Document:

ex102.htm

    EXHIBIT 10.2

    
 
b

    DEBT CONVERSION AGREEMENT
AND RELEASE

     

    THIS DEBT
CONVERSION AGREEMENT AND RELEASE (this “Agreement”) is made and entered into
effective as of the 21st day of
April 2008, by and between Triumph Small Cap Fund, Inc. (“Triumph”) and In
Veritas Medical Diagnostics, Inc. (the "Company").

    

    WHEREAS, the Company is
indebted to Triumph in the aggregate sum of Four Hundred and Fifty Thousand
($450,000) Dollars plus accrued interest amounting to Sixty Thousand, Two
Hundred and Sixteen ($60,216) Dollars pursuant to certain Secured Convertible
Debentures set forth on Schedule I attached hereto (collectively, the
“Debentures”), of the Company issued on the dates and in the amounts as
indicated on Schedule I.

     

    WHEREAS, the Company is also
indebted to Triumph in the aggregate sum of One Hundred and Five Thousand,
Eight  Hundred and Nineteen ($105,819) Dollars (the “Short Term
Advances”) which were advanced to the Company by Triumph.

     

    WHEREAS, Triumph desires to
convert the Debentures and the Short Term Advances into shares of the Company’s
common stock at a price of $0.05 and the Company is willing to do so pursuant to
the terms of this Agreement.

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged and confessed, the Parties agree as
follows:

     

    1.           CONSIDERATION.  Upon
execution of this Agreement by the parties and delivery to the Company of the
Debentures pursuant to Section 2 below, the Company shall promptly arrange for
issuance of a stock certificate to Triumph representing 12,320,700 shares of the
Company’s common stock (the “Shares”)
upon conversion of the Debentures and Short Term Advances (collectively the
“Debt”). As additional consideration for the conversion of the Debt, the Company
shall simultaneously herewith issue a five year warrant to Triumph to purchase
5,000,000 shares of the Company’s common stock at a price of $0.05 per share, in
the form of which is attached hereto as Exhibit A.

    

    2.           DELIVERY AND CANCELLATION OF
NOTE.  Upon execution and delivery of this Agreement, Triumph
shall deliver to the Company the Debentures and any and all evidences of the
Short Term Advances  which shall be “cancelled” by the
Company.  Triumph hereby agrees that all obligations of the Company in
respect to the Debt are fully satisfied thereby or waived and released as herein
provided.

     

    3.           TRIUMPH REPRESENTATIONS AND
WARRANTIES.  As of the date hereof, Triumph represents and
warrants the following:

     

    
      	
              A.  

            	
              Organization;
      Authority.  Triumph is an entity duly organized, validly
      existing and in good standing under the laws of the jurisdiction of its
      organization with full right, corporate, partnership or other applicable
      power and authority to enter into and to consummate the transactions
      contemplated by this Agreement and otherwise to carry out its obligations
      hereunder, and the execution, delivery and performance by Triumph of the
      transactions contemplated by this Agreement have been duly authorized by
      all necessary corporate or similar action on the part of
      Triumph.  This Agreement, when executed and delivered by
      Triumph, will constitute a valid and legally binding obligation of
      Triumph, enforceable against Triumph in accordance with its terms, except
      (a) as limited by applicable bankruptcy, insolvency, reorganization,
      moratorium, fraudulent conveyance, and any other laws of general
      application affecting enforcement of creditors’ rights generally, (b) as
      limited by laws relating to the availability of specific performance,
      injunctive relief, or other equitable remedies, or (c) to the extent the
      indemnification provisions contained herein may be limited by federal or
      state securities laws.

            

    

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
              B.  

            	
              Investment Experience;
      Access to Information and Preexisting
      Relationship.  Triumph (a) either alone or together with
      its representatives, has such knowledge and experience in financial and
      business matters as to be capable of evaluating the merits and risks of
      this investment and make an informed decision to so invest, and has so
      evaluated the risks and merits of such investment, (b) has the ability to
      bear the economic risks of this investment and can afford a complete loss
      of such investment, (c) understands the terms of and risks associated with
      the acquisition of the Shares, including, without limitation, a lack of
      liquidity, price transparency or pricing availability and risks associated
      with the industry in which the Company operates, (d) has had the
      opportunity to review such disclosure regarding the Company, its business,
      its financial condition and its prospects as Triumph has determined to be
      necessary in connection with the conversion of the Debentures, including,
      without limitation, the Company’s Annual Report on Form 10-K (or
      substantially equivalent form) for its most recently completed fiscal
      year, the Company’s Quarterly Reports on Form 10-Q (or substantially
      equivalent form) for the fiscal quarters since the end of such completed
      fiscal year, and the Company’s Current Reports on Form 8-K (or
      substantially equivalent form) since the end of such completed fiscal
      year, each as amended.

            

    

     

    
      	
              C.  

            	
              Status.  At
      the time Triumph was offered the Shares, it was, and as of the date hereof
      it is, an “accredited
      investor” as that term is defined in Rule 501(a) of Regulation D
      under the Securities Act.  Triumph is not, and is not required
      to be registered as, a broker-dealer under Section 15 of the Securities
      Exchange Act of 1934, as amended (the “Exchange Act”).

            

    

     

    
      	
              D.  

            	
              Restrictions on
      Transfer.  Triumph understands that Shares have not been
      registered under the Securities Act or the securities laws of any state
      and are  “restricted
      securities” as said term is defined in Rule 144 of the Rules and
      Regulations promulgated under the Securities Act (“Rule 144”). The
      Shares may not be sold, pledged or otherwise transferred unless a
      registration statement for such transaction is effective under the
      Securities Act and any applicable state securities laws, or unless an
      exemption from such registration provisions is available with respect to
      such transaction, and will bear a legend substantially as set forth
      below:

            

    

     

    THE
SHARES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS.

     

    
      	
              E.  

            	
              General
      Solicitation.  Triumph is not accepting the conversion as
      a result of any advertisement, article, notice or other communication
      regarding the Shares published in any newspaper, magazine or similar media
      or broadcast over television or radio or presented at any seminar or any
      other general solicitation or general
  advertisement.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              F.  

            	
              No Conflicts;
      Advice.  Neither the execution and delivery of this
      Agreement, nor the consummation of the transactions contemplated hereby,
      does or will violate any constitution, statute, regulation, rule,
      injunction, judgment, order, decree, ruling, charge or other restriction
      of any government, governmental agency, or court to which Triumph is
      subject or any provision of its organizational documents or other similar
      governing instruments, or conflict with, violate or constitute a default
      under any agreement, credit facility, debt or other instrument or
      understanding to which Triumph is a party.  Triumph has
      consulted such legal, tax and investment advisors as it, in its sole
      discretion, has deemed necessary or appropriate in connection with the
      conversion of the Debenture.

            

    

     

    
      	
              G.  

            	
              No
      Litigation.  There is no action, suit, proceeding,
      judgment, claim or investigation pending, or to the knowledge of Triumph,
      threatened against Triumph which could reasonably be expected in any
      manner to challenge or seek to prevent, enjoin, alter or materially delay
      any of the transactions contemplated by this
  Agreement.

            

    

     

    
      	
              H.  

            	
              Consents.  No
      authorization, consent, approval or other order of, or declaration to or
      filing with, any governmental agency or body or other Person is required
      for the valid authorization, execution, delivery and performance by
      Triumph of this Agreement and the consummation of the transactions
      contemplated hereby.

            

    

     

    
      	
              I.  

            	
              Stop Transfer
      Notices.   Triumph agrees that, in order to ensure
      compliance with the restrictions referred to herein, appropriate “stop
      transfer” instructions may be issued to the Company’s transfer
      agent.

            

    

     

    4.           COMPANY REPRESENTATIONS AND
WARRANTIES.  As of the date hereof, the Company represents and
warrants the following:

     

    
      	
               
      

            	
              A.

            	
              Organization;
      Authority.  The Company is an entity duly organized,
      validly existing and in good standing under the laws of the jurisdiction
      of its organization with full right, corporate, partnership or other
      applicable power and authority to enter into and to consummate the
      transactions contemplated by this Agreement and otherwise to carry out its
      obligations thereunder, and the execution, delivery and performance by the
      Company of the transactions contemplated by this Agreement have been duly
      authorized by all necessary corporate or similar action on the part of the
      Company.  This Agreement, when executed and delivered by the
      Company, will constitute a valid and legally binding obligation of the
      Company, enforceable against the Company in accordance with its terms,
      except (a) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, fraudulent conveyance, and any other laws of
      general application affecting enforcement of creditors' rights generally,
      (b) as limited by laws relating to the availability of specific
      performance, injunctive relief, or other equitable remedies, or (c) to the
      extent the indemnification provisions contained herein may be limited by
      federal or state securities laws.

            

    

    

    
      	
               
      

            	
              B.

            	
              No Consents,
      Approvals, Violations or Breaches. Neither the execution and
      delivery of this Agreement by the Company, nor the consummation by the
      Company of the transactions contemplated hereby, will (i) require any
      consent, approval, authorization or permit of, or filing, registration or
      qualification with or prior notification to, any governmental or
      regulatory authority under any law of the United States, any state or any
      political subdivision thereof applicable to Assignor, (ii) violate any
      statute, law, ordinance, rule or regulation of the United States, any
      state or any political subdivision thereof, or any judgment, order, writ,
      decree or injunction applicable to Assignor or any of Assignor’s
      properties or assets, the violation of which would have a material adverse
      effect upon Assignor, or (iii) violate, conflict with, or result in a
      breach of any provisions of, or constitute a default (or any event which,
      with or without due notice or lapse of time, or both, would constitute a
      default) under, or result in the termination of, or accelerate the
      performance required by, any of the terms, conditions or provisions of any
      note, bond, mortgage, indenture, deed of trust, license, lease, agreement
      or other instrument or obligation to which Assignor is a party or by which
      Assignor or any of Assignor’s properties or assets may be bound which
      would have a material adverse effect upon
  Assignor.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    5.           Governing Law; Submission to
Jurisdiction.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICT OF LAW PRINCIPLES.  EACH PARTY AGREES THAT ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT SHALL BE
BROUGHT IN A U.S. FEDERAL OR STATE COURT OF COMPETENT JURISDICTION SITTING IN
NEW YORK COUNTY, IN THE STATE OF NEW YORK.  EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO THE JURISDICTION OF SUCH COURT AND
HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY DEFENSE OF AN INCONVENIENT
FORUM OR A LACK OF PERSONAL JURISDICTION TO THE MAINTENANCE OF ANY ACTION OR
PROCEEDING AND ANY RIGHT OF JURISDICTION OR VENUE ON ACCOUNT OF THE PLACE OF
RESIDENCE OR DOMICILE OF ANY PARTY HERETO.  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 AGREEMENT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

     

    6.           Amendments.  No
provision hereof may be waived or modified other than by an instrument in
writing signed by the party against whom enforcement is sought.

     

    7.           Severability.  If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.

     

    8.           Additional
Documents.  The parties agree to take such further action and
to execute and deliver, or cause to be executed and delivered, any and all other
documents which are, in the reasonable opinion of their counterparty, necessary
to carry out the terms and conditions of this Agreement, including filing a
UCC-1 termination statement to evidence the termination of Triumph’s security
interest in all of the assets of the Company.

    

     

    9.           Release.  Upon
the execution of this Agreement by the parties and completion of the obligations
contained in Paragraph 1 and 2:

     

    
      	
               
      

            	
              A.

            	
              Any
      and all commitments, rights and obligations of the Company to Triumph
      pursuant to the Debt shall be terminated, and all amounts due and payable
      by the Company to Triumph pursuant to the terms of the Debentures shall be
      deemed to be paid in full and complete satisfaction of all outstanding
      obligations;

            

    

     

    
      	
               
      

            	
              B.

            	
              Triumph,
      on behalf of itself and on behalf of its affiliates, and its and their
      respective officers, directors, partners, general partner, limited
      partners, shareholders, associates, employees, members, parents,
      subsidiaries, affiliates, agents, predecessors, successors and
      assigns  (collectively, the "Triumph Affiliated
      Parties"), hereby releases and forever discharges the Company and
      its affiliates, and their respective officers, directors, partners,
      general partner, limited partners, shareholders, associates, employees,
      members, parents, subsidiaries, affiliates, agents, predecessors,
      successors and assigns ((collectively, the "Company Affiliated
      Parties"), of and from any and all claims, complaints, demands,
      obligations, causes of action, choices in action and/or damages
      whatsoever, at law or in equity (collectively, "Claims") which such
      parties ever had or now have based on or arising out of events or
      circumstances occurring, or actions taken or failed to be taken, in each
      case, that are known or unknown by Triumph or the Triumph Affiliated
      Parties as of the date hereof, in connection with the
      Debentures.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              C.

            	
              Triumph,
      on its own behalf and on behalf of the Triumph Affiliated Parties,
      covenants, to the maximum extent permitted by law, that neither it nor any
      Triumph Affiliated Party shall at any time hereafter file, commence or
      maintain or authorize any third party to file, commence or maintain on its
      behalf, any suit, action or proceeding before any federal, state or local
      court, administrative body, agency, authority or arbitral organization or
      other tribunal against any of Company Affiliated Parties with respect to
      any Claims released pursuant to Paragraph
9(B).

            

    

     

    
      	
               
      

            	
              D.

            	
              The
      Company, on behalf of itself and on behalf of its affiliates, and its and
      their respective officers, directors, partners, general partner, limited
      partners, shareholders, associates, employees, members, parents,
      subsidiaries, affiliates, agents, predecessors, successors and assigns,
      and anyone claiming by or through any of the foregoing (collectively, the
      "Company
      Affiliated Parties"), hereby releases and forever discharges
      Triumph and Triumph Affiliated Parties of and from any and all Claims
      which such parties ever had or now have based on or arising out of events
      or circumstances occurring, or actions taken or failed to be taken, in
      each case, that are known or unknown by the Company or a Company
      Affiliated Party as of the date hereof, in connection with the
      Debentures.

            

    

     

    
      	
               
      

            	
              E.

            	
              The
      Company, on its own behalf and on behalf of the Company Affiliated
      Parties, covenants, to the maximum extent permitted by law, that neither
      it nor any Company Affiliated Party shall at any time hereafter file,
      commence or maintain or authorize any third party to file, commence or
      maintain on its behalf, any suit, action or proceeding before any federal,
      state or local court, administrative body, agency, authority or arbitral
      organization or other tribunal against Triumph or Triumph Affiliated
      Parties with respect to any Claims released pursuant to Paragraph
      9(D).

            

    

     

    12. Assignment.
No party may assign any of its rights under this Agreement without the prior
consent of the other party hereto; provided that Assignee may, without the
consent of any other party, assign all or any portion of its rights hereunder
to any of its Affiliates. Subject to the preceding sentence, this Agreement
will apply to, be binding in all respects upon, and inure to the benefit of the
successors and permitted assigns of the parties.  Nothing expressed or
referred to in this Agreement will be construed to give any Person other than
the parties to this Agreement any legal or equitable right, remedy, or claim
under or with respect to this Agreement or any provision of this
Agreement.  This Agreement and all of its provisions and conditions
are for the sole and exclusive benefit of the parties to this Agreement and
their successors and assigns.

    

     

    [signature
page follows]

     

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

     

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

     

    

    
      
        	      
                TRIUMPH
      SMALL CAP FUND, INC.

              	 	 	 	
                 

              
	 	 	 	 	 
	 	 	 	 	 
	
                /s/
      Kenneth Orr

              	 	
                 

              	 	
                 

              
	
                      
                  Name:
      Kenneth Orr

                

              	 	 	 	 
	      
                Title:

              	 	 	 	 
	 	 	
                 

              	 	
                 

              
	 	 	 	 	 
	 	 	 	 	 
	
                      
                  IN
      VERITAS MEDICAL DIAGNOSTICS, INC.

                

              	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                /s/
      Martin Thorp

              	 	
                 

              	 	
                 

              
	
                Name:  Martin
      Thorp

              	 	 	 	 
	
                Title:

              	 	 	 	 

      

     

     

     

     

     

    6ex103.htm

    EXHIBIT
10.3

     

    AMENDMENT NO. 1 TO ROYALTY
PARTICIPATION AGREEMENT

     

    This
Amendment No. 1 to Royalty Participation Agreement (this "Agreement"), is made
as of April 21, 2008, among the parties listed on the signature page hereto (the
“RPA Holder”), and In Veritas Medical Diagnostics, Inc. (the "Company").

     

    WHEREAS, the Company’s wholly
owned subsidiary, IVMD (UK) Limited (“IVMD”), has entered into a license
agreement with Inverness Medical Innovations, Inc. (the “IMI Agreement”)
pursuant to which IVMD will receive royalties from the sale of a prothrombin
blood clotting measuring device (the “IMI Royalties);

    

     

    WHEREAS, the RPA Holders have
each entered into a Royalty Participation Agreement with the Company, copies of
which are attached hereto (the “RPA Agreement”) pursuant to which each of the
the RPA Holder advanced certain amounts to the Company (the “Advance”), as set
forth on the attached Schedule I.

     

    WHEREAS, in consideration of
the Advance, the Company agreed to provide a percentage of the royalties
received by IVMD pursuant to the IMI Agreement

    

    WHEREAS, the parties wish to
amend the Royalty Participation Agreements as set forth below.

    

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the adequacy of which is hereby acknowledged, the parties hereto
agree as follows:

     

    1.           Section
2(a) of the RPA Agreement is amended to provide that the RPA Holders shall
receive in the aggregate ten (10%) percent of the IMI Royalties with each RPA
Holder entitled to receive the percentage of the IMI Royalties set forth on the
attached Schedule II.

    

    2.           Section
2(b), (c) and (d) of each of the RPA Agreements shall be deleted in their
entirety.

    

    3.           Section
4 of each of the RPA Agreements shall be amended to delete the words “less the
amounts of any Contingent Payment paid to the investor pursuant to Section 2(b)
of this Agreement”.

    

    4.           Section
5 of each of the RPA Agreements shall be deleted in its entirely and the
following inserted in its place:

    

    “The
parties agree that in the event that IVMD sells or otherwise disposes of its
rights to receive royalty payments in respect of sales of the PT Device, the RPA
Holders shall receive an amount calculated by applying the percentage set forth
on the attached Schedule II against their name to all cash consideration
received by IVMD in connection with any such sale or disposition, less any
royalty payments paid by IVMD to the PT Note Holders pursuant to Section 1
above, but in no event shall any payment pursuant to this Section 5 exceed three
times to original amount advanced by the RPA Holder.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    The
Parties further agree that in the event that the Company sells IVMD within three
years of the date of this Agreement for a purchase price as set forth below then
in such event the amount set out in the table below shall become payable to the
RPA Holders on a pro rata basis (relative to the percentages set out in Schedule
II), reduced by payments previously made to the PT Note Holders pursuant to this
Section 1 of the Agreement:

    

    
      	
              Purchase
      price of Purchaser of IVMD UK or MDI

            	
              Payment
      to RPA Holders

            
	
              Less
      than $2,000,000

            	
              Nil

            
	
              $2,000,000
      - $3,000,000

            	
              $200,000

            
	
              $3,000,000
      - $4,000,000

            	
              $300,000

            
	
              $4,000,000
      - $5,000,000

            	
              $450,000

            
	
              $5,000,000
      -$8,000,000

            	
              $600,000

            
	
              $8,000,000
      -$10,000,000

            	
              $800,000

            
	
              $10,000,000
      - $13,000,000

            	
              $900,000

            
	
              In
      excess of $13,000,000

            	
              $1,350,000

            

    

    

    

    5.           As
amended hereby, each of the RPA Agreements shall remain in full force and
effect.

     

    

    [SIGNATURE
PAGE TO IMMEDIATELY FOLLOW]

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

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

     

     

    
      
        	IN
      VERITAS MEDICAL DIAGNOSTICS, INC.	 	
                 

              	 	
                 

              
	 	 	 	 	 	 
	By:	
                /s/ Martin
      Thorp

              	 	
                 

              	 	
                 

              
	Name:Martin
      Thorp	 	 	 	 
	Title:  Chief
      Financial Officer	 	 	 	 
	 	 	 	 	 
	THE
      RPA HOLDERS	 	 	 	 
	 	 	 	 	 
	      
                TRIUMPH
      SMALL CAP, INC

              	 	 	 	 
	 	 	 	 	 	 
	By:	
                /s/
      Kenneth Orr  

              	 	
                 

              	 	
                 

              
	Name:  Kenneth Orr	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 	 
	JUMA
      TECHNOLOGY	 	 	 	 
	 	 	 	 	 
	By: 	/s/
      Antony Fernandez      	 	
                 

              	 	
                 

              
	      
                Name:
      Anthony Fernandez

              	 	 	 	 
	      
                Title:

              	 	 	 	 

      

    

                                                                                  

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Schedule
I

     

     

    
      
        	
                Triumph
      Small Cap Fund

              	 	$	200,000	 
	
                Juma
      Technology (Assignee of The Rubin Family Irrevocable Stock
      Trust)

              	 	$	250,000	 

      

    

     

    

    Schedule
II

     

    

    
      	
              Triumph
      Small Cap Fund

            	 	 	44	%
	
              Juma
      Technology (Assignee of The Rubin Family Irrevocable Stock
      Trust)

            	 	 	56	%

    

    
 

     

     

     

     

     

     

     

     

    
4

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