Document:

EXHIBIT
10.1

 

AMENDMENT NO. 2 TO

REGISTRATION
RIGHTS AGREEMENT,

 

AMENDMENT NO. 2 TO

DEBENTURE AND
WARRANT PURCHASE AGREEMENT

and

 

AMENDMENT NO. 1 TO

SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 TO THE REGISTRATION RIGHTS AGREEMENT,
AMENDMENT NO. 2 TO THE DEBENTURE AND WARRANT PURCHASE AGREEMENT AND AMENDMENT
NO. 1 THE SECURITY AGREEMENT (the “Amendment”) is made effective as of the 11th
day of March, 2009, by and between Microfluidics International Corporation, a Delaware
corporation (the “Company”), and Global Strategic Partners, LLC , a Delaware
limited liability company (the “Investor”).

 

RECITALS

 

WHEREAS, the Company and Investor entered into a
Debenture and Warrant Purchase Agreement dated as of November 14, 2008 (the
“Purchase Agreement”) whereby the Investor purchased a convertible debenture
and a warrant to purchase common stock of the Company; and

 

WHEREAS, in connection with the execution of the
Purchase Agreement the Company and the Investor entered into a Registration
Rights Agreement and a Security Agreement, each dated as of November 14,
2008 (respectively, the “Registration Rights Agreement” and the “Security
Agreement”)

 

WHEREAS, the Company and the Investor would like to amend
the Registration Rights Agreement, the Purchase Agreement and the Security
Agreement as provided herein.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants set forth herein, the Investor and the Company hereby
agree that the Registration Rights Agreement, the Purchase Agreement and the Security
Agreement shall be amended as set forth herein, and the parties hereto further
agree as follows:

 

1.             Definitions.  Except as otherwise provided herein,
capitalized terms used in this Amendment shall have the meanings set forth in
the Purchase Agreement.

 

2.             Amendments.

 

2.1           Amendments to the Registration Rights Agreement.

 

1

 

(a)       Section 1(a)(i) of
the Registration Rights Agreement is hereby amended in its entirety to read as
follows:

 

“1.           REGISTRATION
STATEMENTS.

 

(a)           Demand Registration.

 

(i)            Upon the
written request of the Investor, the Company shall prepare and file with the
Commission under the Securities Act a Registration Statement on Form S-3
(except if the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration shall be on
another appropriate form in accordance with the Securities Act and the Exchange
Act and as consented to by the Investor) for the sale of any or all of the
Registrable Securities by the Investor on a delayed or continuous basis under Rule 415
of the Securities Act. The Company shall use its best efforts to file such
Registration Statement as soon as practicable after receipt of the Investor’s
written request (but in any event within thirty (30) days of the initial
request) and to cause such Registration Statement to be declared effective at
the earliest practicable date.  The
Company shall at its own expense, subject to Section 1(a)(iv), ensure the
availability of a Prospectus meeting the requirements of Section 10(a) of
the Securities Act and shall take any and all other actions necessary in order
to ensure the ability of the holders of all of the Registrable Securities to
effect a resale of their Registrable Securities, for such period as the Company
is obligated to maintain the effectiveness of a Registration Statement pursuant
to Section 1(a)(ii).”

 

(b)       Section 2(a) of
the Registration Rights Agreement is hereby amended in its entirety to read as
follows:

 

“(a)         prepare and
file with the Commission a Registration Statement relating to the registration
on Form S-3 under the Securities Act (except if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3, in
which case such registration shall be on another appropriate form in accordance
with the Securities Act and the Exchange Act and as consented to by the
Investor), which form shall be available for the sale of the Registrable
Securities being sold in accordance with the intended method or methods of
distribution thereof, and use its best efforts to cause such Registration
Statement to become effective and approved by such governmental agencies or
authorities as may be necessary to enable the selling holders to consummate the
disposition of such Registrable Securities;”

 

2

 

2.2           Amendment to the Purchase Agreement. 
Section 6.5 of the Purchase Agreement is hereby deleted
and of no further effect.

 

2.3           Amendment to the Security Agreement. 
Section 3(c) of the Security Agreement is hereby
deleted and of no further effect.

 

3.             Terms of the Agreements.  Except as
expressly modified hereby, all terms, conditions and provisions of each of the Registration
Rights Agreement, the Purchase Agreement and the Security Agreement shall
continue in full force and effect.

 

4.             Conflicting
Terms.  In
the event of any inconsistency or conflict between the Registration Rights Agreement,
the Security Agreement or the Purchase Agreement, on the one hand, and this
Amendment, on the other hand, the terms, conditions and provisions of this
Amendment shall govern and control.

 

5.             Entire Agreement.  This
Amendment and each of the Registration Rights Agreement, the Purchase Agreement
and the Security Agreement constitute the entire and exclusive agreement
between the parties with respect to the subject matter hereof and thereof.

 

3

 

IN WITNESS WHEREOF, the parties have executed this
Amendment as of the date first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  Microfluidics International Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael C. Ferrara

  
	
   

  	
  Name:

  	
  Michael
  C. Ferrara

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
  Global Strategic Partners, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Bruce Wendel

  
	
   

  	
  Name:

  	
  Bruce
  Wendel

  
	
   

  	
  Title:

  	
  Authorized
  PersonExhibit 10.1

 

AGREEMENT FOR TERMINATION OF EXECUTIVE

SUPPLEMENTAL COMPENSATION AND SPLIT DOLLAR

AGREEMENTS AND RELEASE AND WAIVER

 

In consideration for the payment by Nevada Security Bank (the “Bank”)
of the nominal consideration of $10,000 (“Consideration”) concurrent with the
execution of this Agreement,
                    
(the “Executive”) hereby voluntarily agrees to forfeit without any other
consideration any other rights under or interest in the (i) Executive
Supplemental Compensation Agreement, as entered into by and between the Bank
and the Executive and most recently amended December 31, 2008 (“SERP”) and
(ii) the Split Dollar Agreement, as entered into by and between the Bank
and Executive and most recently amended December 31, 2008 (“BOLI”).  The Bank Holdings, the Bank’s parent
corporation, Bank and the Executive, collectively shall be referred to as the “Parties”
and any such person or entity on an individual basis as a “Party.”

 

The Executive further releases The Bank Holdings and the Bank from any
liability for the termination of the SERP and BOLI, including Executive’s
liability for any excise taxes or interest, under Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”) for the payment of the
Consideration to Executive.  The
Executive acknowledges that Executive shall be liable for the payment of any
federal and/or state income taxes, excise taxes and interest associated with
the payment of the Consideration to Executive, including any withholding
taxes.  In addition, the Executive
further waives any claim against The Bank Holdings and the Bank for the changes
to Executive’s compensation or benefits that are the direct result of the
Executive’s forfeiture of the SERP and BOLI.

 

This waiver includes and releases all claims the Executive may have
under the laws of the United States or any state , known or unknown, in
law or equity, that the parties ever had, now have, may have, or claim to have
against any and all of the persons or entities named in this paragraph arising
out of, or by reason of this agreement, or related to the requirements
imposed by the aforementioned forfeiture of the SERP and BOLI including without
limitation a claim for any compensation or other payments Executive would
otherwise receive.

 

It is the express intention of the Parties that this agreement shall be
effective as a full and final accord, satisfaction and release as to the
matters released herein. In furtherance of this intention, as to the matters
released herein, each Party expressly waives and relinquishes, to the fullest
extent permitted by applicable law, including but not limited to all
provisions, rights and benefits of California Civil Code Section 1542,
which states as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED
HIS SETTLEMENT WITH THE DEBTOR.

 

Each Party also expressly waives and relinquishes, to the fullest
extent permitted by applicable law, the provisions, rights and benefits
conferred by any law of any state, territory, or

 

 

commonwealth of the United States, or principle of common law, or of
international or foreign law, which is similar, comparable or equivalent to California
Civil Code Section 1542.

 

The Executive further states that (i) the Executive has carefully
read this document, (ii) the Executive has had the opportunity to consult
an attorney to have any questions concerning this document explained to the
Executive, (iii) the Executive fully understand its final and binding
effect, including the federal and state income tax effects of the payment of
the Consideration to Executive (iv) the only promises made by the Bank and
The Bank Holdings to the Executive to sign this document are those stated above
and (v) the Executive is signing this document voluntarily.  Each Party or its respective counsel has
cooperated in the drafting and preparation of this waiver.  This waiver shall not be construed against
any Party as the drafter thereof.

 

Executed this 11th day of March, 2009.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

CONSENT OF THE EXECUTIVE’S SPOUSE

TO THE PRECEDING TERMINATION OF

THE EXECUTIVE SUPPLEMENTAL COMPENSATION

AND SPLIT DOLLAR AGREEMENTS AND RELEASE AND
WAIVER

 

I,                           ,
being the spouse of
                      ,
after being afforded the opportunity to consult with independent counsel of my
choosing, do hereby acknowledge that I consent to my spouse’s forfeiture of the
(i) Executive Supplemental Compensation Agreement, as entered into by and
between Nevada Security Bank and my spouse and most recently amended December 31,
2008 (“SERP”) and (ii) the Split Dollar Agreement, as entered into by and
between Nevada Security Bank and my spouse and as most recently amended December 31,
2008 (“BOLI”).  Nevada Security Bank,
(the “Bank”), The Bank Holdings, the Bank’s parent corporation, and I,
collectively shall be referred to as the “Parties” and any such person or
entity on an individual basis shall be referred to as a “Party.”

 

I understand that the aforementioned consent to my spouse’s forfeiture
of the SERP and BOLI adversely affects my community property interest in the
benefits provided for under the terms of the SERP and BOLI.

 

I further release The Bank Holdings and Nevada Security Bank from any
liability for my spouse’s forfeiture of the SERP and BOLI.  In addition, I further waive any claim
against The Bank Holdings and Nevada Security Bank for the changes to the
compensation or benefits of my spouse and me that are the direct result of my
spouse’s forfeiture of the SERP and BOLI.

 

This waiver includes and releases all claims I may have under the laws
of the United States or any state related to the requirements imposed by my
spouse’s forfeiture of the SERP and BOLI, including without limitation a claim
for any compensation or other payments my spouse or I would otherwise receive.

 

It is the express intention of the Parties that this agreement shall be
effective as a full and final accord, satisfaction and release as to the
matters released herein.  In furtherance
of this intention, as to the matters released herein, each Party expressly
waives and relinquishes, to the fullest extent permitted by applicable law, including
but not limited to all provisions, rights and benefits of California Civil Code
Section 1542, which states as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED
HIS SETTLEMENT WITH THE DEBTOR.

 

Each Party also expressly waives and relinquishes, to the fullest
extent permitted by applicable law, the provisions, rights and benefits
conferred by any law of any state, territory, or commonwealth of the United
States, or principle of common law, or of international or foreign law, which
is similar, comparable or equivalent to California Civil Code Section 1542.

 

I further state that I (i) have carefully read this document, (ii) have
had the opportunity to 

 

 

consult an attorney to have any questions
concerning this document explained to me, (iii) fully understand its final
and binding effect, including the federal and state income tax effects of the
payment of the Consideration to Executive on me and (iv) am signing this
document voluntarily.  Each Party or its
respective counsel has cooperated in the drafting and preparation of this
waiver.  This waiver shall not be
construed against any Party as the drafter thereof.

 

 

	
  Dated: March 11, 2009

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