Document:

BioElectronics, Corp. - Exhibit 10.13 - Prepared By TNT Filings Inc.

 

Exhibit 10.13 

MODIFICATION AND AMENDMENT AGREEMENT 

This Modification and Amendment Agreement
("Agreement") dated as of August 14, 2006 is entered into by and among BioElectronics Corp., a Maryland corporation (the "Company") and the subscribers
identified on the signature page hereto (each a "Subscriber" and collectively
"Subscribers"). 

WHEREAS, the Company and the Subscribers are parties
to a Subscription Agreement 

("Subscription Agreement") dated December 8, 2005
relating to an aggregate investment by Subscribers in up to $1,000,000 of
principal amount of promissory notes of the Company convertible into shares of
the Company's $.001 par value common stock and Warrants in the amounts set forth
on Schedule A attached hereto; and 

WHEREAS, on the Initial Closing Date $750,000 of the
Purchase Price was paid to the Company and up to $250,000 of the Purchase Price
was payable within three business days after the Actual Effective Date, which is
the Second Closing Date. 

NOW THEREFORE, in consideration of the mutual
covenants and other agreements contained in this Agreement, the Company and the
Subscribers hereby agree as follows: 

1. All the capitalized terms employed herein shall
have the meanings attributed to them in the Subscription Agreement and the
documents and agreements delivered therewith. 

2. The Company agrees to file the Amendment to the
SB-2 Registration Statement no later than August 14, 2006. 

3. The Company acknowledges that the Liquidated
Damages as described in Section 11.4 of the Subscription Agreement which have
accrued through August 14, 2006, as more fully described on Schedule A hereto,
will be payable in the form of Notes in substantially the same form and upon the
same terms and conditions as the Notes issued in the Offering, including but not
limited to the inclusion of the Shares issuable upon conversion of these Notes,
in the Amendment to the Registration Statement to be filed by the Company no
later than August 14, 2006. 

4. The Fixed Conversion Price, as set forth in
Section 3.1 of the Note, shall be $0.18. 

5. For the benefit of the parties
hereto, the Company hereby makes all the representations, warranties, covenants
undertakings and indemnifications contained in the Transaction Documents, as if
such representations were made by the Company as of this date. The Subscribers
hereby make all of the representations, warranties, covenants, indemnifications
and undertakings contained in the Transaction Documents as if such
representations were made by the Subscribers as of this date. 

6. Subscribers agree to accelerate a funding of an
aggregate of $100,000 of the Second Closing Purchase Price in the amounts set
forth on the signature page hereto ("Interim Funding"). The balance of the
Second Closing Purchase Price will be funded on the Second Closing Date pursuant
to the Subscription Agreement. 

7. The Company undertakes to set aside $20,000 from
the proceeds of the Interim Funding for legal fees payable to their attorneys
for the preparation and filing of the Amendment to the SB-2 Registration
Statement. 

1

8. The Subscribers agree to waive Liquidated Damages
payable in connection with the initial sixty (60) day period following the
Closing Date of the Interim Funding. However, if the Actual Effective Date of
the Registration Statement is after sixty (60) days following the Closing Date
of the Interim Funding, Liquidated Damages will once again begin to accrue
beginning on day sixty-one (61), as further described in the Transaction
Documents. 

9. All of the terms and conditions described in
Section 2 of the Subscription Agreement in reference to the Second Closing shall
apply to the Interim Funding Closing, as if such representations and warranties
were made and given on all such dates except for the requirement that the
Registration Statement be declared effective as a condition to the Second
Closing. 

10. As a result of the Company withdrawing the Form
SB-2 Registration Statement, which was filed on February 16, 2006, Subscribers
are notified of the following: 

i) The offering is not registered under the Act; 

(ii) The securities will be
"restricted securities" (as that term is defined in the Securities Act Rule
144(a)(3)) and may not be resold unless they are registered under the Act or an
exemption from registration is available; 

(iii) Purchasers in the private offering do not have
the protection of Section 11 of the Securities Act; and 

(iv) A registration statement for the abandoned
offering was filed on February 16, 2006 and withdrawn on July 13, 2006. 

11. All other terms and conditions of the Transaction
Documents, including any damages or interest which have accrued shall remain in
full force and effect and payable. 

12. Each of the undersigned states that he has read
the foregoing Agreement and understands and agrees to it. 

	 	 	 	BIOELECTRONICS CORP.
	 	 	 	the "Company"
					
	 	 	 	 	 
	 	 	 	By:	
    /s/ Andrew J. Whelan
	 	 	 	Name: Andrew J.
    Whelan
	 	 	 	Title: President
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	ALPHA CAPITAL
    AKTIENGESELLSCHAFT	 	WHALEHAVEN CAPITAL
    FUND LIMITED
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	HARBORVIEW MASTER
    FUND LP	 	 	 

2

SCHEDULE A 

	
     
	
    
    INITIAL CLOSING
	
    
    INTERIM
	
    
    ACCRUED
	
    
    SECOND

	
    
    SUBSCRIBER
	
    
    NOTE PRINCIPAL
	
    
    CLOSING
	
    
    LIQUIDATED
	
    
    CLOSING

	
     
	
     
	
    
    AMOUNT
	
    
    DAMAGE
	
    
    AMOUNT

	
     
	
     
	
     
	
    
    NOTES
	
     

	
    
    ALPHA CAPITAL
	
    
    $400,000.00
	
    
    $53,534.00
	
     
	
    
    $80,000.00

	
    
    AKTIENGESELLSCHAFT
	
     
	
     
	
     
	
     

	
    
    Pradafant 7
	
     
	
     
	
     
	
     

	
    
    9490 Furstentums
	
     
	
     
	
     
	
     

	
    
    Vaduz, Lichtenstein
	
     
	
     
	
     
	
     

	
    
    Fax: 011-42-32323196
	
     
	
     
	
     
	
     

	
    
    WHALEHAVEN CAPITAL
	
    
    $250,000.00
	
    
    $33,333.00
	
     
	
    
    $50,000.00

	
    
    FUND LIMITED
	
     
	
     
	
     
	
     

	
    
    3rd Floor, 14 Par-Laville Road
	
     
	
     
	
     
	
     

	
    
    Hamilton, Bermuda HM08
	
     
	
     
	
     
	
     

	
    
    Fax: (441) 292-1373
	
     
	
     
	
     
	
     

	
    
    HARBORVIEW MASTER
	
    
    $100,000.00
	
    
    $13,133.00
	
     
	
    
    $20,000.00

	
    
    FUND LP
	
     
	
     
	
     
	
     

	
    
    c/o Harborview Advisors LLC
	
     
	
     
	
     
	
     

	
    
    850 Third Avenue, Suite 1801
	
     
	
     
	
     
	
     

	
    
    New York, NY 10022
	
     
	
     
	
     
	
     

	
    
    Fax: (646) 218-1401
	
     
	
     
	
     
	
     

	
    
    TOTAL
	
    
    $750,000.00
	
    
    $100,000.00
	
     
	
    
    $150,000.00

3Exhibit 10.4

AMTECH SYSTEMS, INC. AND ITS SUBSIDIARIES
 THIRD AMENDMENT TO LEASE

THIRD AMENDMENT TO LEASE

THIS THIRD AMENDMENT TO LEASE (this “Amendment”) dated as of August 11, 2006, by and between Wakefield Investments, Inc., a Massachusetts corporation having an address at P.O. Box 540, Wakefield, Massachusetts 01880 (“Landlord”) and Bruce Technologies, Inc., a Massachusetts corporation having an address at 18 Esquire Road, North Billerica, MA 01862 (“Tenant”). 

WITNESSETH

WHEREAS, Wakefield Materials, Inc. (“WMI”) and Kosukai Semiconductor Equipment Corp. (“KSEC”) entered into a Lease (the “Original Lease”) dated as of February 23, 2000, for approximately 12,500 square feet of space (the “Premises”) in the building (the “Building”) known as 18 Esquire Road in Billerica, Massachusetts; and 

WHEREAS, Landlord has succeeded to the interest of WMI under the Lease, and Tenant has succeeded to the interest of KSEC under the Original Lease; and 

WHEREAS, the Original Lease has been amended by that First Amendment to Lease dated as of November 17, 2004, and by a Second Amendment to Lease dated as of October 18, 2005, between Landlord and Tenant (the Original Lease, as so amended, being referred to as the “Lease”); and 

          WHEREAS, Landlord and Tenant now mutually desire to further amend the Lease to expand the size of the Premises for the remainder of the Lease term, to adjust the rent and other charges payable under the Lease accordingly, and to make certain other changes as agreed by the parties, all as hereinafter provided. 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, each to the other paid, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 

                    1. Term; Extension. That the Term of the Lease is currently scheduled to expire at 11:59 p.m., Boston time, on March 31, 2010. Landlord and Tenant hereby agree that the Term of the Lease is hereby extended to 11:59 PM, Boston time, on August 31, 2011. Tenant shall have no right or option to extend the Term of the Lease beyond August 31, 2011. 

                    2. Effective Date. Expansion. That, from and after September 1, 2006 (the “Effective Date”), and continuing for the remainder of the Term of the Lease, the Premises shall consist of 29,500 square feet of rentable area on the first floor of the Building, as shown on Exhibit A to this Amendment. 

                    3. Condition of Premises. (a) That, except as expressly provided herein, Tenant accepts the Premises in its “AS IS” condition as of the date hereof, without any representation or warranty whatsoever by Landlord. Tenant acknowledges that it has occupied and maintained the Premises prior to the date hereof, and that it is fully familiar with the condition of the Premises and the Building. 

                     (b) Notwithstanding the foregoing, Landlord agrees to perform the work described on Exhibit B (“Landlord’s Work”) in the Premises to make the same more suitable for Tenant’s continued occupancy. Landlord shall perform Landlord’s Work at its sole cost, in a good and workmanlike manner. Tenant acknowledges that Landlord’s Work will be performed during normal business hours, and Landlord shall have access to the Premises for the purpose of completing such Work. 

                    4. Rent; Tenant’s Share. (a) From and after the Effective Date, Tenant shall pay Annual Rent to Landlord in the following amounts: 

	
  
Period
  	
  
 
  	
  
Per Square   Foot
  	
  
 
  	
  
Annual   Rent
  	
  
 
  
	
  

  	
  
 
  	
  

  	
  

  	
  
 
  	
  

  	
  

  	
  
 
  
	
  9/1/06 – 8/31/07
  	
  
 
  	
  
$
  	
  
7.00
  	
  
 
  	
  
$
  	
  
206,500.00
  	
  
 
  
	
  
9/1/07 – 8/31/09
  	
  
 
  	
  
$
  	
  
7.25
  	
  
 
  	
  
$
  	
  
213,875.00
  	
  
 
  
	
  
9/1/09 – 8/31/11
  	
  
 
  	
  
$
  	
  
7.50
  	
  
 
  	
  
$
  	
  
221,250.00
  	
  
 
  

                    (b) From and after the Effective Date, the Tenant’s percentage share of common area expenses (including without limitation real estate taxes, insurance premiums, and all costs of operating, maintaining and repairing the Building, the common areas and the property of which the Building is a part) shall be 69.42%. 

                    5. No Assignment or Sublease. (a) Tenant shall not assign the Lease, or enter into any sublease of any or all of the Premises, without obtaining Landlord’s prior written consent on each such occasion, such consent not to be unreasonably withheld. If Tenant receives any (i) rent or other consideration or value received by Tenant as a result of any assignment, or (ii) rent or other consideration or value received by Tenant as a result of any sublease of the Premises over and above the rent payable under the Lease (or any portion subject to such a sublease), Tenant shall pay fifty percent (50%) of such excess to Landlord as additional rent under the Lease, as and when payable by the assignee or sublessee. Landlord’s consent to any one assignment or subletting shall not derogate from Tenant’s obligation to obtain such consent for
subsequent transactions, and Tenant shall always remain fully and primarily liable for its obligations under the Lease, notwithstanding any assignment or sublease. 

                    (b) Tenant shall in any case remain primarily liable for the performance of all obligations and covenants under the Lease, and no such subletting shall affect or diminish such liability. Any subtenant shall have a financial condition and net worth reasonably acceptable to Landlord, shall use the Premises for the permitted uses only, and shall agree in writing (using Landlord’s then standard form of consent to sublease) that such sublease is in all respects subject and subordinate to the Lease. 

                    (c) If and at each such time as Tenant shall intend to enter into any sublease, then Tenant shall give Landlord notice of such intent and the terms of such sublease not earlier than sixty (60), and not later than thirty (30), days prior to the effective date of such proposed sublease, and Landlord may elect to terminate the Lease (if less than all or substantially all of the Premises are covered by such sublease, then such termination shall affect only that portion of the Premises proposed to be covered by such sublease) by giving notice to Tenant of such election not later than fifteen (15) days after receipt of Tenant’s notice and, upon the giving of such notice by Landlord, the Lease shall terminate with respect to such portion as of the date on which such sublease would have become effective, with the same force and effect as if such
date were the date originally set forth herein as the expiration of the Lease. If Landlord shall elect to terminate the Lease with respect to any portion of the Premises as hereinabove provided, then from and after the effective date of such termination, the definitions of Annual Rent, additional rent, and Premises shall be adjusted to reflect that portion of the Premises that remains subject to this Lease after such termination. 

                    (d) Tenant shall reimburse Landlord as additional rent, upon receipt of demand, for any reasonable costs that may be incurred by Landlord in connection with any proposed assignment or sublease and any request for consent thereto, including without limitation the costs of making investigations as to the acceptability of any proposed subtenant and attorneys’ fees. 

                    6. Tenant’s Representations. As a material inducement to Landlord entering into this Amendment, Tenant certifies to Landlord that as of the date hereof: (i) the Lease, as modified hereby, contains the entire agreement between the parties hereto relating to the Premises and that there are no other agreements between the parties relating to the Premises, the Lease or the Building which are not contained or referred to herein or in the Lease, (ii) Landlord is not in default in any respect in any of the terms, covenants and conditions of the Lease; (iii) Tenant has no existing setoffs, counterclaims or defenses against Landlord under the Lease; (iv) Tenant has not assigned its interest in the Lease, or sublet or licensed any portion of the Premises, to any third party or parties; (v) no consent or approval of any third party is required for
Tenant to enter into and perform its obligations under this Agreement; and (vi) Tenant is not, and the performance by Tenant of its obligations hereunder shall not render Tenant, insolvent within the meaning of the United States Bankruptcy Code, the Internal Revenue Code or any other applicable law, code or regulation. 

                    7. Brokers. Tenant covenants, represents and warrants to Landlord that Tenant has had no dealings or communications with any broker or agent (other than Cushman & Wakefield of Massachusetts, Inc., whose fee will be paid by Landlord) in connection with this Amendment, and Tenant covenants and agrees to pay, hold harmless 

and indemnify the Landlord from and against any and all cost, expense (including reasonable attorneys’ fees) or liability for any compensation, commission or charges to any broker or agent (other than the foregoing named broker) claiming through the Tenant with respect hereto. 

                    8. Corporate Action, Etc. Tenant represents and warrants that it has taken all necessary corporate, partnership or other action necessary to execute and deliver this Amendment, and that this Amendment constitutes the legally binding obligation of Tenant, enforceable in accordance with its terms. Tenant further represents and warrants that it has full and complete authority to enter into and execute this Amendment and acknowledges that Landlord is relying upon Tenant’s representation of its authority to execute this Amendment and Tenant shall save and hold Landlord harmless from any claims or damages, including reasonable attorneys’ fees, arising from Tenant’s misrepresentation of its authority to enter into and execute this Amendment. 

                    9. Definitions. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Lease. 

                    10. Binding Effect. As amended hereby, the Lease is ratified and confirmed and declared to be in full force and effect. 

IN WITNESS WHEREOF, parties have set their respective hands as of the date first above written. 

	
  
 
  	
  
LANDLORD:
  
	
   
  	
  
 
  
	
  
 
  	
  
WAKEFIELD INVESTMENTS, INC.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By: 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
Hereunto duly authorized
  
	
  
 
  	
  
 
  
	
  
 
  	
  
 
  
	
   
  	
  
TENANT:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
BRUCE TECHNOLOGIES, INC.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By: 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
By: 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
Title: 
  	
  
 
  

EXHIBIT A

Plan of Premises

EXHIBIT B

	
  
•
  	
  
Add bathroom ES; if feasible, configure to have   doors away from main hallway and not facing the manufacturing floor;
  
	
   
  	
  
 
  
	
  
•
  	
  
New tile front lobby, hallways and training room;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
New carpet for two offices;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Wall to roof closing off office dead space;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Paint and seal floor defining safety manufacturing   areas;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Paint all support beams RED;
  
	
  
 
  	
  
 
  
	
  •
  	
  
Additional lighting to complete warehouse pattern to   the edge/walls;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Configure AC/heat units for two areas defined on the   plan;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
New thermostats;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Add electrical: (i) 3-480 disconnect box per plan;   and (ii) sub-panel outside training room, providing separate circuit for   assembly;
  
	
  
 
  	
  
 
  
	
  
•
  	
  
Conduit between operations: two or three conduits to   house data/phone, alarm and power (questionable on power);
  
	
  
 
  	
  
 
  
	
  •
  	
  Clean up expansion space, removing all non-usable   AC, heaters and support structures;
  
	
   
  	
   
  
	
  •
  	
  Plumbing: (i) new fixtures, and (ii) fix any leaks   as needed and address poor drainage;
  
	
   
  	
   
  
	
  •
  	
  Repair leaks as needed in lobby/entrance;
  
	
   
  	
   
  
	
  •
  	
  Seal concrete block in second half of building as   needed to prevent leaks

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