in exchange for or in connection with such warrants, “Prior Warrants”) held by such Prior Investors to $0.0119;

NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth in this Waiver, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Waiver. The Purchasers hereby waive compliance with Section 6(g) of the Notes in connection with any Subsequent Issuance in any primarily capital raising transaction (“Additional Financing”).  Further, any such Additional Financing shall constitute an Exempt Issuance if, and only if, the Additional Financing does not directly or indirectly effectively cause a reduction in the exercise price or increase in the number of underlying shares of Common Stock under the Prior Warrants.

 

2. Amendment.  The Prior Warrants shall not constitute an Exempt Issuance under the Transaction Documents, such that in the event that there effectively occurs, directly or indirectly, a reduction in the exercise price or increase in the number of underlying shares of Common Stock under the Prior Warrants for any reason whatsoever, including without limitation as a result of this Waiver, any such effective reduction or increase shall cause Full Ratchet Anti-Dilution Adjustment of the Notes and Warrants in accordance with the terms thereof.

 

  

1

  

 

3. Adjustment Acknowledgement.

 

(a)      Adjustments.  The Company acknowledges and agrees that, as a result of the Settlement Agreements, effective as of the Settlement Date (a) the Fixed Price and Floor Price under the Notes was reduced to $0.0119, (b) the Exercise Price under the Warrants was reduced to $0.0119, and (c) the number of Warrant Shares issuable upon exercise of the Warrants was inversely proportionately increased, such the number of Warrant Shares for which each Warrant is currently exercisable is as follows:

 

	Warrant Issued to:    	Number of Warrant Shares:
	Gemini Master Fund, Ltd	30,252,101
	Alpha Capital Anstalt 	30,252,101
	Brio Capital, L.P.  	20,168,067
	Context Partners Fund, L.P.  	20,168,067

 

For clarification, the Notes and Warrants shall be subject to further adjustment upon any further Dilutive Issuances in accordance with the terms of the Transaction Documents, except to the extent waived under Section 1 above.

 

(b)      Prior Conversions/Exercises.  To the extent there have been any notices of conversion or exercise submitted by the Purchasers under the Notes or Warrants respectively on or after March 28, 2012 and prior to the date hereof (a) the applicable Conversion Price and Exercise Price under such notices shall be retroactively reduced to equal $0.0119, the applicable number of Warrant Shares shall be retroactively inversely proportionately increased, and the Company shall promptly issue such additional number of Conversion Shares and Warrant Shares to such Purchasers as if such adjustments described herein were in effect as of the date of any such conversion or exercise notice, and (b) the Company shall promptly honor, on the terms set forth in clause (a), such conversion and exercise notices to the extent it has not previously done so, including without limitation promptly issuing and delivering all applicable shares of Common Stock to such Purchasers in accordance with the provisions of the Notes and Warrants.

 

4. Rule 144.  The Company acknowledges and agrees that, for purposes of Rule 144 promulgated under the Securities Act of 1933, as amended (“Securities Act”), the holding period for the shares of Common Stock issuable upon conversion and cashless exercise of the Notes and Warrants, respectively, shall have commenced on October 3, 2011 (the date of original issuance of the Notes and the Warrants), notwithstanding this Waiver.  Without limiting the foregoing, if at any time it is determined that such holding period does not relate back to such date, the Company will promptly cause the registration of all such underlying shares under the Securities Act (without regard to any beneficial ownership or issuance limitations contained in the Notes and/or Warrants).  For clarification, the Warrants may not be exercised on a Cashless Exercise basis when there is an effective Registration Statement covering the resale of all underlying Warrant Shares by the holder thereof, which Registration Statement is not subject to any suspension or stop order and contains a Prospectus therein that is current and available for use and not subject to any blackout or similar circumstance.

 

  

2

  

 

5. Disclosure.  The Company shall, prior to 8:30am on the day following execution hereof, file a Current Report on Form 8-K disclosing the material terms of the transactions contemplated hereby.  The Company and the Purchasers shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby.

 

6. Miscellaneous.

 

(a)           Full Force and Effect.  Except as otherwise expressly provided herein, each of the Purchase Agreement, the Notes, the Warrants, the Security Agreements and other Transaction Documents shall remain in full force and effect.  Except for the waiver contained herein, this Waiver shall not in any way waive or prejudice any of the rights of the Purchasers or obligations the Company under the Transaction Documents, under law, in equity or otherwise, and such waiver shall not constitute a waiver or modification of any other provision of the Transaction Documents nor a waiver or modification of any subsequent default or breach of any obligation of the Company or of any subsequent right of the Purchasers.

 

(b)           Governing Law.  This Waiver shall be governed by and construed in accordance with the internal laws of the State of New York.

 

(c)           Counterparts.  This Waiver may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  This Waiver may be executed by facsimile or by email of a digital image format or portable document format of the signature page hereto.

[Signature Page Follows]

 

  

3

  

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Waiver to be duly executed effective the date first written above.

 

 

	 	 
IMAGING3, INC.

	 	 
	 	 	 	 
	 	By:                                                                                                 	 	 
	 	Name: 	 	 
	 	Title:	 	 
	 	 	 	 
	 	 
GEMINI MASTER FUND, LTD.

	 	 
	 	GEMINI STRATEGIES LLC, INC.	 	 
	 	as investment manager	 	 
	 	 	 	 
	 	By:                                                                                                 	 	 
	 	Name: Steven Waters	 	 
	 	Title: President	 	 
	 	 	 	 
	 	 
ALPHA CAPITAL ANSTALT

	 	 
	 	 	 	 
	 	By:                                                                                                 	 	 
	 	Name: 	 	 
	 	Title:	 	 
	 	 	 	 
	 	 
BRIO CAPITAL, L.P.

	 	 
	 	By:  Brio Capital Management LLC, as general partner	 	 
	 	 	 	 
	 	By:                                                                                                	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	 	 
	 	 
CONTEXT PARTNERS FUND, L.P.

	 	 
	 	By: CONTEXT CAPITAL MANAGEMENT, LLC, as general partner	 	 
	 	 	 	 
	 	By:                                                                                                 	 	 
	 	 
Name:  Michael S. Rosen

	 	 
	 	Title:   Managing Member	 	 

 

  

4ex10-1.htm

 

EXHIBIT 10.1

MARINE PRODUCTS CORPORATION

TIME-LAPSE RESTRICTED STOCK AGREEMENT

TIME-LAPSE RESTRICTED STOCK AGREEMENT made as of the ____ day of ___________, ____, between MARINE PRODUCTS CORPORATION, a Delaware corporation (hereinafter called the “Company”), and ___________________________, an employee of the Company or one or more of its subsidiaries (hereinafter called the “Employee”).

 

WHEREAS, the Company desires to grant to the Employee, as an incentive for Employee to promote the interests of the Company and its subsidiaries, shares of its Common Stock, par value $0.10 per share (hereinafter called the “Common Stock”), subject to certain continued employment and vesting criteria, pursuant to the terms and provisions of the Company’s 2004 Employee Stock Incentive Plan (hereinafter called the “Plan”), as hereinafter provided.

 

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and Employee’s employment by the Company, the parties hereto agree as follows:

 

THE PLAN.  This Agreement is made pursuant to and in accordance with the terms and provisions of the Plan.  Anything in this Agreement to the contrary notwithstanding, the terms and provisions of the Plan, all of which are hereby incorporated herein by reference, shall be controlling in the event of any inconsistency herewith.

	
1.

	
ADMINISTRATION.  The Plan shall be administered by a committee of the Board of Directors of the Company, hereinafter referred to as the “Compensation Committee”, unless administration of the Plan is assumed by the Board of Directors of the Company.  The Compensation Committee is authorized and empowered to administer and interpret the Plan and this Agreement.  Any interpretations of this Agreement or of the Plan made by the Compensation Committee shall be final and binding upon the parties hereto.

	
2.

	
GRANT OF TIME-LAPSE RESTRICTED STOCK.  Effective as of __________, ____ (the “Grant Date”), the Company hereby irrevocably grants to the Employee _______ shares of Common Stock, which shares are subject to satisfaction of the vesting requirements and the terms and conditions hereinafter set forth (such shares of Common Stock being hereinafter referred to in the aggregate as the “Time-Lapse Restricted Stock”).

	
3.

	
SERVICE/EMPLOYMENT; VESTING.

	
  

	 

	
(a)  

	
All Time-Lapse Restricted Stock shall vest as follows: __________ effective on __________, then __________annually thereafter, and will be fully vested __________, but only if, through such date, Employee shall have been in the continuous employ of the Company or a subsidiary thereof, in a position of equivalent or greater responsibility as on the Grant Date.

	
(b)  

	
Upon the occurrence of a Change in Control, as determined by the Board of Directors, all unvested Time-Lapse Restricted Stock shall vest immediately.

 

 

1

 

 

	
4.

	
ESCROW; DIVIDENDS AND VOTING RIGHTS.  Prior to the completion of the vesting periods referenced in Section 3 above, all shares of Time-Lapse Restricted Stock shall be held in escrow by the Company for the benefit of Employee.  During such period, prior to any forfeiture of the shares, Employee shall receive all cash dividends declared with respect to the shares held as of the record date and shall have the right to exercise all voting rights with respect to the shares.  At the discretion of the Company, any share certificates so held in escrow shall be inscribed with a legend referencing the transfer restrictions contained in this Agreement and any other applicable transfer restrictions.  Any share certificates issued pursuant to a stock split or as dividends with respect to the Time-Lapse Restricted Stock held in escrow shall also be held in escrow on the same terms as the Time-Lapse Restricted Stock and shall be released at the same time as, and subject to the same risk of forfeiture as, the shares with respect to which they were issued.  Any issued Time-Lapse Restricted Stock which the Employee does not forfeit pursuant to Section 3 above shall be transferred to the Employee free of any forfeiture conditions under the Plan or this Agreement as soon as practicable after the service vesting condition under Section 3 above has been satisfied or no longer applies; provided, however, that if the Compensation Committee at any time before such transfer reasonably determines that the Employee might have violated any applicable criminal law, the Compensation Committee shall have the right to cause all of Employee’s Time-Lapse Restricted Stock then held in escrow to be forfeited, without regard to whether (i) Employee has satisfied the service vesting condition set forth in Section 3 before the date the Compensation Committee makes such determination, or (ii) Employee’s employment is (or might have been) terminated as a result of such conduct.

	
5.

	
NON-TRANSFERABILITY.  No Time-Lapse Restricted Stock granted pursuant to this Agreement shall be assignable or transferable, and such Time-Lapse Restricted Stock shall not be subject to execution, attachment or other process, until that date on which the Time-Lapse Restricted Stock vests pursuant to Section 3 above.  Any attempt by the employee to alienate, assign, pledge, hypothecate or otherwise dispose of the Employee’s interest in this Agreement or any Restricted Stock prior to its becoming fully vested shall be ineffective and shall permit the Company to terminate this Agreement and cause the forfeiture of any unvested shares.  The Company may, at its discretion, place a legend to such effect on the certificates representing the shares of Time-Lapse Restricted Stock and issue appropriate stop transfer instructions to the Company’s transfer agent.

	
6.

	
CHANGE IN CAPITALIZATION.  If there are any changes in the capitalization of the Company affecting in any manner the number or kind of outstanding shares of Common Stock of the Company, whether such changes occur by declaration of a stock dividend or stock split or in the event of any merger, reorganization, consolidation, or similar event, such substitute or adjustment shall be made in the shares subject to this Time-Lapse Restricted Stock award as may be determined to be appropriate by the Compensation Committee, in its sole discretion, provided that the number of shares subject to any Award shall always be a whole number.  To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Board of Directors, whose determination in that respect shall be final, binding and conclusive.  The Compensation Committee need not treat other holders of Time-Lapse Restricted Stock in the same manner as Employee is treated.

 

 

2

 

 

	
7.

	
REQUIREMENTS OF LAW.  If any law, regulation of the Securities and Exchange Commission, or any regulation of any other commission or agency having jurisdiction shall require the Company or the Employee to take any action prior to the issuance or release from escrow of any shares of Time-Lapse Restricted Stock, then the date upon which the Company shall deliver or cause to be issued or released from escrow the certificate or certificates for such shares of Time-Lapse Restricted Stock shall be postponed until full compliance has been made with all such requirements or law or regulations.  Further, at or before the time of issuance of any shares of Time-Lapse Restricted Stock, the Employee shall, if requested by the Company, deliver to the Company his/her written statement that he/she intends to hold such shares for investment and not with a view to resale or other distribution thereof to the public.  Further, in the event the Company shall determine that, in compliance with the Securities Act of 1933, as amended, or other applicable statute or regulation, it is necessary to register any of the shares of Time-Lapse Restricted Stock, or to qualify any such shares for exemption from any of the requirements of the Securities Act of 1933, as amended, or other applicable statute or regulations, then the Company shall take such action at its own expense, but not until such action has been completed shall the shares be issued in the name of the Employee.

	
8.

	
WITHHOLDING.  The Company shall have the power and the right to deduct or withhold or require an Employee to remit to the Company, an amount (including any shares of Common Stock withheld as provided herein) sufficient to satisfy Federal, state and local taxes (including the Employee’s FICA obligation) required by law to be withheld with respect to vesting of Time-Lapse Restricted Stock pursuant to this agreement.  With the Company’s consent, the Employee may elect that such tax-withholding requirements be satisfied, in whole or in part, (1) by tendering shares of Common Stock held by the Employee at least twelve (12) months prior to their tender or (2) through a reduction in the number of shares of Time-Lapse Restricted Stock issued or transferred to the Employee.  Any such election shall be irrevocable, made in writing and acknowledged by the Employee.  The Company reserves the right to reduce the number of shares of Time-Lapse Restricted Stock issued or transferred to the Employee in order to satisfy such minimum applicable tax withholding requirements.

	
  

	 

	
9.

	
NO EFFECT ON EMPLOYMENT.  Nothing herein shall be construed to grant Employee the right to continued employment with the Company or to limit or restrict the right of the Company or any of its subsidiaries to terminate an Employee’s employment at any time, with or without cause, or to increase or decrease the compensation of the Employee from the rate in existence at the date hereof.

 

 

3

 

 

	
10.

	
GOVERNING LAW.  This Agreement and all awards made and actions taken hereunder shall be governed by and construed in accordance with the Delaware General Corporation Law, to the extent applicable, and in accordance with the laws of the State of Georgia in all other respects.

IN WITNESS WHEREOF, the Company has caused this Time-Lapse Restricted Stock Agreement to be duly executed by an authorized officer, and the Employee has hereunto set his/her hand, all as of the day and year first above written.

 

	 	MARINE PRODUCTS CORPORATION	 
	 	 	 
	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	Its:	President	 
	 	 	 	 
	 	 	 	 
	 	Name	 

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00203-of-00352.parquet"}]]