Document:

AMENDMENT TO SETTLEMENT AGREEMENT

PARTIES TO THE AGREEMENT

This Amendment to
Settlement Agreement (“this Amendment”) is entered into by and between Joseph C. Loomis (“Plaintiff” or
“Loomis”) and SupportSave Solutions, Inc., a Nevada corporation (“Defendant” or “SSVE”). Plaintiff
and Defendant shall hereinafter be referred to as “the Parties” and individually as a “Party.”

RECITALS

A.               
On or about January 7, 2011, Plaintiff commenced an adversary proceeding in the United
States Bankruptcy Court in and for the District of Arizona (“the Bankruptcy Court”) entitled Loomis v. SupportSave
Solutions, Inc., Case No. 2:11-ap-00051-RJH (the “action”). The complaint in the action alleges that on January
26, 2010, after the commencement of his bankruptcy case, the Debtor made a payment of $500,000 to Defendant without prior approval
of the Bankruptcy Court and that the entire payment is subject to being ordered immediately returned to the bankruptcy estate.
The payment was made pursuant to a written Stock Subscription Agreement executed by and between Loomis and Defendant on or about
January 1, 2010 whereby Loomis agreed to purchase 833,333 shares of common stock in Defendant (“the stock sale”).

B.                
On or about February 10, 2011, the Parties entered into a Settlement Agreement (“the
Settlement Agreement”). Pursuant to the terms of the Settlement Agreement, SSVE agreed to pay Loomis the sum of $200,000
immediately upon entry of an order of the Bankruptcy Court approving the Settlement Agreement. The Settlement Agreement further
provided that Loomis would return to SSVE 333,332 shares of SSVE common stock. The Settlement Agreement further provided that,
upon approval of the Settlement Agreement and for 180 days thereafter, Loomis was permitted to sell his remaining shares of stock
in SSVE for a price of not less than $.35 per share. The Settlement Agreement provided that, at the conclusion of said 180-day
period, SSVE would buy back all of the remaining shares of SSVE stock sold to Loomis by means of the stock sale for an amount such
that Loomis is reimbursed in the total amount of $500,000 as a result of the transactions discussed herein. The Settlement Agreement
further provided that, in the event that SSVE fails to make such payment, Loomis was entitled to submit a stipulation for entry
of judgment and judgment thereon in order to obtain a judgment from the Bankruptcy Court in the amount due together with attorney
fees in the sum of $5,000. A true and correct copy of the Settlement Agreement is attached hereto as Exhibit “A”.

C.               
On or about February 28, 2011, the Bankruptcy Court entered its Order Granting Motion
for Authorization to 1) Settle Litigation with SupportSave Solutions, Inc. and to 2) Utilize Cash Received to Fund Retainers
of Counsel.

D.               
On or shortly after February 2011, SSVE did in fact pay the sum of $200,000 to Loomis
and Loomis tendered 333,332 shares of common stock to SSVE.

    	 

    	 

    

 

E.                
Loomis attempted to sell his remaining shares but has been unable to consummate and/or
conclude a sale of such shares.

F.                
On or about April 1, 2011, Loomis was advised by SSVE that, it would not be able to purchase
the remaining shares of his stock on or about August 28, 2011 and, yet, it wanted Loomis to agree to forego submitting the stipulation
for entry of judgment to the Bankruptcy Court and to prevent judgment from being entered against it by the Bankruptcy Court.

Loomis advised SSVE
that he would be willing to forbear seeking entry of judgment against SSVE on August 28, 2011 and to extend the time in which SSVE
has to pay the balance due under the Settlement Agreement approved by the Bankruptcy Court up to and including April 1, 2012 provided
that: 1) SSVE agree to pay Loomis monthly forbearance payments at the rate of 8% per annum on the $300,000 from April 1, 2011,
and due and payable on the first day of each month; 2) that immediately and within 48 hours of approval of this Amendment
by the Bankruptcy Court, SSVE pay to Loomis the past due forbearance payments (for April, May, June, July and August) in the total
amount of $10,000; that in the event SSVE fails to pay any future forbearance payment within 5 business days of the date on which
it is due, the forbearance payment rate owed on such payment will increase to 10%; that all payments will be made by means of wire
transfer; that the balance of $300,000 owed will be due and payable on April 1, 2012; and that in the event of any failure of SSVE
to meet these terms, Loomis shall be authorized and permitted to submit the stipulation for entry of judgment in the amount of
$305,000 along with the proposed judgment both of which are attached hereto as Exhibit “B” to the Bankruptcy Court
and to obtain entry of judgment in said amount on 5 days notice to SSVE sent to it by electronic mail addressed as follows: chris@supportsave.com.

G.   
SSVE has agreed to the terms proposed by Loomis.

AMENDED SETTLEMENT TERMS

NOW, THEREFORE,
in consideration of the promises and agreements set forth herein, the Parties agree that the Settlement Agreement entered into
on or about February 2, 2011 and approved by the Bankruptcy Court on February 28, 2011 is amended to include the following terms:

1.     
Forbearance Agreement. Provided that the terms of this Amendment are met without default,
Loomis agrees to forbear on his right to submit the Stipulation for Entry of Judgment and Judgment in the amount of $300,000 to
the Bankruptcy Court on or after August 28, 2011 as he would otherwise be entitled to do under the Settlement Agreement approved
by the Bankruptcy Court on February 28, 2011.

2.     
Commencing as of April 1, 2011, SSVE agrees to make forbearance payments to Loomis on a monthly
basis in the amount of 8% of the sum of $300,000 or $2,000 per month with each forbearance payment due and payable on the first
business day of each month.

    	2

    	 

    

 

3.     
That immediately and within 48 hours of approval of this Amendment by the Bankruptcy Court,
SSVE shall pay to Loomis the past due forbearance payments (for the months of April, May, June, July and August) in the total amount
of $10,000.

4.     
In the event that SSVE defaults and fails to make any forbearance payment due under this Amendment
within 5 business days after it is due, the rate owed on such payment shall increase to 10%.

5.     
All payments will be made by means of wire transfer to Loomis directed to him as follows:

Wells Fargo Bank

Act# 5535016603

Routing# 124002971

 

6.     
The remaining principal balance in the amount of $300,000 shall be due and payable on or before
April 1, 2012.

7.     
In the event of any default by SSVE on the terms and conditions set forth herein, Loomis is
authorized and shall be permitted to submit the Stipulation for Entry of Judgment in the amount of $305,000 and the Proposed Judgment
in the amount of $305,000, attached hereto as Exhibit “B”, to the Bankruptcy Court and to obtain entry of judgment
in said amount provided that Loomis provide to SSVE 5 court days notice of such submission by means of electronic mail addressed
to SSVE as follows:chris@supportsave.com.

8.     
In the event that any provision of this Amendment is determined to be unenforceable for any
reason, it shall be deemed severed from this Amendment and shall not affect the enforceability of the remaining provisions.

9.     
Except as expressly modified by the Amendment, the provisions of the Settlement Agreement
shall remain binding on the Parties.

10. 
Loomis shall immediately seek Bankruptcy Court approval of this Amendment. It is further agreed
that this Amendment is of no force and effect unless and until it is approved by the Bankruptcy Court and in the event approval
is not obtained for any reason, the Settlement Agreement shall remain valid and binding and in full force and effect as if this
Amendment had never been made.

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I HAVE READ THE
FOREGOING AMENDMENT TO SETTLEMENT AGREEMENT AND I ACCEPT AND AGREE TO THE PROVISIONS CONTAINED THEREIN AND HEREBY EXECUTE IT VOLUNTARILY
AFTER HAVING HAD THE OPPORTUNITY TO DISCUSS THE SAME WITH COUNSEL AND WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

 

DATED: September 9, 2011

 

SUPPORTSAVE SOLUTIONS, INC.

By: /s/ Chris Johns

Chris Johns

Chairman and Chief Executive Officer

 

DATED: September 9, 2011

By: /s/ Joseph Loomis

Joseph Loomis

Plaintiff and Debtor-in-Possessionex_10-1.htm

EXHIBIT 10.1

 

 

	
Dated: 

 

To:

	
May 27, 2011

 

WaferGen Bio-systems, Inc.

7400 Paseo Padre Parkway

Fremont, CA  94555

Attention:  Don Huffman, Chief Financial Officer

 

Dear Don,

 

Reference is made to that certain Purchase Agreement (the “Purchase Agreement”), dated as of May 25, 2011, by and among WaferGen Bio-systems, Inc. (the “Company”) and the investors who have executed the signature page(s) thereto (collectively, the “Investors”).  Capitalized terms used but not defined in this letter shall have the respective meanings ascribed to them in the Purchase Agreement.

 

Subject to the Company’s agreement hereto by its execution of this letter below where indicated, the Investors and the undersigned individuals (collectively, the “Management Members”) agree with each other and the Company as follows:

 

At any time the Company seeks to initially list the Company’s shares of Common Stock on The NASDAQ Stock Market LLC or the NYSE Amex Equities (each, a “Securities Exchange”) within the three (3) year period from the date hereof, if, in order to complete such initial listing (or otherwise maintain such listing following the listing of the shares on a Securities Exchange) the Company is advised or required by the applicable Securities Exchange to increase its shareholders’ equity by a specified dollar amount (the “Cure Amount”), then the Company shall so notify the Investors and the Management Members in writing, and Investors holding at least sixty-seven percent (67%) of the aggregate principal amount of the Notes then outstanding, at their sole discretion, may require that the Management Members and any Investors then holding Notes, within ten (10) calendar days of the receipt of such written notice, increase their holdings of equity in the Company in an aggregate amount equal to the Cure Amount as follows:

 

(i)           Management:  First, the Management Members, on a pro rata basis (based upon the principal amount of the Notes then held by them) or as otherwise agreed by the Management Members, shall acquire, to the extent and only to the extent amounts are owing under the Notes held by the Management Members, additional shares of Series A Preferred Stock through the conversion of the Notes held by such Management Members into shares of Series A Preferred Stock in accordance with the terms of the Notes, but only to the extent necessary to increase the Company’s shareholders’ equity by the Cure Amount.

 

(ii)          Investors:  Second, to the extent that the conversion of the Notes held by Management Members as described in the foregoing paragraph (i) does not result in the Company’s shareholders’ equity being increased by the Cure Amount (such deficiency referred herein as the “Deficiency Amount”), then the Investors, on a pro rata basis (based upon the 

 

 

  

1

  

 

principal amount of the Notes then held by them) or as otherwise agreed by the Investors then holding Notes, shall acquire, to the extent and only to the extent amounts are owing under the Notes, additional shares of Series A Preferred through the conversion of Notes held by such Investors into shares of Series A Preferred in accordance with the terms of the Notes, but only to the extent necessary to further increase the Company’s shareholders’ equity by the Deficiency Amount.

           The parties hereto agree that in case, at any time after the date hereof, any further action is necessary or desirable to carry out the purposes and intent of this letter, the parties will take such further action as any party or parties may reasonably request.  This letter may be executed in one or more counterparts, and by different parties hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Any signature page of any such counterpart, or any electronic facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this letter, and any telecopy or other facsimile transmission of any signature shall be deemed an original.  This letter shall be binding upon each party’s successors and assigns, and no party may transfer the Notes to another party without the transferee first agreeing to be bound by the terms and conditions of this letter.

  

2

  

 

Please confirm your agreement with the foregoing by signing and returning to Great Point Partners, LLC the duplicate copy of this letter agreement enclosed herewith.

	  	
Very truly yours,

	  	  
	  	
INVESTORS:

	  	  
	  	
GREAT POINT PARTNERS, LLC

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
BIOMEDICAL VALUE FUND, L.P.

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
BIOMEDICAL INSTITUTIONAL VALUE FUND, L.P.

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
BIOMEDICAL OFFSHORE VALUE FUND, LTD.

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
WS INVESTMENTS III, LLC

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

 

 

[Side Letter Agreement]

  

  

  

	  	
DAVID J. MORRISON

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
CLASS D SERIES OF GEF-PS, L.P.

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
LYRICAL MULTI-MANAGER FUND, L.P.

	  	
By: Great Point Partners, LLC, its investment manager

	  	  
	  	
By:

	
  /s/ David E. Kroin

	  
	  	  	
Name: David E. Kroin

Title: Managing Director

	  	
JEFFREY R. JAY, TRUSTEE FOR THE BENEFIT OF

	  	
THOMAS C. JAY QPERT

	  	  
	  	
By:

	
  /s/ Jeffrey R. Jay

	  
	  	  	
Name:

Title:

	  	
JEFFREY R. JAY, TRUSTEE FOR THE BENEFIT OF

	  	
CAROLYN JAY TRUST

	  	  
	  	
By:

	
  /s/ Jeffrey R. Jay

	  
	  	  	
Name:

Title:

	  	
JEFFREY R. JAY, TRUSTEE FOR THE BENEFIT OF

	  	
JR JAY JR TRUST

	  	  
	  	
By:

	
  /s/ Jeffrey R. Jay

	  
	  	  	
Name:

Title:

 

 

 

 

[Side Letter Agreement]

 

 

  

  

  

 

	  	
DEERFIELD SPECIAL SITUATION FUND, L.P.

	  	
By:

	
Deerfield Capital, L.P.

	  	  	
General Partner

	  	  	
By:

	
J.E. Flynn Capital, LLC

	  	  	  	
General Partner

	  	  	  	  	  
	  	  	  	
By:

	
  /s/ J. E. Flynn

	  
	  	  	  	  	
Name: James E. Flynn

	  	  	  	  	
Title:   President

	  	
DEERFIELD SPECIAL SITUATIONS FUND

	  	
INTERNATIONAL, LIMITED

	  	  
	  	
By:

	
  /s/ J. E. Flynn

	  
	  	  	
Name:

	
James E. Flynn

	  	  	
Title:

	
President

 

	  	
DEERFIELD PRIVATE DESIGN FUND II, L.P.

	  	
By:

	
Deerfield Capital, L.P.

	  	  	
General Partner

	  	  	
By:

	
J.E. Flynn Capital, LLC

	  	  	  	
General Partner

	  	  	  	  	  
	  	  	  	
By:

	
  /s/ J. E. Flynn

	  
	  	  	  	  	
Name: James E. Flynn

	  	  	  	  	
Title:   President

 

 

	 	DEERFIELD PRIVATE DESIGN 
	  	
INTERNATIONAL II, L.P.

	  	
By:

	
Deerfield Capital, L.P.

	  	  	
General Partner

	  	  	
By:

	
J.E. Flynn Capital, LLC

	  	  	  	
General Partner

	  	  	  	  	  
	  	  	  	
By:

	
  /s/ J. E. Flynn

	  
	  	  	  	  	
Name: James E. Flynn

	  	  	  	  	
Title:   President

 

 

 

 

[Side Letter Agreement]

  

  

  

	  	
JEFFREY R JAY

	  	  
	  	
By:

	
  /s/ Jeffrey R Jay

	  

	  	
PAUL SCHIMMEL ROLLOVER IRA

	  	  
	  	
By:

	  /s/ Paul Schimmel	  
	  	  	
Name:

	  
	  	  	
Title:

	  

	  	
MERLIN NEXUS III, LP

	  	
By:

	
Merlin Nexus III, LLC (Its General Partner)

	  	  	  	  
	  	  	
By:

	  /s/ Dominique Sémon	  
	  	  	  	
Name:  Dominique Sémon

	  	  	  	
Title:

 

 

[Side Letter Agreement]

  

  

  

	  	
THE SHIVJI FAMILY TRUST DATED JUNE 12, 2000

	  	  
	  	
By:

	
  /s/ Alnoor Shivji

	  
	  	  	
Name:

	
Alnoor Shivji

	  
	  	  	
Title:

	
Trustee

	  

 

 

[Side Letter Agreement]

  

  

  

	  	
ROBERT CORADINI

	  	  
	  	
  /s/ Robert Coradini

	  
	  	
Name:

	
Robert Coradini

	  

 

 

 

[Side Letter Agreement]

  

  

  

	  	
CIBC TRUST COMPANY (BAHAMAS) LIMITED

	  	
AS TRUSTEE

	  	  
	  	
By:

	
  /s/ Helen M. Carroll     /s/ Linda G. Williams

	  
	  	  	
Name:

	
Helen M. Carroll & Linda G. Williams

	  
	  	  	
Title:

	
Authorised Signatories

	  

	  	
KANTER FAMILY FOUNDATION

	  	  
	  	
By:

	  /s/ Joel Kanter	  
	  	  	
Name:

	Joel Kanter	  
	  	  	
Title:

	
President

	  

	  	
JOEL KANTER

	  	  
	  	
By:

	  /s/ Joel Kanter	  

 

 

[Side Letter Agreement]

  

  

  

Accepted and agreed:

	
WaferGen Bio-systems, Inc.

 

 

 

	
By:

	
  /s/ Alnoor Shivji

	  
	  	
Name:

	
Alnoor Sivji

	  	
Title:

	
Chief Executive Officer

	
cc:

	
Morrison & Foerster LLP

	  	
425 Market Street

	  	
San Francisco, CA  94105

	  	
Attention:  John M. Rafferty, Esq.

 

 

 

[Side Letter Agreement]

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