-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J4HpLPJglYvJzRLNuTOGKHZNMSNZbLU3mqx2NUX/jA+ceb1ejKYFcSZsX3RwaEFp tk6ho3iCzjujmk72wUy5Tw== 0001144204-07-017754.txt : 20070406 0001144204-07-017754.hdr.sgml : 20070406 20070406161810 ACCESSION NUMBER: 0001144204-07-017754 CONFORMED SUBMISSION TYPE: SC 13G PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070406 DATE AS OF CHANGE: 20070406 GROUP MEMBERS: DAVID GRIN GROUP MEMBERS: EUGENE GRIN GROUP MEMBERS: LAURUS CAPITAL MANAGEMENT, LLC SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: MICRO COMPONENT TECHNOLOGY INC CENTRAL INDEX KEY: 0000911149 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 410985960 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G SEC ACT: 1934 Act SEC FILE NUMBER: 005-46153 FILM NUMBER: 07754607 BUSINESS ADDRESS: STREET 1: 2340 W COUNTY RD C CITY: ST PAUL STATE: MN ZIP: 55113-2528 BUSINESS PHONE: 6516974000 MAIL ADDRESS: STREET 1: 2340 W COUNTY RD C CITY: ST PAUL STATE: MN ZIP: 55113-2528 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: LAURUS MASTER FUND LTD CENTRAL INDEX KEY: 0001189294 IRS NUMBER: 980337673 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G BUSINESS ADDRESS: STREET 1: 152 W 57TH ST CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2125415800 SC 13G 1 v071060_sc13g.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G (Rule 13d-102) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2(b) (AMENDMENT NO. __)* MICRO COMPONENT TECHNOLOGY, INC. ----------------------------------- (Name of Issuer) Common Stock, par value $0.01 per share ---------------------------------------- (Title of Class of Securities) 59479Q100 --------- (CUSIP Number) March 29, 2007 -------------- (Date of Event which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [ ] Rule 13d-1 (b) [X] Rule 13d-1 (c) [ ] Rule 13d-1 (d) The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). CUSIP No. 59479Q100 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Laurus Master Fund, Ltd. S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 98-0337673 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Cayman Islands - -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER: 0, shares of Common Stock. * SHARES ------------------------------------------------------------------- BENEFICIALLY 6 SHARED VOTING POWER: 3,662,865 shares of Common Stock. * OWNED BY ------------------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER: 0 shares of Common Stock. * REPORTING ------------------------------------------------------------------- PERSON 8 SHARES DISPOSITIVE POWER: 3,662,865 shares of Common Stock. * - -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,662,865 shares of Common Stock - -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 9.99% - -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON CO - -------------------------------------------------------------------------------- - --------------------------------- * Based on 36,665,322 shares of common stock par value $0.01 per share (the "Shares"), outstanding of Micro Component Technology, Inc., a Minnesota corporation (the "Company") as disclosed on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. As of March 29, 2007, Laurus Master Fund, Ltd. (the "Fund") held (i) a warrant (the "March 2004 Warrant") to purchase up to 400,000 Shares at an exercise price of $2.30 per Share for the first 200,000 Shares acquired thereunder, $2.50 per Share for the next 100,000 Shares acquired thereunder and $2.88 per Share for the remaining Shares acquired thereunder, subject in each case to certain adjustments, (ii) a warrant (the "January 2005 Warrant") to purchase up to 150,000 Shares at an exercise price of $0.67 per Share, subject to certain adjustments, (iii) a warrant (the "February 2006 Warrant") to purchase up to 2,500,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments, (iv) an option (the "April 2005 Option" and together with the March 2004 Warrant, the January 2005 Warrant, and the February 2006 Warrant, the "Older Warrants") to purchase up to 1,356,651 Shares at an exercise price of $0.01 per Share, subject to certain adjustments (v) a warrant (the "March 2007 Warrant") to purchase up to 5,000,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments and (vi) 1,155,500 Shares. Each of the Older Warrants contains an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 4.99% of the Shares then issued and outstanding (the "4.99% Issuance Limitation"). On March 29, 2007, (a) the Fund provided the Company notice of the Fund's waiver of the 4.99% Issuance Limitation under the Older Warrants, which such waivers shall be effective on the 76th day following the delivery of such notice (the "Waiver Effective Date") and (b) the Company and the Fund agreed that on the Waiver Effective Date the 4.99% Issuance Limitation under the Older Warrants shall be increased to an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 9.99% of the Shares then issued and outstanding (the "9.99% Issuance Limitation"). The March 2007 Warrant contains a 9.99% Issuance Limitation. The 9.99% Issuance Limitation in the Older Warrants, as amended, and in the March 2007 Warrant may be waived by the Fund upon at least 61 days prior notice to the Company and, shall automatically become null and void following notice to the Issuer of the occurrence and/or continuance of an Event of Default (as defined in and pursuant to the terms of the applicable instrument). The Fund is managed by Laurus Capital Management, LLC. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the securities owned by the Fund reported in this Schedule 13G, as amended. CUSIP No. 59479Q100 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Laurus Capital Management, LLC S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON: 13-4150669 - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware - -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER: 0 shares of Common Stock. * SHARES ------------------------------------------------------------------- BENEFICIALLY 6 SHARED VOTING POWER: 3,662,865 shares of Common Stock. * OWNED BY ------------------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER: 0 shares of Common Stock. * REPORTING ------------------------------------------------------------------- PERSON 8 SHARES DISPOSITIVE POWER: 3,662,865 shares of Common Stock. * - -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,662,865 shares of Common Stock - -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 9.99 % - -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON OO - -------------------------------------------------------------------------------- - -------------------------------- * Based on 36,665,322 shares of common stock par value $0.01 per share (the "Shares"), outstanding of Micro Component Technology, Inc., a Minnesota corporation (the "Company") as disclosed on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. As of March 29, 2007, Laurus Master Fund, Ltd. (the "Fund") held (i) a warrant (the "March 2004 Warrant") to purchase up to 400,000 Shares at an exercise price of $2.30 per Share for the first 200,000 Shares acquired thereunder, $2.50 per Share for the next 100,000 Shares acquired thereunder and $2.88 per Share for the remaining Shares acquired thereunder, subject in each case to certain adjustments, (ii) a warrant (the "January 2005 Warrant") to purchase up to 150,000 Shares at an exercise price of $0.67 per Share, subject to certain adjustments, (iii) a warrant (the "February 2006 Warrant") to purchase up to 2,500,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments, (iv) an option (the "April 2005 Option" and together with the March 2004 Warrant, the January 2005 Warrant, and the February 2006 Warrant, the "Older Warrants") to purchase up to 1,356,651 Shares at an exercise price of $0.01 per Share, subject to certain adjustments (v) a warrant (the "March 2007 Warrant") to purchase up to 5,000,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments and (vi) 1,155,500 Shares. Each of the Older Warrants contains an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 4.99% of the Shares then issued and outstanding (the "4.99% Issuance Limitation"). On March 29, 2007, (a) the Fund provided the Company notice of the Fund's waiver of the 4.99% Issuance Limitation under the Older Warrants, which such waivers shall be effective on the 76th day following the delivery of such notice (the "Waiver Effective Date") and (b) the Company and the Fund agreed that on the Waiver Effective Date the 4.99% Issuance Limitation under the Older Warrants shall be increased to an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 9.99% of the Shares then issued and outstanding (the "9.99% Issuance Limitation"). The March 2007 Warrant contains a 9.99% Issuance Limitation. The 9.99% Issuance Limitation in the Older Warrants, as amended, and in the March 2007 Warrant may be waived by the Fund upon at least 61 days prior notice to the Company and, shall automatically become null and void following notice to the Issuer of the occurrence and/or continuance of an Event of Default (as defined in and pursuant to the terms of the applicable instrument). The Fund is managed by Laurus Capital Management, LLC. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the securities owned by the Fund reported in this Schedule 13G, as amended. CUSIP No. 59479Q100 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: David Grin - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION Israel - -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER: 0 shares of Common Stock. * SHARES ------------------------------------------------------------------- BENEFICIALLY 6 SHARED VOTING POWER: 3,662,865 shares of Common Stock. * OWNED BY ------------------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER: 0 shares of Common Stock. * REPORTING ------------------------------------------------------------------- PERSON 8 SHARES DISPOSITIVE POWER: 3,662,865 shares of Common Stock. * - -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,662,865 shares of Common Stock - -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 9.99 % - -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- - -------------------------------- * Based on 36,665,322 shares of common stock par value $0.01 per share (the "Shares"), outstanding of Micro Component Technology, Inc., a Minnesota corporation (the "Company") as disclosed on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. As of March 29, 2007, Laurus Master Fund, Ltd. (the "Fund") held (i) a warrant (the "March 2004 Warrant") to purchase up to 400,000 Shares at an exercise price of $2.30 per Share for the first 200,000 Shares acquired thereunder, $2.50 per Share for the next 100,000 Shares acquired thereunder and $2.88 per Share for the remaining Shares acquired thereunder, subject in each case to certain adjustments, (ii) a warrant (the "January 2005 Warrant") to purchase up to 150,000 Shares at an exercise price of $0.67 per Share, subject to certain adjustments, (iii) a warrant (the "February 2006 Warrant") to purchase up to 2,500,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments, (iv) an option (the "April 2005 Option" and together with the March 2004 Warrant, the January 2005 Warrant, and the February 2006 Warrant, the "Older Warrants") to purchase up to 1,356,651 Shares at an exercise price of $0.01 per Share, subject to certain adjustments (v) a warrant (the "March 2007 Warrant") to purchase up to 5,000,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments and (vi) 1,155,500 Shares. Each of the Older Warrants contains an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 4.99% of the Shares then issued and outstanding (the "4.99% Issuance Limitation"). On March 29, 2007, (a) the Fund provided the Company notice of the Fund's waiver of the 4.99% Issuance Limitation under the Older Warrants, which such waivers shall be effective on the 76th day following the delivery of such notice (the "Waiver Effective Date") and (b) the Company and the Fund agreed that on the Waiver Effective Date the 4.99% Issuance Limitation under the Older Warrants shall be increased to an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 9.99% of the Shares then issued and outstanding (the "9.99% Issuance Limitation"). The March 2007 Warrant contains a 9.99% Issuance Limitation. The 9.99% Issuance Limitation in the Older Warrants, as amended, and in the March 2007 Warrant may be waived by the Fund upon at least 61 days prior notice to the Company and, shall automatically become null and void following notice to the Issuer of the occurrence and/or continuance of an Event of Default (as defined in and pursuant to the terms of the applicable instrument). The Fund is managed by Laurus Capital Management, LLC. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the securities owned by the Fund reported in this Schedule 13G, as amended. CUSIP No. 59479Q100 - -------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Eugene Grin - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ] (b) [ ] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 CITIZENSHIP OR PLACE OF ORGANIZATION United States - -------------------------------------------------------------------------------- NUMBER OF 5 SOLE VOTING POWER: 0 shares of Common Stock.* SHARES ------------------------------------------------------------------- BENEFICIALLY 6 SHARED VOTING POWER: 3,662,865 shares of Common Stock. * OWNED BY ------------------------------------------------------------------- EACH 7 SOLE DISPOSITIVE POWER: 0 shares of Common Stock. * REPORTING ------------------------------------------------------------------- PERSON 8 SHARES DISPOSITIVE POWER: 3,662,865 shares of Common Stock. * - -------------------------------------------------------------------------------- 9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 3,662,865 shares of Common Stock - -------------------------------------------------------------------------------- 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [X] - -------------------------------------------------------------------------------- 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 9.99 % - -------------------------------------------------------------------------------- 12 TYPE OF REPORTING PERSON IN - -------------------------------------------------------------------------------- - -------------------------------- * Based on 36,665,322 shares of common stock par value $0.01 per share (the "Shares"), outstanding of Micro Component Technology, Inc., a Minnesota corporation (the "Company") as disclosed on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. As of March 29, 2007, Laurus Master Fund, Ltd. (the "Fund") held (i) a warrant (the "March 2004 Warrant") to purchase up to 400,000 Shares at an exercise price of $2.30 per Share for the first 200,000 Shares acquired thereunder, $2.50 per Share for the next 100,000 Shares acquired thereunder and $2.88 per Share for the remaining Shares acquired thereunder, subject in each case to certain adjustments, (ii) a warrant (the "January 2005 Warrant") to purchase up to 150,000 Shares at an exercise price of $0.67 per Share, subject to certain adjustments, (iii) a warrant (the "February 2006 Warrant") to purchase up to 2,500,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments, (iv) an option (the "April 2005 Option" and together with the March 2004 Warrant, the January 2005 Warrant, and the February 2006 Warrant, the "Older Warrants") to purchase up to 1,356,651 Shares at an exercise price of $0.01 per Share, subject to certain adjustments (v) a warrant (the "March 2007 Warrant") to purchase up to 5,000,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments and (vi) 1,155,500 Shares. Each of the Older Warrants contains an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 4.99% of the Shares then issued and outstanding (the "4.99% Issuance Limitation"). On March 29, 2007, (a) the Fund provided the Company notice of the Fund's waiver of the 4.99% Issuance Limitation under the Older Warrants, which such waivers shall be effective on the 76th day following the delivery of such notice (the "Waiver Effective Date") and (b) the Company and the Fund agreed that on the Waiver Effective Date the 4.99% Issuance Limitation under the Older Warrants shall be increased to an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 9.99% of the Shares then issued and outstanding (the "9.99% Issuance Limitation"). The March 2007 Warrant contains a 9.99% Issuance Limitation. The 9.99% Issuance Limitation in the Older Warrants, as amended, and in the March 2007 Warrant may be waived by the Fund upon at least 61 days prior notice to the Company and, shall automatically become null and void following notice to the Issuer of the occurrence and/or continuance of an Event of Default (as defined in and pursuant to the terms of the applicable instrument). The Fund is managed by Laurus Capital Management, LLC. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the securities owned by the Fund reported in this Schedule 13G, as amended. CUSIP No. 59479Q100 Item 1(a). Name of Issuer: Micro Component Technology, Inc. Item 1(b). Address of Issuer's Principal Executive Offices: 2340 West County Road C St. Paul, MN 55113-2528 Item 2(a). Name of Person Filing: Laurus Master Fund, Ltd. This Schedule 13G is also filed on behalf of Laurus Capital Management, LLC, a Delaware limited liability company, Eugene Grin and David Grin. Laurus Capital Management, LLC manages Laurus Master Fund, Ltd. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the shares owned by Laurus Master Fund, Ltd. Information related to each of Laurus Capital Management, LLC, Eugene Grin and David Grin is set forth on Appendix A hereto. Item 2(b). Address of Principal Business Office or if none, Residence: c/o Laurus Capital Management, LLC, 335 Madison Avenue, 10th Floor, New York, NY 10017 Item 2(c). Citizenship: Cayman Islands Item 2(d). Title of Class of Securities: Common Stock ("Common Stock") Item 2(e). CUSIP Number: 59479Q100 Item 3. Not Applicable Item 4. Ownership: (a) Amount Beneficially Owned: 3,662,865 shares of Common Stock (b) Percent of Class: 9.99% (c) Number of shares as to which such person has: (i) sole power to vote or to direct the vote: 0 shares of Common Stock.* CUSIP No. 59479Q100 (ii) shared power to vote or to direct the vote: 3,662,865 shares of Common Stock. * (iii) sole power to dispose or to direct the disposition of: 0 shares of Common Stock. * (iv) shared power to dispose or to direct the disposition of: 3,662,865 shares of Common Stock. * Item 5. Ownership of Five Percent or Less of a Class: Not applicable Item 6. Ownership of More than Five Percent on Behalf of Another Person: Not applicable Item 7. Identification and Classification of Subsidiary Which Acquired the Securities: Not applicable Item 8. Identification and Classification of Members of the Group: Not applicable Item 9. Notice of Dissolution of Group: Not applicable Item 10. Certification: By signing below, I certify to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. - ----------------------------------- * Based on 36,665,322 shares of common stock par value $0.01 per share (the "Shares"), outstanding of Micro Component Technology, Inc., a Minnesota corporation (the "Company") as disclosed on the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. As of March 29, 2007, Laurus Master Fund, Ltd. (the "Fund") held (i) a warrant (the "March 2004 Warrant") to purchase up to 400,000 Shares at an exercise price of $2.30 per Share for the first 200,000 Shares acquired thereunder, $2.50 per Share for the next 100,000 Shares acquired thereunder and $2.88 per Share for the remaining Shares acquired thereunder, subject in each case to certain adjustments, (ii) a warrant (the "January 2005 Warrant") to purchase up to 150,000 Shares at an exercise price of $0.67 per Share, subject to certain adjustments, (iii) a warrant (the "February 2006 Warrant") to purchase up to 2,500,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments, (iv) an option (the "April 2005 Option" and together with the March 2004 Warrant, the January 2005 Warrant, and the February 2006 Warrant, the "Older Warrants") to purchase up to 1,356,651 Shares at an exercise price of $0.01 per Share, subject to certain adjustments (v) a warrant (the "March 2007 Warrant") to purchase up to 5,000,000 Shares at an exercise price of $0.01 per Share, subject to certain adjustments and (vi) 1,155,500 Shares. Each of the Older Warrants contains an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 4.99% of the Shares then issued and outstanding (the "4.99% Issuance Limitation"). On March 29, 2007, (a) the Fund provided the Company notice of the Fund's waiver of the 4.99% Issuance Limitation under the Older Warrants, which such waivers shall be effective on the 76th day following the delivery of such notice (the "Waiver Effective Date") and (b) the Company and the Fund agreed that on the Waiver Effective Date the 4.99% Issuance Limitation under the Older Warrants shall be increased to an issuance limitation prohibiting the Fund from exercising or converting those securities to the extent that such exercise would result in beneficial ownership by the Fund of more than 9.99% of the Shares then issued and outstanding (the "9.99% Issuance Limitation"). The March 2007 Warrant contains a 9.99% Issuance Limitation. The 9.99% Issuance Limitation in the Older Warrants, as amended, and in the March 2007 Warrant may be waived by the Fund upon at least 61 days prior notice to the Company and, shall automatically become null and void following notice to the Issuer of the occurrence and/or continuance of an Event of Default (as defined in and pursuant to the terms of the applicable instrument). The Fund is managed by Laurus Capital Management, LLC. Eugene Grin and David Grin, through other entities, are the controlling principals of Laurus Capital Management, LLC and share sole voting and investment power over the securities owned by the Fund reported in this Schedule 13G, as amended. CUSIP No. 59479Q100 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. April 6, 2007 ---------------- Date /s/ Eugene Grin ---------------- Eugene Grin Director CUSIP No. 59479Q100 APPENDIX A A. Name: Laurus Capital Management, LLC, a Delaware limited liability company 335 Madison Avenue, 10th Floor New York, New York 10017 Place of Organization: Delaware B. Name: David Grin Business 335 Madison Avenue, 10th Floor Address: New York, New York 10017 Principal Director of Laurus Master Fund, Ltd. Occupation: Principal of Laurus Capital Management, LLC Citizenship: Israel C. Name: Eugene Grin Business 335 Madison Avenue, 10th Floor Address: New York, New York 10017 Principal Director of Laurus Master Fund, Ltd. Occupation: Principal of Laurus Capital Management, LLC Citizenship: United States CUSIP No. 59479Q100 Each of Laurus Capital Management, LLC, Eugene Grin and David Grin hereby agree, by their execution below, that the Schedule 13G to which this Appendix A is attached is filed on behalf of each of them, respectively. Laurus Capital Management, LLC /s/ Eugene Grin - ----------------------------------------- Eugene Grin Principal April 6, 2007 /s/ David Grin - ----------------------------------------- David Grin April 6, 2007 /s/ Eugene Grin - ----------------------------------------- Eugene Grin April 6, 2007 -----END PRIVACY-ENHANCED MESSAGE-----