Document:

EXHIBIT
10.10.CF

    

     

     

     

    8%
CONVERTIBLE TERM NOTE

    
      

      
        	
                $150,000

              	
                November
      3, 2008

              

      

       

      MICRO IMAGING TECHNOLOGY, INC.,
a California corporation (the “Company”), for the value
received, hereby unconditionally and absolutely promises to pay to the order of
the ANTHONY M. FRANK, or
holder (collectively, the “Holder”), upon presentation
and surrender of this Note at its office at 970 Calle Amanecer, Suite F, San
Clemente, California 92673, or such other place as the Company may, from time to
time, designate, the sum of One
Hundred Fifty Thousand Dollars ($150,000), in lawful money of the United
States, on the “Maturity Date” which date shall be the first to occur of the
following events:

    

    

    A)           April
29, 2009, or

     

    B)           From
the proceeds of any investment or financing received by the Company (exclusive
of investment or financing provided by the Holder hereof) from Gary
DeMel.

     

    1.           CONVERSION.

    

    (a)           The
Holder of this Note shall have the right, at its option, at any time up until
5:00 P.M. Los Angeles time on the fifth (5th) day immediately before the
Maturity Date (except that, with respect to any portion of this Note which shall
be called for prepayment, such right shall as to such portion terminate at 5:00
P.M. Los Angeles time on the fifth (5th) day immediately prior to the Prepayment
Date (as defined in Section 2 hereof)), to convert all or any portion of the
principal amount of this Note, including interest accrued thereon, subject to
the terms and provisions of this Section 1, into Common Stock of MICRO IMAGING
TECHNOLOGY, INC. (the “Conversion Shares”) at the then fair market value (last
sale price) on the date of such conversion or at $0.10 per share, whichever is
lower.

    

     

    2.           PAYMENTS AND
PREPAYMENTS.

    

    (a)           All
payment and prepayments of principal and interest shall be made in immediately
available funds to the Holder at his office at 1 Maritime Place, Suite 825, San
Francisco, California 94111.

     

    (b)           The
unpaid principal amount of the Note from time to time outstanding shall bear
interest from the date of this Note at the rate of Eight Percent (8%) per annum
until paid.  Interest shall be computed for the actual number of days
elapsed on the basis of a year consisting of 360 days.

     

    (c)           The
Company may prepay at any time in advance of the Maturity Date all or any part
of this Note, plus accrued interest on the portion of the principal being
prepaid.  Interest on the portion of the Note prepaid shall cease to
accrue on and after the date of such prepayment.

    

    
      
         

      

      
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    EXHIBIT
10.10.CF

     

     

    
      	
               
      

            	
              3.

            	
              NOTICES TO
      NOTEHOLDER.

            

    

    

    So long as this Note shall be
outstanding, if the Company (i) shall pay any dividend or make any distribution
upon the Company Stock or (ii) shall offer to the holders of Common Stock for
subscription or purchase by them any share of any class or any other rights or
(iii) shall effect a capital reorganization, reclassification of capital stock,
consolidation or merger with or into another corporation, sale, lease or
transfer of all or substantially all of the property and assets of the Company
to another corporation, or voluntary or involuntary dissolution, liquidation or
winding up of  the Company, then in any such case, the Company shall
cause to be mailed by certified mail to the Holder, at least fifteen days prior
to the date specified in (x) or (y) below, as the case may be, a notice
containing a brief description of the proposed action and stating the date on
which (x) a record is to be taken for the purpose of such dividend, distribution
or rights, or (y) such reclassification, reorganization, consolidation, merger,
conveyance, lease, dissolution, liquidation or winding up is to take place and
the date, if any is to be fixed, as of which the holders of Common Stock or
other securities shall receive cash or other property deliverable upon such
reclassification, reorganization, consolidation, merger, conveyance,
dissolution, liquidation or winding up.

    

    4.           EVENTS OF
DEFAULT.  If one or more of
the following described events shall occur (each an “Event of
Default”):

    

    (a)           The
Company shall fail to pay the principal of, or interest on, this Note within
five (5) days after the Holder has given written notice to the Company that the
same has become due; or

     

    (b)           The
Company shall fail to perform or observe any of the provisions contained in any
Section of this Note and such failure shall continue for more than thirty (30)
days after the Holder has given written notice to the Company; or

     

    (c)           Any
material representation or warranty made in writing by or on behalf of the
Company in this Note shall prove to have been false or incorrect in any material
respect, or omits to state a material fact required to be stated therein in
order to make the statements contained therein, in the light of the
circumstances under which made, not misleading, on the date as of which made,
and the Company shall have failed to cure such false or incorrect statement
within thirty (30) days after the Holder has given written notice to Borrower;
or

     

    (d)           The
Company shall be adjudicated a bankrupt or insolvent, or admit in writing its
inability to pay its debts as they mature, or make an assignment for the benefit
of creditors; or the Company shall apply for or consent to the appointment of a
receiver, trustee, or similar officer for it or for all or any substantial part
of its property; or such receiver, trustee or similar officer shall be appointed
without the application or consent of the Company and such appointment shall
continue undischarged for a period of thirty (30) days; or the Company shall
institute (by petition, application, answer, consent or otherwise) any
bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
dissolution, liquidation or similar proceeding relating to it under the laws of
any jurisdiction; or any such proceeding shall be instituted (by petition,
application or otherwise) against the Company and shall remain undismissed for a
period of ninety (90) days; or any judgment, writ, warrant of attachment or
execution or similar process shall be issued or levied against a substantial
part of the property of the Company and such judgment, writ, or similar process
shall not be released, vacated or fully bonded within ninety (90) days after its
issue or levy; or

     

    
      
         

      

      
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      EXHIBIT
10.10.CF

       

       

    

    (e)           The
Company shall be enjoined, restrained or in any way prevented by a court order
from continuing to conduct all or any material part of its business
affairs;

     

    (f)           Any
suit, action or other proceeding (judicial or administrative) commenced against
the Company, or with respect to any assets of the Company, shall threaten to
have a material adverse effect on their future operations, including, without
limitation a final judgment or settlement in excess of $25,000 in excess of
insurance shall be entered in, or agreed to in respect of any such suit, action
or proceeding.

     

    THEN, or at any time thereafter, and in
each and every case:

     

    (1)           Where
the Company is in default under the provisions of Section 4(d) hereof, the
entire unpaid principal amount of the Note, all interest accrued and unpaid
thereon, and all other amounts payable to the Holder hereunder shall
automatically become and be forthwith due and payable without offset or
counterclaim of any kind and without presentment, demand, protest or notice of
any kind, and without regard to the running of the statute of limitations, all
of which are hereby expressly waived by the Company; and

     

    (2)           In
any other case referred to in this Section 4, the Holder may, by written notice
to the Company, as the case may be, declare the entire unpaid principal amount
of this Note, all interest accrued and unpaid hereon, and all other amounts
payable hereunder to be forthwith due and payable, whereupon the same shall
become immediately due and payable, without offset or counterclaim of any kind
and without presentment, demand, or protest, and without regard to the running
of any statutes of limitation, all of which are hereby expressly waived by the
Company.

     

    Any declaration made pursuant to
Section 4(2) hereof is subject to the condition that, if at any time after the
principal of this Note shall have become due and payable, and before any
judgment or decree for the payment of the moneys so due, or any thereof, shall
have been entered, all arrears of principal and interest upon this Note (except
that principal of this Note which by such declaration shall have become payable)
shall have been duly paid, and every Event of Default shall have been made good,
waived or cured, then and in every such case the Holder shall be deemed to have
rescinded and annulled such declaration and its consequences; but no such
rescission or annulment shall extend to or affect any subsequent Event of
Default or impair any right consequent thereon.

    

    5.           CORPORATE
OBLIGATION.   It is expressly
understood that this Note is solely a corporate obligation of the Company and
that any and all personal liability, either at common law or in equity, or by
constitution or statute, of, and any and all rights and claims against, every
stockholder, officer, or director, as such, past, present or future, are
expressly waived and released by the Holder as a part of the consideration for
the issuance hereof.

    

    6.           AUTHORIZATION;
NO CONFLICT.   The borrowings
hereunder, the execution and delivery of the Note and the performance by the
Company of its obligations under this Agreement and the Note are within the
corporate powers of the Company, have been authorized by all necessary corporate
action, have received all necessary governmental approval (if any shall be
required) and do not and will not contravene or conflict with any provision of
law or of the charter or by-laws of the Company or of any agreement binding upon
the Company.

    

    
      
         

      

      
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        EXHIBIT
10.10.CF

         

      

       

    

    7.           TRANSFER.   Subject to the
appropriate provisions of the Act and of Section 7 hereof, this Note or any
portion of the principal amount hereof (or any remaining balance if any
pre-payments have occurred pursuant to Section 2 hereof) is transferable on the
records of the Company upon presentation of this Note, properly endorsed, at its
principal office; upon such presentation and transfer a new Note or Notes will
be issued.  For the purposes of payment and all other purposes, the
Company shall deem and treat the person in whose name this Note is registered as
the absolute owner hereof and the Company shall not be affected by any notice to
the contrary.

    

    8.           MISCELLANEOUS.

     

    (a)           Notwithstanding
the foregoing, the Company promises to pay interest after maturity (whether by
acceleration or otherwise, and before as well as after judgment) at the same
rate as above provided prior to maturity on balances, if any, then
outstanding.

     

    (b)           Interest
under this Note shall be computed on the basis of a thirty (30) day month and a
year of 360 days for the actual number of days elapsed.

    

    IN WITNESS WHEREOF, the Company has
caused this Note to be executed in Cathedral City, California as of the day and
year first above written.

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	COMPANY: 	 	HOLDER:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	MICRO
      IMAGING TECHNOLOGY, INC.
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	
                                                    By

                                                  	
                                                    /s/
      Catherine Patterson

                                                  	 	
                                                    By

                                                  	
                                                    /s/
      Anthony M. Frank

                                                  	 
	 
      	
                                                    Catherine
      Patterson

                                                  	 	 	
                                                    Anthony
      M. Frank

                                                  	 
	 
      	
                                                    Chief
      Financial Officer

                                                  	 	
                                                     

                                                  	 
      	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    

    
      
         

      

      
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4EXHIBIT
10.10.CG

    

    
 

    DEBT
CONVERSION AGREEMENT

     

    THIS DEBT
CONVERSION AGREEMENT (the “Agreement”) is made and entered into effective as of
the 15th day of December, 2008, by and between ANTHONY M. FRANK, an individual
(hereinafter referred to as “Buyer”) and MICRO IMAGING TECHNOLOGY, INC., a
California corporation (hereinafter referred to as “MIT” or the
“Company”).

     

    R E C I T A L
S

     

    WHEREAS,
Buyer loaned the Company One Hundred Fifty Thousand Dollars ($150,000) all
pursuant to an 8% Convertible Term Note dated October 29, 2008 (the “Term
Note”).

     

    WHEREAS,
as of December 15, 2008, a total of $1,380.82 in interest accrued on the above
loan is due and payable to Buyer by the Company.

     

    WHEREAS,
Buyer wishes to forgive all of the interest accrued on the Term Note through the
date hereof and to convert all of the principal into shares of Micro Imaging
Technology, Inc. Common Stock and the Company wishes to issue such shares to
extinguish the debt owed Buyer in its entirety.

     

    NOW,
THEREFORE, in consideration of the foregoing and of the mutual obligations
herein contained, it is agreed as follows:

     

    1.         FORGIVENESS
OF DEBT AND CONVERSION

     

    (a)             On
the date set forth above, Buyer hereby:

     

    
      	
               
      

            	
              (i)

            	
              Waives
      and forgives all interest accrued on the Term Note through the date hereof
      in the sum of $1,380.82; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Converts
      all of the principal due on the Term Note in the sum of $150,000 into
      Shares of Micro Imaging Technology, Inc. Common Stock, $0.01 par value, at
      an effective conversion rate of $0.04554 per share, in the names and
      amounts indicated in the table below, for an aggregate of 3,024,329 Shares
      (the “Conversion Shares”).

            

    

    

    (b)          The
Conversion Shares shall have the rights, preferences, privileges, restrictions
and other terms set forth in the By-laws of the Company.

     

    (c)          Upon
conversion, Buyer acknowledges that all principal and interest accrued and due
through the date hereof pursuant to the terms of the Term Note referenced above
has been satisfied in full by the Company.  Buyer also acknowledges that
pursuant to this Debt Conversion Agreement any default by MIT for failure to pay
interest due on the Term Note through the date hereof has been
cured.

     

                2.         REPRESENTATIONS
AND WARRANTIES OF BUYER       Buyer
represents and warrants to the Company:

     

    
      
         

      

      
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        EXHIBIT
10.10.CG

         

      

       

    

                           (a)        The
Conversion Shares are being acquired by Buyer for investment for an indefinite
period, for Buyer’s own account, not as a nominee or agent, and not with a view
to the sale or distribution of any part thereof, and the Buyer has no present
intention of selling, granting participations in, or otherwise distributing the
same except as may be permitted by the Securities Act of 1933, as amended (the
“Act”).

     

    (b)        Buyer
does not have any contract, undertaking, agreement or arrangement with any
person to sell, transfer, or grant participation to such person or to any third
person, with respect to the Conversion Shares.

     

    (c)        That
Buyer understands that the Conversion Shares have not been registered under the
Securities Act of 1933, as amended (the “Act”), in reliance upon the exemptions
from the registration provisions of the Act contained in Section 4 (2) thereof,
and any continued reliance on such exemption is predicated on the
representations of the Buyer set forth herein.

     

    (d)        Buyer
understands that the Conversion Shares must be held indefinitely unless the sale
or other transfer thereof is subsequently registered under the Act, as amended,
or an exemption from such registration is available.  Buyer further
understands that the Company is under no obligation to register the Securities
on its behalf or to assist him in complying with any exemption from registration
except as otherwise provided herein.

     

    (e)       
Buyer (i) has adequate means of providing for his current needs and possible
contingencies, (ii) has no need for liquidity in this investment, (iii) is able
to bear the substantial economic risks of an investment in the Conversion Shares
for an indefinite period, (iv) at the present time, can afford a complete loss
of such investment, and (v) does not have an overall commitment to investments
which are not readily marketable that is disproportionate to Buyer’s net worth,
and Buyer’s investment in the Conversion Shares will not cause such overall
commitment to become excessive.

     

    (f)       
Buyer is an “accredited investor” (as defined in Regulation D promulgated under
the Act) and
the undersigned’s total investment in the Conversion Shares does not exceed 10%
of the Buyer’s net worth.

     

    (g)        Buyer
recognizes that the Company has had only limited revenues to date and that the
Conversion Shares as an investment involve significant risks.

     

    (h)       
Buyer will not transfer the Conversion Shares without registering them under
applicable federal and state securities laws unless the transfer is exempt from
registration.  Buyer realizes that the Company may not allow a transfer of
Conversion Shares unless the transferee is also an “accredited investor”. 
Buyer understands that legends will be placed on certificates representing the
Conversion Shares, with respect to the above restrictions on resale or other
disposition of the Conversion Shares and that stop transfer instructions have or
will be placed with respect to the Conversion Shares so as to restrict the
assignment, resale or other disposition thereof.

     

    (i)           
The Company will direct its transfer agent to, or will itself, place such a stop
transfer order in its books respecting transfer of the Conversion Shares, and
the certificate or certificates representing the Conversion Shares will bear the
following legend or a legend substantially similar thereto:

     

    
      
         

      

      
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        EXHIBIT
10.10.CG

         

      

    

     

    “THESE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  THEY MAY
NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF:  (1) AN EFFECTIVE
REGISTRATION STATEMENT AS TO THE SECURITIES UNDER THE ACT, OR (2) AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.”

     

    (j)           
That Buyer understands that Rule 144, promulgated by the Securities and Exchange
Commission under the Act, may not be currently available for sale of the
Conversion Shares, and there is no assurance that it will be available at any
particular time in the future.  If and when Rule 144 is available for sale
of the Common Stock underlying the Conversion Shares, such sales in reliance
upon Rule 144 may only be (i) in limited quantities after the Conversion Shares
have been held for six (6) months after being sold by the Company, or (ii) in
unlimited quantities by non-affiliates after the Conversion Shares have been
held for one (1) year after being sold by the Company, in each case in
accordance with the conditions of the Rule, all of which must be met (including
the requirement, if applicable, that adequate information concerning the Company
is then available to the public).  The Company and Buyer acknowledge that
the Company has no obligation to
supply the information required for sales under Rule 144.

     

    (k)          
The Purchase Price to be paid by Buyer to Company for the Conversion Shares has
been determined by Buyer as fair and appropriate based solely upon Buyer’s
independent investigation and due diligence of the Company, and neither Buyer
nor the Company nor any of their agents, including, without limitation, any of
their officers, directors, employees, accountants and attorneys, has made any
representations or warranties whatsoever in connection with the sale of the
Conversion Shares by the Company to Buyer.  Buyer has had sufficient
opportunity in connection with the sale of the Conversion Shares to review the
Company’s business and affairs (including, without limitation, the Company’s
financial statements and other information).  The Buyer has had answered to
his satisfaction any questions with respect to the Company’s business and
affairs.  Buyer further has had the opportunity to obtain independent
financial, legal, accounting, business, tax and other appropriate advice with
respect to the transactions contemplated by this Agreement, and is not relying
upon the Company or any of its agents in any manner in connection with
same.

     

    3.            
REPRESENTATIONS AND WARRANTIES OF MIT

     

    (a)          
MIT is a corporation duly organized and validly existing under the laws of the
State of California without limit as to duration of its existence, and is
authorized and in good standing to do business in no other state; MIT has the
corporate power and adequate authority, rights and franchise to own its property
and to carry on its business as now conducted; and, subject to ratification by
its Board of Directors, MIT has the corporate power and adequate authority to
enter into this Agreement.

     

    (b)          
The execution and delivery of this Agreement and subject to (1) ratification by
the Board of Directors of the Company and (2) filing the Certificate with the
California Secretary of State, the performance of the provisions of this
Agreement are not in contravention of or in conflict with any law or regulation
or any term or provision of MIT’s Articles of Incorporation or By-Laws and are
duly authorized and do not require the consent or approval of any governmental
body or other regulatory authority; and this Agreement is a valid, binding and
legal obligation of MIT, enforceable in accordance with the terms
herein.

     

    
      
         

      

      
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        EXHIBIT
10.10.CG

         

         

      

    

    4.            
ENTIRE AGREEMENT       This Agreement
embodies the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements and understandings relating to such subject
matter.

     

    5.            
AMENDMENT       This Agreement may not be
amended except by written document executed by the parties.

     

    6.            
SUBJECT HEADINGS       Subject headings are
included for convenience only and shall not be deemed part of this
Agreement.

     

    7.            
SEVERABILITY       If any provision of this
Agreement shall be held unenforceable as applied to any circumstance, the
remainder of this Agreement and the application of such provision to other
circumstances shall be interpreted so as best to effect the intent of the
parties.  The parties further agree to replace any such unenforceable
provision with an enforceable provision (and to take such other action) which
will achieve, to the extent possible, the purposes of the unenforceable
provision.

     

    8.            
GOVERNING LAW       This Agreement shall be
governed by and construed under the laws of the State of California in force
from time to time.

     

    9.            
PARTIES BOUND       This Agreement is binding
on and shall inure to the benefit of the parties and their respective
successors, assign, heirs, and legal representatives.

     

    10.     
     SURVIVAL       The
representations, warranties, covenants, and agreements contained in this
Agreement shall survive the consummation of the transactions contemplated
hereby.

     

    11.         
COUNTERPARTS       This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same
instrument.

     

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

     

     

    
      	
              COMPANY:

            	 
      	
              BUYER:

            
	 
      	 
      	 
      
	
              MICRO
      IMAGING TECHNOLOGY, INC.

            	 
      	
              ANTHONY
      M. FRANK KEOGH PLAN

              UTA
      CHARLES SCHWAB & CO., INC.

            
	 
      	 
      	 
      
	
                /s/
      Catherine Patterson

            	 
      	
                /s/
      Anthony M. Frank

            	 
      
	
              Catherine
      Patterson, CFO

            	 
      	
              Anthony
      M. Frank, Trustee

            
	
              23456
      South Pointe Drive

            	 
      	
              1
      Maritime Place, Suite 825

            
	
              Laguna
      Hills, CA 92653-1512

            	 
      	
              San
      Francisco, CA  94111

            
	 
      	 
      	 
      	 
      	 
      

    

     

    

    
      
         

      

      
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