Document:

AMENDMENT
      NO. 2 TO SECURITIES PURCHASE AGREEMENT, SENIOR 

    SECURED
      CONVERTIBLE NOTES, WARRANTS AND SECURITY AGREEMENT

     

     

    This
      AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT, SENIOR SECURED CONVERTIBLE
      NOTES, WARRANTS AND SECURITY AGREEMENT (this “Amendment”) is made and entered
      into as of September 19, 2008, by and among Biophan Technologies, Inc., a Nevada
      corporation (the “Biophan”), and Castlerigg
      Master Investments Ltd
      (the
“Purchaser”) and the other parties to the Securities Purchase Agreement, dated
      as of October 11, 2006 (the “Purchase Agreement”), pursuant to which Biophan
      issued and sold to the an aggregate of $7,250,000 of Notes and certain
      Warrants.

     

    RECITALS

     

    Capitalized
      terms used and not defined in this Amendment shall have the respective meanings
      set forth in the Purchase Agreement or in the Forbearance Agreement, dated
      as of
      February 16, 2007 with the holders of the Notes (the “Forbearance
      Agreement”).

     

    In
      connection with the Purchase Agreement, Biophan and the Purchasers entered
      into
      a Security Agreement, dated as of October 11, 2006 (the “Security Agreement”),
      pursuant to which Biophan agreed to pledge and grant a security interest in
      the
      Collateral (as defined in the Security Agreement). 

     

    On
      October 11, 2007, Biophan and the Purchasers entered into an AMENDMENT NO.
      1 to
      SECURITIES PURCHASE AGREEMENT, SENIOR SECURED CONVERTIBLE NOTES, WARRANTS AND
      SECURITY AGREEMENT (“Amendment No. 1”).

    

    Whereas,
      Biophan and the Purchasers have agreed that it is their mutual best interests
      for Biophan to repay the Notes and, to accomplish the same, now wish to further
      modify certain of the terms of the Purchase Agreement, Notes, Warrants and
      the
      Security Agreement. 

     

        NOW,
      THEREFORE, in consideration of the foregoing Recitals and other good and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, Biophan and each Purchaser, severally and not jointly, agree
      as
      follows:

     

    1.
      Amendments
      to Purchase Agreement and the Notes. 

    

    (a) Purchaser
      may elect, by written notice to such effect delivered to Biophan no later than
      September 19, 2008 (the “Repayment Election Notice”), to accept, in repayment of
      its Note in full and satisfaction and cancellation of all of Biophan’s
      obligations under the Transaction Documents (other than the Warrants and the
      Fee
      Warrants (as defined in the Forbearance Agreement) if Purchaser elects to retain
      the same as hereinafter provided, or including the Warrants and the Fee Warrants
      if the same are surrendered as hereinafter provided), either (i) to surrender
      its Warrants and Fee Warrants to Biophan for cancellation, and in consideration
      receive the “Cash Payment”, the “Repayment Shares” and the “Premium Shares”
allocated to Purchaser under the columns on the attached table that are
      designated as “Option A - Premium Shares and Cancellation of Warrants”, or (ii)
      to retain its Warrants and Fee Warrants on their current terms without any
      modification, amendment or other adjustment solely by reason of this Amendment,
      and receive the “Cash Payment” and the “Repayment Shares” allocated to Purchaser
      under the columns on the attached table that are designated as “Option B -
      Warrants Remain in Place”. 

    

    (b) If
      Purchaser executes and deliveres this Amendment, but fails to deliver timely
      to
      Biophan a Repayment Election Notice, Purchaser shall be deemed to have given
      Biophan notice of its election to receive the consideration set forth in (a)(i)
      above, and to surrender to Biophan on or before September 25, 2008 its Warrants
      for cancelation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2.
      Continued
      Validity of Transaction Documents under Purchase Agreements.
      The
      parties hereto agree that (x) this Amendment shall be effective only if executed
      and delivered by all of the Purchasers, and (y) the Purchase Agreement and
      the
      Transaction Documents entered into in connection therewith (as amended by this
      Amendment), and the Forbearance Agreement, remain in full force and effect,
      modified to the extent and only to the extent necessary to give effect to this
      Amendment and the transactions herein contemplated.

    

    3.
      Entire
      Agreement.
      This
      Amendment and the Transaction Documents and the Forbearance Agreement, together
      with the exhibits and schedules thereto, contain the entire understanding of
      the
      parties with respect to the subject matter hereof and supersede all prior
      agreements and understandings, oral or written, with respect to such matters,
      which the parties acknowledge have been merged into such documents, exhibits
      and
      schedules.

     

    4.
      Equal
      Treatment of Purchasers.
      No
      consideration shall be offered or paid to any person to amend or consent to
      a
      waiver or modification of any provision of any of the Transaction Documents
      (or
      the Forbearance Agreement) unless the same consideration is also offered to
      all
      of the parties to the Transaction Documents (and the Forbearance Agreement).
      For
      clarification purposes, this provision constitutes a separate right granted
      to
      Purchaser and each of the other parties to the Purchase Agreement by Biophan
      and
      negotiated separately by Purchaser and each of the other parties to the Purchase
      Agreement, and is intended to treat, for Biophan, the Purchaser and the other
      parties to the Purchase Agreement as a class and shall not in any way be
      construed as the Purchasers acting in concert or as a group with respect to
      the
      purchase, disposition or voting of Securities or otherwise.

     

    5.
      Public
      Announcement.
      Biophan
      shall, by 8:30 a.m. Eastern time on September 24, 2008, issue a press release
      disclosing the material terms of the transactions contemplated hereby and timely
      file a Current Report on Form 8-K (the “8-K Filing”), attaching such press
      release and this Amendment. From and after the filing of the 8-K Filing with
      the
      Commission, the Company represents that Purchaser shall not be in possession
      of
      any material, nonpublic information received from the Company, any of its
      Subsidiaries or any of its respective officers, directors, employees or agents
      that is not disclosed in the 8-K Filing. Biophan shall not, and shall cause
      each
      of its Subsidiaries and its and each of their respective officers, directors,
      employees and agents, not to, provide Purchaser with any material, nonpublic
      information regarding the Company or any of its Subsidiaries from and after
      the
      filing of the 8-K Filing with the Commission without the express written consent
      of Purchaser. 

     

    6.
      Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      as specified in the Purchase Agreement. The address for such notices and
      communications shall be as set forth on the signature pages attached to the
      Purchase Agreement. 

     

    
      	7.  	
              Miscellaneous.

            

    

    

    7.1.
      Amendments;
      Waivers.
      No
      provision of this Amendment may be waived or amended except in a written
      instrument signed, in the case of an amendment, by Biophan, Purchaser and all
      of
      the other parties to the Purchase Agreement or, in the case of a waiver, by
      the
      party against whom enforcement of any such waiver is sought. No waiver of any
      default with respect to any provision, condition or requirement of this
      Amendment shall be deemed to be a continuing waiver in the future or a waiver
      of
      any subsequent default or a waiver of any other provision, condition or
      requirement hereof, nor shall any delay or omission of either party to exercise
      any right hereunder in any manner impair the exercise of any such
      right.

     

    7.2.
      Amendment
      Controls.
      If any
      topic is addressed both in the Purchase Agreement (or any document related
      thereto) and in this Amendment, this Amendment shall control.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7.3
      Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Amendment and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Amendment will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party.

     

    7.4
      Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Amendment shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. The parties agree that Section 7.9
      of
      the Purchase Agreement shall apply to this Amendment as if set forth in its
      entirety herein.

     

    7.5
      Survival.
      The
      representations and warranties contained herein shall survive for the applicable
      statue of limitations.

     

    7.6
      Execution.
      This
      Amendment may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same document and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. 

     

    7.7
      Severability.
      If any
      provision of this Amendment is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Amendment shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefore, and upon so agreeing, shall incorporate such
      substitute provision in this Amendment.

    

    7.8
      Independent
      Nature of Purchasers’ Obligations and Rights.
      The
      obligations of Purchaser hereunder are several and not joint with the
      obligations of any other party to the Purchase Agreement, and Purchaser shall
      not be responsible in any way for the performance of the obligations of any
      other party to the Purchase Agreement. Nothing contained herein, and no action
      taken by Purchaser pursuant hereto, shall be deemed to constitute Purchaser
      as a
      member of a partnership, an association, a joint venture or any other kind
      of
      entity, or create a presumption that Purchaser and any of the other parties
      to
      the Purchase Agreement are in any way acting in concert or as a group with
      respect to such obligations or the transactions contemplated hereby. Purchaser
      shall be entitled to independently protect and enforce its rights, including,
      without limitation, the rights arising out of this Amendment and it shall not
      be
      necessary for any party to the Purchase Agreement to be joined as an additional
      party in any proceeding for such purpose. Purchaser has not relied upon the
      same
      legal counsel in its review and negotiation of this Amendment. Biophan has
      elected to provide Purchaser with the same terms and form of Amendment as
      provided to all other parties to the Purchase Agreement for the convenience
      of
      Biophan and not because it was required or requested to do so by any party
      to
      the Purchase Agreement. Purchaser represents that it has been represented by
      its
      own separate legal counsel in its review and negotiations of this
      Amendment.

     

    (Signature
      Pages Follow)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
      executed by their respective authorized signatories as of the date first
      indicated above.

    

    
      	
              BIOPHAN
                TECHNOLOGIES, INC.

            	
               

            
	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            
	
              By: 
                

            	 	
               

            
	
               

            	
              Name:
                John F. Lanzafame

            	
               

            
	
               

            	
              Title:
                Chief Executive Officer

            	
               

            

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR PURCHASERS FOLLOWS]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed
      by their respective authorized signatories as of the date first indicated
      above.

     

    Name
      of
      Investing Entity:
      Castlerigg Master Investments
      Ltd.                                                              

     

    Signature
      of Authorized Signatory of Investing Entity:    
             

     

    Name
      of
      Authorized Signatory:                 
      

     

    Title
      of
      Authorized Signatory:                                                                                                                      
      

     

    Email
      Address of Authorized Entity:                                                                                                           
      

    

    

    
      	 	
              Initial
                Below to Indicate Choice

            
	 	 
	
              Option
                A - Premium shares and cancellation of warrants

            	 
	 	 
	 	 
	
              Option
                B - Warrants remain in placeAMENDMENT
      NO. 2

    TO

    LINE
      OF
      CREDIT AGREEMENT

    

    

    This
      Amendment No. 2 (the “Amendment”)is
      made
      as of September 23, 2008, by and between Biophan Technologies, Inc., a Nevada
      corporation (the "Borrower")
      and

    Biomed
      Solutions, LLC, a New York limited liability company (the "Lender").

    

    Whereas
      the Borrower and the Lender are parties to a certain Line of

    Credit
      Agreement dated as of January 24, 2006, and amended on October 11, 2006 (as
      amended, the "Agreement"),
      pursuant to which the Lender agreed to lend to the Borrower an amount of up
      to
      $5,000,000 (the "Line
      of Credit");

    

    Whereas,
      the Borrower issued to the Lender a Convertible Promissory Note in the original
      principal amount of $5,000,000 (the "Note")
      to
      evidence advances made to the Borrower’s under the Agreement;

    

    Whereas,
      the Borrower entered into a Securities Purchase Agreement dated as of the date
      hereof October 11, 2006, which was amended on October 3, 2007 (as amended,
      the
      "SPA")
      among
      the Borrower and the Purchasers named therein (the "Purchasers"),
      pursuant to which the Purchasers extended credit to the Borrower;

    

    Whereas,
      as a condition to the SPA, the Purchasers requested certain amendments to the
      Agreement that were made in the October 11th
      Amendment of the Agreement; and

    

    Whereas,
      there are certain intercompany billings due and owing from Lender to Borrower
      for services provided by the Borrower for the benefit of the Lender in the
      amount of $78,480.10 (the “Billings”);

    

    Whereas,
      the Lender and the Borrower have determined that it is in their mutual best
      interests to extend the maturity date for repayment of the Line of Credit,
      and
      the Note evidencing advances in respect thereof;

    

    Now,
      therefore, in consideration of ten dollars ($10.00), the mutual covenants
      contained herein, and other good and valuable consideration, the receipt and
      adequacy of which are hereby acknowledged, the Borrower and the Lender hereby
      agree as follows:

    

    1.
      Provided that Borrower is not contractually prohibited by the SPA or the terms
      of the ancillary agreements executed in connection therewith, the Billings
      shall
      be allowed in full as a credit against, and repayment of, the Line of Credit
      and
      principal balance of the Note. However, if Borrower remains contractually
      prohibited by the SPA or the terms of the ancillary agreements executed in
      connection therewith from making payments on account of the Line of Credit
      and/or the Note, then the terms of the October 11th
      Amendment shall remain in effect and unmodified by this Amendment.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.
      Provided that Borrower is not contractually prohibited by the SPA or the terms
      of the ancillary agreements executed in connection therewith, all future
      intercompany billings due and owing from Lender to Borrower for services
      provided by the Borrower for the benefit of the Lender shall be allowed in
      full
      as a credit against, and repayment of, the Line of Credit and principal balance
      of the Note. However, if Borrower remains contractually prohibited by the SPA
      or
      the terms of the ancillary agreements executed in connection therewith from
      making payments on account of the Line of Credit and/or the Note, then the
      terms
      of the October 11th
      Amendment shall remain in effect and unmodified by this Amendment.

    

    3.
      At
      such time as Borrower no longer is prohibited by the holders of its senior
      secured notes from making payments on account of the Line of Credit, Borrower
      promptly will begin making monthly payments to Lender on account of the Line
      of
      Credit and the principal balance of (and accrued interest under) the Note,
      on
      the first day of each month, in the amount of $15,000 (the “Monthly
      Payments”),
      to be
      applied to principal and accrued interest on a pro rata basis. 

    

    4.
      Interest on the unpaid principal balance of the Note will continue to accrue
      at
      the rate of 8% per annum until the principal amount of the Note is repaid in
      full.

    

    5.
      The
      term of repayment of the Line of Credit and the Note will be extended for a
      period of three years, commencing on December 31, 2009.

    

    6.
      If
      Borrower secures new financing in an amount that exceeds $5 million, and
      Borrower is not then contractually prohibited (by the terms of such financing
      or
      otherwise) from making payments on account of the Line of Credit, then Borrower
      shall commence or continue the Monthly Payments, as the case may be, and shall
      increase the amount of the Monthly Payments from $15,000 per month to $20,000
      per month and, additionally, shall repay ratably over three months following
      the
      closing (and funding) of such financing all accrued but unpaid interest under
      the Line of Credit and the Note. 

    

    7.
      Except
      as expressly amended hereby, the Agreement and the Note shall remain full force
      and effect without any other alteration or change.

     

     

        In
      witness
      whereof, the parties have executed this Amendment as of the date first above
      written.

     

    
      	BIOMED SOLUTIONS, LLC	 	 	BIOPHAN TECHNOLOGIES, INC.
	 	 	 	 
	 	 	 	 
	By:
/s/
              Michael L. Weiner	 	 	By:
/s/
              Margaret V. Russell
	
              
Michael
              L. Weiner, Manager	 	 	
              
Margaret
              V. Russell, Chief Financial Officer

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