Document:

SUBORDINATION
AGREEMENT

    

    THIS SUBORDINATION AGREEMENT (this
“Agreement”)
dated August __, 2009, is made by Ventiv Commercial Services, LLC, a New Jersey
limited liability company, having a place of business at 500 Atrium Drive,
Somerset, New Jersey 08873 (“Creditor”),
Millennium Biotechnologies Group, Inc., a Delaware corporation having its place
of business at 665 Martinsville Road, Basking Ridge, New Jersey (the “Parent”), Millennium
Biotechnologies, Inc., a Delaware corporation having its place of business at
665 Martinsville Road, Basking Ridge, New Jersey (the “Subsidiary” and
together with Parent the “Debtors”); and the
holders of Parent’s Senior Secured 12% Notes (collectively the “Lenders”).

    

    RECITALS

    

    A.          Lender
represents that it has extended and/or will extend a loan (the “Loan”) to Parent in
the aggregate principal amount of up to $7,800,000.00.  The Loan is
evidenced by certain promissory notes in the principal amount of up to
$7,800,000.00 by Borrower and payable to the order of Lenders (as amended or
modified from time to time, the "Unit
Notes").  The Loan is secured by a certain Security Agreement
dated as of the date hereof (the "Security Agreement")
and certain other documents which have been executed in connection with the Loan
by Parent and Subsidiary (such documents, as the same may have been amended from
time to time, are collectively referred to herein as the “Security
Documents”).  The payment of the Unit Notes is unconditionally
guaranteed by Subsidiary.  The Unit Notes, the Security Agreement, the
Security Documents and the Guaranty, are collectively called the “Loan
Documents”.

    

    B.           Creditor
previously extended a loan to Debtors as evidenced by a Note dated September 27,
2009 in the original principal amount of $2,710,563, which principal amount,
following amendment dated as of August 1, 2009, has been reduced to $400,000
(the “Subordinate
Loan”) in accordance with the terms and conditions set forth in the
second Amendment to Security Agreements and Convertible promissory Note made
effective as of August 1, 2009.    The Subordinate Loan is
secured by a security agreement made by each of the Debtors creating a lien on
all of their property and assets (the “Subordinate Security
Agreement’).  The payment of the Subordinate Notes is unconditionally
guaranteed by Parent as set forth in the Subordinate Note.  The
Subordinate Note and the Subordinate Security Agreement are hereinafter called
the “Subordinate Loan
Documents”.

    

    C.           As
a condition to Lenders making the Loan to Parent, and with the knowledge that
Lenders would not make the Loan without Creditor’s execution and delivery of
this Agreement, Creditor has agreed to execute and deliver this
Agreement.

    

    NOW THEREFORE, in consideration of the
foregoing, the sum of Ten Dollars ($10.00) and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties, the parties hereto do hereby agree as follows:

    

    1.           Subordination of Subordinate
Loan.  Creditor and Debtors each agree that the Subordinate
Loan is, and shall continue to be, subordinate in right of payment to the prior
payment in full of the indebtedness of Debtors to Lenders as specifically
identified in the Unit Notes (the “Obligations”).

    

    2.           Conditional Non-Payment on
the Subordinate Loan.  Creditor agrees not to ask, demand, sue
for, take, or receive from Debtors , directly or indirectly, in cash or other
property, by set-off or in any other matter, payment of all, or any part of, the
Subordinate Loan unless and until the Debtors are in Default under the terms of
the Subordinate Loan Documents and such default has not been cured for a period
of six months following the occurrence of such default (the “Six Month Default
Date”), Debtor shall provide Creditor with written notice in the event it
receives a default notice from the Unit Note holders.  Notwithstanding
the foregoing, so long as there is no default or event of default under any of
the Unit Notes, Creditor may receive a payment of principal and/or interest from
the Debtors in accordance with the terms of the Subordinate Loan
Documents.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    3.           Priority.  Debtor’s
represents and warrant that except to the extent subordinated to the Lenders to
the extent set forth in this Agreement, Creditor has a priorty lien
position.

    

    4.           Subordination of
Documents.  All of the Subordinate Loan Documents are hereby
subordinated and made subject to the Loan Documents.  Without
limitation of the foregoing, the liens, provisions and security interests of the
Subordinate Security Agreement are hereby subordinated to the Security
Agreement.  Creditor further agrees not to exercise any of its rights
or remedies against Debtors under the Subordinate Loan Documents (including, but
not limited to, the commencement of or participation in any Enforcement Action
(as defined below)) without the prior written consent of Lenders, which may be
granted or denied in Lenders’ sole and absolute discretion provided such consent
shall not be required following the Six Month Default Date.  As used
herein, “Enforcement
Action” shall mean, without limitation, any action or proceeding to
recover the indebtedness evidenced by the Subordinate Loan Documents, the
commencement of a foreclosure proceeding, the exercise of a statutory power of
sale, the taking of a deed or assignment in the manner of a deed in lieu of
foreclosure, the obtaining of a receiver or the taking of any other enforcement
action whatsoever against, or the taking of possession or control of, the
Property or any other collateral securing the Subordinate Loan or the Loan, as
the case may be, or otherwise the exercise of any of the rights or remedies
available to Lenders under the Loan Documents upon the occurrence of a default
or event of default under the Loan Documents or to Creditor under the
Subordinate Loan Documents or as permitted by applicable law, as the case may
be.  Notwithstanding anything contained herein to the contrary, any
Enforcement Action by the Creditor shall be subject and subordinate to the
superior lien of Lenders.

    

    5.           Amendments,
etc.  No amendment or waiver of any provision of this Agreement
shall in any event be effective unless the same shall be in writing and signed
by Lenders, and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

    

    6.           Notices.  All
notices, requests and other communications to either party hereunder shall be in
writing and shall be given to such party at its address set forth below or at
such other address as such party may hereafter specify for the purpose of notice
to Creditor, Borrower or Lender.  Each such notice, request or other
communication shall be effective (a) if given by mail, when such notice is
deposited in the United States Mail with first class postage prepaid, addressed
as aforesaid, provided that such mailing is by registered or certified mail,
return receipt requested, or (b) if given by overnight delivery, when deposited
with a nationally recognized overnight delivery service such as Federal Express
or Airborne with all fees and charges prepaid, addressed as provided
below.

    

    
      
        
          
            
              	
                      If
      to Creditor:

                    	
                      Ventiv
      Commercial Services, LLC,

                    
	 
      	
                      500
      Atrium Drive

                    
	 
      	
                      Somerset,
      New Jersey 08873

                    
	 
      	
                      Attention:  Michael
      Ryan

                    
	 
      	 
      
	
                      With
      a copy to:

                    	
                      David
      S. Blatteis, Esq.

                    
	 
      	
                      Norris,
      McLaughlin & Marcus, P.A.

                    
	 
      	
                      721
      Route 202-206

                    
	 
      	
                      P.O.
      Box 5933 Bridgewater, NJ 08807-5933

                    
	 
      	 
      
	
                      If
      to Debtors:

                    	
                      Millennium
      Biotechnologies Group, Inc.

                    
	 
      	
                      Attn:
      President

                    
	 
      	
                      665
      Martinsville
Road

                    

            

          

        

      

    

    
      
      

    

    
      	 
      	
              Basking
      Ridge, New Jersey 07920

            
	 
      	 
      
	
              If
      to Lender:

            	 
      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Notices
to Debtors shall be copied to Peter R. Silverman, Silverman Sclar Shin &
Byrne PLLC, 381 Park Avenue South, 16th Floor,
New York, New York 10016.

    

    7.           Continuing and Binding
Agreement.  This Agreement is a continuing agreement and
shall:  (a) remain in full force and effect until the Obligations
shall have been paid in full; (b) be binding upon Creditor, Debtors, and their
respective heirs, successor and assigns; and (c) inure to the benefit of and be
enforceable by Lender and its heirs, successors, transferees, and
assigns.

    

    8.           Assignment.  This
Agreement may be endorsed, assigned and transferred in whole or in part by
Lender, and any such holder and assignee of this Agreement shall succeed to and
be possessed of the rights of Lender under this Agreement to the extent
transferred and assigned.

    

    9.           Entire
Agreement.  This Agreement contains the entire terms of the
Agreement between the parties with respect to the subject matter
hereof.  This Agreement supersedes all prior discussions and
agreements between the parties with respect to the subject matter hereof, and
all prior drafts of this Agreement as if such discussions, agreements and drafts
never existed.

    

    10.         Headings.  The
headings of the Sections of this Agreement are for the convenience of reference
only, are not to be considered a part hereof and shall not limit or otherwise
affect any of the terms hereof.

    

    11.         Partial
Invalidity.  Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

    

    12.         Gender.  Whenever
the singular or plural number, or the masculine, feminine or neuter gender is
used herein, it shall legally include the other.

    

    13.         Governing Law;
Venue.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey; provided, however, that if
any applicable conflict or choice of law rules would choose the law of another
state, Borrower and Creditor each hereby waive such rules and agree that New
Jersey substantive, procedural and constitutional law shall nonetheless
govern.  Any action brought by Crediotr or Debtors relating to this
Agreement shall be broughtin the State or federal courts located in the State of
New Jersey.

    

    IN WITNESS WHEREOF, each party hereto
has caused this Agreement to be duly executed and delivered by its officer
thereunto duly authorized as of the date first above written, to be effective
for all purposes as of such date.

    

    
      
        
          
            
              
                
                  	 
      	
                          Ventiv
      Commercial Services, LLC

                        	 
	 
      	 
      	 
      	 
	 
      	
                          By:

                        	
                          /s/ Michael P. Ryan

                        	 
	 
      	
                          Print: 

                        	
                          Michael P. Ryan

                        	 
	 
      	
                          Its:

                        	
                          Chief Financial Officer

                        	 

                

              

            

          

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Millennium
      Biotechnologies, Inc. a Delaware Corp.

                
	 
      	 
      
	
                  By: 

                	
                  /s/ Mark C. Mirken

                
	
                  Name:  Mark
      C. Mirken

                
	
                  Title:  Chief
      Executive Officer

                
	 
      
	
                  Millennium
      Biotechnologies Group, Inc.

                
	 
      	 
      
	
                  By:

                	
                  /s/ Mark C. Mirken

                
	
                  Name:  Mark
      C. Mirken

                
	
                  Title:  Chief
      Executive Officer

                

        

      

    

    

    
      
        
          
            	
                    LENDERS

                  	 
      
	 
      	 
      
	
                      /s/ Leon Frenkel

                  	
                    ,
      as representative

                  
	
                    of
      the Unit Note Holders

                  	 
      
	 
      	 
      
	
                      /s/ Seahorse Enterprises,
      LLC.

                  	
                    ,
      as representative

                  
	
                    of
      the Unit Note Holders

                  	 
      
	 
      	 
      
	
                      /s/ Kenneth Sadowsky

                  	
                    ,
      as representative

                  
	
                    of
      the Unit Note HoldersExecution
Version

     

    SECOND AMENDMENT
TO

     

    SECURITY AGREEMENTS AND
CONVERTIBLE  PROMISSORY NOTE

     

    THIS
SECOND AMENDMENT TO SECURITY AGREEMENTS AND CONVERTIBLE PROMISSORY NOTE (this
“Amendment”) is effective as of the 1st day of August, 2009 (the “Effective
Date”) and made by and among MILLENNIUM BIOTECHNOLOGIES, INC., a Delaware
corporation having a place of business at 665 Martinsville Road, Suite 219,
Basking Ridge, New Jersey 07920 (“Millennium”); MILLENNIUM BIOTECHNOLOGIES
GROUP, INC., a Delaware corporation also having a place of business at 665
Martinsville Road, Suite 219, Basking Ridge, New Jersey 07920 (“MBG”) and VENTIV COMMERCIAL
SERVICES, LLC, a New Jersey limited liability company having a place of business
at 200 Cottontail Lane, Somerset, New Jersey 08873 (“Ventiv”).

    

    WITNESSETH:

     

    WHEREAS, Millennium is
currently obligated to Ventiv pursuant to that certain Convertible Promissory
Note in the original principal amount of $2,710,563.00 dated August 3, 2007 as
amended by a first amendment to security agreements and convertible promissory
note dated February 27, 2009 (the “Note”), which Note was given to memorialize
and structure certain monetary obligations of Millennium to Ventiv for services
rendered pursuant to that certain Service Agreement between Millennium and
Ventiv dated as of April 1, 2006, as amended by that certain First Amendment to
Service Agreement dated August 7, 2007 (such agreement, as so amended, the
“Existing Service Agreement”);

    

    WHEREAS, as security for the
Note, Millennium and Ventiv entered into that certain Security Agreement dated
August 3, 2007 as amended by a first amendment dated February 27, 2009 (the
“Millennium Security Agreement”) whereby Millennium granted Ventiv a security
interest in certain collateral owned by Millennium (the “Millennium
Collateral”);

    

    WHEREAS, as further security
for the Note, on August 8, 2007 Millennium’s parent entity MBG executed a
continuing guarantee (the “MBG Guarantee”) of Millennium’s obligations under the
Note;

    

    WHEREAS, as further security
for the Note, and as security of MBG’s obligations under the MBG Guarantee, MBG
and Ventiv entered into that certain Security Agreement also dated August 3,
2007 (the “MBG Security Agreement” and together with the Millennium Security
Agreement, the “Security Agreements”) whereby MBG granted Ventiv a security
interest in certain collateral owned by MBG;

    

    WHEREAS, Millennium
represents, warrants and covenants that it is offering to accredited investors
up to 75 units of its securities at a unit purchase price of $100,000 (the
“Offering”), each unit to include a secured senior note by Millennium in the
amount of $100,000 (the “Unit Notes”);

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    WHEREAS, concurrently with
this Agreement, Millennium and Ventiv are entering into a new Service Agreement
(the “New Service Agreement”) which shall replace and supersede the Existing
Service Agreement between the parties;

    

    WHEREAS, the parties mutually
desire to further amend the Note, and the Security Agreements in accordance with
the terms and conditions contained herein.

    

    NOW, THEREFORE, in
consideration of the mutual covenants and premises contained in this Amendment,
the parties hereby agree as follows:

    

    1.      Estoppel.  Millennium
and MBG (collectively, the “Millennium Parties”) each jointly and severally
represent, warrant to Ventiv and agree as Follows:

     

    1.1.           That
the Note, the Security Agreements, and the MBG Guarantee (collectively, the
“Original Loan Documents”) are in full force and effect and have not been
modified;

    

    1.2.           The
Millennium Parties have duly authorized, executed and delivered to Ventiv this
Amendment and the Original Loan Documents to which each is a
party.  The Original Loan Documents and this Amendment constitute
valid and binding obligations of each of the Millennium Parties that is a party
thereto, enforceable against such party(ies) in accordance with their respective
terms;

    

    1.3.           That
neither Millennium nor MBG have any offset, defense or counterclaim with respect
to any of their respective obligations under the Existing Service Agreement or
any of the Original Loan Documents (any such offset, defense or counterclaim as
may now exist being hereby irrevocably waived by the Millennium
Parties);

    

    1.4.           That
the Security Agreements create in favor of Ventiv a valid security interest and
lien with respect to the Collateral (as such term is defined in the Security
Agreements) which security interest and lien shall be released no sooner than
ninety (90) days after the Final Payment Date (as such term is defined below) is
received and negotiated by Ventiv;

    

    1.5.           That
the MBG Security Agreement creates in favor of Ventiv a valid security interest
and lien with respect to the Collateral (as such term is defined in the MBG
Security Agreement);

    

    1.6.           The
MBG Guarantee constitutes a valid and binding guarantee of MBG of the prompt and
full repayment by Millennium to Ventiv of the Note in accordance with its
terms.

    

    1.7.           That
the Millennium Parties hereby irrevocably and forever release and discharge
Ventiv and its successors and assigns, of and from any and all liability,
claims, cross-claims, demands, actions or causes of action whether presently
known or unknown arising prior to the date hereof or in any way relating to the
Original Loan Documents (as amended).

    

    1.8.           That,
except in connection with the Offering or as otherwise agreed to in writing by
Ventiv (in it sole and absolute discretion), the Millennium Parties shall not
(in any manner) hereafter lien or encumber any sales or revenue received or to
be received by the Millennium Parties or Ventiv as a result of the Resurgex
Project and/or Resurgex Service Agreement.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    1.9.           That
the representations and warranties contained in the Security Agreements are true
and accurate and not misleading in any material respect as of the Effective
Date, such representations being incorporated herein as if set forth herein at
length.

    

    2.      Ratification.        The
Millennium Parties hereby each ratify, confirm and reaffirm in all respects and
without condition, all of the terms, covenants and conditions set forth in the
Original Loan Documents as expressly modified hereby, and hereby each
acknowledge and agree that, after giving effect to this Amendment, each remains
liable to Ventiv in accordance with the respective terms, covenant and
conditions of such Original Loan Documents.

     

    3.      Restructuring
and Repayment of the
Note.         The parties
agree to restructure the terms of the Note as follows:

     

    3.1.      Amendments to Note and
Security Agreement.   The Note and Security Agreements are
hereby amended as follows:

     

    3.1.1        One
Hundred Ten Thousand ($110,000) Dollars shall be paid in cash to Ventiv by
Millennium on or before October 30, 2009 (the “Initial
Payment”).  Upon Ventiv’s receipt of the Initial Payment:

     

    (a) the
principal balance together with accrued interest due and owing under the Note
shall be reduced to Four Hundred Thousand ($400,000) Dollars of which One
Hundred Fifty Thousand ($150,000) Dollars shall be paid in cash on or before
February 1, 2010; and the remaining balance of Two Hundred and Fifty Thousand
($250,000) Dollars shall be paid in cash on or before June 1, 2010 (the “Final
Payment Date”).  No interest shall accrue regarding such payments, and
upon receipt in full of such payments aggregating $400,000 (on or before the
Final Payment Date), the Note shall be fully paid and
satisfied.  Notwithstanding anything to the contrary set forth above,
in the event Ventiv does not receive $400,000 by the Final Payment Date, the
outstanding balance shall accrue interest at the rate of ten percent (10%) per
annum, compounded monthly, from the Final Payment Date until the principal shall
be paid in full.

     

    (b)  Section
3, Section 4 and Section 6.3.2 of the first amendment to the Note dated February
27, 2009 shall be of no further force or effect; and

     

    (c) Ventiv
shall execute a subordination agreement with the holders of the Unit Notes, in
the form annexed hereto subordinating payment under the Note to the Unit Notes
inclusive of all Unit Notes sold or to be sold in the Offering.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    3.1.2        
Contemporaneous with Ventiv’s receipt of the Initial Payment, and in exchange
for the reduction of the Note as set forth in Section 3.1.1 above, MBG shall
issue to Ventiv that certain Warrant to purchase Five Million (5,000,000) shares
of MBG’s common stock (the “Warrant Stock”) which shall provide Ventiv with an
option to purchase all or any portion of the Warrant Stock at any time(s) over a
ten (10) year period at a purchase price of $0.20 per share of Warrant
Stock.  Ventiv has been advised that MBG may not have a sufficient
number of authorized shares of common stock reserved to cover the exercise of
the Warrant Stock and accordingly, MBG in order to increase the number of shares
authorized for issuance under its corporate charter, or alternatively to reverse
split the number of shares of commons stock outstanding, will hold a meeting of
its stockholders to amend its corporate charter within 120 days from the date
hereof.  MBG hereby represents, warrants and covenants that it shall
take any and all action required to provide for a sufficient number authorized
shares of common stock to be reserved to cover the exercise of the Warrant Stock
by Ventiv.

     

    
      4    
Miscellaneous.

    

     

    4.1          Status of Original Loan
Documents.  Except as expressly set forth herein, nothing
herein is intended, nor shall it be construed, to amend, supplement or otherwise
modify any of the parties’ other rights, duties and obligations pursuant to the
Original Loan Documents, all of which remain in full force and
effect.

     

    
      4.2                 
Attorney Review; Payment of
Fees.

    

     

    4.2.1      
Millennium hereby acknowledges that it has been given a full and fair
opportunity to review this Amendment and all other agreements, documents and
other information referenced herein with an attorney of its choosing, after
being afforded an opportunity and recommendation to do so by
Ventiv.

     

    4.2.2    
  Millennium acknowledges that by reason of Millennium’s inability
repay the Note in accordance with the Original Loan Documents, Ventiv has
incurred (and will incur) counsel fees and related costs and expenses in
connection with the preparation, negotiation, execution and delivery of this
Amendment.  Millennium understands that Ventiv has engaged the firm of
Norris, McLaughlin & Marcus, P.A. (“NMM”) to perform such
services.  In that regard, Millennium shall upon execution of this
Amendment pay the fees, costs and expenses of such firm in connection therewith
in an amount not to exceed Five Thousand Dollars ($5,000.00).  Ventiv
shall provide Millennium with an invoice of such legal fees within forty-five
(45) days of the date hereof and Millennium shall pay Ventiv within fifteen (15)
days of its receipt of such invoice.  Any failure by Millennium to pay
such invoice same shall be considered an Event of Default under the
Note.

     

    4.3          Further
Assurances.  Each party hereto agrees to execute, acknowledge
and deliver such further instruments, and to do all such other acts, as may be
reasonably necessary or appropriate in order to carry out the purposes and
intent of this Amendment.

     

    4.4                  Waiver.  The
waiver by either party of a breach of any provisions contained herein shall be
in writing and shall in no way be construed as a waiver of any succeeding breach
of such provision or the waiver of the provision itself.

     

    4.5                 
Counterparts.  This
Amendment may be executed in multiple counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.  If this Amendment is executed in counterparts, no
signatory hereto shall be bound unless and until each of the parties named below
shall have duly executed or caused to be duly executed a counterpart of this
Amendment.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.6                 
Entire
Agreement.  This Amendment, the Original Loan Documents (as
modified by this Amendment) contain the entire agreement of the parties
regarding the subject matter hereof and supersedes all prior agreements,
understandings and negotiations regarding same.

     

    Signature
page follows

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day
and year first written above.

    

    
      
        	
                MILLENNIUM
      BIOTECHNOLOGIES,

                INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Mark C. Mirken

              
	 
      	
                Name:  Mark
      C. Mirken

              
	 
      	
                Title:  Chief
      Executive Officer

              
	 
      	 
      
	
                MILLENNIUM
      BIOTECHNOLOGIES

                GROUP,
      INC.

              
	 
      	 
      
	
                By:

              	
                /s/ Mark C. Mirken

              
	 
      	
                Name:  Mark
      C. Mirken

              
	 
      	
                Title:  Chief
      Executive Officer

              
	 
      	 
      
	
                VENTIV
      COMMERCIAL SERVICES, LLC

              
	 
      	 
      
	
                By:

              	
                /s/ Michael P. Ryan

              
	 
      	
                Name:  Michael
      P. Ryan

              
	 
      	
                Title:  CFO,
      Ventiv Commercial Services
LLC

              

      

    

    
      
         

      

      
        6

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