Pilot fish- Brian is correct
posted on
Aug 23, 2010 12:46PM
Take a look at this and you will know what Stan was paid compared to the rest. Someone please explain to me what the green highlighted text means to us.
8K Sub Doc 5
Lincoln
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
1. Consent. Effective upon the receipt by the Rights Holder of the consideration
described in Section 7 of this Agreement, the Rights Holder hereby consents to,
approves and ratifies the Proposed Transactions and the Approved Actions, each
subject to Section 9 below.
2. Conveyance of Warrants. Effective upon the receipt by the Rights Holder of
the consideration described in Section 7 of this Agreement, the Rights Holder
hereby sells, transfers and conveys to the COMPANY, free and clear of any and
all liens or other adverse claims thereto, Three Million (3,000,000) Warrants
described on Exhibit A hereto. The Rights Holder agrees to execute any documents
and take any other action that may be required to effect and memorialize such
transfer of the Warrants to the COMPANY pursuant to this Section 2.
3. Warrant Price Reset. Effective upon receipt by the Rights Holder of the
consideration pursuant to Section 7 of this Agreement, the exercise price of the
Twenty One Million, Six Hundred Twenty Five Thousand, Eight Hundred Seventy Two
(21,625,872) Warrants described on Exhibit B hereto will be reset to 0.015
dollars per share.
4. Waiver of Right of First Refusal, Limitation of Sale or Disposition of
Intellectual Property and Redemption Upon Major Transaction. Effective upon the
receipt by the Rights Holder of the consideration described in Section 7 of this
Agreement, the Rights Holder hereby waives any right of first refusal or any
right to limit the sale or disposition of the COMPANY's intellectual property,
including but not limited to those rights set forth in Sections 4(l) and 4(m) of
the Securities Purchase Agreements, and waives its right to redemption upon a
Major Transaction as set forth in Section 4(o) of the Securities Purchase
Agreements, in each case to the extent necessary to allow the Proposed
Transactions and the Approved Actions to occur, or any future transaction in
which the Company may engage, all subject to Section 9 below.
5. Waiver of Redemption Right. Effective upon the receipt by the Rights Holder
of the consideration pursuant to Section 7 of this Agreement, the Rights Holder
waives any right to require any warrant redemption as a consequence of the
Proposed Transactions or any future transaction in which the Company may engage,
subject to Section 9 below.
6. Release of Lien. Effective upon the receipt by the Rights Holder of the
consideration pursuant to Section 7 of this Agreement, the Rights Holder hereby
releases its liens with regard to the COMPANY's intellectual property portfolio,
including without limitation the MSD Patents, and agrees to take any and all
action necessary to cause all UCC financing statements, USPTO filings and other
filings or documents evidencing such lien to be terminated, provided that the
debts underlying such liens shall remain intact.
7. Payment to Rights Holder. In consideration of the covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $993,305
pursuant to the Escrow Agreement upon the closing of the Proposed Transactions.
The Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8. Amendment of Securities Purchase Agreements. Effective as of the receipt of
consideration pursuant to Section 7 of this Agreement, the Securities Purchase
Agreements shall be amended to remove Sections 4(1), 4(m) and 4(o) in their
entirety, and such sections shall be of no further force or effect, all subject
to Section 9 below. The COMPANY and the Rights Holder hereby acknowledge and
agree that this Agreement meets all of the requirements for amendment of the
Securities Purchase Agreements provided in Section 8(e) thereof.
2
9. Redemption. Notwithstanding anything to the contrary herein, in the event
that any one or more of the following occur (each, a "Redemption Trigger"), the
Rights Holder, at its option, may require the COMPANY to effect a Warrant
Redemption (as defined below) of any or all (at the Rights Holders' option) of
the Rights Holders' Warrants (as defined below):
A. The COMPANY merges into or is bought out by another company, or
becomes a private company that does not have publicly traded common
stock, or sells all or substantially all of the COMPANY's assets, or
B. Common stock of the COMPANY is tendered, purchased or exchanged
pursuant to a tender offer, purchase offer or exchange offer, or
C. There is a Change of Control (as defined below) of the COMPANY's
board of directors, and one or more of the following occurs:
(1) COMPANY sells, conveys, disposes of, spins off or assigns
any or all of its NEWCO Stock, or any or all of its rights to
receive the NEWCO Income, to any third party, in each case
without the Right Holder's written consent.
(2) The COMPANY issues or sells, or agrees to issue or sell
Variable Equity Securities (as defined below), for cash in
private capital raising transactions or any securities of the
Company pursuant to an equity line structure or format without
obtaining the prior written approval of the Rights Holder,
with the exception of any such agreements, transactions or
equity lines existing as of the date hereof. For purposes
hereof, the following shall be collectively referred to herein
as, the "Variable Equity Securities": any debt or equity
securities (or securities pursuant to an equity line structure
or similar structure) which are convertible into, exercisable
or exchangeable for, or carry the right to receive additional
shares of Common Stock either (i) at any conversion, exercise
or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations for Common
Stock at any time after the initial issuance of such debt or
equity security, or (ii) with a fixed conversion, exercise or
exchange price that greater than a thirty percent (30%)
discount to the then prevailing market or is subject to being
reset at some future date at any time after the initial
issuance of such debt or equity security due to a change in
the market price of the Company's Common Stock since date of
initial issuance.
If a Redemption Trigger has occurred and the Rights Holder elects a
redemption, then any of the Rights Holders' Warrants selected by the Rights
Holder for such redemption shall be redeemed ("Warrant Redemption") by the
Company as of the record date for such Redemption Trigger at a price per share
(that is, per share of common stock represented by the warrants) for each Rights
Holder Warrant equal to the "Redemption Price," which shall be defined as the
greater of (A) $0.50 per share, less the Exercise Price per share in effect for
that Rights Holder Warrant on the trading day immediately preceding the record
date of the Redemption Trigger (each subject to adjustment to account for any
forward or reverse stock splits), or (B) the applicable Warrant Redemption
Market Value (as defined below). For purposes hereof, the "Warrant Redemption
Market Value" shall equal the aggregate of the highest Warrant Market Values (as
defined below) for all of the Right Holders' Warrants being so redeemed
calculated on any date during the thirty (30) business day period ending on the
record date for the Redemption Trigger.
For purposes hereof,
"Change in Control" shall mean any change in the makeup of the
COMPANY's board of directors such that the remaining board members from the
following group do not constitute a majority of the board: Gloria Felcyn, David
Pohl, Helmet Faulk, Lowell Giffhorn and Carlton Johnson, Jr
8K Sub Doc 6
Swartz
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
1. Consent. Effective upon the receipt by the Rights Holder of the consideration
described in Section 7 of this Agreement, the Rights Holder hereby consents to,
approves and ratifies the Proposed Transactions and the Approved Actions, each
subject to Section 9 below.
2. Conveyance of Warrants. Effective upon the receipt by the Rights Holder of
the consideration described in Section 7 of this Agreement, the Rights Holder
hereby sells, transfers and conveys to the COMPANY, free and clear of any and
all liens or other adverse claims thereto, Nine Million (9,000,000) Warrants
described on Exhibit A hereto. The Rights Holder agrees to execute any documents
and take any other action that may be required to effect and memorialize such
transfer of the Warrants to the COMPANY pursuant to this Section 2.
3. Warrant Price Reset. Effective upon receipt by the Rights Holder of the
consideration pursuant to Section 7 of this Agreement, the exercise price of the
Thirteen Million, Three Hundred Seventy Four Thousand, One Hundred Twenty Eight
(13,374,128) Warrants described on Exhibit B hereto will be reset to 0.015
dollars per share.
4. Waiver of Right of First Refusal, Limitation of Sale or Disposition of
Intellectual Property and Redemption Upon Major Transaction. Effective upon the
receipt by the Rights Holder of the consideration described in Section 7 of this
Agreement, the Rights Holder hereby waives any right of first refusal or any
right to limit the sale or disposition of the COMPANY's intellectual property,
including but not limited to those rights set forth in Sections 4(l) and 4(m) of
the Securities Purchase Agreements, and waives its right to redemption upon a
Major Transaction as set forth in Section 4(o) of the Securities Purchase
Agreements, in each case to the extent necessary to allow the Proposed
Transactions and the Approved Actions to occur, or any future transaction in
which the Company may engage, all subject to Section 9 below.
5. Waiver of Redemption Right. Effective upon the receipt by the Rights Holder
of the consideration pursuant to Section 7 of this Agreement, the Rights Holder
waives any right to require any warrant redemption as a consequence of the
Proposed Transactions or any future transaction in which the Company may engage,
subject to Section 9 below.
6. Release of Lien. Effective upon the receipt by the Rights Holder of the
consideration pursuant to Section 7 of this Agreement, the Rights Holder hereby
releases its liens with regard to the COMPANY's intellectual property portfolio,
including without limitation the MSD Patents, and agrees to take any and all
action necessary to cause all UCC financing statements, USPTO filings and other
filings or documents evidencing such lien to be terminated, provided that the
debts underlying such liens shall remain intact.
7. Payment to Rights Holder. In consideration of the covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $896,346
pursuant to the Escrow Agreement upon the closing of the Proposed Transactions.
The Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8K Sub Doc 7
Victor Gabourel
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $96,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8 K Sub Doc 8
James & Joe Zolin
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $96,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8K Sub-Doc 9
Dan Nunes
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $30,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8K Sub-Doc 10
Stan Caplan
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $60,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8K Sub-Doc 11
Wayne Operman
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $96,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..
8K Sub Doc 12
Richard Daniel
NOW, THEREFORE, in consideration of the respective promises,
representations, warranties, covenants and conditions contained in this
Agreement, the parties hereby agree as follows:
2. Payment to Rights Holder. In consideration of his covenants, promises, and
agreements set forth in this Agreement, the Rights Holder shall be paid $60,000
by check to the address below upon the closing of the Proposed Transactions. The
Rights Holder hereby acknowledges that such consideration constitutes good,
valid and sufficient consideration in exchange for the covenants, promises, and
agreements of the Rights Holder set forth in this Agreement..