Document:

Exhibit 10.1 

AMENDMENT NO. 2
TO
CONVERTIBLE NOTE AND WARRANT
PURCHASE AGREEMENT, SECURITY AGREEMENT
AND SECURED CONVERTIBLE
PROMISSORY NOTES AND CONSENT

     This
Amendment No. 2 to Convertible Note and Warrant Purchase Agreement, Security
Agreement and Secured Convertible Promissory Notes and Consent (this
“Amendment and Consent”) is made as of April 15th, 2009 (the
“Effective Date”) by and among MTI MicroFuel Cells Inc., a Delaware corporation (the
“Company”)
and each of the “Prior Purchasers” and the “New Purchasers” listed on
Exhibit A
attached to this Amendment (each a “Purchaser” and together the
“Purchasers”), and amends (i) that certain Convertible Note and Warrant Purchase
Agreement, dated as of September 18, 2008 and amended February 20, 2009 (the
“Purchase Agreement”) between the Company and certain of the Purchasers, (ii) that certain
Security Agreement, dated as of September 18, 2008 and amended February 20, 2009
(the “Security Agreement”) between the Company and certain of the Purchasers, and
(iii) those certain Secured Convertible Promissory Notes, each dated as of
September 18, 2008 and amended February 20, 2009 (the “Notes”) between the Company
and certain of the Purchasers. 

     WHEREAS, the Company has issued Notes
in the aggregate principal amount of $2,700,000, and warrants exercisable for
equity securities of the Company (the “Warrants”), to certain of the
Purchasers pursuant to the Purchase Agreement, which Notes are secured by all of
the assets of the Company in accordance with the provisions of the Security
Agreement;

     WHEREAS, the Company and the
Purchasers desire to further amend the Purchase Agreement to permit the Company
to sell additional Notes and Warrants with an aggregate principal amount of up
to $800,000 to certain of the Purchasers who desire to acquire additional Notes
and Warrants and in accordance with the schedule set forth on Exhibit A attached
hereto, subject to prior written approval of each investment by the Company;

     WHEREAS, the Company and the
Purchasers desire to further amend the Notes to extend the Maturity Date (as
defined thereunder) from May 31, 2009 to March 31, 2010, and to provide that if
the Next Equity Financing (as defined in the Notes) does not occur on or before
the Maturity Date, all principal and (at the Company’s option) accrued interest
outstanding under all of the Notes shall be converted into equity securities of
the Company based upon a Company valuation and on such terms to be agreed upon
by the Company and the holders of a majority in interest of the Notes within
thirty (30) days following the earlier to occur of (i) the Maturity Date or (ii)
the date upon which the aggregate principal amount under all the Notes equals or
exceeds $3,500,000, which valuation and terms shall be negotiated in good faith
by the Company and a majority in interest of the Notes; and 

     WHEREAS, the Purchase Agreement and
the Notes may be amended by the Company and holders of at least a majority in
interest of the Notes, and the Security Agreement may be amended by Company and
each of the Prior Purchasers; 

     NOW,
THEREFORE, in consideration of the mutual
promises contained herein and other good and valuable consideration, receipt of
which is hereby acknowledged, the parties to this Amendment and Consent agree as
follows: 

     1.
Amendment of Section
1(b)(iii) of the Purchase Agreement. Section 1(b)(iii) of Purchase
Agreement is hereby amended to permit the Company to sell additional Notes and
Warrants with an aggregate principal amount of up to $800,000 under the Purchase
Agreement to such Purchasers who desire to
acquire additional Notes and Warrants and in accordance with the schedule set
forth on Exhibit A attached hereto, subject to prior written approval of each
investment by the Company (electronic acceptable). 

     2.
Amendment of “Maturity Date” of the Notes. The “Maturity Date” set
forth in Section 1 of each of the Notes, and such additional Notes to be issued
to the Purchasers as scheduled on Exhibit A attached hereto, shall
be amended to provide for an amended “Maturity Date” of March 31, 2010.

    
3. Amendment
of Section 2(a)(ii) of the Notes.
Section 2(a)(ii) of each of the Notes,
and such additional Notes, shall be amended and restated in their entirety to
read as follows (revised language included below in BOLD ITALICS for
reference only):

	     	
           “(ii) If the Next Equity Financing does not occur on or before the
      Maturity Date, all principal and (at the Company’s
      option) accrued interest outstanding under all of the Notes shall be
      converted into equity securities of the Company (“Equity Securities”)
      based upon a Company valuation and on such terms to be agreed upon by the
      Company and the holders of a majority in interest of the Notes within
      thirty (30) days following the earlier to occur of (i) the Maturity Date
      or (ii) the date upon which the
      aggregate principal amount under all the Notes equals or exceeds
      $3,500,000, which valuation and
      terms shall be negotiated in good faith by the Company and a majority in
      interest of the Notes (a “Negotiated
      Conversion”). If the Company and
      holders of a majority in interest of the Notes cannot agree upon the
      valuation and terms of a Negotiated Conversion, and fail to consummate
      such Negotiated Conversion within thirty (30) days following the Maturity
      Date, then all principal and accrued interest outstanding under the Notes
      shall be due and payable upon demand by the Holders at any time
      thereafter.” 
	     

     4. Amendment of Security Interest. The Security Agreement is hereby
amended to provide that the indebtedness represented by the additional Notes to
be issued to the Purchasers scheduled on Exhibit A attached hereto shall be
secured by all of the assets of the Company in accordance with the provisions of
the Security Agreement, and Exhibit
A to the Security Agreement shall be
amended to include such Purchasers’ additional indebtedness thereunder.

     5.
Consent to Amendments and Related
Matters. The Company and each of the Purchasers hereby consent to (i) the
amendment of the Purchase Agreement and the Notes, (ii) the purchase by the
Purchaser(s) set forth on Exhibit
A attached hereto of an additional
Note(s) and Warrant(s) and the Company’s issuance of a Note(s) and Warrant(s) to
such Purchaser(s), and (iii) the inclusion of the indebtedness represented by
such additional Note(s) under the Security Agreement and amendment thereof to
include such indebtedness as secured thereunder. 

    
6. Representations and Warranties.

          (a)
New Purchasers.

               (i) Each of the New Purchasers hereby represents and warrants
to the Company that as of the date of such New Purchaser’s purchase and sale of
Notes and Warrants under the Purchase Agreement, as amended (each, a
“New Purchaser Closing Date”), such New Purchaser makes the representations and
warranties to the Company contained in Section 4 of the Purchase Agreement and
that such representations and warranties are true on and as of their respective
New Purchaser Closing Dates. 

               (ii) Each of the New Purchasers hereby agrees to be bound by
all the provisions applicable to “Purchasers” under the Purchase Agreement,
including, but not limited to, the lock-up provisions under Section 7 thereof.

          (b) The
Company. The Company hereby represents and warrants to each of the New Purchasers
that as of the Effective Date hereof, the representations and warranties of the
Company contained in Section 3 of the Purchase Agreement are true on and as of
the Effective Date. 

     7.
Miscellaneous.

          (a) Governing
Law. This Amendment and Consent and all acts and transactions pursuant hereto
and the rights and obligations of the parties hereto shall be governed,
construed and interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflicts of law.

          (b) Counterparts. This Amendment and Consent may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original and all
of which together shall constitute one instrument. 

          (c) Entire
Agreement. Each of the Purchase Agreement, the Security Agreement, and the Notes, as
amended to date and by this Amendment and Consent, and the documents referred to
herein and therein, constitute the entire agreement between the parties hereto
pertaining to the subject matters hereof and thereof, respectively, and any and
all other written or oral agreements existing between the parties hereto are
expressly canceled. 

[Signature Pages
Follow]

      The
parties have executed this Amendment No. 2 to Convertible Note and Warrant
Purchase Agreement, Security Agreement and Secured Convertible Promissory Notes
and Consent as of the Effective Date. 

COMPANY: 

MTI MICROFUEL CELLS INC.

	
      /S/ PENG K. LIM
	
	
      Peng K. Lim, Chief Executive Officer
      
	
	 	
	
      PURCHASERS: 
	
	 	
	
      MECHANICAL TECHNOLOGY
      INCORPORATED 
	
	 	
	
      /S/ PENG K. LIM
	
	
      Peng K. Lim, Chief Executive Officer
      
	
	 	
	
      WALTER L. ROBB 
	
	 	
	
      /S/ WALTER L. ROBB
	
	
      Walter L. Robb 
	
	 	
	
      COUNTER POINT VENTURES FUND II,
      LP 
	
	 	
	
      /S/ WALTER L. ROBB
	
	
      Walter L. Robb, General Partner
      
	
	 	
	
      [NON-AFFILIATED INVESTOR]
      
	
	 	
	
      /S/ NON-AFFILIATED
      INVESTOR
	
	
      [Non-affiliated
    Investor]
	

EXHIBIT A 

PRIOR
PURCHASERS 

MECHANICAL TECHNOLOGY
INCORPORATED
WALTER L. ROBB 
COUNTER POINT
VENTURES FUND II, LP 

NEW
PURCHASERS 

	
      Name and Address of
      Purchaser
	
      Additional Note(s) Principal
      and
Payment
      Terms
 

	
      [Non-affiliated Investor]
    
	
      $50,000 due on April
      15th, 2009. 

	
      Counter Point Ventures Fund II, LP
      
Dr. Walter L. Robb, General
      Partner
c/o Vantage Management, Inc. 
3000 Troy Schenectady Road
Facsimile: (518) 782-0030
    
	
      Purchaser shall loan to the
      Company $165,000 due on April
      15th, 2009. 

      Thereafter, Purchaser shall loan to
      the Company up to $165,000 per month, commencing May 2009, but no more
      than $750,000 additional principal in the aggregate.

      Company must notify Purchaser in
      writing (electronic acceptable) no less than five (5) business days prior
      to the beginning of each month of the amount Purchaser must deliver to the
      Company hereunder by the first business day of the next month (up to, but
      not to exceed, $165,000 per month). 

      Company shall issue a Note and
      Warrant to Purchaser with respect to each monthly loan principal amount
      received hereunder.f8k081209ex10i_celsius.htm

    Exhibit
10.1

    

    THIS NOTE
HAS NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT
OF 1933, AS AMENDED. THE NOTE MAY NOT BE OFFERED, RESOLD, PLEDGED OR TRANSFERRED
EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO REGISTRATION OR EXEMPTION OR SAFE
HARBOR THEREFROM.

    

    
      	
              No.
      11-2009

            	
              US
      $1,000,000

            

    

    

    CELSIUS
HOLDINGS, INC.

    

    6%
UNSECURED NOTE

    

    This Note
is one of a duly authorized issue US $1,000,000.00 of CELSIUS HOLDINGS, INC., a
corporation organized and existing under the laws of the State of Nevada ("Celsius") designated as its 6%
Unsecured Note.

    

           FOR
VALUE RECEIVED, Celsius promises to pay to CD Financial, LLC., the registered
holder hereof (the "Holder"), the principal sum of
One Million United States Dollars (US $1,000,000) together with interest on the
unpaid principal sum at the rate of 6 percent per annum from the date hereof
stated below as provided herein.  After an Event of Default, interest
will accrue on the unpaid principal balance at the then current statutory
interest rate provided under Florida law. The principal of this Note and
interest are payable in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts,
at the address last appearing on the Note Register of Celsius as designated in
writing by the Holder from time to time. Celsius will make payments when due to
the registered holder of this Note and addressed to such holder at the last
address appearing on the Note Register at such time payment is
made.

    

           This
Note is subject to the following additional provisions:

    

           1.     Celsius
shall be entitled to withhold from all payments of principal of this Note, and
any interest due on this Note any amounts required to be withheld under the
applicable provisions of the United States income tax laws or other applicable
laws at the time of such payments, and Holder shall execute and deliver all
required documentation in connection therewith.

    

           2.     This
Note has been issued subject to investment representations of the original
purchaser hereof and may be transferred or exchanged only in compliance with the
Securities Act of 1933,
as amended (the "Act"),
and other applicable state and foreign securities laws. In the event of any
proposed transfer of this Note, Celsius may require, prior to issuance of a new
Note in the name of such other person, that it receive reasonable transfer
documentation including legal opinions that the issuance of the Note in such
other name does not and will not cause a violation of the Act or any applicable
state or foreign securities laws. Prior to due presentment for transfer of this
Note, Celsius and any agent of Celsius may treat the person in whose name this
Note is duly registered on Celsius' Note Register as the owner hereof for the
purpose of receiving payment as herein provided and for all other purposes,
whether or not this Note be overdue, and neither Celsius nor any such agent
shall be affected by notice to the contrary.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

           3.     Except
as provided by law, no recourse shall be had for the payment of the principal
of, or the interest on, this Note, or for any claim based hereon, or otherwise
in respect hereof, against any incorporator, shareholder, officer or director,
as such, past, present or future, of Celsius, all such liability being, by the
acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released.

    

           4.     The
Holder of the Note, by acceptance hereof, agrees that this Note is being
acquired for investment and that such Holder will not offer, sell or otherwise
dispose of this Note except under circumstances which will not result in a
violation of the Act or any applicable state Blue Sky or foreign laws or similar
laws relating to the sale of securities.

    

           5.     This
Note shall be governed by and construed in accordance with the laws of the State
of Florida. Each of the parties consents to the jurisdiction of the state and
federal courts sitting in Palm Beach County, Florida, and hereby waives, to the
maximum extent permitted by law, any objection, including any objection based on
forum non coveniens, to the bringing of any such proceeding in such
jurisdiction.

    

           6.     The
following shall constitute an "Event of
Default":

    

    
      	
              (a)  

            	
              Celsius
      shall default in the payment of principal on this Note and same shall
      continue for a period of five (5) days;
or

            

    

    
      	
              (b)  

            	
              Any
      of the representations or warranties made by Celsius herein or other
      written statements heretofore or hereafter furnished by Celsius in
      connection with the execution and delivery of this Note or the Agreement
      pursuant to which this Note has been  issued shall be false or
      misleading in any material respect at the time made;
  or

            

    

    
      	
              (c)  

            	
              Celsius
      shall fail to perform or observe, in any material respect, any other
      covenant, term, provision, condition, agreement or obligation of this Note
      or any note issued by Celsius to or agreement entered into between Celsius
      and Holder and such failure shall continue uncured for a period of ten
      (10) days after written notice from the Holder of such failure;
      or

            

    

    
      	
              (d)  

            	
              Celsius
      shall (1) admit in writing its inability to pay its debts generally as
      they mature; (2) make an assignment for the benefit of creditors or
      commence proceedings for its dissolution; or (3) apply for or consent to
      the appointment of a trustee, liquidator or receiver for its or for a
      substantial part of its property or business;
or

            

    

    
      	
              (e)  

            	
              A
      trustee, liquidator or receiver shall be appointed for Celsius or for a
      substantial part of its property or business without its consent and shall
      not be discharged within ninety (90) days after such appointment;
      or

            

    

    
      	
              (f)  

            	
              Any
      governmental agency or any court of competent jurisdiction at the instance
      of any governmental agency shall assume custody or control of the whole or
      any substantial portion of the properties or assets of the Celsius and
      shall not be dismissed within ninety (90) days thereafter;
    or

            

    

    
      	
              (g)  

            	
              Bankruptcy,
      reorganization, insolvency or liquidation proceedings or other proceedings
      for relief under any bankruptcy law or any law for the relief of debtors
      shall be instituted by or against Celsius and, if instituted against
      Celsius, shall not be dismissed within ninety  (90) days after
      such institution or Celsius shall by any action or answer approve of,
      consent to, or acquiesce in any such proceedings or admit the material
      allegations of, or default in answering a petition filed in any such
      proceeding.

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Then, or
at any time thereafter, and in each and every such case, unless such Event of
Default shall have been waived in writing by the Holder (which waiver shall not
be deemed to be a waiver of any subsequent default) at the option of the Holder
and in the Holder's sole discretion, the Holder may consider
the  unpaid principal amount and interest under this Note immediately
due and payable, without presentment, demand, protest or notice of any kind, all
of which are hereby expressly waived, anything herein or in any note or other
instruments contained to the contrary notwithstanding, and the Holder may
immediately enforce any and all of the Holder's rights and remedies provided
herein or any other rights or remedies afforded by law.

    

           7.     This
Note shall be paid, together with accrued interest on September 29,
2009.  Notwithstanding the foregoing or any contrary provision, upon
2-days’ prior written notice to the Holder (a “Prepayment Notice”), Celsius
shall be permitted to prepay any balance due on the Note, with accrued interest,
without prepayment penalty or future interest due.

    

          8.       No
failure or delay on the part of the Holder in the exercise of any power, right
or privilege hereunder shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power, right or privilege preclude any other or
further exercise thereof. All rights and remedies of the Holder hereunder are
cumulative and not exclusive of any rights or remedies otherwise available.
Celsius shall bear all costs (including without limitation reasonable legal fees
and expenses) incurred by the Holder in enforcing any of Holder’s rights,
remedies and privileges hereunder, including collections of amounts due
hereunder.

    

           IN
WITNESS WHEREOF, Celsius has caused this instrument to be duly executed by an
officer thereunto duly authorized.

    

    Dated:
August 12, 2009

    

    CELSIUS
HOLDINGS, INC.

    a Nevada
Corporation

     

    
 

    By:     ____________________________                                                 

             
 Jan Norelid, Chief Financial Officer

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