Document:

ex10-2.htm

Exhibit 10.2

LEWIS C. PELL

40 Ramland Road

Orangeburg, NY 10962

August 14, 2012

 

Vision-Sciences, Inc.

40 Ramland Road

Orangeburg, New York 10962

 

	
  

	
Re:

	
Maintenance of Liquidity.

 

Ladies and Gentlemen:

 

The undersigned (the “Lender”) is a shareholder of, and a lender to, Vision-Sciences, Inc. (together with its subsidiaries, the “Company”).

 

	
1.

	
Maintenance of Liquidity

 

From and after the date hereof and until the Release Date (as defined below) if the Company will have insufficient liquidity to meet any material payment obligations arising in the ordinary course of business (the “Obligations”) as they become due, then the Company will promptly notify the Lender of the shortfall.  The Lender agrees to advance to the Company additional loans on substantially the same terms and conditions of the Lender’s existing loans to the Company in an aggregate amount up to $3,000,000 (the “Maximum Amount”).

 

	
2.

	
Not a Guarantee

 

This Agreement is not, and nothing herein contained and nothing done by the Lender pursuant hereto shall be deemed to constitute, a direct or indirect guarantee by the Lender of the payment of any Obligations or any other obligation, indebtedness or liability of any kind or character whatsoever of the Company.

 

	
3.

	
Modification and Termination

 

This Agreement may be modified or amended only by the written agreement of the Lender and the Company.

 

This Agreement and the obligations of the Lender hereunder shall automatically terminate (the “Release Date”) upon the earlier to occur of (a) the consummation of a transaction pursuant to which the Company shall raise through the sale of additional equity capital or debt with net proceeds to the Company equal to or greater than the Maximum Amount, or (b) the date that is twelve (12) months from the date hereof.

 

	
4.

	
General

 

This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regards to its conflicts of laws principles.  No failure to exercise nor any delay in exercising any right hereunder shall operate as a waiver thereof nor shall any exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right.  No provision of this Agreement is intended to, or shall, confer any third party beneficiary or other rights or remedies upon any person other than the parties hereto.  This Agreement shall be binding upon and inure to the benefit of the Lender and the Company and their respective successors and assigns. This Letter may be executed in counterparts, each of which shall be deemed an original but both of which together shall constitute one and the same instrument.

 

 

[Signatures on Next Page]

 

  

  

  

 

Exhibit 10.2

 

	 	 	Sincerely,	 
	 	 	 	 
	 	 	 	 
	 	 	/s/ Lewis C. Pell	 
	 	 	Lewis C. Pell	 

Accepted and Agreed

 

Vision-Sciences, Inc.

 

	By:	/s/ Cynthia Ansari	 	 
	 	Cynthia Ansari	 	 
	 	President and Chief Executive Officerex10-3.htm

Exhibit 10.3

 

April 27, 2012

Lewis C. Pell

40 Ramland Road South, Suite 200

Orangeburg, NY 10962

Dear Mr. Pell:

Reference is made to that certain Amended and Restated Revolving Loan Agreement, dated as of September 30, 2011 (the “Loan Agreement”), between you and Vision-Sciences, Inc. (the “Company”), pursuant to which you have made certain Loans to the Company.  Terms used but not defined in this Letter shall have the meaning assigned thereto in the Loan Agreement.

Reference is further made to the Purchase Agreement between the Company and Lincoln Park Capital Fund, LLC (“LPC”), dated as of the date hereof (the “Purchase Agreement”) pursuant to which, LPC agreed to purchase Common Stock of the Company from time to time.

You hereby confirm and agree that the provisions of Section 6(b) of the Loan Agreement shall be deemed not to apply to the transactions contemplated by the Purchase Agreement, such that the consummation of the transactions contemplated by the Purchase Agreement shall not and will not require the Company to repay all or any portion of the Loans made under the Loan Agreement notwithstanding the provisions of Section 6(b) of the Loan Agreement that would otherwise have required the Company to repay a portion of the Loans.

Except for the consent and agreement set forth above, this Letter shall not otherwise amend or modify any provision of the Loan Agreement, which shall remain in full force and effect.

 

If the foregoing correctly sets forth our mutual understanding regarding the subject matter hereof, please so indicate by signing in the space provided below.

Very truly yours,

VISION-SCIENCES, INC.

By: /s/ Cynthia Ansari

             Name:   Cynthia Ansari,

              Title:     Chief Executive Officer

ACKNOWLEDGED AND AGREED AS OF

THE DATE FIRST ABOVE WRITTEN:

/s/ Lewis C. Pell

Lewis C. Pellex10-1.htm

EXHIBIT 10.1

 

July 17th, 2012

 

Terms and Conditions for 195-Day Extension of 10% Senior Subordinated Convertible Promissory Note

 

This letter serves as our proposal to offer a 195-day extension for the $3,000,000 Senior Subordinated Convertible Promissory Note that was due on June 30th, 2012. St. Cloud Capital Partners II, LP ("St. Cloud") shall provide a 195-day extension, terminating on January 31st, 2013 at 5 PM EDT, subject to the satisfactory acceptance and execution of the terms and conditions listed below.

 

	
  

	
1.

	
St. Cloud shall immediately receive payment on all outstanding interest and expenses owed. In addition, St. Cloud shall be entitled to receive any expenses in connection with costs to collect on its Note per Section 15 of the $3,000,000 Senior Subordinated Convertible Promissory Note Agreement.

 

	
  

	
2.

	
St. Cloud shall receive a $1,200,000 payment to reduce the principal amount of its Note.

 

	
  

	
3.

	
Security Interest:

National Holdings Corporation ("NHLD") shall grant a general security interest in certain assets of NHLD. St. Cloud shall be authorized to file a UCC-1 and, if required to perfect such security interest, NHLD shall deliver share certificates. The security interest shall expressly include:

	
  

	
(a)

	
A pledge of all assets and equity associated with National Asset Management, Inc. in conjunction with all necessary regulatory approvals and authorizations.

	
  

	
(b)

	
In the event that NHLD fails to make payment on the Note by the maturity date of January 31st, 2013 and fails to cure within 5 business days from this date, NHLD shall not impede St. Cloud's efforts to initiate "friendly foreclosure" proceedings.

 

	
  

	
4.

	
National Securities Growth Partners, LLC ("NSGP"):

	
  

	
(a)

	
NSGP shall extend the maturity date of its 6% Subordinated Convertible Promissory Note by 195 days, so that the variance in the maturity date with that of St. Cloud's Note is always equal to a minimum of 6 months.

	
  

	
(b)

	
NSGP shall invest $2,000,000 into NHLD under such terms and conditions as shall be agreed to by and between NSGP and the Board of Directors of NHLD.

	
  

	
(c)

	
NSGP shall assist management of NHLD in the timely filing with FINRA of the necessary forms for compliance with NASD Rule 1017 to cover the $6 million total investment with qualified investors within 60 days of executing this proposal. NSGP shall use their best efforts to raise and invest the additional $4,000,000 into NHLD during the term of this extension in order to bring the total of new capital invested by NSGP and others to $10 million. New qualified investors need not necessarily invest through NSGP.

 

  

1

  

 

	
  

	
5.

	
Mark Goldwasser and Lenny Sokolow accept NSGP's already-instituted compensation reductions for NHLD's Management as not triggering penalty payments in their respective employment agreements. Mr. Goldwasser shall remain CEO and Mr. Sokolow shall become a consultant to the Company, remain a member of the board and remain non-executive Vice Chairman of the Board if this is permissible under law. Upon execution of this extension agreement, Robert Fagenson and Mark Klein shall share the roles of Co-Executive Chairmen and assume active roles in day-to-day management as part of the Executive Management Committee comprised of Mr. Goldwasser, Mr. Fagenson and Mr. Klein.

 

	
  

	
6.

	
Within 60 days of executing this proposal, NHLD shall set forth a plan for a potential longer term rollover extension of St. Cloud's Note, which encompasses additional elements such as convertibility, modifications, etc. Within this 60-day period, NHLD shall continue its timely efforts to reconcile the capitalization through continuing negotiations for warrant conversion and any other modifications necessary for a more unified and simplified structure.

 

Please review all the terms and conditions listed above. If the terms and conditions set forth herein are acceptable, please evidence your acceptance of this proposal by executing where indicated. Please return a signed copy of this proposal no later than 5 PM PDT this Tuesday, July 17th, 2012, after which this proposal in its entirety shall expire. As a courtesy, we remind you that pursuant to Section 8(c) of St. Cloud's Senior Subordinated Convertible Promissory Note Agreement, the failure of NHLD to make any installment of principal when due or interest within five (5) business days of written notice constitutes an Event of Default. In the Event of Default, we shall exercise any and all rights, powers or remedies, including foreclosure proceedings on all assets and equity of NHLD and its existing subsidiaries.

 

Please feel free to contact us anytime if you have any questions. Thank you.

 

Sincerely,

 

 

/s/ Robert Lautz

Robert Lautz

Managing Member

SCGP II, LLC

 

  

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/s/ Robert Lautz                               

Robert Lautz

Managing Member

SCGP II, LLC

 

 

/s/ Mark Goldwasser                      

Mark Goldwasser

Chief Executive Officer

National Holdings Corporation

/s/ Robert Fagenson                       

Robert Fagenson

Managing Member

National Securities Growth Partners, LLC

 

 

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