Document:

EX-10.122

EXHIBIT 10.122

OMNIBUS 409A AMENDMENT OF

NEW ALBERTSONS NONQUALIFIED PLANS

Effective January 1, 2009

New Albertson’s, Inc. is the current sponsor of the nonqualified deferred compensation plans listed
on Schedule A to this Amendment (the “Plans”). Effective April 28, 2006, the Plans were amended
by predecessor sponsor, Albertson’s, Inc., to give each participant the right to make an election
prior to May 22, 2006, to receive a lump sum payment of the amount of the participant’s benefit in
the Plan within 30 days after January 1, 2007, or, if later, the effective date of the change in
control of Albertson’s, Inc.; provided, however, that such election would not prevent payment or
commencement of a participant’s benefit on a scheduled distribution date occurring prior to such
lump sum payment date. Such amendments were material modifications (as defined in Code section
409A) of the Plans that were in effect as of October 3, 2004, and, as a result, all benefits in the
Plans are subject to Code section 409A.

New Albertson’s, Inc. now wishes to amend the Plans as set forth in this Amendment and to provide
for distribution elections in accordance with the transition relief described in IRS Notice 2005-1;
Q&A-19(c) and the preambles to the proposed regulations under section 409A of the Code.

1.        Participation and Deferral Elections. The Plans were closed to new participants prior to
January 1, 2009. No deferrals will be made to the Plans based on service on or after January 1,
2009. All accruals and credits in the Plans were discontinued prior to January 1, 2009 (except for
interest credits based on amounts credited prior to January 1, 2009).

2.        Distributions. The rules set forth in this Amendment supersede and replace all rules in the
Plans related to distributions. No distributions or changes in distributions shall be made from
the Plan except as specifically provided in this Amendment.

            2.1.        Time of Distribution. At the election of the Participant, distribution of the
Participant’s entire benefit in the Plan (i.e., all deferral years or “Class Years” including Class
Years currently in pay status) shall be made or commenced within 60 days after:

	 	(a)	 	the Participant’s Separation from Service (except for Participants who have
Separated from Service before January 1, 2009), or

	 
	 	(b)	 	March 1 in the year specified by the Participant, but not later than the
year in which the Participant attains age sixty-five (65);

                 provided, however, that

	 	(i)	 	with respect to Class Years in pay status as of
December 31, 2008, the Participant may elect to continue the
distribution of such Class Years as previously elected; and

 

 

	 	(ii)	 	with respect to Class Years in pay status as of
December 31, 2008, the Participant may elect a different time and form
of distribution under this Amendment than the Participant elects under
this Amendment with respect to Class Years not in pay status as of
December 31, 2008; and

	 
	 	(iii)	 	if the Participant elects to receive
distribution in a lump sum, the year specified by the Participant under
(b) above shall be 2010 or later.

If distribution is made or commenced on account of the Participant’s Separation from Service and if
the Participant is a Specified Employee, distribution shall be delayed until the six (6) month
anniversary of the date following the date of the Participant’s Separation from Service (or if
earlier, until the death of the Participant) and distribution shall be made or commenced on the
first payroll date of the Company thereafter.

Notwithstanding the foregoing, the time of any distribution shall be delayed in accordance with the
rules in paragraph 5 below related to subsequent election changes.

          2.2.       Form of Distribution. Distribution of the Participant’s benefit shall be made in
whichever of the following forms the Participant shall have timely elected:

	 	(a)	 	single lump sum, or
	 
	 	(b)	 	annual installments over 2, 3, 4, 5, 10 or 15 years as specified by the
Participant.

Annual installment amounts shall be determined by dividing the amount of the Participant’s benefit
in the Plan on the date as of which the installment is being paid by the number of remaining
installment payments to be made (including the payments being determined).

          2.3.       Default Election. If for any reason a Participant shall have failed to make a timely
election of time and form for distribution (including reasons entirely beyond the control of the
Participant), the Participant shall be deemed to have elected to receive distribution as follows:

	 	(a)	 	Years in Pay Status. With respect to the Participant’s Class Years that
are in pay status as of December 31, 2008, the Participant shall be deemed to have
elected to continue the distribution of such Class Years as previously elected.

	 
	 	(b)	 	Years Not in Pay Status. With respect to the Participant’s Class Years
that are not in pay status as of December 31, 2008, the Participant shall be deemed
to have elected to receive distribution in a single lump sum within 60 days after:

	 	(i)	 	the Participant’s Separation from Service if
the Participant was not Separated from Service on or before December
31, 2008, or

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	 	(ii)	 	March 1, 2010, if the Participant was Separated
from Service on or before December 31, 2008.

          2.4.       Compliance with 409A Transition Relief. In accordance with IRS Notice 2005-1; Q&A-19(c)
and the preambles to the proposed regulations under section 409A of the Code, in no event shall any
election under this Amendment result in the payment in 2008 of an amount that would otherwise have
been paid in 2009 or result in the payment in 2009 of an amount that would otherwise have been paid
in 2008.

          2.5.       Subsequent Changes in Distribution Elections. After the distribution elections made
prior to January 1, 2009, in accordance with the transition relief described in IRS Notice 2005-1;
Q&A-19(c) and the preambles to the proposed regulations under section 409A of the Code, changes in
distribution elections shall be permitted only as follows:.

	 	(a)	 	Years in Pay Status as of December 31, 2008. With respect to the Class
Years in pay status as of December 31, 2008, regardless whether the Participant (i)
elected (either affirmatively or by default) to continue distribution as previously
elected, or (ii) elected (either affirmatively or by default) a time and form of
distribution under this Amendment, the Participant shall not be permitted to make any
subsequent changes in time or form of distribution.

	 
	 	(b)	 	Years Not in Pay Status as of December 31, 2008. With respect to all Class
Years not in pay status as of December 31, 2008, and for which the Participant
elected (either affirmatively or by default) a time and form of distribution under
this Amendment, the Participant shall be permitted to change prior elections if such
election change is made in the form and manner prescribed by the Plan administrator
and only if the following conditions are satisfied: (i) the election change shall
not take effect until the date that is twelve (12) months after the date on which the
Participant submits the election change, and (ii) distribution shall be delayed until
the date that is five (5) years or more after the date the distribution would have
been made or commenced but for the election change.

3.        Definitions. When the following terms are used with initial capital letters, they shall have
the following meanings:

            3.1..       Affiliate means a business entity that is treated as a single employer with New
Albertson’s, Inc. under the rules of section 414(b) and (c) of the Code, including the eighty
percent (80%) standard therein.

            3.2.        Employer means New Albertson’s, Inc.

            3.3.        Separation from Service means a severance of a Participant’s employment relationship with
the Employer and all Affiliates for any reason other than the Participant’s death.

 

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	 	(a)	 	A transfer from employment with an Employer to employment with an
Affiliate, or vice versa, shall not constitute a Separation from Service.

	 
	 	(b)	 	Whether a Separation from Service has occurred is determined based on
whether the facts and circumstances indicate that the Employer and employee
reasonably anticipated that no further services would be performed after a certain
date or that the level of bona fide services the employee would perform after such
date (whether as an employee or as an independent contractor) would permanently
decrease to no more than twenty percent (20%) of the average level of bona fide
services performed (whether as an employee or an independent contractor) over the
immediately preceding thirty-six (36) month period (or the full period of services to
the employer if the employee has been providing services to the employer for less
than thirty-six months).

	 
	 	(c)	 	Separation from Service shall not be deemed to occur while the employee is
on military leave, sick leave or other bona fide leave of absence if the period does
not exceed six (6) months or, if longer, so long as the employee retains a right to
reemployment with the Employer or an Affiliate under an applicable statute or by
contract. For this purpose, a leave is bona fide only if, and so long as, there is a
reasonable expectation that the employee will return to perform services for the
Employer or an Affiliate. Notwithstanding the foregoing, a 29-month period of
absence will be substituted for such 6-month period if the leave is due to any
medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of no less than 6 months
and that causes the employee to be unable to perform the duties of his or her
position of employment.

	 
	 	(d)	 	Where as part of a sale or other disposition of assets by the Employer to
an employer that is not an Affiliate, an employee providing services to the Employer
immediately before the transaction and to the buyer immediately after the transaction
(“Affected Employee”) would otherwise experience a Separation from Service from the
Employer as a result of the transaction, the Employer and the buyer shall have the
discretion to specify that the Affected Employee has not experienced a Separation
from Service if (i) the transaction results from bona fide, arm’s length
negotiations, (ii) all Affected Employees are treated consistently, and (iii) such
treatment is specified in writing no later than the closing date of the transaction.

	 
	 	(e)	 	Pursuant to the Purchase and Separation Agreement dated January 22, 2006
(as amended June 2, 2006) by and among Albertson’s Inc., New Albertson’s, Inc.,
SUPERVALU INC., and AB Acquisition LLC, certain employees of Albertson’s, Inc. became
employees of New Albertson’s, Inc. or Albertson’s LLC on June 2, 2006. Such
employees are Affected Employees under paragraph (d) above and did not experience a
Separation

 

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	 	 	 	from Service on June 2, 2006. For purposes of determining whether a
Separation from Service has occurred for such Affected Employees after June 2, 2006,
(i) for employees of New Albertson’s, Inc., Employer and Affiliate shall have the
meaning set forth in this Amendment, and (ii) for employees of Albertson’s LLC,
Employer shall mean Albertson’s LLC, and Affiliate shall mean a business entity that
is treated as a single employer with Albertson’s LLC under the rules of
section 414(b) and (c) of the Code, including the eighty percent (80%) standard
therein.

          3.4.             Specified Employee means a Participant who is a key employee as defined in section 416(i)
of the Code. A Participant’s status as a Specified Employee shall be determined each December 31st
based on the facts existing during the year ending on that date. If a Participant is determined to
be a Specified Employee on that date, the Participant shall be treated as a Specified Employee for
purposes of the six (6) month delay under paragraph 1 if Separation from Service occurs during the
twelve (12) month period beginning the following April 1.

4.        Death Benefit. If the Participant dies after distribution has begun, remaining installments
will continue to the beneficiary designated by the Participant or, if there is no such designation,
to the Participant’s estate. If the Participant dies before distribution has begun, distribution
will be made within sixty (60) days after the Participant’s death in a lump sum to the beneficiary
designated by the Participant or, if there is no such designation, to the Participant’s estate.

5.       Construction. The rules of section 409A of the Code shall apply to the Plans and this Amendment
and the Plans and this Amendment shall be construed and administered accordingly. Notwithstanding
the foregoing, neither SUPERVALU INC., nor the Employer nor any of their officers, directors,
agents or affiliates shall be obligated, directly or indirectly to any Participant or any other
person for any taxes, penalties, interest or like amounts that may be imposed on the Participant or
other person on account of any amounts under the Plans or on account of any failure to comply with
any Code section.

6.        Savings Clause. Save and except as hereinabove expressly amended, the Plans shall continue in
full force and effect.

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SCHEDULE A

(List of Plans)

Albertson’s, Inc. 2000 Deferred Compensation Plan

Albertson’s, Inc. Executive ASRE Makeup Plan

Albertson’s, Inc. 1990 Deferred Compensation Plan

Albertson’s, Inc. Non-Employee Directors’ Deferred Compensation Plan

Albertson’s, Inc. Executive Deferred Compensation Plan 1989

Albertson’s, Inc. Senior Executive Deferred Compensation Plan 1989

Extreme Inc. Executive ESRP Makeup Plan

Shaw’s Supermarkets, Inc. Deferred Compensation Plan

Shaw’s Supermarkets, Inc. Supplemental Savings Plan

American Stores Company Supplemental Executive Retirement Plan (1976)

American Stores Company Supplemental Executive Retirement Plan (1985)

American Stores Company Supplemental Executive Retirement Plan (1994)

American Superstores Non-Employee Directors’ Deferred Fee Plan

Contingent Compensation Plan for Employees of Jewel Companies, Inc.

Jewel Companies Non-Employee Directors’ Fee Plan

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EXHIBIT 10.1

WARRANT REPURCHASE AGREEMENT

THIS WARRANT REPURCHASE AGREEMENT (this “Agreement”), dated as of April 1, 2009, is entered into by and between HepaLife Technologies, Inc., a Florida corporation (“HepaLife”), and Arbios Systems, Inc., a Delaware corporation (“Arbios”).

RECITALS

A. Pursuant to that certain Asset Purchase Agreement, dated October 3, 2008 (the “Asset Purchase Agreement”), Arbios sold to HepaLife the Acquired Assets (as defined in the Asset Purchase Agreement). All capitalized terms not otherwise defined in this Agreement shall have the meanings attributed to them in the Asset Purchase Agreement.

B.  In consideration for the Acquired Assets, HepaLife (i) paid Arbios $250,000 in cash at the Closing, (ii) issued to Arbios a Series D warrant to purchase up to 750,000 shares of HepaLife’ common stock at an exercise price of $0.35 per share (the “Warrant”), (iii) assumed the Assumed Liabilities, and (iv) agreed to pay to Arbios the sum of Two Hundred Thousand Dollars ($200,000) (the “Deferred Cash Purchase Price”) on or before the Deferred Payment Date.

C. On January 9, 2009, Arbios filed a voluntary petition for relief under chapter 11of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (the“Bankruptcy Court”).

D. On March 16, 2009, Arbios entered into a term sheet with Arbios Acquisitions Partners LLC that describes the terms under which Arbios Acquisitions Partners LLC (i) is providing Arbios with certain funds and (ii) intends to acquire control over Arbios’ assets (including the Warrant) (The “Plan Term Sheet”).

E.  On April 1, 2009, Arbios made a motion for approval of the Plan Term Sheet,which motion is currently pending before the Bankruptcy Court.

F. HepaLife desires to repurchase from Arbios the Warrant, and Arbios desires to sell to HepaLife the Warrant, all on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

ARTICLE 1.

WARRANT REPURCHASE; COVENANTS

1.1. Repurchase of Warrant. Subject to the terms and conditions contained in this Agreement, including the approval of the Bankruptcy Court, Arbios hereby agrees to sell the Warrant to HepaLife, and HepaLife hereby agrees to repurchase the Warrant from Arbios. In consideration for the repurchase of the Warrant, HepaLife hereby agrees to accelerate the Deferred Payment Date to the date on which the repurchase of the Warrant is completed and,accordingly, agrees to pay Arbios the entire Deferred Purchase Price in cash on that date.

1.2. Bankruptcy Court Approval; Termination of Agreement. Arbios hereby agrees to promptly make a motion before the Bankruptcy Court to obtain the approval for the repurchase of the Warrant in accordance with the terms of this Agreement. In the event that the Bankruptcy Court (i) denies the request to complete the Warrant repurchase, or (ii) the Bankruptcy Court has not granted its approval for the Warrant repurchase by June 15, 2009, this Agreement shall automatically terminate on such date, and all obligations of the parties hereto to complete the repurchase of the Warrant shall cease.

1.3. Completion of Repurchase. The consummation of the repurchase of the Warrant contemplated hereby shall be effected on the third business day following the date on which the Bankruptcy Court issues an Final Order approving the transactions contemplated hereby, or on such other date as the parties may, after the issuance of the Final Order, mutually agree upon in writing. On the date of the consummation of the repurchase, (i) HepaLife shall pay Arbios the entire $200,000 Deferred Purchase Price by wire transfer of immediately available funds, and (ii) Arbios shall deliver to HepaLife the originally executed Warrant, duly endorsed for transfer. Upon the payment of the Deferred Purchase Price and the return to HepaLife of the Warrant, all

of Arbios’s rights under the Warrant shall terminate.

ARTICLE 2.

REPRESENTATIONS AND WARRANTIES OF ARBIOS

Arbios hereby represents and warrants to HepaLife as follows:

2.1. Authority Relative to this Agreement. This Agreement has been duly authorized by the Board of Directors of Arbios, has been duly executed and delivered by Arbios, and subject to receipt of the approval by the Bankruptcy Court, is a valid and binding agreement of Arbios.

2.2. Title to the Warrant. Arbios owns, of record and beneficially, the Warrant free and clear of all pledges, security interests, liens, charges, encumbrances, equities, claims and options of whatever nature.

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES OF HEPALIFE

HepaLife hereby represents and warrants to Arbios as follows:

3.1. Organization. HepaLife is a corporation duly formed, validly existing and in good standing under the laws of the State of Florida with the power and authority to conduct its business as it is now being conducted.

3.2. Authorization; Enforcement; Compliance with Other Laws. HepaLife has the requisite corporate power and authority to enter into and perform this Agreement and to repurchase the Warrant in accordance with the terms of this Agreement. The execution and delivery of this Agreement by HepaLife and the consummation by it of the transactions contemplated hereby, including without limitation the repurchase of the Warrant, has been duly authorized by all necessary action on the part of HepaLife and no further consent or authorization is required by HepaLife, its Board of Directors or its stockholders. This Agreement has been duly executed and delivered by HepaLife and constitutes the valid and binding obligation of HepaLife, enforceable against HepaLife in accordance with its terms, except as such enforcement is subject to general principles of equity.

3.3. No Pending Transaction. No debt or equity financings in which the gross proceeds received by HepaLife since October 3, 2008 in the aggregate will equal or exceed Four Million Dollars ($4,000,000) is currently pending or imminent, and HepaLife has not entered into any term sheet, letter of intent, or agreement for such a financing.

ARTICLE 4.

MISCELLANEOUS

4.1. Survival of Representations and Warranties. Each of the representations, warranties, agreements, covenants and obligations herein is material and shall be deemed to have been relied upon by the other party or parties and shall survive after the date hereof and shall not merge in the performance of any obligation by any party hereto.

4.2. Entire Agreement. This Agreement constitutes the sole understanding of the parties with respect to the subject matter hereof and supersedes all prior oral or written agreements with respect to the subject matter hereof.

4.3. Parties Bound by Agreement; Successors and Assigns. The terms, conditions, and obligations of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns (including Arbios after its bankruptcy reorganization).

4.4. Amendments and Waivers. No modification, termination, extension, renewal or waiver of any provision of this Agreement shall be binding upon a party unless made in writing and signed by such party. A waiver on one occasion shall not be construed as a waiver of any right on any future occasion. No delay or omission by a party in exercising any of its rights hereunder shall operate as a waiver of such rights.

4.5. Attorney’s Fees. Should any party hereto retain counsel for the purpose of enforcing, or preventing the breach of, any provision hereof including the institution of any action or proceeding, whether by arbitration, judicial or quasi-judicial action or otherwise, to enforce any provision hereof or for damages for any alleged breach of any provision hereof, or for a declaration of such party’s rights or obligations hereunder, then, whether such matter is settled by negotiation, or by arbitration or judicial determination, the prevailing party shall be entitled to be reimbursed by the losing party for all costs and expenses incurred thereby, including reasonable attorneys’ fees for the services rendered to such prevailing party.

4.6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument.

4.7. Headings. The headings of the Sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

4.8. Expenses. Except as specifically provided herein, each of Arbios and HepaLife shall pay all of its own costs and expenses incurred by it or on its behalf in connection with this Agreement and the transactions contemplated hereby, including fees and expenses of its own financial consultants, accountants, and counsel.

4.9. Governing Law. This Agreement was executed in, and the transactions contemplated by and the provisions of this Agreement shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts.

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement as of

the date first indicated above.

ARBIOS SYSTEMS, INC., a Delaware 

               HEPALIFE TECHNOLOGIES, INC.,

corporation 

   a Florida corporation

By:____________________________ 

  By:____________________________ 

      Name:

        Name: Frank Menzler

      Title:

        Title: President & CEO

Arbios Acquisition Partners, LLC, a Delaware limited liability company, hereby consents to the

transactions contemplated by this Agreement and approves the terms and conditions this

Agreement. Arbios Acquisition Partners, LLC hereby further agrees not to oppose this

Agreement or the repurchase of the Warrants in the bankruptcy proceedings referred in the

Agreement.

ARBIOS ACQUISITION PARTNERS, LLC

By: ______________________________

       Tom Fagan, Manager

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