Document:

Exhibit 4.1

 

PROMISSORY NOTE

	
  UP TO $1,000,000

  	
  New York, New York

  
	
   

  	
  April 1, 2007

  

 

 

FOR VALUE RECEIVED,
Paramount Acquisition Corp., a Delaware corporation (the “Company”) promises to
pay to the order of Paramount BioCapital Asset Management, Inc. (‘‘Paramount
Biocapital’’) at 787 Seventh Avenue, 48th Floor, New York, New York 10019 (the “Payee”),
at such address, or such other place as the Payee may designate from time to
time by notice in writing to the Company, an amount equal to the sum of all
loans made by the Payee to the Company (the “Principal Sum”) up to ONE MILLION
DOLLARS AND NO/100, in lawful money of the United States of America in
accordance with the terms and conditions hereinafter set forth:

A. Payment
Terms. The Principal Sum shall be due and payable upon demand by the Payee,
such date being hereinafter referred to as the “Maturity Date”. The Principal
Sum shall not bear interest.

B. Prepayments.
All or any portion of the Principal Sum may be prepaid in whole or in part at
any time.

C.
Security. This Note, and the Principal Sum, is unsecured.

D. Miscellaneous.

a. No delay or failure
on the part of the Payee of this Note to exercise any power or right hereunder,
shall operate as a waiver thereof, and no right or remedy of the Payee of this
Note shall be deemed abridged or modified by any course of conduct.

b. This Note shall be
governed by and construed in accordance with the laws of the State of New York
applicable to agreements made and to be performed in New York without giving
effect to applicable conflicts of law principles.

c. This Note cannot be
changed or terminated orally, but only by a writing signed by the Company and
the Payee.

d. By executing this
Note the individual signing below represents and warrants that he has the power
and authority to act for and bind the Company and that the Company has duly
authorized the execution and delivery of this Note, and such individual agrees
that the Payee is entitled to rely upon such representation and warranty.

e. The Payee, without
prejudice to any other rights, is authorized to proceed against the Company to
enforce its rights under this Note. The powers and remedies of the Payee under
this Note shall not be exclusive of any other powers, rights or remedies
available to the Payee.

f. Any and all notices
or other communications required or permitted under this Note shall be in
writing and shall be deemed given upon (1) personal delivery, (2) upon the next
business day if sent by overnight courier service, or (3) upon the third
business day next following the mailing of such notice by certified or
registered mail, return receipt requested, to the respective addresses of the
Company and the Payee or to such

 

 

other address as the Company
or the Payee may specify by written notice given as aforesaid.

	
  

  	
  PARAMOUNT ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Jay Lobell

  	
   

  
	
   

  	
  Name: J. Jay Lobell

  
	
   

  	
  Title:   Chief Executive OfficerEXHIBIT
10.1

OFFER LETTER TO BRUCE FICKS, CHIEF FINANCIAL
OFFICER OF THE COMPANY

June
29, 2007

Mr. Bruce R. Ficks

4200 West 100th Street

Bloomington, MN  55437

Dear
Bruce,

We are very pleased to offer you the position of Chief
Financial Officer for MCT.  In this role
you will be reporting to Roger Gower, Chief Executive Officer and Chairman of
the Board.

Your starting salary will be $145,000 per year,
payable at a bi-weekly rate of $5,576.92. You will accrue vacation at a rate of
4 weeks per year.  You will also be eligible for 3 months of base
pay following a “Change in Control” as defined in the Internal Revenue Code, if
your position is eliminated or significantly reduced in scope, responsibility
or compensation. You will be eligible for annual bonuses if approved by the
Compensation Committee.  For 2007, you
will be eligible for a bonus of up to $ 30,000 if you satisfy goals mutually
set by you and the CEO relating to identifying and meeting Sarbanes-Oxley
requirements.

You will be granted
options to purchase 200,000 shares of MCT stock, subject to approval by the
Compensation Committee. Option price is the closing market price of MCT stock
on the option approval date. Options vest at a rate of 25% per year, beginning
on the first anniversary date from the date of grant, as will be noted in the
option agreement.

You will also
receive the same benefits available to all MCT employees, including the option
to participate in medical, dental, life and disability insurance plans, and in
our 401(K) plan.  You will be given an
annual performance and salary review commencing July 1, 2008.

Your
employment with MCT will begin on July 23, 2007.  To show acceptance of this offer, we request
you sign this offer letter, and the attached MCT Employee Agreement and return
them to us.

Your
employment with MCT will be at-will, which means that it can be terminated by
either you or MCT at any time for any reason. 
Nothing contained in this letter or the MCT Employee Agreement alters
your status as an at-will employee.

We
are confident that your association with MCT will prove to be challenging and
rewarding, and we look forward to having you join our team.

If
you have any questions, please contact us.

Sincerely,

	
  By:

  	
  /s/ Roger Gower

  	
   

  	
  By:

  	
  /s/ Kathy Dimmick

  	
   

  
	
  Roger Gower

  	
  Kathy Dimmick

  
	
  Chief Executive Officer and

  	
  Human Resources Manager

  
	
  Chairman of the Board

  	
   

  
	
   

  	
   

  
	
  :encl

  	
   

  
	
   

  	
   

  
	
  Accepted:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Bruce R. Ficks

  	
   

  	
  Date:  July 3, 2007

  	
   

  
	
  Bruce R. Ficks

  	
   

  
							

 

 1EXHIBIT
10.2

CONFIDENTIAL
TREATMENT REQUESTED

CONTRACT
MANUFACTURING AGREEMENT BETWEEN COMPANY AND GREATECH

This
Agreement (“Agreement”) dated as of June 26, 2007, is entered into by and
between Greatech Integration (M) Sdn Bhd, with a place of business at Plot 287B
Lengkok Kampung Jawa 1, Phase 3 Bayan Lepas Free Industrial Zone, 11900 Penang
(hereinafter called Greatech) and Micro Component Technology Inc, with a place
of business at No. 2340 West County Road C, Saint Paul, MN 55113 USA
(hereinafter called MCT).

The
purpose of this Agreement is to set forth the terms and conditions under which
the Greatech shall deliver to MCT certain Products, order certain Raw
Materials, manufacture fabricated parts, provide assembly services, and
rudimentary testing.  This Agreement will
cover the Products specified in Attachment A. 
Upon written agreement by Greatech and MCT, part numbers may be added or
deleted by amending Attachment A.

1.0
GENERAL

1.1
LIABILITY

Except
for a party’s obligation to indemnify the other party against third party
claims, or as otherwise provided in this Agreement, neither party shall be
liable to the other for special, indirect, incidental or consequential damages.

1.2
SEVERABILITY

If any
provision of this Agreement is held to be invalid or unenforceable, such
invalidity or unenforceability shall not affect the enforceability of any other
provisions of this Agreement not held to be invalid.

1.3
AMENDMENTS

Modification
of this Agreement must be made in writing, signed by a duly authorized Corporate
Officer of each party.  No amendment
shall be deemed effective, until a duplicate original of such Amendment is
received by each party.

1.4
COMPLIANCE WITH THE LAWS

Both
parties agree to comply will all applicable laws, rules and regulations with
regard to the performance of its obligations under the Agreement and indemnify
and hold the other party harmless from any loss resulting from its failure to
obey all such laws, rules and regulations. 
This Agreement is made in, governed by, and shall be construed in
accordance with the laws of the 

 1
 

State of
Minnesota USA

1.5
WAIVER

Either
party’s failure to exercise, in whole or in part, or delay in exercising any
right under this Agreement will not preclude any future exercise of the same
right or the exercise of any other right hereunder.

1.6
All notices pertaining to this Agreement shall be in writing, delivered to the
party at this address set forth below.

	
  To: Greatech Integration (M)
  Sdn Bhd

  	
  To: Micro Component Technology Inc

  
	
  Plot 287B
  Lengkok Kampung Jawa 1

  	
  2340 West County Road C

  
	
  Phase 3 Bayan
  Lepas FIZ

  	
  Saint Paul

  
	
  11900 Penang,
  Malaysia

  	
  MN 55113 USA

  
	
   

  	
   

  
	
  Attention: Mr.
  Tan Eng Kee

  	
  Attention: Mr. Roger Gower

  

 

1.7
FORCE MAJEURE

Neither
party will be liable nor deemed to be in default for delay or failure in
performance or interruption of service hereunder resulting directly or
indirectly from acts of God, wars, floods, riots, labor strikes, worldwide
parts shortages, or transportation shortages, provided, however, the provisions
of this section shall not apply to obligation to make payments when due.  The time for performance so affected or
delayed will be deemed extended for the period of such delay.  The party claiming excuse for failure to
perform due to force majeure shall notify the other party in writing within
five (5) days of the existence of the force majeure cause and its expected
duration.  MCT may terminate this
Agreement on five days’ prior written notice to Greatech if Greatech is unable
to perform for a period of 30 days or more due to force majeure.

1.8
PROPRIETARY INFORMATION

The
parties are also entering into a Non-Disclosure and Confidentiality Agreement
which shall continue in accordance with its terms.

1.9  AUTHORITY

MCT
warrants that it has the unqualified right to enter this Agreement, that it is
the owner of or has the right to transfer all rights and licenses to all
technology, intellectual property and other deliverables under the terms of
this Agreement, and that it has the right to perform all obligations under this
Agreement.

1.10
ASSIGNMENT

Neither
party may assign or otherwise transfer its rights and obligations under this
Agreement without the prior written consent of the other party, which consent
shall not be unreasonably withheld.

 2
 

1.11
ENTIRE AGREEMENT

This
Agreement sets forth the entire agreement and understanding between the parties
with respect to the subject matter hereof and merges all prior discussions and
negotiations between them.  There are no
oral representations or inducements pertaining thereto which are not contained
herein; and neither of the parties hereto shall be bound by any conditions,
warranties, understandings to representations with respect to such subject
matter other than as expressly provided herein, except that the Non-Disclosure
and Confidentiality Agreement referred to in Section 1.8 shall continue in
accordance with its terms.

1.12
NON-LICENSING

The
parties understand that except as may be otherwise expressly stated herein, the
terms and conditions of the Agreement shall not be considered in any way as a
grant of any license whatsoever under either party’s present or future
trademarks, trade secrets, or other proprietary rights, nor is any such license
granted by implication, or otherwise.

2.0
WORK SCOPE

During
the term of this Agreement, Greatech will supply product that meets all
assembly, test, quality and documentation requirements, and on a delivery
schedule agreed to in writing by MCT and Greatech.  Assembly & test, labeling and production
records must meet all applicable ISO standards. 
Product is assembled, tested and labeled per MCT specifications.  MCT has responsibility to ensure their
specifications meet applicable regulatory requirements and effectively
communicate requirements to Greatech.

Greatech
shall manufacture and deliver product, listed on Exhibit A, exclusively to MCT
under the terms and conditions of this Agreement.  All parts and components purchased and
inventory used in the construction of the Product, shall be sourced from the
MCT’s AVL (Approved Vendor List).  Parts
and components NOT listed on the MCT’s AVL shall NOT be used unless approved by
MCT.  Any modifications to the MCT AVL
must be approved, in writing, by MCT. 
Greatech shall provide manufacturing and testing for the products in
accordance with MCT’s specifications.

3.0
AGREEMENT TERMS AND ORDERING

The
terms and conditions of this agreement shall apply to all products listed on
Exhibit A and other future products to be manufactured by Greatech for MCT.

The
Contract Manufacturing Agreement is good until otherwise modified or terminated
by mutual written Agreement.

3.1 TERM OF AGREEMENT

The
Initial Term of this Agreement is twelve (12) months.

Upon the
effective date, and at each subsequent renewal date, MCT will provide Greatech
with a twelve (12) month rolling forecast of the Product to be ordered for the
succeeding twelve (12) month period, and thereafter, in the first week of each
succeeding quarter, MCT will update the twelve (12) month forecast.

Greatech
will utilize the forecast to secure long lead time components (i.e. components
that 

 3
 

exceed 8
weeks lead time)

Unless
terminated earlier as provided in Section 9.0, the Agreement is automatically
renewed at twelve (12) months increments, unless either party gives written
notice to the other party not to renew with not less than 90 days of notice.

3.2
PURCHASE ORDERS

MCT will
issue purchase orders on a periodic basis, with sufficient time to permit
Greatech to obtain the long lead-time components and will approve the shipment
of Products from Greatech, acknowledge receipt of Product at MCT’s facility and
authorize payment to Greatech.  Payment
is contingent upon acceptance of the assembled machine per MCT’s
specifications.  Final acceptance must
occur at a location specified by MCT and mutually agreed to by Greatech.

MCT’s
purchase orders (“Orders”) must be in writing and with the following
information: (I) identification of the Products by quantity, model number,
revision and description; (II) shipment instructions, including requested
shipment date, and (III) price.  All
orders must incorporate by reference the terms and conditions of this
Agreement.  The terms and conditions of
this Agreement shall not supersede any additional terms and conditions (agreed
to by both MCT and Greatech) contained in MCT’s purchase orders.  All requirements shall be scheduled per the
Order, and all scheduled dates shall be regarded as dates of shipment from
Greatech’s facilities.

MCT
agrees to promptly accept delivery of Products conforming to this Agreement and
make payment in accordance with Section 8.

3.3
RESCHEDULING

MCT will
make all reasonable efforts to minimize the impact of schedule changes.  It is Greatech’s responsibility to notify MCT
if Greatech cannot support present or additional increases from MCT.

Any
changes to the schedule shall be made in writing by MCT to Greatech by amending
the corresponding purchase orders, or other method agreed to by MCT and
Greatech.

3.4
In the case of cancellation, MCT is responsible for any (Greatech purchased)
undamaged material, at quoted standard cost inventoried by Greatech in support
of MCT’s Purchase Order (s) that is not reusable by Greatech or returnable to
the supplier.  Additionally, MCT is
responsible for any cancellation charges, restocking charges, or any
non-cancelable commitments incurred by Greatech for Greatech purchased
parts.  Such inventory items will be
identified upon the initial execution of this Agreement, and as they become
otherwise identified during the course of this Agreement.  Upon cancellation and payment of Greatech for
unused materials or work in process, Greatech will then deliver to MCT said
items within five (5) business days.

In
all events, MCT’s maximum liability shall be fixed on the date MCT notifies
Greatech of cancellation.  Liability
shall pass to MCT as described in 3.7. 
Within five (5) business days of this notification, Greatech must
provide to MCT the complete amount of outstanding liability.

MCT
reserves the right to visit Greatech’s facility with limited notice, to audit
Finished Goods, WIP, and 

 4
 

unique
Raw Material inventories as defined in section 3.7.

3.5
If there is an increase in forecasted requirements, Greatech shall make its
best efforts to service the increase and shall advise MCT of its efforts to
service the increased requirements.  MCT
and Greatech shall jointly work with suppliers of the long-lead items to ensure
that an adequate supply of critical components is available at all times.

3.6
In the event that Greatech is required to maintain a significant excess
inventory as a result of the above (3.5) provision, reductions of the forecast,
engineering changes or other MCT actions, the parties agree to jointly develop
a satisfactory solution financial wise to cover these unforcasted costs.

3.7
CONTRACT CANCELLATION CHARGES

For the
convenience of MCT, and if agreed to by Greatech, MCT may cancel the remaining
orders under the following conditions:

a.  MCT pays for all finished goods already
shipped.

b. MCT
pays for all finished goods and work-in-process (Greatech purchased) items on
the current purchase order from MCT to Greatech.

3.8
END OF CONTRACT INVENTORY

MCT
will be responsible for all undamaged material purchased by Greatech, at quoted
standard cost, inventoried by Greatech in support of MCT’s Purchase Order that
is not reusable by Greatech or returnable to the supplier.

Additionally,
MCT is responsible for any cancellation charges, restocking charges, or any
non-cancelable commitments incurred by Greatech for Greatech purchased material
in support of MCT’s Purchase Order.  Such
items will be identified upon the initial execution of this Agreement, and as
they become otherwise identified during the course of this Agreement.

4.0
QUALITY ASSURANCE

All
assemblies will comply with MCT’s specifications and drawings.  All finished goods units completed must be
accompanied by appropriate inspection and test documentation.

5.0
WARRANTY

5.1
WARRANTY PERIOD

Under
the condition that Greatech’s product conforms to MCT’s applicable
specifications, Greatech warrants its product, for a period of thirteen (13)
months from the date of shipment, to be free from material and workmanship
defects.

5.2
WARRANTY LIMITATION

This
warranty is limited to replacement or repair, at Greatech’s option of defective
products and does not apply to Products which have been abused or improperly
stored, modified, or repaired.  

 5
 

Greatech
will respond to warranty repair claims and, if unable to respond in a timely
fashion, agrees to allow MCT to repair or have repaired the defective Products,
at Greatech equivalent time and materials charge-backs to Greatech.

Greatech’s
warranty obligations hereunder do not extend to damage caused by improper use
of the Product, accident, or operation of the Product outside of the specified
environment conditions, by parties other than Greatech, its subcontractors, or
agents.

The
express warranties set forth in this Paragraph are the only warranties given by
Greatech with respect to any Product furnished hereunder.

5.3
WARRANTY CLAIMS

Warranty
claims by MCT shall state the specific nature of the defect, unit, part number,
serial number and date the unit was discovered to be defective and shall be
verified within thirty (30) working days of receipt by Greatech.  Products returned to Greatech under warranty
shall be repaired or replaced at Greatech’s option.  Greatech shall pay all transportation costs
for the return of such Products from any of MCT’s customer locations, and
reshipment to MCT’s customer.  Prior to
return of any warranty materials MCT must contact Greatech to receive a Return
of Materials Authorization (RMA) number.

5.4
OUT-OF-WARRANTY REPAIRS

Greatech
shall perform all required out-of-warranty repairs for assemblies returned by
MCT on a time and materials basis. 
Greatech shall provide MCT with a written quotation for each repair
prior to commencement of any such work.

6.0
ENGINEERING CHANGES/TEST FALL-OUT

6.1
Engineering changes (EC’s) may be initiated by either party, under the
following terms:

a.
MCT gives advance written notice to Greatech of any EC requested by MCT.  If the EC is identified as critical by MCT,
Greatech will respond to the EC within (forty eight) 48 hours of receipt of
such notice.  Implementation of the
requested EC is contingent upon material availability.  All other EC implementation schedules will be
per mutual agreement,

b.
Greatech shall provide a written assessment on an ECO summary sheet of the
anticipated effects of EC’s on Greatech’s schedule and manufacturing costs
(including costs associated with scrap and rework, retooling, fixtures, and any
changes to the recurring product price). 
Greatech and MCT shall negotiate in good faith on the costs associated
with processing and implementing those EC’s.

6.2
For EC’s proposed by Greatech; Greatech shall give advance written notice to
MCT on an ECO summary sheet.  No EC shall
be implemented without prior written consent from an authorized MCT corporate
representative.

Greatech
shall provide a written assessment of the anticipated effects of any EC on
Greatech 

 6
 

schedule
and manufacturing costs (including costs associated with scrap and
rework).  Greatech and MCT shall
negotiate the costs associated with processing and implementing those
engineering changes.

6.3
MCT will reimburse Greatech for the reasonable cost as a result of any EC of
any parts and/or material or forecast, long lead components and minimum buy
components that cannot be used by Greatech to produce Products; such cost
includes the published contract price of the item.  In the case of parts and materials not yet
delivered by the suppliers, the cancellation charges or other liabilities
incurred by Greatech in canceling such parts and materials shall be borne by
MCT.  Greatech shall use reasonable
effort to minimize MCT’s liability.

6.4
TEST FALL-OUT

If despite
repeated attempts at test and repair, the assemblies fail to pass expectations,
such assemblies shall be afforded to MCT for engineering evaluation.  Greatech will be fully reimbursed for the
entire units, if the assemblies have failed because of a design problem.  Greatech will not be reimbursed if the
assemblies have failed because of faulty material or workmanship.

7.0
PRICES/TITLE

7.1

a.
Initial prices are listed in Exhibit A and shall be specific to the level of
the assembly.

b.
Except as provided in 7.l e. below pricing cannot be changed without written
approval by both parties, which shall not be unreasonably withheld.

c.
All prices are FOB Greatech’s facility in Penang, Malaysia.  MCT shall be responsible for and pay all
shipping and insurance costs for Products.

d.
All taxes will be borne by MCT.  If sales
to MCT are exempt from any taxes, MCT shall furnish to Greatech a Certificate
of Exemption from the application taxing authority.

e.
Initial prices shall remain in effect for the first 12 months of the
Agreement.  Greatech may increase prices
for each 12-month renewal term provided it gives MCT at least 120 days’ prior
written notice of any increase, and no increase is more than 5% per Product.

7.2
Title of the Products shall be passed to MCT upon shipment from Greatech,
Penang, Malaysia.

8.0
PAYMENT TERMS

For the
first two orders [*INTENTIONALLY OMITTED]

After
two orders [*INTENTIONALLY OMITTED] MCT has no obligation to pay for Products
that it has rejected as not in compliance with this Agreement.

*Confidential
Treatment Requested

 7
 

9.0 TERMINATION CLAUSE

9.1
Termination of this Agreement shall not affect the survival of any rights or
obligations hereunder which by their nature are to survive and be effective
following termination of this Agreement.

10.0
INDEMNIFICATION

MCT
shall settle or defend, at MCT’s expense, and pay all costs, fines, attorney
fees and damages resulting from all proceedings or claims against Greatech and
its Subsidiaries for infringement or alleged infringement by the units
furnished under this Agreement, or any part or use thereof of copyrights,
patents, or intellectual property rights now or thereafter existing in the
United States or in any other country where MCT, its Subsidiaries of affiliates
heretofore have furnished or furnish similar Units. MCT shall notify Greatech
if it is or becomes aware of any right of or protection afforded to, a third
party as set forth above that might affect Greatech’s ability to provide units
under this Agreement.  Greatech shall
provide written notice to MCT of any such proceeding or claim of which it
becomes aware.  MCT will, at Greatech’s
request, identify the countries in which MCT, its Subsidiaries or affiliates
hereto have furnished similar items.  The
provision states the entire rights and obligations of MCT and Greatech
regarding infringement of copyrights, patents, or intellectual property rights
now or hereafter existing in the United States or in any other country and
shall survive expiration or termination of this Agreement.

11.0
The parties have duly executed this Agreement as of the date of the last
signature below.

	
   

  	
  Greatech

  	
  MCT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tan Eng Kee

  	
   

  	
  By:

  	
  /s/ Roger E. Gower

  	
   

  
	
   

  	
  Tan Eng Kee, CEO

  	
  Roger Gower, CEO

  
	
   

  	
   

  	
  Dated: June 26, 2007

  
							

 

 8
 

Attachment
A

186004 –
Assy, Test Module Tri-Temp

Price: [*INTENTIONALLY OMITTED]

*Confidential Treatment Requested

 9

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