Document:

ex10-1.htm

Exhibit 10.1

AMENDMENT AGREEMENT NO. 2

This AMENDMENT AGREEMENT NO. 2 (this “Agreement”) effective as of ____, 2015 (the “Effective Time”), between MabVax Therapeutics Holdings, Inc., a Delaware corporation (the “Company”), and the investor signatory hereto (the “Purchaser”), hereby consents to certain waivers and modifications to the Registration Rights Agreement, as amended by that certain Amendment Agreement dated as of June 9, 2015 (the “Original Amendment Agreement” and such Registration Rights Agreement as amended by the Original Amendment Agreement, the “Registration Rights Agreement”) executed in connection with the purchase by the Purchaser of Units (as defined below) of the Company’s securities  pursuant to that certain Subscription Agreement governing the sale of the Units described below (the “Subscription Agreement”). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Registration Rights Agreement or the Subscription Agreement.  Except as specifically agreed to, waived or consented to herein, the terms of the Transaction Documents shall remain in full force and effect.

RECITALS

WHEREAS, the Company and certain investors (including the Purchaser) (the “Buyers”) entered into the Subscription Agreements between March 31, 2015 and April 10, 2015, pursuant to which the Company sold and the Buyers signatory thereto purchased units of the Company’s securities (the “Units”) with each Unit consisting of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) (or, at the election of any Buyer who, as a result of receiving Common Stock would hold in excess of 4.99% of the Company’s issued and outstanding Common Stock, shares of the Company’s newly designated  0% Series E Convertible Preferred Stock (the “Preferred Shares”)) and a thirty month warrant (the “Warrants”) to purchase one half of one share of Common Stock at an initial exercise price of $1.50 per share, upon the terms and subject to the conditions set forth in the Subscription Agreement;

WHEREAS, in connection with the Purchaser’s purchase of the Units, the Company and the Purchaser entered into the Registration Rights Agreement whereby the Company agreed to register for resale, 25% of (i) the shares of Common Stock issued as part of the Units and (ii) issuable upon conversion of the Preferred Shares, in accordance with the terms of the Registration Rights Agreement;

WHEREAS, on June 9, 2015, the Company entered into Original Amendment Agreements with Buyers representing, in total, an aggregate of at least 60% of the Registrable Securities, including the Lead Investor (as such terms are defined in the Transaction Documents) in order to amend the original definition of “Filing Date” in the Registration Rights Agreement to August 5, 2015;

WHEREAS the Company has requested that the Purchaser agree to further amend the definition of “Filing Date’” in the Registration Rights Agreement to allow the Company additional time to comply with its registration obligations under the Registration Rights Agreement; and

WHEREAS, concurrently herewith, Buyers (other than the Purchaser) (the “Other Buyers”), are executing amendments identical to this Agreement (the “Other Agreements” and, together with this Agreement, the “Agreements”).

NOW THEREFORE, in consideration of the respective covenants and promises contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows, intending to be legally bound hereby:

1.           Registration Rights.  The Purchaser hereby agrees that the definition of “Filing Date” in section 1.1(e) of the Registration Rights Agreement is hereby amended and restated in its entirety as follows:

“(e) Filing Date means October 9, 2015”

2.           Liquidated Damages.  The Buyer hereby waives any and all damages, penalties and defaults  related to the Company’s not filing the registration statement by the Filing Date or any damages, penalties and defaults should the Registration Statement not be declared effective by the Commission by the Effectiveness Date (as such terms are originally defined in the Registration Rights Agreement.

 

3.           Effectiveness.  This Agreement and the amendments contemplated herein shall be effective upon the Company obtaining this Agreement executed by the Purchaser along with executed Other Agreements from Other Buyers, representing, in total, an aggregate of at least 60% of the Registrable Securities, including the consent of the Lead Investor (as such terms are defined in the Transaction Documents).

 

  

  

  

 

4.           Independent Nature of Purchaser's Obligations and Rights.  The obligations of the Purchaser under this Agreement or any other Transaction Document are several and not joint with the obligations of any Other Buyer, and the Purchaser shall not be responsible in any way for the performance of the obligations of any Other Buyer under any Transaction Document or Other Agreement.  Nothing contained herein or in any Other Agreement or any other Transaction Document, and no action taken by the Purchaser pursuant hereto, shall be deemed to constitute the Purchaser and Other Buyers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchaser and Other Buyers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement or any other Transaction Document, and the Company acknowledges that the Purchaser and the Other Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement, any Other Agreement and any other Transaction Document.  The Company and the Purchaser confirm that the Purchaser has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors.  The Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, any Other Agreement or out of any other Transaction Documents, and it shall not be necessary for any Other Buyer to be joined as an additional party in any proceeding for such purpose.

 

5.           No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

6.           Non-Public Information.  The Company acknowledges and agrees that the amendments, waivers and consents contemplated hereby do not constitute material modifications to the Transaction Documents and consequently, as of the Effective Time, the Company shall have disclosed all material, non-public information (if any) provided to the Purchaser by the Company or any of its Subsidiaries or any of their respective officers, directors, employees or agents in connection with the transactions contemplated hereby and by the Transaction Documents.

 

7.           Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.  In the event that any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

8.           No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

9.           Headings.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

10.           Severability.  If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties.  The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.           Scope.  Except as explicitly set forth herein, the Transaction Documents remain unmodified and in full force and effect.

 

12.           Further Assurances.  Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

13.           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns in accordance with the terms of the Subscription Agreement.

 

  

  

  

 

14.           Governing Law; Jurisdiction; Jury Trial.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS CONSENT OR ANY TRANSACTION CONTEMPLATED HEREBY

 

15.           Most Favored Nation.  The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any person with respect to the amendments, waivers and consents contemplated hereby, is or will be more favorable to such person than those of the Purchaser under this Agreement.  The provisions of this Section 15 shall apply similarly and equally to each Other Agreement.

 

[Signatures appear on following page.]

 

  

  

  

 

        IN WITNESS WHEREOF, the Purchaser and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

	
 

	COMPANY: 

MABVAX THERAPEUTICS HOLDINGS, INC.

 

	
 

 

	
By:

Name:

Title:

 

  

  

  

 

IN WITNESS WHEREOF, the Purchaser and the Company have caused their respective signature page to this Agreement to be duly executed as of the date first written above.

 

	 	PURCHASER:	 
	 	 	 	 
	 	By:Exhibit 10.1

 

SECOND AMENDMENT TO THE PARTIES’ JULY
10, 2014

CONFIDENTIAL SETTLEMENT AGREEMENT AND
MUTUAL RELEASE

 

This Second Amendment
to the Parties’ July 10, 2014 Confidential Settlement Agreement and Mutual Release (“Settlement Agreement”),
and amended for the first time on July 29, 2014 (the “First Amendment”), is made on July 30, 2015 between Cyalume
Technologies, Inc., (“Cyalume”) and Cyalume on behalf of Emil Jachmann (“Jachmann”), in the first instance,
and OmniGlow LLC (“OmniGlow”), Randye M. Holland and Stanley M. Holland as Trustees of the Randye M. Holland and Stanley
M. Holland Trust, the Leemon Family LLC and Ira Leemon, in the second instance, (individually sometimes referred to as a “Party”
and collectively as the “Parties”).

 

RECITALS

 

A.               
WHEREAS, on July 10, 2014, the Parties executed the underlying Confidential Settlement Agreement and Mutual Release
(the “Settlement Agreement”) and exchanged signatures.

 

B.                
WHEREAS, Paragraph 3 of the Settlement Agreement provided as follows:

Settlement Payment. Cyalume shall either:

a.pay the settlement amount of $4,547,851.47 (“Settlement Amount”); OR

 

    	 

    	 

    

 

b.make an initial good faith payment of $250,000 to OmniGlow
on July 10, 2014, by wire transfer to: “CitiBank, Acct. No. 35354087, ABA No. 021000089.” Within 21 days from the execution
of this Agreement, Cyalume shall make an additional down payment of One Million Dollars ($1,000,000.00) payable Six Hundred Twenty-five
Thousand Dollars ($625,000.00) to Stanley Holland by wire transfer to “Wells Fargo, Acct. No. 0264433509, ABA No. 121000248”
and Three Hundred Seventy-five Thousand Dollars ($375,000.00) to OmniGlow by wire transfer. In addition, within 14 days from the
execution of this Agreement, Cyalume shall transfer 625,139 shares of Cyalume stock, one-half to Holland and one-half to OmniGlow.
Further, Cyalume may fully satisfy the remaining balance due on the Settlement Amount by either making additional payments by cash
and/or through cooperative manufacturing credits of (i) One Million Nine Hundred Thousand Dollars ($1,900,000.00) in cash or credits
if paid and received by OmniGlow within eighteen (18) months from the Effective Date of this Agreement, or (ii) Two Million Three
Hundred Fifty Thousand Dollars ($2,350,000.00) in cash or credits if paid and received by OmniGlow within twenty seven (27) months
from the Effective Date of this Agreement. If Cyalume fails to fully satisfy the payment obligation on the Settlement Amount through
2(b)(i) or 2(b)(ii), then after twenty seven (27) months from the Effective Date, any balance remaining from the Settlement Amount
will be due and payable plus accrued interest at simple interest rate of 10% per annum (“Interest Rate”) on the unpaid
balance (Settlement Amount less all payments made from the Effective Date forward) from the Effective Date until paid in full and
OmniGlow can use all available remedies to obtain payment of any balance. In order to avoid any confusion regarding the interest
calculation described in the preceding sentence, an example is provided as follows for illustration purposes only: From the
Effective Date, the remaining balance would be $4,297,851.47, reflecting $250,000 good faith payment to OmniGlow. This remaining
balance will accrue interest at the Interest Rate until next payment. Upon payment of an additional $1,000,000 by Cyalume, the
remaining balance will be reduced to $3,297,851.47 and this remaining balance will accrue interest at the Interest Rate from the
date of the $1,000,000 payment until further payments and so and so forth until the Settlement Amount is fully satisfied through
the payment options included herein.

 

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C.                
WHEREAS, reference to “Cyalume stock” in the Settlement Agreement should have stated, and shall be deemed
to have stated as of July 10, 2014, “Cyalume Technologies Holdings, Inc. stock”.

 

D.               
WHEREAS, on July 10, 2014, and consistent with Paragraph 3.b. of the Settlement Agreement, Cyalume paid Two Hundred
Fifty Thousand Dollars ($250,000) to OmniGlow by wire transfer to “CitiBank, Acct. No. 35354087, ABA No. 021000089”.

 

E.                
WHEREAS, on July 11, 2014, the Parties, having identified certain typographical errors in the Settlement Agreement,
agreed to correct those errors and swap in the revised provision to the executed Settlement Agreement.

 

F.                 
WHEREAS, on July 11, 2014, Cyalume circulated the Settlement Agreement (with the corrected provision), and OmniGlow,
Randye M. Holland and Stanley M. Holland as Trustees of the Randye M. Holland and Stanley M. Holland Trust, the Leemon Family LLC
and Ira Leemon accepted the revised Settlement Agreement, and the Parties agreed that the revised version was to be deemed in full
force and effect as of July 10, 2014.

 

G.               
WHEREAS, on July 17, 2014, and consistent with Paragraph 3.b. of the Settlement Agreement, Cyalume Technologies Holdings,
Inc. transferred ownership of 625,139 shares of Cyalume Technologies Holdings, Inc. stock, one-half to Stanley Holland and one-half
to OmniGlow.

 

H.               
WHEREAS, thereafter, the Parties agreed that the Settlement Agreement was unambiguous but, to further clarify the
Settlement Agreement to reflect the Parties’ intentions as of July 10, 2014, the Parties agreed to revise Settlement Agreement
Paragraph 7.a. via the First Amendment.

 

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I.                  
WHEREAS, the Parties agreed that the First Amendment was deemed to have been in full force and effect as of July
10, 2014.

 

J.                  
WHEREAS, excepting Settlement Agreement Paragraph 7.a., the Settlement Agreement’s terms and conditions were
restated and incorporated by reference into the First Amendment (a true and accurate copy of which is appended hereto as Exhibit
A) and otherwise remained in full force and effect.

K.               
WHEREAS, on July 29, 2014, the Parties executed the First Amendment and exchanged signatures.

 

L.                
WHEREAS, reference to “Cyalume stock” in the First Amendment should have stated, and shall be deemed
to have stated as of July 10, 2014, “Cyalume Technologies Holdings, Inc. stock”.

 

M.              
WHEREAS, on July 31, 2014, and consistent with Paragraph 3.b. of the Settlement Agreement, Cyalume paid Six Hundred
Twenty Five Thousand Dollars ($625,000) to Stanley Holland as Trustee of the Randye M. Holland and Stanley M. Holland Trust by
wire transfer to “Wells Fargo, Acct. No. 0264433509, ABA No. 121000248” and Cyalume paid Three Hundred Seventy Five
Thousand Dollars ($375,000) to OmniGlow by wire transfer to “CitiBank, Acct. No. 35354087, ABA No. 021000089”.

 

N.               
WHEREAS, at present, Cyalume is under no obligation to make any settlement payments to OmniGlow until January 10,
2016 at the earliest and, in fact, in accordance with the Settlement Agreement, Cyalume could delay payments until October 10,
2016.

 

O.               
WHEREAS, OmniGlow has an immediate need to use such settlement proceeds and Cyalume is making payment of the Accelerated
Settlement Amount (as defined immediately below) as an accommodation to OmniGlow.

 

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P.                 
WHEREAS, the Parties have reached accord to accelerate Cyalume’s payment(s) remaining due under Paragraph 3
of the Settlement Agreement, whereby Cyalume will pay One Million Four Hundred Thousand Dollars ($1,400,000) (the “Accelerated
Settlement Amount”) in full and final satisfaction of all monies due under the Settlement Agreement upon the execution of
this Second Amendment to the Settlement Agreement (the “Second Amendment”), thereby (a) satisfying all of its Settlement
Agreement payment obligations and (b) allowing, among other things, the Randye M. Holland and Stanley M. Holland Trust to receive
One-Million, One Hundred Five Thousand Dollars ($1,105,000) and providing OmniGlow immediate access to the remaining Accelerated
Settlement Amount of Two Hundred Ninety Five Thousand Dollars ($295,000).

 

Q.               
WHEREAS, by this Second Amendment, the Parties agree to modify the Settlement Agreement’s payment terms, and
those other Settlement Agreement terms and conditions impacted by Cyalume’s agreed-upon accelerated payment of monies, and
agree to the additional terms found herein set forth below.

 

R.                
WHEREAS, Stanley Holland, individually and in his capacity as Trustee of the Randye M. Holland and Stanley M. Holland
Trust, is, by virtue of the Loan Modification Settlement Agreement including its exhibits (“LMA”), LMA-related Settlement
Agreement, Confessed Judgment and resulting judgment therefrom, is a senior secured creditor of OmniGlow in the amount of $1,923,285.06
plus recoverable costs and interest after May 16, 2015, which secured debt Ira Leemon and Leemon Family LLC have personally guaranteed
as set forth in the LMA.

 

S.                 
WHEREAS, judgment entered in Superior Court of California, County of Ventura in Case Number 56-2015-00467575-CU-EN-VTA
against OmniGlow (the “California Judgment”) and writ of attachment issued in the amount of $1,923,285.06 against “Any
and all money owed from a company named Cyalume Technologies, Inc. (“Cyalume”) that is the result of a judgment that
was obtained by OmniGlow LLC against Cyalume in Civil Action No. 06-706 in the Superior Court of Hampden County, Massachusetts”
on account of certain obligations arising under various agreements by and between Stanley Holland, individually and as Trustee
of the Randye M. Holland and Stanley M. Holland Trust, in the first instance, and OmniGlow, in the second instance, which obligations
Ira Leeman and Leemon Family LLC have personally guaranteed as set forth in the LMA.

 

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T.                 
WHEREAS, Stanley Holland, individually and as Trustee of the Randye M. Holland and Stanley M. Holland Trust, reached
agreement with OmniGlow and Ira Leemon concerning partial satisfaction of payment of the California Judgment, whereby Stanley Holland,
individually and on the Randye M. Holland and Stanley M. Holland Trust’s behalf, agreed to permit payment of the monies due
hereunder consistent with amended Paragraph 3.b. such that, among other things, OmniGlow and Ira Leemon may have present use of
funds they are not otherwise entitled to for purposes of paying certain OmniGlow unsecured creditors.

 

U.               
Cyalume acknowledges that Cyalume recently procured a new lender who was fully informed of and, therefore, has knowledge
of the Amended Final Judgment and monies owed to OmniGlow pursuant to the Settlement Agreement, and, as such, fully intended to
have the Settlement Agreement satisfied as part of loan provided to Cyalume.

 

NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all the Parties, and in
consideration of the promises and covenants set forth herein, the Parties hereby stipulate and agree to the following:

 

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1.Definitions.
Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them by the Settlement Agreement, as
amended.

 

2.Amendments
to the Settlement Agreement.

 

a.Section
3.b. of the Settlement Agreement is hereby amended and restated as follows:

 

“3.Settlement
Payment.

 

b.Cyalume shall make payment
of One Million Four Hundred Thousand Dollars ($1,400,000) as an accelerated payment against those monies remaining due and owing
under the Settlement Agreement, payable to OmniGlow by depositing said One Million Four Hundred Thousand Dollars ($1,400,000) in
escrow ("Escrow") with Judd Peskin of Peskin, Courchesne & Allen, P.C. located at 101 State St #401, Springfield,
Massachusetts 01103) ("Deal Agent"). OmniGlow has retained the Deal Agent as its legal counsel for the purpose of effectuating
the settlement payment process outlined in this Paragraph.

 

The One Million Four Hundred
Thousand Dollars ($1,400,000) deposit shall be by wire transfer to Deal Agent’s Attorney Trust Account, United Bank Acct.
Name Peskin, Courchesne & Allen, P.C., Acct No. _______, ABA No.  _______ (the “Cyalume Final Wire”). The Deal
Agent shall then wire One Million One Hundred Five Thousand Dollars ($1,105,000) to the Randye M. Holland and Stanley M. Holland
Trust via wire to Wells Fargo Acct. No.  _______, ABA No.  _______, then pay costs associated with Escrow to Deal Agent, and
then wire the remaining balance to OmniGlow via wire to Spina & Kreitzman Attorney Trust Account Bank of America Acct. No.
 _______, ABA No.  _______, at which time the Escrow shall be closed. The Cyalume Final Wire shall occur by the close of business
the fifth calendar day following the Parties’ execution of this Second Amendment.

 

The Parties’ acknowledge
that Cyalume’s payment of the Cyalume Final Wire satisfies all Settlement Agreement payment obligations of Cyalume. Payment
shall be deemed made upon confirmation of Deal Agent’s receipt of the Cyalume Final Wire (“Cyalume Final Wire Payment”).

 

b.Section
5 of the Settlement Agreement is amended and restated in its entirety as follows:

 

“5.Satisfaction
of Amended Final Judgment. OmniGlow, Randye M. Holland and Stanley M. Holland as Trustees of the Randye M. Holland and Stanley
M. Holland Trust, the Leemon Family LLC and their counsel of record authorize Cyalume’s and Jachmann’s counsel of record,
Thomas T. Reith, to execute the document appended here as Exhibit B indicating that Cyalume and Jachmann have satisfied
the amounts due under the Amended Final Judgment in full (the “Satisfaction”). Thomas T. Reith shall hold the Satisfaction
in escrow until the Cyalume Final Wire Payment. At that time, Thomas T. Reith may release the Satisfaction and file it with the
Hampden County Superior Court. OmniGlow, Randye M. Holland and Stanley M. Holland as Trustees of the Randye M. Holland and Stanley
M. Holland Trust, the Leemon Family LLC and their counsel of record authorize Thomas T. Reith to so release and file the Satisfaction.”

 

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c.Section
8(a) of the Settlement Agreement is amended and restated in its entirety as follows:

 

“8.Settlement and
Release of Civil Claims.

 

Immediately upon the Cyalume
Final Wire Payment due under Paragraph 3 above, OmniGlow, Randye M. Holland and Stanley M. Holland as Trustees of the Randye M.
Holland and Stanley M. Holland Trust, the Leemon Family LLC and Ira Leemon and their respective successors and assigns, officers,
directors, members, stockholders, partners, agents, servants, employees, insurers, attorneys and representatives release, acquit
and forever discharge Cyalume and all of its successors and assigns, officers (including Jachmann), directors, members, stockholders,
partners, agents, servants, employees, insurers, attorneys and representatives from any and all disputes, damages, actions, liabilities,
attorneys’ fees, costs, demands and any other claims, including the Civil Claims, known or unknown, suspected or unsuspected,
arising out of, relating to or in any way connected with the Civil Claims and Amended Final Judgment (collectively, the “Cyalume
Released Claims”), but not the obligations in or arising from the Settlement Agreement, as twice amended.”

 

3.Conditions to Effectiveness.The
effectiveness of this Second Amendment is subject to the fulfillment of each of the following conditions precedent:

 

a.Board Consent. Cyalume and OmniGlow
will secure their respective Board’s / Member’s consent to the Second Amendment, and will provide all Parties copy
of the corresponding written resolution.

 

b.Execution of the Amendment. All
Parties shall have executed this Second Amendment and shall have received a counterpart to this Second Amendment, duly executed
by each of the other Parties.

 

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c.Payment. Cyalume shall timely
pay the Accelerated Settlement Amount as set forth in Paragraph 3.b. of the Settlement Agreement, as amended hereby.

 

4.Representations and Warranties.

 

Each of the applicable Parties represents
and warrants as follows:

 

a.The execution, delivery and performance
by the Parties to this Second Amendment and the performance by the Parties of the Settlement Agreement, as amended by the First
Amendment and hereby, to the extent necessary, have been duly authorized by all necessary action, and the Parties have all the
requisite power, authority and legal right to execute, deliver and perform this Second Amendment and to perform the Settlement
Agreement, as amended hereby.

 

b.The negotiation and execution
of this Second Amendment has been done at arm’s length, all Parties have acted in good faith and in accordance with any fiduciary
duties they may possess and the agreements contained in this Second Amendment, once consummated, have resulted and will result
in both direct and indirect benefits to all the Parties.

 

c.The representations and warranties
contained in Paragraphs 10 and 11 of the Settlement Agreement are true and correct in all material respects after giving effect
to this Second Amendment as though made on and as of the date hereof (except to the extent such representations and warranties
expressly relate to an earlier date), and there has occurred no default with respect to the Settlement Agreement as of the date
hereof, nor would a default result from this Second Amendment becoming effective in accordance with its terms.

 

d. OmniGlow, Ira Leemon, and Leemon LLC represent
and warrant that no single OmniGlow creditor who is not a Party to the Settlement Agreement is owed more than $130,000.

 

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e.Each of the Parties has been given the
opportunity to have counsel of their choice review and approve this Second Amendment.

 

5. Indemnification.

 

A.To the fullest extent permitted by
law, Ira Leeman, the Leemon Family LLC and OmniGlow (collectively the “OmniGlow Indemnifying Parties”) shall indemnify,
defend, and hold Jachmann and Cyalume and its subsidiaries, affiliates, officers, directors, members, managers, agents, attorneys,
successors and assigns (collectively the “Indemnified Parties”), harmless from and against all debts, demands,
claims, lawsuits, investigations, costs, liabilities, amounts paid in settlement, damages, losses, and other expenses, including,
but not limited to, attorneys’ fees, expenses and court costs, penalties, fines, liquidated and punitive damages as well
as fees and expenses of defense, appeal and settlement of any legal or administrative proceedings instituted against the Indemnified
Parties and all costs of investigation therewith (collectively the “Indemnifiable Losses”), to the extent such Indemnifiable
Losses are caused by, or that result from or are related in any way to (a) the transactions and agreements provided for by this
Second Amendment, (b) the performance or failure to perform by any Indemnifying Party of any duty, obligation, covenant, or agreement
imposed upon them by this Second Amendment, (c) any breach by an Indemnifying Party of any of the representations, warranties,
agreements, or covenants contained in this Second Amendment, and (d) any action that seeks to void or contest the transactions
contemplated in or by this Second Amendment or increase the Parties’ bargained-for Accelerated Settlement Amount. The OmniGlow
Indemnifying Parties agree that this provision shall survive any voiding of the Second Amendment, and that good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, was exchanged for this specific paragraph.

 

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B. To the fullest extent permitted by
law, should this Second Amendment be voided or contested and, as a result, Cyalume is ordered or otherwise required to pay One
Million Nine Hundred Thousand Dollars ($1,900,000) to OmniGlow consistent with the terms set forth in Settlement Agreement Paragraph
3.b. (or any amount in excess of $1,400,000, up to and including the $1,900,000 figure), Cyalume shall only be required to pay
One Million Four Hundred Thousand Dollars ($1,400,000) and Stanley Holland, individually and as Trustee of the Randye M. Holland
and Stanley M. Holland Trust (collectively the “Holland Indemnifying Parties”) shall indemnify and hold Cyalume harmless
as to the remaining Five Hundred Thousand Dollars ($500,000) of the One Million Nine Hundred Thousand Dollars ($1,900,000) (or
any amount in excess of $1,400,000, up to and including the $1,900,000 figure). The Holland Indemnifying Parties agree that this
provision shall survive any voiding of the Second Amendment, and that good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, was exchanged for this specific paragraph.

 

6. Miscellaneous.

 

a.Continued Effectiveness of the Settlement
Agreement. Except as otherwise expressly provided herein, the Settlement Agreement, as amended, is and shall continue to be,
in full force and effect and is herby ratified and confirmed in all respects, except that on and after the date hereof all references
in the Settlement Agreement to “this Agreement”, “hereto”, “hereof” and “hereunder”
for words of similar import referring to the Settlement Agreement shall mean the Settlement Agreement as amended by the First Amendment
and this Second Amendment.

 

b.Counterparts.This Second
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which
shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of this Second Amendment by facsimile or electronic mail shall be equally as effective as delivery of an original
executed counterpart of this Second Amendment.

 

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c.Headings. Section headings herein
are included for convenience of reference only and shall not constitute a part of this Second Amendment for any other purposes.

 

d.Governing Law. This Second Amendment
shall be governed by the laws of the Commonwealth of Massachusetts.

 

e.Waiver of Jury Trial.AS TO
THIS SECOND AMENDMENT ONLY, THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT
CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.

 

SIGNATURES ON FOLLOWING PAGE

 

 

 

 

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	CYALUME TECHNOLOGIES INC.	 	OMNIGLOW, LLC
	 	 	 	 	 
	By:	/s/ Zivi Nedivi	 	By:	/s/ Ira S. Leemon
	 	 	 	 	 
	Name:   	Zivi Nedivi	 	Name:    	Ira S. Leemon
	 	 	 	 	 
	Title:  	CEO	 	Title: 	President
	 	 	 	 	 
	RANDYE M. HOLLAND AND 	 	THE LEEMON FAMILY LLC
	STANLEY M. HOLLAND TRUST	 	 	 
	 	 	 	 	 
	By:	/s/ Stanley M. Holland	 	By:	/s/ Ira S. Leemon
	 	 	 	 	 
	Name:   	Stanley M. Holland 	 	Name:     	Ira S. Leemon
	 	 	 	 	 
	Title:  	Trustee	 	Title: 	Manager
	 	 	 	 	 
	IRA LEEMON, INDIVIDUALLY	 	 	 
	 	 	 	 	 
	/s/ Ira Leemon	 	 	 

 \

Acknowledgement and Agreement

 

I, Judd L. Peskin, the above-identified
Deal Agent, being a Partner at Peskin, Courchesne & Allen, P.C. of 101 State Street, Suite 301, Springfield, Massachusetts
01103, hereby acknowledge receipt of this Second Amendment To The Parties’ July 10, 2014 Confidential Settlement Agreement
And Mutual Release (including its Exhibits A and B), agree to carry out the Deal Agent instructions set forth
in Paragraph “3. Settlement Payment” above and certify that OmniGlow, alone, is responsible for the fees associated
with any services that I perform or costs / expenses that I incur in connection with carrying out the Deal Agent instructions set
forth in Paragraph “3. Settlement Payment” above.

 

	 	/s/ Judd L. Peskin
	 	Judd L. Peskin, Esq.
	 	Peskin, Courchesne & Allen, P.C.
	 	101 State Street, Suite 301
	 	Springfield, MA 01103

 

    	13

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