Document:

AMENDMENT, CONSENT AND WAIVER

EXHIBIT 10.2

AMENDMENT AND WAIVER

This AMENDMENT AND WAIVER (this “Amendment and Waiver”) is dated as of April 23, 2008, by and between Ambient Corporation, a Delaware corporation (the “Company”) and Vicis Capital Master Fund (“Vicis”), a series of the Vicis Capital Master Trust, a trust formed under the laws of the Cayman Islands.

R E C I T A L S:

WHEREAS, pursuant to a Securities Purchase Agreement dated July 31, 2007 by and between the Company and Vicis (the “July SPA”), as amended by that certain First Amendment to the Securities Purchase Agreement, dated November 1, 2007 by and between the Company and Vicis (the “First July SPA Amendment”), as further amended by that certain Second Amendment to the Securities Purchase Agreement, dated January 15, 2008 by and between the Company and Vicis (the “Second July SPA Amendment”), Vicis acquired a Secured Convertible Promissory Note in the aggregate principal amount of Seven Million Five Hundred Thousand Dollars ($7,500,000) (the “July Note”), a Series A  Warrant (the “A Warrant”) to purchase common stock of the Company, and a Series B Warrant to purchase common stock of the Company (the “B Warrant”).

WHEREAS, pursuant to a Securities Purchase Agreement dated November 1, 2007 by and between the Company and Vicis (the “November SPA”), as amended by that certain First Amendment to the Securities Purchase Agreement, dated January 15, 2008 by and between the Company and Vicis (the “First November SPA Amendment”), Vicis acquired a Secured Convertible Promissory Note in the aggregate principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000) (the “November Note”), a Series C  Warrant (the “C Warrant”) to purchase common stock of the Company, and a Series D Warrant to purchase common stock of the Company (the “D Warrant”).

WHEREAS, pursuant to a Securities Purchase Agreement dated January 15, 2008 by and between the Company and Vicis (the “January SPA”, together with the July SPA and November SPA, each as amended, the “Purchase Agreements”), Vicis acquired a Secured Convertible Promissory Note in the aggregate principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000) (the “January Note”, together with the July and November Notes, the “Notes”) and a Series E  Warrant (the “E Warrant”, together with the A, B, C and D Warrants, the “Warrants”) to purchase common stock of the Company.

WHEREAS, pursuant to that certain Registration Rights Agreement dated July 31, 2007, by and between the Company and Vicis (the “Rights Agreement”), as amended by that certain First Amendment to the Registration Rights Agreement, dated November 1, 2007 by and between the Company and Vicis (the “First Amendment”), as further amended by that certain Second Amendment to the Registration Rights Agreement, dated January 15, 2008 by and between the Company and Vicis (the “Second Amendment”), the Company agreed that it would on or before March 28, 2008 (the “Required Filing Date”), file a registration statement (the “Registration Statement”) with the United States Securities and Exchange Commission (the “SEC”) to register for resale by Vicis shares of the Company’s common stock underlying the Notes and Warrants held by Vicis.

WHEREAS, pursuant to that certain Amendment and Waiver dated March 28, 2008 by and between the Company and Vicis (the “Waiver”), the parties agreed that the Required Filing Date under the Rights Agreement, as amended, would be June 26, 2008, and that the Company will be in default under the Notes if the Registration Statement is not declared effective by the SEC on or before October 24, 2008 (“Event of Default”).

WHEREAS, the parties are on even date herewith entering into a Securities Purchase Agreement, whereby Vicis is acquiring from the Company a certain Series F Warrant (the “Warrant Financing”).

WHEREAS, in connection with the Warrant Financing, the parties desire to change the Required Filing Date under the Rights Agreement, as amended, to December 15, 2008, and Vicis wishes to waive such Event of Default in accordance with the Notes and the Purchase Agreements on the terms as hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and of the mutual benefits to be gained by the performance thereof, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledge, the parties hereto hereby agree as follows:

1.

Amendment to Rights Agreement.  The definition for the term “Filing Date” in the Registration Rights Agreement, as amended, is hereby deleted and replaced in its entirety as follows:

“Filing Date” means, subject to Section 2(b) hereof, December 15, 2008; provided  that, if the Filing Date falls on a Saturday, Sunday or any other day which shall be a legal holiday or a day on which the Commission is authorized or required by law or other government actions to close, the Filing Date shall be the following Business Day.

2.

 Waiver of Default.  Vicis hereby irrevocably waives the Event of Default with respect to each Note, provided that, the Registration Statement be declared effective by the SEC on or prior to April 14 2009, subject to the provisions of the Registration Rights Agreement, including, without limitation, Section 2(b) thereof.

3.

Ratification.  Except as expressly amended by this Amendment and Waiver, the terms and conditions of the Purchase Agreements, the Notes, the Warrants, and the Rights Agreement are hereby confirmed and shall remain in full force and effect without impairment or modification.

4.

Conflict.  In the event of any conflict between any of the Purchase Agreements, the Notes, the Warrants, and the Rights Agreement and this Amendment and Waiver, the terms of this Amendment and Waiver shall govern.

5.

Governing Law.  This Amendment and Waiver shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to applicable principles of conflicts of law that would require the application of the laws of any other jurisdiction.

6.

Counterparts.  This Amendment and Waiver may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their respective authorized representatives as of the day and year first above written.

					
	         

	AMBIENT CORPORATION

	 
	 
	  

	 
	 
	 

	 
	By:  

	/s/ John J. Joyce

	 
	Name:

	John J. Joyce

	 
	Title:

	President

			
	 
	VICIS CAPITAL MASTER FUND,

a sub-trust of Vicis Capital Series Master Trust

By: Vicis Capital LLC

	 
	 
	 

	 
	 
	 

	 
	By:  

	/s/ Keith W. Hughes

	 
	Name:

	Keith W. Hughes

	 
	Title:

	Chief Financial OfficerFiled by Bowne Pure Compliance

Exhibit 10.1

May 09, 2008

Mr. S. Jambunathan

Chairman of the Board of Directors of HMNA

c/o HMNA

200 Park Avenue South

New York, New York 10003

Re: Amendment to Employment Agreement

Dear Mr. Quadrino:

Helios & Matheson North America – HMNA, (“Company”) hereby agrees to amend your Employment
Agreement dated as of May 01, 2006 (“Agreement”) entered into by and between The A Consulting Team
Inc. (former name of HMNA) and yourself, Salvatore M. Quadrino, (“Employee”) as follows

	(1)	 	The content in Section 1 of Agreement will be replaced by the content provided in this bullet point (1) of this Amendment.

The Company hereby employs Employee as Chief Financial Officer. The Company, HMNA, will provide
Employee with an office and appropriate computer and communications at metropolitan area office.
Employee hereby accepts employment in such capacity and conditions as hereinafter set forth.

In addition, for the interim period, beginning with the date of ratification of this Amendment and
until Company appoints a new Chief Executive Officer, Company offers and Employee accepts the
responsibility of Interim Chief Executive Officer, in addition to Employee’s role & responsibility
as Chief Financial Officer.

When Company hires a new Chief Executive Officer, Employee will revert back to the original role of
Chief Financial Officer.

As a condition of continued Employment, Employee agrees to perform as expected by the Company in
the capacity of Chief Financial Officer and Interim Chief Executive Officer, and bear all
appropriate responsibilities, including SEC related responsibilities that roles of Chief Financial
Officer and Chief Executive Officer have to bear.

	(2)	 	The content in Section 2 of Agreement will be replaced by the content provided in this bullet point (2) of this Amendment.

This Agreement is for the time period May 1st 2008 to June 30th 2009 (Term).
Thereafter, the Agreement will automatically renew for additional 1-year terms (Renewal Terms),
unless either Party (Company or Employee) conveys in writing to the other, of its intention not to
renew the Agreement at least 30 days prior to the end of the corresponding Term. Termination of
Agreement by the Company will be governed by the provisions of Section 8. The entire period in
effect is hereinafter referred to as the “Employment Period”.

	(3)	 	The content in Section 3 of Agreement will be replaced by the content provided in this bullet point (3) of this Amendment.

The Company shall pay to Employee the following compensation for all the services to be rendered by
Employee in any capacity:

	 	•	 	A base salary at the rate of $200,000 per year (annual base salary of
Two Hundred Thousand US Dollars) payable twice a month, less all
applicable and required federal, state, local and authorized
deductions.

	 
	 	•	 	Upon approval by the Board of Directors, the Company shall grant to
Employee options to shares of Company Common Stock, from time to time,
in accordance with the terms of Company’s Stock Option and Award Plan.

 

 

 

	 	•	 	A Performance Based Bonus that is modifiable quarterly, semi-annually,
or annually, for expected performance, as reasonably determined
appropriate by Company, to motivate Employee to help achieve the
operational and financial goals of Company. The Performance Based
Bonus plan along with Performance Goals for Employee will be
separately specified as Performance Target and Bonus Plan (hereinafter
called Performance Plan). Performance Plan may be reasonably and
periodically specified or modified by Company, at its sole discretion,
in the interests of Company and all of its stakeholders.

	 
	 	•	 	The use of a Company car and reimbursement of all related usage
expenses. The expenses will be capped at $500 per month, or $6,000 per
annum, for all car usage related expenses, except for car repairs,
which the Company will pay in addition to this budgeted cap.

	 
	 	•	 	Employee shall be entitled to participate in the Company’s employee
and fringe benefit plans and programs and shall be entitled to sick
days and personal days in accordance with the Company’s PTO policy for
the Chief Financial Officer’s position.

As long as Company offers and Employee continues to take on the responsibility of Interim Chief
Executive Officer, an additional gross salary at the rate of $60,000 per year (additional annual
salary of Sixty Thousand US Dollars) payable twice a month, less all applicable and required
federal, state, local and authorized deductions, will be paid to Employee. This additional
compensation will be withdrawn when Company withdraws the position of Interim Chief Executive
Officer from Employee.
 
 

	(4)	 	The content in Section 8 of Agreement will be replaced by the content provided in this bullet point (3) of this Amendment.

The Employment Period shall be terminated at the time of the death of Employee or may be terminated
by Company if Employee shall fail to render the services provided for hereunder for a continuous
period of ninety (90) days because of Employee’s physical or mental disability. Notwithstanding
anything to the contrary herein, either party may terminate the
Employment Period, with or without cause and for any reason whatsoever, by giving thirty (30) days
prior notice to the other party.

In the event Company terminates Employee without Cause, death or disability, or if the Employee
should resign for a Sufficient Reason, as defined in this Employment Agreement, Employee shall be
entitled to receive as severance an amount equal to Six (6) months of Employee’s then current base
salary. In the event, Company terminates Employee without Cause within 6 months after the
appointment of a new Chief Executive Officer, Employee shall be entitled to receive as severance an
additional amount equal to Three (3) months of Employee’s then current base salary.

For purposes of this Section 8, “Cause” shall mean: (a) Employee’s embezzlement, negligence,
willful breach of fiduciary duty or fraud with regard to Company or any of Company’s assets or
businesses, (b) Employee’s conviction of, or pleading of nolo contendere with regard to a felony
(other than a traffic violation) or any other crime involving moral turpitude and involving
activity related to the affairs of Company, (c) Employee’s refusal or negligence in carrying out
lawful requests or directives of the Company after such requests or directives were issued after
discussion with Employee, and (d) any other breach by Employee of a material provision of this
Agreement that remains uncured for thirty (30) days after written notice thereof is given to
Employee.

In the event Company terminates the Employment Period for Cause, Company’s sole obligation is to
pay Employee for that period actually worked by Employee (plus any commissions and/or vacation pay
due for that period, if applicable).

Employee may terminate the Employment Period for “Sufficient Reason” in accordance with the
provisions hereof. For purposes of this Agreement, Sufficient Reason shall mean any material
reduction in Employee’s base compensation by more than 25%, requirement by the Company for the
Employee to work from any location more than 50 miles away from the current office location, or a
written request by the Company to perform illegal acts including but not limited to violating SEC
or NASDAQ rules or regulations.
 
 

 

 

 

Please acknowledge your agreement to such extension of Employment by executing a copy of this
letter agreement and returning such executed copy to the Company.
 

	 	 	 
	Helios & Matheson North America
	 	 
	 
	 	 
	/s/ Srinivasaiyer Jambunathan
	 	 
	 

Mr. S. Jambunathan

	 	 
	Chairman of the Board of Directors of HMNA
	 	 
	 
	 	 
	Acknowledged and Agreed  
	 	 
	 
	 	 
	/s/ Salvatore M. Quadrino  
	 	 
	 

Mr. Salvatore M. Quadrino

	 	 Date
5/9/2008

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