Document:

FIRST AMENDMENT TO LOAN AGREEMENT

FIRST AMENDMENT TO LOAN AGREEMENT

This First Amendment to Loan Agreement (“Amendment”) is entered into and effective this 30th day of June, 2006 by and between MGN Technologies, Inc., a British Columbia corporation (“Borrower”) in favor of Alliance Capital Ventures, LLC, a Washington limited liability company (“Lender”).

Recitals

A.

Borrower and Lender previously entered into that certain Loan Agreement dated as of March 27, 2006, (“Loan Agreement”) pursuant to which Lender loaned to Borrower the principal sum of US$400,000 on the terms and conditions set forth in the Loan Agreement and the other Loan Documents (as defined in the Loan Agreement).

B.

Borrower wishes to extend the time for repayment of the Loan, and Lender agrees to grant such extension, as provided for in this Agreement.

Agreement

NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Lender and Borrower hereby agree as follows:

1.

Defined Terms.  Capitalized terms used in this Agreement shall have the meaning ascribed to them in the Loan Agreement and other Loan Documents are hereby amended to conform to the terms set forth below:

2.

Amended Loan Terms.  The following amended terms with respect to the Loan shall apply, and the Loan Agreement and other Loan Documents are hereby amended to conform to the terms set forth below.

a.

Borrower shall pay to Lender on or before July 7, 2006, the sum of Ninety Thousand and no/100 Dollars ($90,000.00), which payment comprises (i) an extension fee in the amount of $44,406; (ii) interest of $40,000 on the Loan; and (iii) additional loan and administration fees of $5,594 (collectively, the “Interest and Extension Payment”).  The Interest and Extension Payment shall be paid out of funds loaned to the Company by Qualico Capital Corp. or such other source of funds as may be available to the Company on or before July 7, 2006; provided, however, that in the event Qualico Capital Corp. provides funds to the Company, whether in the form of a loan, equity, or otherwise, the Company agrees that it shall first use such funds to pay the Interest and Equity Payment and shall not use such funds for any other purpose until the Interest and Extension Payment has been paid in full.

b.

The Maturity Date shall be extended from June 26, 2006 to July 30, 2006.  The Interest and Extension Payment includes payment of all interest on the Loan through the amended Maturity Date.  On the Maturity Date, the Loan shall be due and payable. Lender shall be entitled to all remedies reserved to Lender in the event of a default under any and all of the Loan Documents if the Loan is not fully paid by the Maturity Date.

c.

Borrower agrees that the Loan shall be paid out of funds loaned to the Company by Qualico Capital Corp., Montgomery Equity Partners, LP (Cornell Group), or such other source of funds as may be available to the Company on or before June 30, 2006; provided, however, that in the event Qualico Capital Corp. or Montgomery Equity Partners, LP (Cornell Group) provides funds to the Company, whether in the form of a loan, equity, or otherwise, sufficient to pay all or a portion of the Loan, and the Company agrees that it shall first use such funds to pay the Loan and shall not use such funds for any other purpose until the Loan has been paid in full.  Notwithstanding the foregoing sentence, Borrower may use funds from the initial tranche from Qualico Capital Corp. (provided such initial tranche is $250,000 or less) to first pay the Interest and Extension Payment, and then for other purposes in the ordinary course of Borrower’s business, but any excess funds from such initial tranche and all other funds as described in the preceding sentence shall be used to pay the Loan on or before the Maturity Date.

d.

Borrower shall amend each Stock Purchase Warrant previously issued to Lender (by and through its members) to (i) increase the total number of shares that can be purchased pursuant to such stock warrants from Two Hundred Thousand (200,000) shares to Four Hundred Thousand (400,000) shares of Borrower, (ii) reduce the exercise price per share from One and no/100 Dollar (US$1.00) to 50/100 Dollar (US$0.50), and (iii) provide the right to exercise the warrants shall be sixty (60) months from the date of such amendment, as more fully described in the First Amendment to Stock Purchase Warrants to be issued with respect to each and all of the previously issued Stock Purchase Warrants.  Such amendment shall be in form satisfactory to Lender, or in Lender’s discretion, new Stock Purchase Warrants shall be issued.  Borrower shall promptly execute such amendment or newly or newly issued Stock Purchase Warrants.  Borrower shall use its commercially reasonable best efforts to include in the next registration of Borrower’s stock a sufficient number of shares so that the rights accorded to Lender (by and through its members) under the Stock Purchase Warrants, as amended, can be exercised to purchase registered and freely tradable shares, and if a sufficient number of shares cannot be registered in the next registration, then Borrower shall continue to use its commercially reasonable best efforts to register such shares as soon as possible.

3.  No Further Modification.  Except as expressly amended in this Amendment, all of the terms and conditions set forth in the Loan Agreement and the other Loan Documents shall remain unchanged, valid, binding upon the Borrower, and in full force and effect.

4.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one instrument.  An executed signature page provided by facsimile shall be deemed valid and binding for all purposes.

IN WITNESS WHEREOF, the parties have caused this First Amendment to Loan Agreement to be executed as of the day and year first above written.

Borrower:

MGN TECHNOLOGIES, INC.

		
	By:

	“Mark Jensen”

	Name:

	Mark Jensen

	Title:

	CEO

Lender:

ALLIANCE CAPITAL VENTURES, LLC

		
	By:

	Takano Capital, Inc.

	Title:

	Its manager

	 	 
	By:

	“Michael Takano”

	 	Michael Takano, PresidentExhibit 4.2

    Exhibit
      4.2

    FORM
      OF SUBORDINATED NOTE

    

    AT&S
      HOLDINGS, INC.

    Subordinated
      Note

    

    

    Amount
      $________________________________                No.
      AT&S 2005 - ____________________________  

    

    Registered
      Owner:___________________________________________________________________________       

    

    For
      value
      received, AT&S Holdings, Inc. (the "Company") promises
      to pay to the Registered Owner or registered assigns the principal
      amount
      of ________________ thousand dollars ($_________) on or prior to the Maturity
      Date, and to pay interest thereon at the rate of ____% per annum from
the
      Issue
      Date hereof, or from the most recent date to which interest has been
      paid,
      all as follows:

    

    
      	
              Issue
                Date

            	
              Term

            	
              Maturity
                Date

            	
              Interest
                Rate

            	
              Interest
                Due

            	
              Interest
                Payment

            
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

    

    

    This
      Note
      is one of a series of Notes (“Notes”) of the undersigned in an aggregate
      principal amount not to exceed Five million dollars ($5,000,000), and is subject
      to a resolution of the Board of Directors of the Company (“Resolution”).
      Reference is hereby made to the Resolution attached to this certificate for
      a
      description of the further provisions of this Note which further provisions
      shall for all purposes have the effect as if set forth in this
      place.

    

    The
      Note
      is issuable only as a registered Note without coupons in denominations of one
      thousand dollars ($1,000.00) or any multiple thereof. The holder
      of
      this Note may elect either: (i) to have interest on the principal
      amount
      compound on each anniversary of the Issue Date until paid in full on the
      Maturity Date; (ii) to receive one-half (1/2) of the Interest Payment in
      cash semi-annually; (iii) to receive one-fourth (1/4) of the Interest
      Payment in cash quarterly; or (iv) to receive the Interest Payment in cash
      annually on the anniversary
      of the Issue Date; or (iii) in
      return
      for one-half of one percent (.5%) reduction in the Interest Rate, to receive
      one-twelfth (1/12) of the Interest Payment in cash monthly. Interest payable
      for
      any payment period or portion of a payment period will be computed on the basis
      of the number of days elapsed in a 365-day year.

    

    Annual
      Interest Payments will be made no later than the anniversary of the
      Issue
      Date. Each monthly, quarterly or semi-annual Interest Payment installment or
      portion thereof, will be made no later than the last day of each month, quarter,
      or six-month period, as the case may be. If interest payments on the Note are
      annually compounded, the Registered Holder may direct, on one occasion only,
      by
      providing not less than 30 days advance notice to the Company, that the Company
      pay all earned but unpaid interest on the Note prior to maturity of the Note.
      Notwithstanding the foregoing, the Company may elect in its sole and absolute
      discretion to make any interest payment prior to the date it becomes due without
      penalty or premium of any kind. Payment of the principal amount and any earned
      but unpaid interest will be made no later than the Maturity Date.

    

    At
      the
      election of the Company, such payments may be deposited
      in the United States mail, postage prepaid, addressed to the holder
      of
      this
      Note at the address appearing upon the Note register maintained by the Company
      at the close of business ten (10) days prior to such payment date.
      Payment of the principal of and interest on this Note will be made
      at
      the
      office of the Company in such coin or currency of the United States of America
      as at the time of payment is legal tender for payment of public and private
      debts. In the event that any date on which principal of or interest on
this
      Note
      is payable is a Saturday or Sunday or day that is a legal holiday
      in the
      city of Kansas City, Missouri or the state of Missouri (a "Legal Holiday"),
      then
      such payment will be made on the next succeeding day which is not a Legal
      Holiday, without any interest or other payment in respect of such delay, with
      the same effect as if made on the date the payment was originally
      payable.

     

    All
      or
      any portion of this Note is subject to redemption at any time,
      upon
      30-day advance notice, at the election of the Company, at 100% of the principal
      amount so called for redemption, together with interest accrued to the date
      fixed for redemption, payable on the surrender of the Note for redemption.
      Notes, or portions thereof, for which redemption and payment provision is made
      will cease to bear
      interest from and after the date fixed for redemption. If this Note
      is
      redeemed
      in part only, a new Note for the portion not redeemed will be issued in the
      name
      of the holder on the cancellation of this Note.

    

    After
      36
      months from the purchase date of the Note, the Registered Holder may redeem
      this
      Note prior to maturity upon 60 days written notice to the Company. The date
      of redemption becomes the new maturity date of the Note. If the new maturity
      date results in a lower interest rate than the Company had been paying the
      holder based on the Company’s current interest rate schedule and the Note’s
      corresponding new maturity date, then the Company will withhold the amount
      of
      overpaid interest from the redemption payment. A penalty equal to six months
      interest will also be assessed for early redemption.

    

    Each
      holder of this Note agrees that the indebtedness evidenced by this Note is
      subordinated in right of payment to the prior payment in full of any and all
      indebtedness of the Company, whether outstanding on the date hereof or hereafter
      incurred. 

    

    If
      an
      Event of Default, as defined in the Resolution, occurs and is continuing, the
      principal of and accrued interest on the Note may be declared due and
      payable

    

    This
      Note
      is non-negotiable and may not be transferred without the prior written consent
      of the Company.

    

    This
      Note, including the validity hereof, will be construed in accordance with and
      governed by the laws of the state of Missouri.

    

    IN
      WITNESS WHEREOF, the Company has caused this instrument to be duly
      executed.

    

    AT&S
      HOLDINGS, INC.

    a
      Nevada
      corporation

    

    

    By:____________________________________________       

            (Authorized
      Officer)

    Attest:

            _______________________________

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      following abbreviations, when used in the inscription on the face of this
      certificate, shall be construed as though they were written out in full
      according to applicable laws or regulations:

    

    
      	
              TEN
                COM -

            	
              as
                tenants in common

            	
              UNIF
                GIFT MIN ACT ______ Custodian _________

                                                    (Cust)                      (Minor)

            
	
              TEN
                ENT -

            	
              as
                tenants by the entireties

            	 
	
              JT
                TEN -

            	
              as
                joint tenants with right of survivorship and not as tenants in
                common

            	
              Under
                Uniform Gifts to Minors Act of ___________

                                                                                  (State)

            
	
              TOD
                -

            	
              Transfer
                on death direction in event of owner’s death, to person named on face
                subject to TOD rules referenced

            	 

    

    

    Additional
      abbreviations may also be used though not in the above list.

    

    CERTIFICATE
      TRANSFERS AND REDEMTIONS

    

    FOR
      VALUE RECEIVED the undersigned hereby:

    

    ______
      Sells, assigns and transfers unto      
       ___________________________________________________________________      

    (Name
      and
      Address of Assignee, Including Zip Code,  Must be Printed or
      Typewritten)

    

                                 ____________________________________________________________

    the
      within Certificate, and all rights thereunder, hereby irrevocably constituting
      and 

    appointing
      ___________________ [or _________________] Attorney to transfer said

    Certificate
      on the books of the registrar, with full power of substitution in the
      premises.

    

    ____________________Please
      Insert Social Security or 

    Other
      Identifying Number of

    New
      Order.

    

    ____ Permanently
      Changes the Name(s)  OLD
      NAME (Registration):________________________________________    

    or
      Registration

                      NEW
      NAME (Registration):________________________________________    

    

    ____ Surrendering
      the Certificate  
Please
      Send Check to:____________________________________________     

    at
      Maturity for Payment           
      _____________________________________________________________

    

    Dated:_________________________

    

    X____________________________   
        Subscribed
      and sworn to before me this _____ 

    Registered
      Owner   day
      of
      _____________________, 200__.

    

    X____________________________      _____________________________________             

    Registered
      Owner   Notary
      Public

                            My
      Commission Expires:_______   

    X____________________________      

    Registered
      Owner

    

    NOTICE:
      The signature must correspond with the name as it appears upon the face of
      the
      Certificate in every particular, without alteration or enlargement or any change
      whatever.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Resolution
      of the Board of Directors

    of

    AT&S
      Holdings, Inc.

    

    The
      following Resolution was unanimously adopted by the Board of Directors of
      AT&S Holdings, Inc. (“Company”) at a special meeting thereof held on the
      17th
      day of
      May, 2006.

    

    “BE
      IT
      RESOLVED, that the Company is authorized to duly issue its Subordinated Notes
      (“Notes”), designated as Series 2005, to be issued to individuals, trusts,
      corporations and non-corporate entities, or others, as determined by the Company
      and subject to the following terms:

    

    	·  	
            Amount:
              The Notes will be issued in a minimum denomination of $1,000 in registered
              form, without coupon, in the aggregate principal amount of up to
              $5,000,000;

          

    	·  	
            Date:
              The Notes will be dated on the date of issue which shall be the date
              of
              acceptance by the Company of the subscription for the Notes by the
              purchase thereof;

          

    	·  	
            Term:
              The Notes shall be offered with maturities up to 10
              years;

          

    	·  	
            Interest:
              The Notes shall bear interest at a rate as offered based on the maturity
              selected (from among those described in the Company’s current Prospectus
              for the Series 2005 Notes) at an annual rate (on the basis of a 365-day
              year) which will be stated on the face of the
              Note;

          

    	·  	
            Payment
              of Principal and Interest:
              Principal and interest due on the Notes will be paid at the times stated
              on the face of the Notes;

          

    	·  	
            Payment
              Procedures:
              Payment of principal and interest on the Notes will be mailed to the
              registered owner on the books of the Company on the date due as set
              forth
              in the Notes;

          

    	·  	
            Subordination:
              The Notes shall be subordinate to all other existing or future
              indebtedness of the Company, as to the payment of any principal or
              interest thereon. In addition, such subordination shall be continuing
              and
              will not require any reaffirmation by the holder of the note or his/her
              assigns, or other parties of interest;

          

    	·  	
            Redemption
              by Company:
              Any of the Series 2005 Subordinated Notes may be called at any time
              by the
              Company, upon no less than 60 days notice to the registered holder
              thereof
              with principal and accrued interest to be paid on said Note(s) called
              for
              redemption payable on the redemption date set forth in said
              Notes;

          

    	·  	
            Redemption
              by Holder:
              The Notes may be redeemed by the Holder with penalties and restrictions
              as
              set forth in the Notes.

          

    	·  	
            Restrictions:
              The Notes issued hereunder shall not provide any restriction on us
              for the
              payment of cash dividends, redemption or issuance of any class of stock,
              or the amount of other securities, which may be redeemed, purchased,
              or
              issued by us.

          

    	·  	
            Transfer:
              The Notes issued hereunder are non-negotiable and are not transferable
              without the prior written consent of the
              Company;

          

    	·  	
            Event
              of Default:
              An Event of Default shall occur in the payment of principal or interest
              if
              the same is not paid 30 days after such payment is due. The Holder
              of the
              Note shall have all rights as a creditor as provided by the laws of
              Missouri. No officer, director, employee, parent or subsidiary shall
              be
              liable for payment of the Notes.

          

    

    The
      Company, at the direction of the President, shall carry out all authorizations
      necessary for the issuance, sale, and payment of the Notes.”

    

    CERTIFICATION

     

    The
      undersigned, the duly appointed President and Secretary of AT&S Holdings,
      Inc., hereby certifies that the Resolution set forth herein was duly authorized
      by the Board of Directors of AT&S Holdings, Inc. on the 17th
      day of
      May, 2006.

    

     

    Richard
      G. Honan II, President    Richard
      G. Honan II, Secretary

    

    Dated:
      May 17, 2006

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