Document:

Unassociated Document

    Exhibit 10.38

     

    AMENDMENTS TO CERTAIN AVAX
AGREEMENTS, NOTES AND WARRANTS

    

    These
Amendments (the “Amendments”) to certain
Agreements, Notes and Warrants (collectively, the “Agreements”) are entered into
effective as of October 28, 2010, by and between AVAX Technologies, Inc., a
Delaware corporation (the “Company”), and Firebird Global
Master Fund, Ltd., (the “Purchaser”).  Capitalized
terms used and not otherwise defined herein shall have the meanings ascribed to
them in the respective Agreements.

    

    WHEREAS
the Company and the Purchaser desire to amend certain documents issued in
connection with the 2008 and 2009 Convertible Note and Warrant Purchase
agreements, the April 2010 Stock and Warrant Offering (the “April 2010 Offering”) and the
June 2010 financing of the Company (the “Firebird Financing”), as
described and set forth in the Purchaser’s Offer letter dated October 28, 2010
(the “Purchaser’s Offer
Letter”) appended as Exhibit A;

    

    WHEREAS
the Agreements may be amended upon written consent of the Company and certain
other investors in the Company (the “Offerees”) who received the
Company’s letter dated October 28, 2010, a form of which is set forth as Exhibit
B, outlining the terms and conditions of the Purchaser’s Offer Letter germane to
the Offerees;

    

    WHEREAS
all agreements and consents required pursuant to the letter agreements set forth
as Exhibit A and Exhibit B have been obtained as of November 1, 2010, and the
Purchaser closed the initial component of the Firebird Financing on November 3,
2010;

    

    WHEREAS
the Purchaser and the Company acknowledge that, in accordance with the terms of
the Purchaser’s Offer Letter, all warrants for the purchase of shares of the
common stock of the Company that are held by the Purchaser should have their
exercise price adjusted to $0.0117 per share;

    

    WHEREAS
the Purchaser and the Company acknowledge that the Company has agreed (as a
closing condition with respect to the transaction described in the Purchaser’s
Offer Letter) to amend all Notes and Warrants issued during 2008, 2009, and
2010, so that the minimum required adjustment to the conversion price or
exercise terms of such instruments is de minimis or removed in its
entirety;

    

    WHEREAS
the Purchaser acknowledges that while not set forth in the Purchaser’s Offer
Letter, the Company has agreed to extend the term of the warrants issued in
connection with the Company’s 2007 financing by a period of one
year;

    

    WHEREAS
the Purchaser and the Company have agreed to extend the maturity of the 2008
Notes and the 2009 Convertible Secured Promissory Note dated October 15, 2009,
such that they are no longer in default;

    

    WHEREAS
the Purchaser and the Company have agreed to amend the terms of the 2008 Notes
and the 2009 Convertible Secured Promissory Note, such that interest payments
due and payable may be satisfied by the issuance of shares of the Common Stock
of the Company; and

    

    WHEREAS
as a result of the agreements and consents obtained upon the execution of the
letters set forth as Exhibits A and B, the only holder of the Notes and warrants
which are the subject of this Agreement, with the exception of the warrants
issued in connection with the 2007 financing, is now the Purchaser

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    NOW,
THEREFORE, in consideration of the foregoing and the promises and covenants
contained herein, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows:

    

    
      	
              1.

            	
              Amendment to the
      Warrant for the Purchase of Shares of Common Stock Series 2007A (the “2007
      Warrant”)

            

    

    

    Section
1(a) of the 2007 Warrant Agreement shall be amended such that the date April 13,
2012, shall be changed to read April 13, 2013.

    

    This
document shall be attached to the 2007 Warrant and Paragraphs 1, 8, 9 and 10
hereof, as well as relevant sections of the preamble hereof, shall serve as
Amendment 1 to the 2007 Warrant.

    

    
      	
              2.

            	
              Amendments to the
      Convertible Promissory Note date October 28, 2008, as Amended (the “2008
      Note”)

            

    

    

    
      	
              a.  

            	
              The
      Preamble to the 2008 Note shall be amended such that (i) the date June 1,
      2010 shall now read September 30, 2011, (ii) the phrase “...six percent (6%)
      per annum due and payable in arrears...” shall now read “...eight percent (8%)
      per annum due and payable quarterly in arrears in cash, in shares of
      common stock of the Company, with each such share valued at [the
      Conversion Price then applicable, as determined in accordance with the
      terms hereof], [or in additional notes of the Company having substantially
      the same terms and conditions as this Note]. ...” and (iii) the phrase “on
      the maturity date” shall be removed.  In addition following the
      phrase “unless payment is required on an earlier date pursuant to the
      terms hereof,” the following sentence shall be added:  “This
      form of payment for the interest due and payable under this Note shall be
      at the election of the Company, provided, however, that the prior written
      consent of the Holder, to be provided in its discretion, shall be obtained
      for each payment of interest hereunder that is made in any form other than
      readily available U.S. dollars.  This provision regarding the
      form, but not the timing, of the interest payment shall apply
      retroactively as if it were first put in place on the issuance date of the
      Convertible Promissory Note.”

            

    

    

    
      	
              b.  

            	
              Section
      2(d)(i) of the 2008 Note shall be amended such that the number $0.01 shall
      now read $0.00001 and the phrase “...nearest cent or one-hundredth of a
      share....” shall now read “...nearest on-ten thousandth of a cent or one-one
      hundred thousandth of a share...”

            

    

    

    
      	
              c.  

            	
              A
      new Paragraph 6 shall be added to the 2008 Note and shall read as
      follows:

            

    

    

    6.
Default Interest Rate

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    The
interest rate payable to the Holder shall increase by 75 basis points (0.75%)
(i) as of January 10, 2011 if the Company does not file a Form 10 under the
Securities Exchange Act of 1934 covering the Common Stock of the Company (the
“Form 10”) by such date and (ii) if the Company does not file a Form S-1 under
the Securities Act of 1933 (the “Registration Statement”) within 5 business days
after the Form 10 is declared effective by the Securities and Exchange
Commission (“SEC”), and shall increase by a further 50 basis points as of the
10th
day (or next subsequent NY business day if such day is not a business day) of
each subsequent calendar month (i) if a Form 10 has not been filed by the
Company by such date and (ii) if a Form 10 has been declared effective by the
SEC, but the Registration Statement has not been filed and such date is
more than 5 business days after the effective date of the Form
10.  The interest rate payable to the Holder shall also increase by 50
basis points on the 91st day
after filing of the Form 10 if the Form 10 is not declared effective by such
date and shall increase by an additional 50 basis points as of the end of each
30-calendar-day period thereafter if the Form 10 has not been declared effective
by the end of such period; after the Form 10 has been declared effective, the
interest rate payable to the Holder shall be increased by (i) an additional 50
basis points if the Registration Statement has not been declared effective as of
the end of the 45th
day following the effective date of the Form 10 and (ii) an additional 50 basis
points for each 30-calendar-day period thereafter if the Registration Statement
has not been decalred effective by the end of such
period.  Notwithstanding the foregoing, the aggregate increases in the
interest rate payable to the Holder hereunder shall not cause the interest rate
payable hereunder to exceed the lesser of (i) eighteen percent (18%) per annum
and (ii) the maximum interest rate permissible under applicable
law.

    

    This
document shall be attached to the 2008 Note and Paragraphs 2, 8, 9 and 10, as
well as relevant sections of the preamble hereof, shall serve as Amendment 4 to
the 2008 Note Agreement.

    

    
      	
              3.

            	
              Amendment to the
      Warrant for the Purchase of Shares of Common Stock dated October 28, 2008,
      (the “2008 Warrant”)

            

    

    

    Section
3(f)(i) of the 2008 Warrant shall be amended such that the number $0.01 shall
now read $0.00001 and the phrase “...nearest cent or one-hundredth of a
share....”  shall now read “...nearest one-ten thousandth of a cent or
one-one hundred thousandth of a share...”

    

    This
document shall be attached to the 2008 Warrant and Paragraph 3, 8, 9 and 10 as
well as relevant sections of the preamble hereof, shall serve as Amendment 4 to
the 2008 Warrant Agreement.

    

    
      	
              4.

            	
              Amendments to the
      Convertible Secured Promissory Note dated October 15, 2009 (the “2009
      Secured Note”)

            

    

    

    
      	
              a.  

            	
              The
      Preamble to the 2009 Secured Note shall be amended such that the date June
      1, 2010 shall be now read September 30, 2011, the phrase “...six percent
      (6%) per annum due and payable in arrears...” shall now read “...eight percent
      (8%) per annum due and payable quarterly in arrears in cash, common stock
      or by adding the accrued interest to the principal balance of the Note. ...”
      and the phrase “...on the maturity date...” shall be removed.  In
      addition following the phrase “unless payment is required on an earlier
      date pursuant to the terms hereof,” the following sentences shall be
      added:  “This election of form of interest payment shall be at
      the Company’s election, except in such instance where the Company elects
      not to pay cash interest, in which case the Holder shall have to consent
      to either payment in common stock or the addition of accrued interest to
      the principal balance of the Note.  This provision regarding the
      form, but not the timing, of the interest payment shall apply
      retroactively as if it were first put in place on the issuance date of the
      Convertible Secured Promissory
Note.”

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              b.  

            	
              A
      new provision shall be added to the 2009 Secured Note, set forth as
      Paragraph 7 and shall read as
follows:

            

    

    

    7.
Default Interest Rate

    

    The
interest rate payable to the Holder shall increase by 75 basis points, as of
January 10, 2011 if the Company does not file a Form 10 by such date or if the
Company does not file a Form S-1 within 5 business days after the Form 10 is
declared effective (the “Registration Statement”), and shall increase another 50
basis points as of the 10th day (or
next subsequent NY business day) of each subsequent calendar month a Form 10 has
not been filed by such date or if a Registration Statement fails to be filed
within 5 business days thereafter.  Following the filing of the
Registration Statement, the interest rate payable to the Holder shall increase
by 50 basis points on the 91st day
after filing if the Form 10 is not declared effective by such date and shall
increase by an additional 50 basis points as of the end of each 30-day period
thereafter if the Form 10 has not been declared effective by the end of such
period; after the Form 10 has been declared effective, the interest rate payable
to the Holder shall be increased by an additional 50 basis points if a
Registration Statement has been filed but not declared effective as of the
45th
day of the effectiveness  of the Form 10 and an additional 50 basis
points for each 30 day period thereafter if the Registration Statement has not
been declared effective by such date, provided, however, that the
aggregate increases in the interest rate payable to the Holder shall not cause
the interest rate payable hereunder to exceed the lesser of (i) eighteen percent
(18%) per annum and (ii) the maximum interest rate permissible under applicable
law.

    

    This
document shall be attached to the 2009 Secured Note and Paragraph 4, 8, 9 and 10
as well as relevant sections of the preamble hereof, shall serve as Amendment 1
to the 2009 Secured Note.

    

    
      	
              5.

            	
              Amendment to the
      Warrant for the Purchase of Shares of Common Stock dated October 15, 2009,
      (the “October 2009 Warrant”)

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
3(f)(i) of the October 2009 Warrant shall be amended such that the number $0.01
shall now read $0.00001 and the phrase “...nearest cent or one-hundredth of a
share....”  shall now read “...nearest one-ten thousandth of a cent or
one-one hundred thousandth of a share...”

    

    This
document shall be attached to the October 2009 Warrant and Paragraph 5, 8, 9 and
10 as well as relevant sections of the preamble hereof, shall serve as Amendment
1 to the October 2009 Warrant.

    

    
      	
              6.

            	
              Amendment to the
      Warrant to Purchase Shares of Common Stock dated April 2010 (the “April
      2010 Warrant”)

            

    

    

    Section
3(f)(i) of the April 2010 Warrant shall be amended such that the number $0.01
shall now read $0.00001 and the phrase “...nearest cent or one-hundredth of a
share....”  shall now read “...nearest one-ten thousandth of a cent or
one-one hundred thousandth of a share...”

    

    This
document shall be attached to the April 2010 Warrant and Paragraph 6, 8, 9 and
10 as well as relevant sections of the preamble hereof, shall serve as Amendment
1 to the April 2010 Warrant.

    

    
      	
              7.

            	
              Amendment to the
      Warrant to Purchase Shares of Common Stock dated June 4,  2010
      (the “June 2010 Warrant”)

            

    

    

    Section
3(f)(i) of the June 2010 Warrant shall be amended such that the number $0.01
shall now read $0.00001 and the phrase “...nearest cent or one-hundredth of a
share....”  shall now read “...nearest one-ten thousandth of a cent or
one-one hundred thousandth of a share...”

    

    This
document shall be attached to the June 2010 Warrant and Paragraph 7, 8, 9 and 10
as well as relevant sections of the preamble hereof, shall serve as Amendment 1
to the June 2010 Warrant.

    

    
      	
              8.

            	
              Effect of
      Amendments. Except as expressly modified by this Amendment, all
      agreements and documents with respect to the securities described herein
      shall remain unmodified and in full force and
  effect.

            

    

    

    
      	
              9.

            	
              Governing Law.
      These Amendments shall be construed and enforced in accordance with, and
      the rights of the parties shall be governed by, the laws of the State of
      Delaware, without giving effect to the principles of conflicts of law
      thereof.

            

    

    

    
      	
              10.

            	
              Counterparts.
      These Amendments may be executed in any number of counterparts and
      signatures delivered by facsimile, each of which shall be deemed an
      original, but all of which together shall constitute one
      instrument.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    IN
WITNESS HEREOF, the parties hereto have executed this Amendment as of the date
first written above.Unassociated Document

    Exhibit
10.39

     

    FORM OF
AMENDMENT NO. 2 TO CONVERTIBLE NOTE AND WARRANT PURCHASE AGREEMENT
AND

    CONVERTIBLE
PROMISSORY NOTE

     

    This
Amendment No. 2 to Convertible Note and Warrant Purchase Agreement and
Convertible Promissory Note (this “Amendment”) is entered into effective as of
December [  
  ], 2008, by and
between AVAX Technologies, Inc., a Delaware corporation (the “Company”), and each of the purchasers (the
“Purchasers”) of the Company’s 6% Convertible
Notes Due December 31, 2008 (the “Notes”) issued pursuant to that certain
Convertible Note and Warrant Purchase Agreement, dated as of October 24, 2008,
by and between the Company and the Purchasers, as amended by that certain
Amendment to Convertible Note and Warrant Purchase Agreement, dated as of
October 24, 2008 (the “Purchase
Agreement”). Capitalized terms
used and not otherwise defined herein shall have the meanings ascribed to them
in the Purchase Agreement.

     

    WHEREAS,
the Purchase Agreement may be amended only by mutual written agreement of the
Company and the Purchasers holding a majority of the principal amount of Notes
issued under the Purchase Agreement and the Notes may be amended upon written
consent of the Company and the holder of each of the Notes;

     

    WHEREAS,
the Company and the Purchasers desire to amend the Purchase Agreement and the
Notes to extend the maturity date of the Notes to March 31, 2009.

     

    NOW,
THEREFORE, in consideration of the foregoing and the promises and covenants
contained herein, and for other good and valuable consideration, the receipt of
which is hereby acknowledged, the parties hereto agree as follows:

     

    
      
        	
              	
                1.

              	
                Amendment to Preamble of the Purchase
      Agreement. The preamble of the Purchase Agreement is hereby amended
      and restated in its entirety as
follows:

              

      

    

     

    AVAX
Technologies, Inc., a Delaware corporation (the “Company”), proposes, subject to
the terms and conditions contained herein, to sell to the Purchasers listed on
the signature pages hereto (individually, a “Purchaser” and collectively the
“Purchasers”), up to $1,500,000 aggregate principal amount of the Company’s 6%
Convertible Notes Due March 31, 2009 (individually, a “Note” and collectively,
the “Notes”) and warrants to purchase up to 15,000,000 fully paid and
non-assessable shares of common stock, par value $.004 per share, of the Company
(the “Common Stock”) for $0.10 per share (individually a “Warrant” and
collectively, the “Warrants”) pursuant to this Convertible Note and Warrant
Purchase Agreement (the “Agreement”). The Notes will be convertible into shares
of Common Stock or other securities of the Company, as more fully described
therein.

     

    The sale
of the Notes and Warrants to the Purchasers will be made without registration of
the Notes or Warrants under the Securities Act of 1933, as amended (the
“Securities Act”) in reliance upon an exemption from the registration
requirements of the Securities Act.

     

    
      
        	
              	
                2.

              	
                Amendment to
      Preamble of the
      Convertible Promissory Note. The preamble of each of the Notes is
      hereby amended and restated in its entirety as
  follows:

              

      

    

     

    AVAX
TECHNOLOGIES, INC., a Delaware corporation (the “Company”), for value received,
promises to pay to [_________] or
registered assigns (the “Holder”), the principal sum of [______] Dollars $[____]
on March 31, 2009, and interest (computed on the basis of a 365-day year) from
the date hereof on the unpaid principal amount from time to time outstanding at
the rate of six percent (6%) per annum, due and payable in arrears on the
maturity date hereof, unless payment is required at an earlier date pursuant to
the terms hereof. This Note is one of a series of similar Notes issued by the
Company in the aggregate principal amount not to exceed
$1,500,000.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
              	
                3.

              	
                Effect of
      Amendment. Except as expressly modified by this Amendment, the
      Purchase Agreement and the Convertible Promissory Notes shall remain
      unmodified and in full force and
effect.

              

      

    

     

    
      	
               
      

            	
              4.

            	
              Governing Law.
      This Amendment shall be construed and enforced in accordance with, and the
      rights of the parties shall be governed by, the laws of the State of
      Delaware, without giving effect to the principles of conflicts of law
      thereof.

            

    

     

    
      	
               
      

            	
              5.

            	
              Counterparts.
      This Amendment may be executed in any number of counterparts and
      signatures delivered by facsimile, each of which shall be deemed an
      original, but all of which together shall constitute one
      instrument.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    IN
WITNESS HEREOF, the parties hereto have executed this Amendment as of the date
first written above.

     

    COMPANY:

     

    AVAX
TECHNOLOGIES, INC.

    

    
      
        	
                By:

              	 
      	 
      
	Name:	
                 
      

              	 
      
	 
      	
                 
      

              	 
      

      

    

     

    PURCHASERS:

    
 

    
      
        	
                Firebird
      Global Master Fund, Ltd.

              
	 
      	 
      
	
                By:

              	
                    

              
	
                Name:

              	
                  

              
	 
      	 
      
	
                Rock
      Castle Ventures, L.P.

              
	 
      	 
      
	
                By:

              	
                   

              
	
                Name:

              	
                   

              
	 
      	 
      
	
                JFE
      Hottinger & Co.

              
	 
      	 
      
	
                By:

              	
                   

              
	
                Name:

              	
                   

              
	 
      	 
      
	
                Citibank

              
	 
      	 
      
	
                By:

              	
                   

              
	
                Name:

              	
                   

              
	 
      	 
      
	
                R
      & H Trust Co.

              
	 
      	 
      
	
                By:

              	
                   

              
	
                Name:

              	
                   

              

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              	
                      Park
      Place Capital

                    
	 
      	 
      
	
                      By:

                    	
                         

                    
	
                      Name:

                    	
                         

                    
	 
      	 
      
	
                      Privatech
      Holding

                    
	 
      	 
      
	
                      By:

                    	
                         

                    
	
                      Name:

                    	
                         

                    
	 
      	 
      
	
                      R&H
      Trust

                    
	 
      	 
      
	
                      By:

                    	
                         

                    
	
                      Name:

                    	
                         

                    
	 
      	 
      
	
                         

                    
	
                      Yuichi
      Iwaki

                    
	 
      
	
                         

                    
	
                      Nicholas
      Oltamare Sudratasse

                    
	 
      
	
                         

                    
	
                      Francois
      R. Martelet

                    
	 
      
	
                         

                    
	
                      John
      K.A. Prendergast

                    
	 
      
	
                         

                    
	
                      Andrew
      W. Dahl

                    
	 
      
	
                         

                    
	
                      Carl
      Spana

                    
	 
      
	
                         

                    
	
                      Edson
      D. deCastro

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