Document:

HBS Bio - Amendment to Asset Purchase Agmt (9-29)  (10178244).DOC

Exhibit 10.1

AMENDMENT TO ASSET PURCHASE AGREEMENT 

THIS AMENDMENT TO ASSET PURCHASE AGREEMENT (“Amendment”) is made and entered into effective as of September 1, 2006 (the “Effective Date”), by and among EXL III GROUP CORPORATION, a Delaware corporation (“EXL”), HUMAN BIOSYSTEMS, a California corporation (“HBS”) and HBS BIOENERGY, a California corporation (“HBS Bio”).  Certain capitalized terms used in this Agreement are defined in Exhibit A hereto.

RECITALS

A.

Effective as of the Effective Date, EXL, HBS and HBS Bio entered into that certain Asset Purchase Agreement (the “Agreement”) whereby HBS Bio agreed to purchase certain assets from  EXL in consideration for the issuance of shares of HBS common stock.

 

B.

The parties now wish to amend the Agreement to clarify certain understandings, as set forth below.   Capitalized terms used herein and not defined shall have the same meaning as set forth in the Agreement.

AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and based upon the foregoing recitals, the parties agree as follows:

1.

Purchase and Sale.  The parties acknowledge and understand that HBS and HBS Bio are currently negotiating with K.M. Biggs, Inc. and Katydid Farms, Inc. (collectively, the “Sellers”) a new Option Agreement whereby HBS Bio shall directly obtain from Sellers an option to purchase that certain real property located in Lumberton County, North Carolina (the “Property”).  Therefore, the Subject Property shall include any and all right, title and interest of EXL in and to the Property, including but not limited to any option thereon.

2.

Deletion of Exhibits.  Exhibits B and C are hereby deleted from the Agreement.  

3.

Representations and Warranties of EXL.  Section 3.1 of the Agreement is hereby amended and restated to read as follows:  “EXL is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power and authority to own and lease the properties and assets it owns and leases in connection with its business and to carry on its business as currently conducted.  EXL is duly licensed to do business in the State of Delaware and all other jurisdictions in which the character of the Subject Property or the nature of its business requires it to be so licensed or qualified except where a failure to have such license or qualification would not have a material adverse effect upon the operation of the Subject Property or the business as presently conducted by EXL.”

4.

Consulting Services Agreement.  Section 7.5 of the Agreement is hereby amended and restated to read as follows:  “HBS Bio and EXL shall have entered into that certain Consulting Services Agreement in the form attached hereto as Exhibit D (the “Consulting Services Agreement”).

5.

Closing.  

5.1

Subsections (iii) and (iv) of Section 8.1(a) are hereby deleted from the Agreement.

1

5.2

Subsection (iv) of Section 8.1(a) is hereby amended and restated to read as follows:  “have received an opinion of HBS Bio’s counsel to the effect set forth in Sections 4.1, 4.2, 4.3 (to such counsel’s knowledge) and 4.4 (to such counsel’s knowledge), in form and in substance reasonably satisfactory to EXL; and”.

5.3

Subsection (ii) of Section 8.1(b) is hereby amended and restated to read as follows:  “have received an opinion of EXL’s counsel to the effect set forth in Sections 3.1, 3.2, 3.3 (to such counsel’s knowledge) and 3.4 (to such counsel’s knowledge), in form and in substance reasonably satisfactory to HBS Bio;”.

5.4

Subsection (iv) of Section 8.1(b) is hereby amended and restated to read as follows:  “have received from EXL an executed  Consulting Services Agreement.”

6.

Remainder of Agreement.   Except as modified by this Amendment, the Agreement shall remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date..  

		
	“HBS Bio”

HBS BioEnergy,

a California corporation

By: ___________________________________

       Harry Masuda

       Chief Executive Officer

Date:______________________________

	“EXL”

EXL III Group Corporation,

a Delaware corporation

By: ___________________________________

       Claude Luster, III

        CEO/President

Date:______________________________

	Address:

1127 Harker Avenue

Palo Alto, California 94301

Facsimile: (650) 327-8658

	Address:

221 W. Riverridge Avenue

Fresno, California  93711

Facsimile: (559) 261-0952

	

With copies to:

Silicon Valley Law Group

25 Metro Drive, Suite 600

San Jose, CA  95110

Attn:  Cathryn S. Gawne, Esq.

Telephone:  (408) 573-5700

Facsimile:    (408) 573-5701

	

With copies to:

2

		
	“HBS” 

Human BioSystems,

a California corporation

By: ___________________________________

    Harry Masuda

    Chief Executive Officer

Date:______________________________

	 
	Address:

1127 Harker Avenue

Palo Alto, CA  94301

Facsimile: (650) 327-8658

	 
	

With copies to:

Silicon Valley Law Group

25 Metro Drive, Suite 600

San Jose, CA  95110

Attn:  Cathryn S. Gawne, Esq.

Telephone:  (408) 573-5700

Facsimile:    (408) 573-5701

	

3EXHIBIT 10.34

                       SEPARATION AND SEVERANCE AGREEMENT

         This Separation and Severance Agreement ("Agreement") is made and
entered into by and between POWER2SHIP, INC., a Nevada corporation, and its
various subsidiaries and affiliates (the "Company"), and Richard Hersh ("Hersh")
as of the 15th day of September 2006.

                                    RECITALS
                                    --------

         A. Hersh has been employed by the Company as Chief Executive Officer,
serves as a Director of the Company and serves as an officer and/or Director of
various subsidiaries or affiliated companies of the Company.

         B Hersh and the Company entered into an Employment Agreement on January
1,, 2003 (the "Employment Agreement") with the Company's predecessor, Freight
Rate, Inc.

         C. After lengthy discussions among the parties concerning the
operations, management structure and future of the Company, the parties desire
to terminate their relationship on an amicable basis pursuant to the terms and
conditions set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises, undertakings
and releases, receipt of which is hereby acknowledged as sufficient
consideration by both parties, the parties agree as follows:

         1. Recitals. The above recitals are true, correct, and are herein
incorporated by reference.

         2. Resignation of Employment. Hersh hereby resigns as Chief Executive
Officer, but will remain as Chairman of the Board, to be effective on the date
hereof ("Termination Date").

         3. Termination. The Employment Agreement is permanently terminated
effective on the Termination Date.

         4. Severance and Benefits. Subject to the conditions set forth herein,
the Company and Hersh agree to the following.

                  (a) In full settlement of all claims for payment made or that
could be made by Hersh pursuant to the terms of the Employment Agreement or any
compensation, commissions, vacation pay, health insurance payments or benefits

<PAGE>
program heretofore provided, or promised, to Hersh, and for the forgiveness of
all amounts due to Hersh on the convertible promissory note dated March 10, 2003
issued to him by Freight Rate, Inc., the Company will pay to Hersh $20,000, to
be paid in-full upon the Company receiving at least Three Million Dollars in
additional, aggregate funding.

                  (b) Hersh currently owns options to purchase 6,182,642 shares
of the Company's common stock exercisable at prices ranging from $0.25 to $0.38
per share (the "P2S Options"). In consideration for canceling the P2S Options,
canceling the option previously granted to Hersh to purchase 10% of the common
stock of Commodity Express Transportation, Inc. and waiving any other claims
Hersh has or may have against the Company, the Company will issue Hersh a
warrant to purchase 11,000,000 shares of its common stock exercisable at $0.025
per share that expires five years from its grant date.

         5.       General Releases and Voluntary Waiver of Rights.

                  (a) Except for the obligations created by or arising out of
this Agreement or any future consulting or distribution agreement between the
Company and Hersh, effective on the Termination Date, Hersh's descendants,
heirs, successors and assigns do hereby release, acquit, satisfy and forever
discharge and covenant not to sue the Company, its agents, servants, employees
and all persons for whose conduct it is legally responsible, including, but not
limited to, its officers, directors, attorneys, insurers, stockholders, parent,
subsidiary, affiliated or related entities and their respective successors and
assigns, and each of them, past or present, from any and all manner of action,
causes of action, rights, liens, agreements, contracts, covenants, obligations,
suits, claims, debts, dues, sums of monies, costs, expenses, attorneys' fees,
judgments, orders and liabilities, accounts, covenants, controversies, promises,
damages, of whatever kind and nature in law or equity or otherwise whether now
known or unknown, including specifically but not limited to, any and all claims
arising out of such employment relationship which Hersh ever had (including
claims not yet accrued) against the Company, its agents, servants, employees and
persons for whom it is legally responsible, for and upon any reason arising out
of the employment relationship Hersh had with the Company and the transactions
and relationships described herein. Hersh specifically acknowledges that he has
been advised that he should consult with an attorney concerning his rights and
the signing of this Release.

                  (b) Except for the obligations created by or arising out of
this Agreement or any future consulting or distribution agreement between the
Company and Hersh, effective on the Termination Date, the Company, and the
Company's subsidiary and affiliated companies and its affiliated officers and
directors, and their successors and assigns, and each of them, does hereby
release, acquit, satisfy and forever discharge and covenant not to sue Hersh or
Hersh's descendants, heirs, successors and assigns, and each of them, past or
present, from any and all manner of action, causes of action, rights, liens,
agreements, contracts, covenants, obligations, suits, claims, debts, dues, sums
of monies, costs, expenses, attorneys' fees, judgments, orders and liabilities,
accounts, covenants, controversies, promises, damages, of whatever kind and
nature in law or equity or otherwise whether now known or unknown, including
specifically but not limited to, any and all claims arising out of such
employment relationship Hersh had with the Company and the transactions and
relationships described herein.
                                       2
<PAGE>
         8. Non-Admissions. The Company and Hersh agree that neither this
Agreement nor the consideration given shall be construed as an admission of any
wrongdoing or liability by the Company or Hersh, and that all such liability or
wrongdoing is expressly denied.

         9. Confidentiality. In the course of serving as an officer, Director
and employee of the Company, the Company as disclosed to Hersh, and Hersh may
otherwise have obtained knowledge of or access to, trade secrets and other
proprietary and confidential information concerning the Company, the Company
products, financial condition, services, research and development plans, and
other matters pertaining to the Company's business ("Confidential Information").
Hersh agrees to treat and hold all Confidential Information as secret and
confidential, and to apply strict standards of care to maintain the secrecy of
the Confidential Information. In this regard, Hersh agrees not to copy or
reproduce any Confidential Information and not to disclose the contents of any
Confidential Information to any person or entity, other than officers and
directors of the Company or with their written permission. Hersh further agrees
to return to the Company written or other copies (including electronic media
containing Confidential Information) of any and all Confidential Information in
Hersh's possession. The provisions of this Section 10 shall not apply to any
Confidential Information that Hersh is obligated by law to disclose to any court
or any federal or state government agency.

         10. Anti-Coercion. Each of the Parties hereto has entered into this
Agreement without undue influence, fraud, coercion, duress, misrepresentation,
or restraint having been imposed upon them by any other party, and further
acknowledges that each party had the opportunity to be represented by counsel of
their own selection.

         11. Interpretation of Release. For the purposes of interpretation and
construction of this Agreement, this Agreement shall be deemed to have been
drafted by the Company and by Hersh.

         12. Notices. Any notice required or permitted to be given under the
terms of this Agreement shall be sufficient if in writing and if sent postage
prepaid by registered or certified mail, return receipt requested; by overnight
delivery; by courier; or by confirmed telecopy, in the case of Hersh to the
business or residence as shown on the records of the Company, or in the case of
the Company to its principal office or at such other place as it may designate.

         13. Entire Agreement. This Agreement constitutes the entire agreement
between the parties and shall not be modified, altered, or discharged, except by
a writing signed by each of the parties hereto.

         14. Governing Law, Jurisdiction and Venue. This Agreement shall be
governed by the laws of the State of Florida. The Parties acknowledge that this
Agreement contains provisions, which are enforceable in the State of Florida,
and all Parties consent to the personal jurisdiction of the State of Florida and
County of Palm Beach.
                                       3
<PAGE>
         15. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same Agreement.

         16. Waiver of Breach - Effect. No waiver or any breach of any term or
provision of this Agreement shall be construed to be, nor shall be, a waiver of
any other breach of this Agreement. No waiver shall be binding unless in writing
and signed by the Party waiving the breach.

         17. Full Understanding and Voluntary Acceptance. In entering into this
Agreement, the parties represent that they have relied upon the advice of their
attorneys or have chosen to enter into this Agreement without the assistance of
counsel based upon their understanding of the terms hereof. The terms of this
Agreement have been completely read and explained to them by there attorneys
and/or they have reviewed the terms hereof in complete detail and that the terms
are fully understood and voluntarily accepted by them.

         18. Headings. The headings in this Agreement are for convenience only
and shall not be used to interpret or construe its provisions.

         HERSH ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT, THAT HE HAS BEEN
GIVEN AMPLE OPPORTUNITY TO REVIEW IT AND TO CONSULT WITH A REPRESENTATIVE OR
ATTORNEY OF HERSH'S CHOOSING CONCERNING ITS TERMS. HERSH FURTHER ACKNOWLEDGES
THAT HE UNDERSTANDS THE TERMS AND CONDITIONS OF THIS AGREEMENT AND IS
VOLUNTARILY ENTERING INTO IT WITH THE COMPANY.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                                   POWER2SHIP, INC.

                                   By:/s/ David S. Brooks
                                      ----------------------------------------
                                      David S. Brooks, Chief Executive Officer

                                     /s/ Richard Hersh
                                     -----------------------------------------
                                     RICHARD HERSH

                                       4

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