Document:

Exhibit 10.2

 

 

March 12,
2008

 

 

Micro Component
Technology, Inc.

2340 West County Road

St. Paul, Minnesota
55113-2528

Attention: Chief
Financial Officer

 

Re:          Amended and Restated Overadvance
Letter

 

Ladies and Gentleman:

 

Reference is hereby made
to that certain Security and Purchase Agreement dated as of February 17, 2006
by and between Micro Component Technology, Inc., a Minnesota corporation (the “Parent”),
such other subsidiaries of the Parent which hereafter become a party to such
Security and Purchase Agreement (the Parent and such subsidiaries of the Parent,
collectively, the “Companies” and each, a “Company”) and Laurus Master Fund,
Ltd. (“Laurus”) (as amended, restated, modified and/or supplemented  from time to time,  the “Security Agreement”) and that certain Overadvance
Letter to Company from Laurus dated March 29, 2007 (the “Original Overadvance
Letter”). This letter hereby amends and restates in its entirety (and is given
in substitution for and not satisfaction of) the Original Overadvance Letter.
Capitalized terms used but not defined herein shall have the meanings ascribed
them in the Security Agreement.

 

Laurus is hereby
notifying you of its decision to exercise the discretion granted to it pursuant
to Section 2(a)(iii) of the Security Agreement to make Loans to the
Company in excess of the Formula Amount from time to time during the Period (as
defined below) in an aggregate principal amount not to exceed at any time (a) during
the portion of the Period beginning on March 29, 2007 and ending on April 30,
2008. $800,000, (b) during the portion of the Period beginning May 1, 2008
and ending on May 31, 2008, $700,000, (c) during the portion of the Period
beginning on June 1, 2008 and ending on June 30, 2008, $600,000, (d) during
the portion of the Period beginning on July 1, 2008 and ending on July 31,
2008, $500,000, (e) during the portion of the Period beginning on August
1, 2008 and ending on August 31, 2008. $400,000. (f) during the portion of
the Period beginning on September 1,2008 and ending on September 30, 2008,
$300,000, (g) during the portion of the Period beginning on October 1,
2008 and ending on October 31, 2008, $200,000 and (h) during the portion
of the Period beginning on November 1, 2008 and ending on November 30,
2008, $100,000 (collectively, the “Overadvance”).

 

In connection with making
the Overadvance, for a period beginning on March 29, 2007 and ending on November 30,
2008 (the “Period”), Laurus hereby waives compliance with Section 3 of the
Security Agreement, but solely as such provision relates to the immediate
repayment requirement for permitted Overadvances hereunder. Laurus further
agrees that solely for such Period (but not thereafter), (i) permitted
Overadvances shall not trigger an Event of Default under Section 19(a) of
the Security Agreement, and (ii) the Overadvance. rate set forth in Section 5(b)(ii) of
the Security Agreement (the “Overadvance Rate”) shall not apply to all
permitted Overadvances hereunder. All other terms and provisions of the
Security Agreement and the Ancillary Agreements remain in full force and
effect.

 

1

 

This letter may not be amended or waived except by an
instrument in writing signed by the Company and Laurus. This letter may be
executed in any number of counterparts, each of which shall be an original and
all of which, when taken together, shall constitute one agreement. Delivery of
an executed signature page of this letter by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof or thereof, as
the case may be. This letter shall be governed by, and construed in accordance with,
the laws of the State of New York.  This
letter sets forth the entire agreement between the parties hereto as to the
matters set forth herein and supersede and replace all prior communications,
written or oral, with respect to the matters herein. The Company hereby agrees
to file an 8-K with the Securities and Exchange Commission disclosing the transactions
set forth in this letter with the period prescribed by the Securities and
Exchange Commission.

 

If the foregoing meets with your approval please
signify your acceptance of the terms hereof by signing below.

 

 

	
   

  	
  LAURUS MASTER FUND, LTD.

  
	
   

  	
  By:  Laurus Capital Management, LLC

  
	
   

  	
  its investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Pat Regan

  
	
   

  	
   

  	
  Name:

  	
  Pat Regan

  
	
   

  	
   

  	
  Title: 

  	
  Authorized Signatory

  
					

 

Agreed and accepted on the date hereof

 

MICRO COMPONENT TECHNOLOGY, INC.

 

	
  By:

  	
  /s/ Bruce Ficks

  	
   

  	
   

  
	
   

  	
  Name: 

  	
   Bruce Ficks

  	
   

  
	
   

  	
  Title: 

  	
   Chief
  Financial Officer

  	
   

  
					

 

2Exhibit 10.2

 

SKAGIT
STATE BANK/SKAGIT STATE BANCORP, INC.

 

CHANGE IN
CONTROL SEVERANCE AGREEMENT

 

THIS CHANGE IN
CONTROL SEVERANCE AGREEMENT (“Agreement”)
is entered into by and between SKAGIT STATE BANCORP, INC., a Washington
corporation (“Bancorp”), its
wholly owned subsidiary SKAGIT STATE BANK, a Washington state-chartered bank
(the “Bank”), and CARLA TUCKER,
the Chief Financial Officer of Bancorp and the Bank (“Executive”), effective as of November 20, 2007.

 

Recitals

 

A.                                   Bancorp and the Bank (either and/or
both being the “Company”) currently receive services of Executive as a
key employee.

 

B.                                    The Company desires to provide a severance
benefit to Executive (i) to encourage Executive to continue her employment
with the Company; (ii) to obtain Executive’s services in the event of a
potential Change in Control (as defined below); and (iii) to allow the
Company to maximize the benefits obtainable by its shareholders from any Change
in Control.

 

Agreement

 

The parties agree
as follows:

 

1.                                     Commitment of Executive. 
In the event that any person extends any proposal or offer that is
intended to or may result in a Change in Control (defined below), Executive
shall, at the request of the Company, assist the Company in evaluating such
proposal or offer.  Further, subject to
the additional terms and conditions of this Agreement, in order to receive the
Change in Control Payment (defined below), Executive cannot resign from the
Company during any period from the receipt of a specific Change in Control
proposal up to the consummation or abandonment of the transaction contemplated
by such proposal.

 

2.                                     Change In Control.  “Change in Control”
means a change “in the ownership or effective control” or “in the ownership of
a substantial portion of the assets” of the Company, within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”); provided, however, that an
internal reorganization of the Company shall not constitute a Change in
Control.

 

3.                                      Payment Obligations.

 

3.1                                Termination
Prior to Change in Control.  If the
Company terminates Executive’s employment without Cause or Executive resigns
for Good Reason (each as defined below), and within eighteen (18) months
thereafter the Company enters into an agreement for a Change in Control or any
party announces or is required 

 

1

 

3.2                                by
law to announce a prospective Change in Control, which Change in Control is consummated, then upon the closing of
such Change in Control, the Company shall pay Executive a single cash payment
in an amount equal to two (2) times the greater of (a) the highest
compensation (as reportable on Executive’s IRS W-2 form) received by Executive
from the Company during any of the most recent three (3) calendar years
ending before, or simultaneously with, the date on which Executive’s employment
terminated; or (b) 130% of Executive’s base compensation as of the date on
which Executive’s employment terminated (the “Termination-Based
Change in Control Payment”).

 

3.3                                Comparable
Position Not Offered.  If a Change in
Control is consummated while Executive is employed by the Company, and
Executive is not offered a Comparable Position (as defined below) with the
acquiring company, then upon the closing of such Change in Control (regardless
of whether Executive continues her employment with the acquiring company), the
Company shall pay Executive a single cash payment in an amount equal to two (2) times
the greater of (a) the highest compensation (as reportable on Executive’s
IRS W-2 form) received by Executive from the Company during any of the most
recent three (3) calendar years ending before, or simultaneously with, the
date on which such closing occurs; or (b) 130% of Executive’s base
compensation as of the date on which such closing occurs (the “Closing-Based Change in Control Payment”).  For purposes of this Agreement, a “Comparable Position” means the position of
Senior Vice President and Chief Financial Officer of the acquiring company,
with compensation and benefits in the aggregate no less favorable to Executive
than those in effect immediately prior to the closing of the Change in
Control.  Further, effective on such
closing, the Company will also provide Executive with, and pay the cost of
Executive’s premiums for, group health plan benefits to the extent authorized
by and consistent with 29 U.S.C. § 1161 et
seq. (commonly known as “COBRA”),
for the shorter of the statutory COBRA period or two (2) years following
such closing.

 

3.4                                Termination
After Change in Control.  If, within
two (2) years after accepting a Comparable Position, Executive’s
employment is terminated without Cause or if Executive resigns for Good Reason,
then upon such termination or resignation, Executive shall receive the
Closing-Based Change in Control Payment less the amount of any salary,
bonuses and other cash compensation earned by Executive and paid to her by the
acquiring company following the closing of the Change in Control through the
date of such termination or resignation; provided, that in no event
shall Executive receive less than one (1) times her highest compensation
(as reportable on Executive’s IRS W-2 form) received from the Company during
any of the most recent three (3) calendar years ending before, or
simultaneously with, the date on which the Change in Control occurred.  Upon such termination, Executive shall also
be entitled to COBRA benefits and premium payments for the shorter of the
statutory COBRA period or one (1) year following such termination.

 

2

 

3.5                                Parachute
Payment Limitation.  Notwithstanding
anything in this Agreement to the contrary, if the Termination-Based Change in
Control Payment or the Closing-Based Change in Control Payment (either, a “Change in Control Payment”), together with
any other payments or benefits received by Executive from the Company or the
acquiring company will be an amount that would cause them to be a “parachute
payment” within the meaning of Section 280G(b)(2)(A) of the Code (the
“Parachute Payment Amount”), then
the Change in Control Payment shall be reduced so that the total amount thereof
is $1 less than the Parachute Payment Amount.

 

3.6                                Payment
of Amounts Within 2 1⁄2 Months.  All
amounts required to be paid by the Company hereunder shall be paid by the later
of the 15th day of the third month following the Executive’s first
taxable year in which the amount is no longer subject to a substantial risk of
forfeiture or the 15th day of the third month following the end of
the Company’s first taxable year in which the amount is no longer subject to a
substantial risk of forfeiture.  This
provision is intended to comply with regulations issued under Section 409A
of the Code and shall be interpreted and applied consistently therewith.

 

4.                                      Termination
of Agreement.

 

4.1                                This
Agreement terminates upon payment by the Company (or its successor) to
Executive of the Change in Control Payment and the related payments provided
for herein.

 

4.2                                The
Company may terminate this Agreement by action of its Board of Directors, and
such termination shall be effective one (1) year following the date on
which written notice of such termination is provided to Executive.

 

4.3                                This
Agreement terminates immediately if, at any time before the Change in Control
transaction closes, (i) the Company terminates Executive’s employment for
Cause, (ii) Executive resigns from the Company without Good Reason, (iii) Executive
dies, or (iv) Executive is unable to perform her duties and obligations to
the Company for a period of ninety (90) consecutive days as a result of a
physical or mental disability, unless with reasonable accommodation Executive
could continue to perform such duties and making these accommodations would not
pose an undue hardship on the Company. 
If no Change in Control has occurred, this Agreement will terminate
eighteen (18) months after Executive’s employment is terminated by the Company
without Cause or by Executive for Good Reason, unless during such eighteen (18)
month period, the Company enters into an agreement for a Change in Control, or
a Change in Control is announced or required by law to be announced, in which
case this Agreement will terminate upon payment of the Closing-Based Change in
Control Payment pursuant to Section 3.1
or the abandonment of such Change in Control.

 

3

 

5.                                      Definitions.

 

5.1                                Cause.  “Cause”
means only any one or more of the following:

 

a.                                       Willful
misfeasance or gross negligence in the performance of Executive’s duties.

 

b.                                      Conviction
of a crime in connection with her duties.

 

c.                                       Conduct
demonstrably and significantly harmful to the Bank and/or Bancorp, as
reasonably determined on the advice of legal counsel by the board of directors
of the Bank and/or Bancorp, as the case may be.

 

5.2                                Good
Reason.  “Good Reason” means only any one or more of the following:

 

a.                                      Reduction,
without Executive’s consent, of Executive’s salary or elimination of any
compensation or benefit plan benefiting Executive.

 

b.                                     The
assignment to Executive without her consent of any authority or duties
materially inconsistent with Executive’s position as of the date of this
Agreement.

 

c.                                      A
relocation or transfer of Executive’s principal place of employment that would
increase Executive’s commute as of the Effective Date by more than 30 miles
each way on a regular basis, unless Executive consents to the relocation or
transfer.

 

6.                                      Arbitration.  At any party’s request, the parties must
submit any dispute, controversy or claim arising out of or in connection with,
or relating to, this Agreement or any breach or alleged breach of this
Agreement, to arbitration under the American Arbitration Association’s rules then
in effect (or under any other form of arbitration mutually acceptable to the
parties).  A single arbitrator agreed on
by the parties will conduct the arbitration. 
If the parties cannot agree on a single arbitrator, each party must
select one arbitrator and those two arbitrators will select a third
arbitrator.  This third arbitrator will
hear the dispute.  The arbitrator’s
decision is final (except as otherwise specifically provided by law) and binds
the parties, and any party may request any court having jurisdiction to enter a
judgment and to enforce the arbitrator’s decision.  The arbitrator will provide the parties with
a written decision naming the substantially prevailing party in the
action.  This prevailing party is
entitled to reimbursement from the other parties for its costs and expenses,
including reasonable attorneys’ fees.  All
proceedings will be held at a place designated by the arbitrator in Skagit
County, Washington.  The arbitrator, in
rendering a decision as to any state law claims, will apply Washington law.

 

7.                                      Withholding.  All
payments required to be made by the Company hereunder to Executive shall be
subject to the withholding of such amounts, if any, relating to tax and other
payroll deductions as the Company may reasonably determine should be withheld
pursuant to any applicable law or regulation.

 

4

 

8.                                      Not an Employment Agreement. 
This Agreement is not an employment agreement.  Accordingly, except with respect to the
Change In Control Payment, this Agreement shall have no effect on the
determination of any compensation payable by the Company to Executive, or upon
any of the other terms of Executive’s employment with the Company.  The specific arrangements referred to herein
are not intended to exclude any other benefits that may be available to
Executive upon a termination of employment with the Company pursuant to
employee benefit plans of the Company.

 

9.                                      Miscellaneous Provisions.

 

9.1                                Entire
Agreement.  This Agreement
constitutes the entire understanding and agreement between the parties
concerning its subject matter and supersedes all prior agreements, correspondence,
representations, or understandings between the parties relating to its subject
matter.

 

9.2                                Binding
Effect.  This Agreement will bind and
inure to the benefit of the parties’ heirs, legal representatives, successors
and assigns.

 

9.3                                Waiver. 
Any waiver by a party of its rights under this Agreement must be written
and signed by the party waiving its rights. 
A party’s waiver of the other party’s breach of any provision of this
Agreement will not operate as a waiver of any other breach by the breaching
party.

 

9.4                                Amendment. 
This Agreement may be modified only through a written instrument signed
by all parties.

 

9.5                                Amendment to Comply With Section 409A.  From time to time, the Company may amend this
Agreement as required to comply with the requirements of Section 409A of
the Code and U.S. Treasury regulations issued thereunder.

 

9.6                                Severability. 
The provisions of this Agreement are severable.  The invalidity of any provision will not
affect the validity of other provisions of this Agreement.

 

9.7                                Counsel
Review.  Executive acknowledges that she
has had an opportunity to consult with independent counsel with respect to the
negotiation, preparation, and execution of this Agreement.

 

9.8                                Governing
Law and Venue.  This Agreement will
be governed by and construed in accordance with Washington law, except to the
extent that federal law may govern certain matters.  The parties must bring any legal proceeding
arising out of this Agreement in Skagit County, Washington, and the parties
will submit to jurisdiction in that county.

 

9.9                                Counterparts. 
This Agreement may be executed in one or more counterparts, each of
which will be deemed an original, but all of which taken together will
constitute one and the same document.

 

5

 

This Change in Control Severance
Agreement is effective as of the date first set forth above.

 

 

	
   

  	
  SKAGIT STATE BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ B. Marvin Omdal

  
	
   

  	
   

  	
  B. Marvin Omdal, Chairman of
  the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SKAGIT STATE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ B. Marvin Omdal

  	 

	
   

  	
   

  	
  B. Marvin Omdal, Chairman of
  the Board

  	 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ Carla Tucker

  
	
   

  	
  Carla Tucker

  

 

6

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