Document:

WWW.EXFILE.COM -- MATRITECH FORM 8-K -- EXHIBIT 4.1 -- 14850

    EXHIBIT
      4.1

    
 

    CONSENT
      OF MAJORITY HOLDERS OF

    15%
      SECURED CONVERTIBLE PROMISSORY NOTES DATED JANUARY 13, 2006

    

    This
      Consent is executed and delivered on this 22nd day of January 2007 by the
      undersigned holders of at least a majority in outstanding principal amount
      of
      those certain 15% Secured Convertible Promissory Notes issued by Matritech,
      Inc.
      (the “Borrower”)
      on
      January 13, 2006 (the “Series
      A Notes”)
      pursuant to the Securities Purchase Agreement, dated as of January 13, 2006,
      by
      and among the Borrower and the purchasers party thereto (the “Series
      A Purchase Agreement”).
      The
      undersigned holders of at least a majority in outstanding principal amount
      of
      the Series A Notes shall be referred to as the “Majority
      Holders.”
All
      capitalized terms used in this Consent but not otherwise defined herein shall
      have the meanings ascribed to such terms in the Series A Purchase
      Agreement.

    

    WHEREAS,
      the
      parties have determined that it is in the best interests of the Borrower and
      all
      the holders of the Series A Notes that the following consents and directions
      be
      made.

    

    NOW,
      THEREFORE,
      for
      good and valuable consideration, the receipt and legal sufficiency of which
      is
      hereby acknowledged, the parties agree as follows:

    

    1. Pursuant
      to the provisions of Article VIII.C(v) and (vi) of the Series A Notes, the
      Majority Holders hereby consent to the issuance by the Borrower of Series B
      15%
      Secured Convertible Promissory Notes, in an aggregate principal amount of not
      more than $4.5 million (the “Series
      B Notes”),
      which
      Series B Notes shall rank on a pari
      passu
      basis
      with the Series A Notes as to repayment and to security. 

    

    2. Pursuant
      to the provisions of Section 8(c) of the Series A Purchase Agreement, the
      Majority Holders hereby direct the Collateral Agent to consent to, and to enter
      into, an amendment and restatement of the Security Agreement, dated January
      13,
      2006, by and between the Collateral Agent (on behalf of itself and the holders
      of the Series A Notes) and the Borrower, to enable the holders of the Series
      B
      Notes to have a pari
      passu
      position
      with the holders of the Series A Notes as to the security interest granted
      under
      such agreement, and further direct the Collateral Agent to consent to, and
      to
      enter into an amendment and restatement of the Contingent License Agreement,
      dated January 13, 2006, by and between the Collateral Agent (on behalf of itself
      and the holders of the Series A Notes) and the Borrower, to enable the holders
      of the Series B Notes to have a pari
      passu position
      with the holders of the Series A Notes as to the license granted under such
      agreement.

     

    3. The
      indebtedness represented by the Series B Notes, which indebtedness is permitted
      by this Consent, will be in addition to and not in lieu of the indebtedness
      permitted by clauses (a) and (b) of Article VIII.C(v) of the Series A
      Notes.

    

    4. Except
      as
      expressly set forth herein or as set forth in any separate instrument that
      may
      be executed by the Majority Holders and the Borrower contemporaneously herewith,
      (a) the original terms and conditions of the Series A Notes shall remain in
      full
      force and effect; (b) this Consent shall not be deemed to be a waiver, amendment
      or modification of, or consent to or departure from, any provision of the Series
      A Notes or to be a waiver of any Event of Default as 

     

    
      
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    defined
      in the Series A Notes whether arising before or after the date hereof or as
      a
      result of the transactions contemplated hereby (except for the specific consents
      referenced above, which shall be limited to their express terms and effective
      only for the specific instance and for the specific purpose specified herein);
      and (c) this Consent shall not preclude the future exercise of any right,
      remedy, power or privilege available to the holders of the Series A Notes
      whether under the Series A Notes or otherwise, and shall not be construed or
      deemed to be a satisfaction, novation, cure, modification, amendment or release
      of the Series A Notes.

    

    5. This
      Consent may be executed in multiple counterparts, each of which shall be deemed
      an original but all of which together shall constitute one and the same
      instrument, and by facsimile transmission, which facsimile signatures shall
      be
      considered original executed counterparts.

    

    [Remainder
      of Page Intentionally Left Blank]

     

     

     

    
 

    
      
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    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Consent to be
      executed as of the day first above written.

    

    Borrower:

    

    Matritech,
      Inc.

    

    By:
      /s/
      Stephen D. Chubb

    Name: Stephen
      D. Chubb

    Title: Chief
      Executive Officer

     

     

    [Signature
      Page to Consent]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Consent to be
      executed as of the day first above written.

    

    Holders:

    

    SDS
      Capital Group SPC, Ltd.,
      on
      behalf of its Class D segregated portfolio

    

    By:
      /s/
      Steve Derby

    Name:
      Steven Derby

    Title:
       Director

    Value
      of
      Series A Note: $1,656,667.00

    

    ProMed
      Partners, L.P.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $159,155.21

    

    ProMed
      Offshore Fund, Ltd.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $27,283.75

    

    ProMed
      Offshore Fund II, Ltd.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket 

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $1,011,477.71

    

    H&Q
      Life Science Investors

    

    By:
      /s/
      Daniel R. Omstead

    Name: Daniel
      R.
      Omstead

    Title: President

    Principal
      Amount of Series A Note: $1,916,667

    

    The
      name
      H&Q Life Science Investors is the designation of the Trustees for the time
      being under an Amended and Restated Declaration of Trust Dated April 21, 1987,
      as amended, and all persons dealing with H&Q Life Science Investors must
      look solely to the trust property for the enforcement of any claim against
      H&Q Life Science Investors, as neither the Trustees, officers nor
      shareholders assume any personal liability for obligations entered into on
      behalf of H&Q Life Science Investors.

    
      [Signature
        Page to Consent]

    

    
       

      
        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Consent to be
      executed as of the day first above written.

    

    Alpha
      Capital AG

    

    By:
      /s/
      Konrad Ackerman

    Name: Konrad
      Ackerman

    Title: Director

    Value
      of
      Series A Note: $29,166.67

    

    

    Bristol
      Investment Fund, Ltd.

    

    By:
      /s/
      Paul Kessler

    Name: Paul
      Kessler

    Title: Director

    Value
      of
      Series A Note: $465,336.67

     

     

    
      [Signature
        Page to Consent]WWW.EXFILE.COM -- MATRITECH FORM 8-K -- EXHIBIT 4.2 -- 14850

    EXHIBIT
      4.2

    
 

    AGREEMENT
      AND AMENDMENT TO

    15%
      SECURED CONVERTIBLE PROMISSORY NOTES DATED JANUARY 13, 2006

    

    This
      Agreement and Amendment is executed and delivered on this 22nd day of January
      2007 by the undersigned holders of at least a majority in outstanding principal
      amount of those certain 15% Secured Convertible Promissory Notes issued by
      Matritech, Inc. (the “Borrower”)
      on
      January 13, 2006 (the “Series
      A Notes”)
      pursuant to the Securities Purchase Agreement, dated as of January 13, 2006,
      by
      and among the Borrower and the purchasers party thereto (the “Series
      A Purchase Agreement”).
      The
      undersigned holders of at least a majority in outstanding principal amount
      of
      the Series A Notes shall be referred to as the “Majority
      Holders.”
All
      capitalized terms used in this Agreement and Amendment but not otherwise defined
      herein shall have the meanings ascribed to such terms in the Series A Purchase
      Agreement.

    

    WHEREAS,
      the
      parties have determined that it is in the best interests of the Borrower and
      all
      the holders of the Series A Notes that the following agreements and amendments
      be made.

    

    NOW,
      THEREFORE,
      for
      good and valuable consideration, the receipt and legal sufficiency of which
      is
      hereby acknowledged, the parties agree as follows:

    

    1.  The
      provisions of Article VI.A(viii)(c) of the Series A Notes are hereby deleted
      in
      their entirety and replaced with the following:

    

    “(c) either
      (i) fail to repay in full all amounts due under the Borrower’s 7.5% Convertible
      Debentures on the maturity date thereof, (ii) fail to pay, when due, or within
      any applicable grace period, any payment with respect to any indebtedness of
      the
      Borrower in excess of $250,000 due to any third party, other than payments
      contested by the Borrower in good faith, or otherwise be in breach or violation
      of any agreement for monies owed or owing in an amount in excess of $250,000
      which breach or violation permits the other party thereto to declare a default
      or otherwise accelerate amounts due thereunder, or (ii) suffer to exist (A)
      any
      Event of Default under and as defined in the Series B 15% Secured Convertible
      Promissory Notes issued by the Borrower on or around January 22, 2007 (the
      “Series
      B Notes”);
      or
      (B) any other default or event of default under any agreement (including,
      without limitation, the Series B Notes) binding the Borrower which default
      or
      event of default would or is likely to have a material adverse effect on the
      business, operations, properties, prospects or financial condition of the
      Borrower;”

    

    2.  For
      purposes of the Series A Notes, the term “Security
      Agreement”
shall
      refer to the Amended and Restated Security Agreement, by and between the
      Borrower and the Collateral Agent (for itself and the holders of the Series
      A
      Notes and the Series B Notes), dated on or around the date hereof.

    

    3.  For
      purposes of the Series A Notes, the term “Contingent
      License Agreement”
shall
      refer to the Amended and Restated Contingent License Agreement, by and between
      the 

     

    
       

      
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    Borrower
      and the Collateral Agent (for itself and the holders of the Series A Notes
      and
      the Series B Notes), dated on or around the date hereof.

    

    4.  For
      purposes of the Series A Notes, the term “Security
      Documents”
shall
      include the Security Agreement, the Contingent License Agreement and any other
      document securing the Series A Notes. 

    

    5.  For
      purposes of the Series A Notes, the term “NASDAQ”
means
      whichever, if any, of the Nasdaq Global Market, the Nasdaq Global Select Market
      or the Nasdaq Capital Market on which the shares of Common Stock are
      traded.

    

    6.  The
      provisions of Article VII.E of the Series A Notes are hereby deleted in their
      entirety and replaced with the following:

    

    “E. Distributions.
      In case
      the Borrower shall fix a payment date for the making of a distribution to all
      holders of Common Stock (including any such distribution made in connection
      with
      a consolidation or merger in which the Borrower is the continuing corporation)
      of evidences of indebtedness or assets (other than cash dividends or cash
      distributions payable out of consolidated earnings or earned surplus or
      dividends or distributions referred to in subsection C of this Article VII),
      or
      subscription rights or warrants, the Conversion Price to be in effect after
      such
      payment date shall be determined by multiplying the Conversion Price in effect
      immediately prior to such payment date by a fraction, the numerator of which
      shall be the total number of shares of Common Stock outstanding multiplied
      by
      the Closing Sales Price (as defined below) per share of Common Stock immediately
      prior to such payment date, less the fair market value (as determined by the
      Borrower’s Board of Directors in good faith) of said assets or evidences of
      indebtedness so distributed, or of such subscription rights or warrants, and
      the
      denominator of which shall be the total number of shares of Common Stock
      outstanding multiplied by such Closing Sales Price per share of Common Stock
      immediately prior to such payment date. Such adjustment shall be made
      successively whenever such a payment date is fixed.”

    

    7.  The
      provisions of Article VIII.C(iii) of the Series A Notes are hereby deleted
      in
      their entirety and replaced with the following:

    

    “(iii) redeem,
      repurchase or otherwise acquire, or declare or pay any cash dividend or
      distribution on, any securities of the Borrower, except pursuant to any equity
      compensation plan approved by the Borrower’s Board of Directors or as expressly
      required by the terms of the Series A Notes or the Series B Notes;”

    

    8.  The
      provisions of Article XI.L of the Series A Notes are hereby deleted in their
      entirety and replaced with the following:

    

    “L. “Interest
      Installment Amount”
means,
      as to any Quarterly Installment Date, an amount equal to the accrued and unpaid
      interest on the outstanding Principal through such Quarterly Installment
      Date.”

    

    
       

      
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    9.  The
      provisions of Article XI.R of
      the
      Series A Notes are hereby deleted in their entirety and replaced with the
      following:

    

    “R. “Scheduled
      Maturity Date”
means
      December 13, 2007.”

    

    10.  The
      provisions of Article XI.T of the Series A Notes are hereby deleted in their
      entirety and replaced with the following:

    

    “T. “Stock
      Payment Conditions”
means
      that each of the following conditions is satisfied: (i) one or more registration
      statements filed pursuant to the Registration Rights Agreement shall be
      effective and available for the resale of the shares of Common Stock to be
      issued in connection with the event requiring determination; (ii) any applicable
      shares of Common Stock to be issued in connection with the event requiring
      determination may be issued in full without violating Article IX.A hereof;
      (iii)
      if the Common Stock is selling at a price below $0.40 per share, no payment
      of
      Installment Conversion Shares may be made to the Holder pursuant to Article
      VIII.C without the Holder’s prior written consent within five (5) days of such
      payment (it being acknowledged and agreed that if the Holder does not so consent
      to receiving such payment in Installment Conversion Shares, that payment may
      be
      deferred by the Holder, at its option, until the next scheduled Installment
      Date
      or any other mutually agreed upon date); (iv) the Borrower has not issued any
      notice relating to the redemption of any warrant(s) during the thirty (30)
      day
      period ending on and including the applicable date of determination; and (v)
      any
      issuances of Installment Conversion Shares will not result in the Holder’s
      aggregate ownership interest of the Common Stock to rise above 9.99% unless
      waived by such Holder under Article IX.”

    

    11.  The
      Borrower hereby grants to ProMed Partners, L.P. the right to designate one
      representative (the “Designated
      Representative”)
      to the
      Borrower’s Board of Directors and, to the extent that there is no independence
      or related party impediment to such representative serving on specific
      committees of the Board of Directors, to any
      Committee of the Board of Directors related to business development and other
      strategic activities.
      ProMed
      Partners, L.P. hereby designates David B. Musket to serve as the initial
      Designated Representative. The Designated Representative’s service as a member
      of the Board of Directors shall be on the same terms and conditions applicable
      to other members of the Board of Directors, with compensation to be paid to
      the
      Designated Representative as a non-employee member of the Board of Directors.
      If, due to lack of independence under rules of AMEX or the SEC, the Designated
      Representative cannot serve as a member of any Committee of the Board of
      Directors related to business development and other strategic activities, he
      shall nonetheless be permitted to attend and participate in the Committee’s
      meetings except to the extent, if any, that conflicts of interest (as determined
      by the Nominating and Corporate Governance Committee or Audit Committee of
      the
      Board of Directors) bar such attendance and participation. The Borrower agrees
      that its Board of Directors will nominate the Designated Representative for
      reelection by the stockholders of the Borrower at its next Annual Meeting of
      Stockholders. 

    

    
       

      
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    12.  The
      Borrower agrees to pay the expenses of counsel for SDS Capital Group SPC, Ltd.
      in connection with the review, negotiation and preparation of documentation
      to
      effect this Agreement and Amendment, contemporaneously with execution of this
      Agreement and Amendment by the Majority Holders, in an amount not to exceed
      $10,000.

    

    13.  Except
      as
      expressly set forth herein or as set forth in any separate instrument that
      may
      be executed by the Majority Holders and the Borrower contemporaneously herewith,
      (a) the original terms and conditions of the Series A Notes shall remain in
      full
      force and effect; (b) this Agreement and Amendment shall not be deemed to be
      a
      waiver, amendment or modification of, or consent to or departure from, any
      provision of the Series A Notes or to be a waiver of any Event of Default
      whether arising before or after the date hereof as a result of the transactions
      contemplated hereby; and (c) this Agreement and Amendment shall not preclude
      the
      future exercise of any right, remedy, power or privilege available to the
      holders of the Series A Notes whether under the Series A Notes or otherwise,
      and
      shall not be construed or deemed to be a satisfaction, novation, cure,
      modification, amendment or release of the Series A Notes.

    

    14.  This
      Agreement and Amendment (a) constitutes the entire understanding of the parties
      with respect to the subject matter hereof, and any other prior agreements,
      whether written or oral, with respect hereto or thereto are expressly superseded
      hereby; (b) shall be governed by and construed in accordance with the laws
      of
      the State of Delaware without regard to principles of conflicts of laws; and
      (c)
      shall be binding upon and inure to the benefit of the successors and assigns
      of
      the Borrower and all of the holders of the Series A Notes.

    

    15.  This
      Agreement and Amendment may be executed in multiple counterparts, each of which
      shall be deemed an original but all of which together shall constitute one
      and
      the same instrument, and by facsimile transmission, which facsimile signatures
      shall be considered original executed counterparts.

    

    16.  All
      references to the “Notes” in the Series A Purchase Agreement or any documents or
      instruments executed by Borrower in connection therewith shall be deemed to
      refer to the Series A Notes as the same have been amended through the date
      hereof.

    

    17.  Each
      holder of the Series A Notes is directed to attach this Agreement and Amendment
      to its Series A Note, provided
      that the
      failure to so attached this Agreement and Amendment to any Series A Note shall
      not affect in any way the enforceability hereof or of any Series A
      Note.

    

    18.  Any
      provision of this Agreement and Amendment that is prohibited or unenforceable
      in
      any jurisdiction shall be ineffective to the extent of such prohibition or
      unenforceability without invalidating the remaining provisions hereof in that
      jurisdiction or affecting the validity or enforceability of such provision
      in
      any other jurisdiction.

    

    19.  The
      Borrower hereby represents and warrants to the Majority Holders of the Series
      A
      Notes as follows:

    

    
       

      
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    (a) Borrower
      has the corporate power and authority to execute, deliver, and perform this
      Agreement and Amendment and all such action has been duly and validly authorized
      by all necessary corporate proceedings on its part. 

    

    (b) The
      Series A Notes, as amended hereby, constitute the legal, valid and binding
      agreements of the Borrower, enforceable in accordance with their respective
      terms, except as such enforceability may be limited by bankruptcy, insolvency,
      moratorium or other similar laws affecting creditors’ rights generally and by
      general principles of equity.

    

    (c) The
      Borrower has, and will have after giving effect to this Agreement and Amendment,
      no claims, defenses or set-offs to its obligations under the Series A
      Notes.

    

    

    [Remainder
      of Page Intentionally Left Blank]

     

     

    
 

    
       

      
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    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Agreement and
      Amendment to be executed as of the day first above written.

    

    Borrower:

    

    Matritech,
      Inc.

    

    By:
      /s/
      Stephen D. Chubb

    Name: Stephen
      D. Chubb

    Title: Chief
      Executive Officer

     

     

     

    [Signature
      Page to Agreement and Amendment]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Agreement and
      Amendment to be executed as of the day first above written.

    

    Holders:

    

    SDS
      Capital Group SPC, Ltd.,
      on
      behalf of its Class D segregated portfolio

    

    By:
      /s/
      Steve Derby

    Name:
      Steven Derby

    Title:
       Director

    Value
      of
      Series A Note: $1,656,667.00

    

    ProMed
      Partners, L.P.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $159,155.21

    

    ProMed
      Offshore Fund, Ltd.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $27,283.75

    

    ProMed
      Offshore Fund II, Ltd.

    

    By:
      /s/
      David B. Musket

    Name:
       David
      B.
      Musket 

    Title:
       Managing
      Director

    Value
      of
      Series A Note: $1,011,477.71

    

    H&Q
      Life Science Investors

    

    By:
      /s/
      Daniel R. Omstead

    Name: Daniel
      R.
      Omstead

    Title: President

    Principal
      Amount of Series A Note: $1,916,667

     

    The
      name
      H&Q Life Science Investors is the designation of the Trustees for the time
      being under an Amended and Restated Declaration of Trust Dated April 21, 1987,
      as amended, and all persons dealing with H&Q Life Science Investors must
      look solely to the trust property for the enforcement of any claim against
      H&Q Life Science Investors, as neither the Trustees, officers nor
      shareholders assume any personal liability for obligations entered into on
      behalf of H&Q Life Science Investors.

     

    
      [Signature
        Page to Agreement and Amendment]

    

    
       

      
        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      undersigned Borrower and the Majority Holders have caused this Agreement and
      Amendment to be executed as of the day first above written.

    

    Alpha
      Capital AG

    

    By:
      /s/
      Konrad Ackerman

    Name: Konrad
      Ackerman

    Title: Director

    Value
      of
      Series A Note: $29,166.67

    

    

    Bristol
      Investment Fund, Ltd.

    

    By:
      /s/
      Paul Kessler

    Name: Paul
      Kessler

    Title: Director

    Value
      of
      Series A Note: $465,336.67

     

     

    
      [Signature
        Page to Agreement and Amendment]

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