WARRANTS IN VISITALK CAPITAL CORPORATION AND ITS OPERATING SUBSIDIARIES CLASSES 1 THROUGH 7 Master Warrant Agreement and related information Booklet
Exhibit 4.2
xxxxxxxx.xxx, Inc. Bankruptcy Plan Distribution
WARRANTS IN
VISITALK
CAPITAL
CORPORATION
AND
ITS
OPERATING
SUBSIDIARIES
CLASSES
1 THROUGH
7
Master
Warrant Agreement and related information Booklet
ACCEPTANCE
AND EFFECTIVE DELIVERY REQUIRED
This
Plan
Warrant Agreement is effective as of the Effective Date of the Second Joint
Plan
of Reorganization of xxxxxxxx.xxx, Inc. and other Co-Proponents dated June
22,
2004. This Plan Warrant Agreement and the Plan Warrants are only valid if a
Warrant Holder executes a Warrant Acceptance and Effective Delivery Agreement
before March 31, 2006; and such Warrant Acceptance and Effective Delivery
Agreement is received by Visitalk Capital Corporation before April 15,
2006.
TABLE
OF CONTENTS
Page
|
|
BACKGROUND
AND DEFINITIONS
|
1
|
ARTICLE
I - THE PLAN WARRANTS
|
2
|
ARTICLE
II - EXERCISE PERIOD; REDEMPTION
|
3
|
ARTICLE
III - ISSUANCE AND TRANSFER OF OWNERSHIP
|
4
|
ARTICLE
IV - EXERCISE OF PLAN WARRANTS
|
6
|
ARTICLE
V - LIMITATIONS ON EXERCISE
|
7
|
ARTICLE
VI - RIGHTS AND DUTIES OF WARRANT AGENT
|
8
|
ARTICLE
VII - CONTINGENT WARRANT HOLDER AGENT
|
10
|
ARTICLE
VIII - RIGHTS AND DUTIES OF WARRANT HOLDERS
|
11
|
ARTICLE
IX - NOTICES
|
11
|
ARTICLE
X - MISCELLANEOUS
|
13
|
EXHIBITS
TO THE PLAN WARRANT AGREEMENT
|
|
A
- ISSUERS COVERED BY THE PLAN WARRANT AGREEMENT
|
16
|
B
- FORM OF WARRANT ACCEPTANCE AND EFFECTIVE DELIVERY
AGREEMENT
|
17
|
C
- FORM OF CLAIM HOLDER OWNERSHIP SCHEDULE
|
19
|
D
- FORM OF WARRANT CERTIFICATE OR WARRANT UNIT
CERTIFICATE
|
20
|
E
- FORM OF SUBSCRIPTION
AND EXERCISE
NOTICE
|
23
|
F
- FORM OF ELECTION TO CERTIFICATE AGREEMENT
|
25
|
G
- FORM OF CONTINGENT AGENT AGREEMENT
|
27
|
This
Plan
Warrant Agreement (the “Agreement”)
is
effective as of the Effective Date of the Second Joint Plan of Reorganization
of
xxxxxxxx.xxx, Inc. and other Co-Proponents dated June 22, 2004 (the
“Plan”).
The
Warrant Holders, as defined below, are a party to this Agreement pursuant to
the
operation of the Plan. However, this Agreement and the Plan Warrants, which
are
the subject of this Agreement, are only valid if a Warrant Holder executes
a
“Warrant
Acceptance and Effective Delivery Agreement”
before
March 31, 2006 and such Warrant Acceptance and Effective Delivery Agreement
is
received by Visitalk Capital Corporation (“VCC”)
before
April 15, 2006. VCC is executing this Agreement and other related agreements
necessary to implement this Agreement as an Issuer, as defined below, and as
an
agent for the other Issuers (the “Implementation
Agent”),
all
of which are controlled by VCC.
BACKGROUND
AND DEFINITIONS
A. The
subject matter of this Agreement is the Series A through F Plan Warrants issued
in accordance with the Plan (the “Plan
Warrants”)
for
each of the companies on the listing attached hereto as Exhibit
A
and
their successors (each such entity hereinafter an “Issuer”
or
jointly “Issuers”).
B. Capitalized
terms used but not otherwise defined in this Agreement have the same meaning
as
defined in the Plan.
C. The
Issuers are entities formed or authorized under the Plan, were Co-Proponents
of
the Plan, and, pursuant to certain exemptions provided in the Bankruptcy Code,
are authorized to issue the Plan Warrants and, upon the exercise of the Plan
Warrants, Shares, without registration of the Plan Warrants or Shares under
applicable securities laws.
D. The
term
“Share”
refers
to one share of common stock of an applicable Issuer.
E. The
term
“Claim”
refers
to an allowed claim under the Plan and the term “Claim
Holder”
is
the
owner of such Claim.
F. The
maximum numbers of Plan Warrants to be issued for each Claim are specified
in
the Plan
G. The
registered holder of any Plan Warrant is hereinafter referred to as a
“Warrant
Holder.”
H. The
Issuers and the Warrant Holders desire to specify certain matters regarding
the
Plan Warrants. In accordance with the Plan, each Issuer will issue six series
of
Plan Warrants (each, a “Series”),
designated as A Warrants, B Warrants, C Warrants, D Warrants, E Warrants and
F
Warrants, as further described in Article I. The term “Plan
Warrants”
refers
to all of the Series of Plan Warrants as a group.
I. Each
“Plan
Warrant”
entitles the Warrant Holder to purchase, subject to the terms and conditions
set
forth in this Plan Warrant Agreement, at any time on or after September 17,
2004, and prior to the close of business on the Expiration Date, but not
thereafter (unless the Plan Warrant is earlier the subject of a Call or the
Plan
Warrant Expiration Date is extended by the Issuer), one fully paid and
non-assessable share of an Issuer’s common stock (“Common
Stock”),
or
equivalent security of any successor thereto, at a purchase price equal to
the
“Exercise
Price”,
as
adjusted, unless lowered by the Issuer as set forth in Article I.
1
X. Xxxxxxxx
to the Plan, each Issuer will initially act as its own agent and perform the
duties enumerated in this Agreement (the “Warrant
Agent”)
but
each Issuer may determine, in their sole discretion, to engage another qualified
person to act as its Warrant Agent to perform the duties and activities
hereunder. Any reference to Warrant Agent refers to an individual Issuer, acting
as its own Warrant Agent, or the appointed Warrant Agent of the Issuer, as
the
case may apply.
AGREEMENTS
NOW,
THEREFORE, in consideration of the above recitals, the following
representations, warranties, covenants and conditions, and other good and
valuable consideration, the receipt of which is acknowledged, the Warrant
Holders, by executing the “Warrant
Acceptance and Effective Delivery Agreement,”
a
form
of which is attached hereto as Exhibit
B,
agree
with each Issuer as follows:
ARTICLE
I
THE
PLAN WARRANTS
1.1 Each
Plan
Warrant has a specified “Exercise
Price,”
which
is the amount, as adjusted from time to time as provided in Section 1.4 below,
at which a Warrant Holder is entitled to purchase one Share from an Issuer.
A
Warrant Holder may exercise all or any number of a Series of Plan Warrants
resulting in the purchase of a whole number of Shares.
1.2 Initial
Exercise prices.
Each
Series of Plan Warrants has an initial Exercise Price as set forth below.
a) Each
Series A Warrant (an “A
Warrant”)
has an
initial Exercise Price of $2.00.
b) Each
Series B Warrant (a “B
Warrant”)
has an
initial Exercise Price of $2.00.
c) Each
Series C Warrant (a “C
Warrant”)
has an
initial Exercise Price of $3.00.
d) Each
Series D Warrant (a “D
Warrant”)
has an
initial Exercise Price of $3.00.
e) Each
Series E Warrant (an “E
Warrant”)
has an
initial Exercise Price of $4.00.
f) Each
Series F Warrant (an “F
Warrant”)
has an
initial Exercise Price of $4.00.
1.3
Number
of Plan Warrants.
The
“Claim
Holder Ownership Schedule”,
attached hereto as Exhibit
C,
specifies, by Issuer, the number of each Series of Plan Warrants to be delivered
to any Warrant Holder for a specified Claim under the Plan. Pursuant to the
Plan, an Issuer, in their sole discretion, has the option of issuing the Plan
Warrants as “Plan
Warrant Unit.”
The
Plan Warrants on Exhibit C are presented as Plan Warrant Units with each unit
consisting of one Series A Warrant, one Series B Warrant, one Series C Warrant,
one Series D Warrant, one Series E Warrant and one Series F Warrant. Pursuant
to
the Plan, in the future, a Plan Warrant Unit may consist of any combination
of
the Plan Warrants as determined by each Issuer in their sole
discretion.
2
Plan
Warrant Agreement
1.4
Adjustments
in Number of Plan Warrants and Exercise Price.
If,
prior to the exercise of any Plan Warrant, an Issuer shall have effected one
or
more stock splits-ups, stock dividends or other increases or reductions of
the
number of Shares into which the Plan Warrants are exercisable without receiving
compensation in money, services or property, then the number of Shares subject
to a Plan Warrant may, at the sole discretion of the Issuer, (i) if a net
increase shall have been effected in the number of outstanding Shares, be
proportionately increased, and the cash consideration payable per share for
the
Exercise Price be proportionately reduced, or, (ii) if a net reduction shall
have been effected in the number outstanding Shares, be proportionately reduced,
and the cash consideration payable per Share for the Exercise Price be
proportionately increased. Pursuant to the Plan, an Issuer may, in its sole
discretion and without further shareholder approval, upon any increase or
decrease in the number of shares of its common stock outstanding, elect to
(i)
keep the terms of any of its Plan Warrants outstanding unchanged, (ii)
proportionately increase or decrease the Exercise Price and keep the number
of
Plan Warrants unchanged or (iii) proportionately increase or decrease the number
of Shares issuable upon exercise of the Plan Warrants and keep the Exercise
Price unchanged.
1.5 Discretionary
Reduction in the Plan Warrant Exercise Price.
An
Issuer may, in its sole discretion and in accordance with the Plan, from
time
to time and, at any time, reduce
the Exercise Price of any Plan Warrant subject to this Agreement, including
a
temporary reduction in the Exercise Price.
ARTICLE
II
EXERCISE
PERIOD; REDEMPTION
2.1 Plan
Warrant Exercises.
Unless
individually extended as provided herein, the Plan Warrants will expire at
5:00
p.m., MST on March 17, 2006 (the “Warrant
Expiration Date”).
a) All
Plan
Warrants hereunder may be exercised at any time after the Effective Date of
this
Agreement and prior to the Warrant Expiration Date.
b) After
any
Warrant Expiration Date, unless such date is extended by an Issuer and except
as
provided in Article VII, any unexercised Plan Warrants will be void and all
rights of the Warrant Holders shall cease.
2.2 Redemption.
At any
time prior to any Expiration Date, each Issuer, in its sole discretion and
in
accordance with the Plan, may redeem some or all of any then outstanding Plan
Warrants for $.0001 per Plan Warrant (“Redemption
Price”).
In
accordance with the Plan, an Issuer may choose to redeem all or any portion
of a
Series of Plan Warrants, which may be selected on a pro rata basis, by random
lot or as otherwise fairly determined, all in the Issuer’s sole discretion. Upon
an Issuer’s determination to redeem any Plan Warrants, such Issuer shall give
notice (“Redemption
Notice”)
of its
determination to all affected Warrant Holders and the Warrant Holders shall
have
the time specified in the Redemption Notice (the “Redemption
Date”),
which
shall not be less than twenty (20) days from the date of such Redemption Notice,
to exercise any Plan Warrant as provided herein. Upon expiration of the
Redemption Date, and after expiration of the period during which limited rights
may be granted to an agent under Article VII (the “Contingent
Agent”),
but
only if one has been appointed by an Issuer as provided in Article VII, the
Issuer shall pay the Redemption Price to the Warrant Holders. An Issuer shall
not be required to pay any amount less than $1.00 to any Warrant Holder and
any
amounts less than $1.00 due to any Warrant Holder shall be retained by an
Issuer.
3
Plan
Warrant Agreement
2.3 Extension
of the Warrant Expiration Date.
An
Issuer may, in its sole discretion and in accordance with the Plan, from time
to
time and, at any time, extend the Warrant Expiration Date of any Plan Warrant
for any period of time. Notice to the Warrant Holders of Plan Warrant changes
shall be provided in accordance with Article IX.
ARTICLE
III
ISSUANCE
AND TRANSFER OF OWNERSHIP
3.1
Form
of Plan Warrant.
The
Plan Warrants may be issued in either uncertificated form (i.e., “Book
Entry”)
or in
registered and certificated form, as determined pursuant to Section 3.2
below.
a) Book
Entry Form.
If Plan
Warrants are issued in uncertificated form (“Book
Entry”),
the
Warrant Agent shall maintain records of the number of Plan Warrants owned by
each registered Warrant Holder. The Warrant Agent shall report ownership
positions to the Warrant Holders no more than sixty (60) days after the end
of
each calendar year or, if requested in writing by a Warrant Holder, each
calendar quarter. The report shall indicate any transactions regarding the
Plan
Warrants such as exercises or transfers. The report shall be delivered by
regular mail to the address appearing on a Warrant Agent’s records for any
Warrant Holder. A Warrant Holder may elect delivery by e-mail or other similar
delivery option as an alternative to regular mail. At any time an Issuer
determines not to maintain Book Entry for the Plan Warrants, the Issuer it
may
certificate and deliver the warrants to the Warrant Holders at no cost to the
Warrant Holders for the certification.
b) Certificated
Form.
If in
certificated form, the warrant certificates (the “Warrant
Certificates”)
shall
be substantially in the form attached hereto as Exhibit
D.
Warrant
Certificates shall be signed by, or shall bear the facsimile signature of an
Executive Officer of each Issuer and shall bear the Issuer’s corporate seal or a
facsimile of the Issuer’s corporate seal. If any person, whose facsimile
signature has been placed on any Warrant Certificate as the signature of an
officer of an Issuer, shall have ceased to be an officer before the Warrant
Certificate is countersigned, issued and delivered, the Warrant Certificate
shall be countersigned, issued and delivered with the same effect as if the
officer had not ceased to be an officer. Any Warrant Certificate may be signed
by, or made to bear the facsimile signature of, any person who at the actual
date of the preparation of the Warrant Certificate shall be a proper officer
of
an Issuer to sign the Warrant Certificate even though such person was not an
officer upon the date of this Agreement. If a Warrant Agent other than the
Issuer is appointed, and Warrant Certificates are issued after the appointment,
Warrant Certificates shall be manually countersigned by the Warrant Agent and
shall not be valid for any purposes unless so countersigned. The Warrant Agent
hereby is authorized to countersign any Warrant Certificate that is properly
issued and deliver the same to, or in accordance with the properly documented
and verified instruction of, any registered Warrant Holder.
4
Plan
Warrant Agreement
3.2 Delivery
of Plan Warrant.
The
Warrant Holder shall select the method of delivery of the Plan Warrant,
as set
forth in Section 3.1b) above.
a) Book
Entry Form.
The
Warrant Holder, by executing and delivering the “Warrant
Acceptance and Effective Delivery Agreement,”
a
form
of which is attached hereto as Exhibit
B,
hereby
elects to have all the Plan Warrants issued in Book Entry form. By executing
only the Warrant Acceptance and Effective Delivery Agreement and thereby
electing Book Entry for the Plan Warrants, the Warrant Holders also elect to
have a Contingent Agent act for them under certain limited circumstances as
set
forth in Article VII.
b) Certificated
Form.
If the
Warrant holder desires to receive physical delivery of the Plan Warrants (i.e.
certificated form), such Warrant Holder must, in
addition
to
executing the Warrant Acceptance and Effective Delivery Agreement as set forth
in Section 3.2a) above, also execute and deliver the “Election
to Certificate Agreement”
as
attached hereto as Exhibit
F.
The
Plan
Warrants requested in certificated form will be issued in Units consisting
of
one A Warrant, one B Warrant, one C Warrant, one D Warrant, one E Warrant and
one F Warrant for each Issuer. To receive certificates for the Plan Warrants,
such Warrant Holder shall remit an issuance fee set forth in the Election to
Certificate Agreement. Warrant
Holders electing Plan Warrants in certificated form also waive any of the rights
and benefits to having the Contingent Agent act for them under certain limited
circumstances as set forth in Article VII.
3.3 Transfer
of Ownership.
The
Warrant Agent may register the transfer of any outstanding Warrant Certificate
or any Book Entry ownership change upon the receipt of appropriate instruments
of transfer, in a form satisfactory to both the Issuer and the Warrant Agent,
duly executed by the Warrant Holder or a duly authorized attorney, including,
if
requested by the Warrant Agent, legal opinions and signature verification as
required, in the Issuer’s sole discretion. An Assignment Form appears on the
back of the “Form
of Plan Warrant Certificate”
attached hereto as Exhibit
D.
Upon
any registration of transfer, either (i) a new Warrant Certificate shall be
issued in the name of and delivered to the transferee and the surrendered
Warrant Certificate shall be canceled or (ii) a new Book Entry shall be made
reflecting the transfer and notice shall be given to the new Warrant Holder.
In
the event a certificated warrant is submitted for transfer, a customary cash
fee
for the transfer must accompany such Plan Warrant prior to the execution of
the
transfer.
3.4 Mutilated
or Missing Warrant Certificates.
If any
Warrant Certificate is mutilated, lost, stolen, or destroyed, an Issuer and
the
Warrant Agent may, on such terms as to fully indemnify them or otherwise as
they
may in their sole discretion impose (which shall, in the case of a mutilated
Warrant Certificate, include the surrender thereof), and upon the receipt of
evidence satisfactory to an Issuer and the Warrant Agent of such mutilation,
loss, theft or destruction, issue a substitute Warrant Certificate of like
denomination and tenor as the Warrant Certificate so mutilated, lost, stolen
or
destroyed. Applicants for substitute Warrant Certificates shall comply with
such
other reasonable regulations and pay any reasonable charges as an Issuer or
the
Warrant Agent may prescribe including costs of an indemnity bond, if required
by
an Issuer in its sole discretion.
5
Plan
Warrant Agreement
3.5 No
Fractional Plan Warrants or Shares.
An
Issuer shall not be required to issue fractions of Plan Warrants upon the
reissue of Plan Warrants due to any adjustments as described in Section 1.4
or
otherwise. In lieu of issuing any fractional interest, an Issuer shall round
up
to the nearest full Plan Warrant. If the total Plan Warrants surrendered by
exercise would result in the issuance of a fractional Share, an Issuer shall
not
be required to issue a fractional Share but rather the aggregate number of
Shares issuable will be rounded up to the nearest full share. At an Issuer’s
sole option, an Issuer may pay the cash value of any such fractional interest
in
lieu of issuing additional Shares or Plan Warrants.
ARTICLE
IV
EXERCISE
OF PLAN WARRANTS
4.1 Method
of Exercise.
Subject
to Article V, any Plan Warrant or any multiple of Plan Warrants evidenced by
any
Warrant Certificate or in Book Entry form may be exercised on or before the
Expiration Date. Plan Warrants shall be exercised by the Warrant Holder by
either (i) surrendering to the Warrant Agent the Warrant Certificate evidencing
the Plan Warrants with a “Subscription
and Exercise Notice,”
a
form
of which is attached hereto as Exhibit
E,
duly
completed and executed showing the number of Plan Warrants being exercised,
or
(ii) if in Book Entry form, by delivering to the Warrant Agent a Subscription
and Exercise Notice, duly completed and executed showing the number of Book
Entry Plan Warrants being exercised. In addition, the Warrant Holder must
deliver to the Warrant Agent, by certified check, or other immediately available
funds or wire transfer, in U. S. dollars (“Good
Funds”),
as
the Warrant Agent may elect, payable to the order of the Issuer of such Plan
Warrant, the Exercise Price for each Share to be purchased. Both the
Subscription and Exercise Notice relating to a certificated Plan Warrant and
a
Book Entry Plan Warrants are hereinafter referred to as an “Exercise
Notice.”
The
form
of Exercise Notice may be changed from time to time and, at any time, in the
discretion of the Issuer.
4.2 Delivery
of Shares.
Upon
receipt of the Exercise Notice and
payment
in Good Funds of the full Exercise Price for the Plan Warrants that are the
subject to the Exercise Notice, the Warrant Agent shall requisition the issuance
of the required Shares, and deliver such Shares in accordance with the properly
documented instructions of the Warrant Holder. The certificate for the Shares
shall be deemed to be issued, and the person to whom the Shares are issued
of
record shall be deemed to have become a holder of record of the Shares, as
of
the date of the surrender of such properly executed Exercise Notice and payment
of the Exercise Price in Good Funds, whichever shall last occur. If however,
the
books of an Issuer with respect to the Shares shall be deemed to be closed,
the
person to whom such Shares are issued shall be deemed to have become a record
holder of such Shares as of the date on which such books of the Issuer shall
next be open (whether before, on or after the Expiration Date). All Warrant
Certificates surrendered upon exercise of Plan Warrants shall be
canceled.
6
Plan
Warrant Agreement
4.3 Unexercised
Warrants.
If less
than all the Plan Warrants evidenced by a Warrant Certificate or Book Entry
are
exercised upon a single occasion, until the Expiration Date, a new Warrant
Certificate or Book Entry for the balance of the Plan Warrants not so exercised
shall be issued and delivered to or recorded in the Warrant Holder’s name, or in
accordance with transfer instructions properly given by the Warrant
Holder.
4.4 Escrow.
Upon
the exercise, or conversion of any Plan Warrant, the Warrant Agent, if not
the
Issuer, shall promptly deposit the payment of the Exercise Price into an escrow
account established by mutual agreement of an Issuer and their Warrant Agent
at
a federally insured commercial bank. All funds deposited in the escrow account
will be disbursed on a weekly basis to an Issuer once such funds have been
determined by the Warrant Agent to be collected funds. Once the funds are
determined to be collected funds, the Warrant Agent shall take actions to cause
the certificate(s) representing the Shares issued pursuant to the exercise
of
the Plan Warrants to be issued.
4.5 Expenses.
Except
for Section 4.6, expenses incurred by the Warrant Agent while acting in the
capacity as Warrant Agent will be paid by each Issuer. These expenses, including
delivery of Share certificates to the shareholder, will be deducted from the
Exercise Price submitted prior to distribution of funds to the Issuer. The
Warrant Agent will supply a detailed account statement relating to the number
of
Shares exercised, names of the registered Warrant Holder(s) and the net amount
of funds remitted will be given to the applicable Issuer with each
payment.
4.6 Fees.
At the
time of exercise of any Plan Warrant, any cost for Share issuance and transfer
fee is to be paid by the Warrant Holder. In the event the Warrant Holder must
pay such fees and fails to remit same, the Warrant Agent, if agreed to by the
Issuer, may elect to have such fee deducted from the proceeds prior to
distribution to an Issuer.
ARTICLE
V
LIMITATIONS
ON EXERCISE
5.1 Limit
of Exercise.
The
Warrant Holder, together with the Warrant Holder’s “affiliates,”
as
such term is defined in the Securities and Exchange Commission’s rules and
regulations, shall not be entitled to exercise any Plan Warrant if, after giving
effect to such exercise, the Warrant Holder and its Affiliates would
beneficially own in excess of 4.99% of the outstanding Shares of an Issuer.
For
purposes of the foregoing calculation, the Shares beneficially owned by a
Warrant Holder and its Affiliates or acquired by the Warrant Holder and its
Affiliates, shall include the number of Shares issuable upon exercise of such
Plan Warrant with respect to which the determination is being made, but shall
exclude the number of Shares that would be issuable upon (i) exercise of the
remaining, non-exercised portion of any Plan Warrants issued by the Issuer
and
beneficially owned by such Warrant Holder and its Affiliates and subject to
a
limitation on conversion or exercise and (ii) exercise or conversion of the
unexercised or unconverted portion of any other securities of an Issuer subject
to a limitation on conversion or exercise analogous to the limitation contained
herein. Except as set forth in the preceding sentence, for purposes of this
paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”).
7
Plan
Warrant Agreement
5.2 Warrant
holder Representation.
Each
Exercise Notice executed by a Warrant Holder shall constitute a representation
by such Warrant Holder that, after giving effect to such Exercise Notice, (i)
such Warrant Holder will not beneficially own (as determined in accordance
with
this Article V) in excess of 4.99% of the outstanding Shares of an Issuer and
(ii) the Warrant Holder will not have acquired, through exercise of such Plan
Warrant or otherwise, a number of Shares that, when added to the number of
Shares beneficially owned by the Warrant Holder at the beginning of the sixty
(60) day period ending on and including the applicable date of exercise of
such
Plan Warrant, is in excess of 4.99% of the outstanding Shares of the Issuer
following the exercise during the sixty (60) day period ending on and including
the date of exercise.
5.3 Shares
Outstanding.
For
purposes of this Article V, in determining the number of the outstanding Shares
of an Issuer, the Warrant Holder may rely on the number of outstanding Shares
(i) as reflected on an Issuer’s web site or, (ii) at such time as an Issuer is a
reporting Issuer under the Exchange Act, as reflected in an Issuer’s most recent
annual, quarterly or current report filed pursuant to the Exchange Act, or
(iii)
as reflected in its most recent public announcement or other notice by an Issuer
setting forth the number of Shares outstanding. The number of outstanding Shares
shall be determined after giving effect to exercises of such Plan Warrant
(including the exercise with respect to which this determination is being made)
by the Warrant Holder.
5.4 Waiver.
An
Issuer, in their sole discretion, may waive the ownership and exercise
limitations imposed by this Article V in whole or in part upon receipt by the
Warrant Holder of its undertaking, in form acceptable to an Issuer in its sole
discretion, including if necessary legal opinions, to fully comply with all
applicable securities law reporting requirements.
ARTICLE
VI
RIGHTS
AND DUTIES OF WARRANT AGENT
6.1 Third
Party Warrant Agent.
If an
Issuer appoints a third party Warrant Agent, which it may do in its sole
discretion, and such Warrant Agent accepts the appointment, such Warrant Agent
will only accept upon the following terms and conditions, by all of which an
Issuer and every Warrant Holder by acceptance of this Plan Warrant Agreement
shall be bound:
a)
Statements
contained in this Agreement and in the Warrant Certificates, if such Warrant
Certificates are issued, shall be taken as statements of the Issuer. The Warrant
Agent assumes no responsibility for the correctness of any of these statements
except those that describe the Warrant Agent or any action taken or to be taken
by the Warrant Agent.
b)
The
Warrant Agent shall not be responsible for any failures of an Issuer to comply
with any of an Issuer’s covenants contained in this Agreement or in the Warrant
Certificates.
c)
The
Warrant Agent may consult at any time with counsel satisfactory to it (who
may
also be counsel for its applicable Issuer) and the Warrant Agent shall incur
no
liability or responsibility to an Issuer or to any Warrant Holder in respect
of
any action taken, suffered or omitted by it hereunder in good faith and in
accordance with the opinion or the advice of such counsel, provided the Warrant
Agent shall have exercised reasonable care in the selection and continued
employment of such counsel.
8
Plan
Warrant Agreement
d)
The
Warrant Agent shall incur no liability or responsibility to an Issuer or to
any
Warrant Holder for any action taken in reliance upon any notice, resolution,
waiver, consent, order, certificate or other paper, document or instrument
believed by it to be genuine and to have been signed, sent or presented by
the
proper party or parties.
e)
An
Issuer
agrees to pay to the Warrant Agent reasonable compensation for all services
rendered by the Warrant Agent in the execution of this Agreement, to reimburse
the Warrant Agent for all expenses, taxes and governmental charges and all
other
charges of any kind in nature incurred by the Warrant Agent in the execution
of
this Agreement and to, except as a result of a Warrant Agent’s negligence or bad
faith, indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and counsel fees, for this
Agreement.
f)
The
Warrant Agent shall be under no obligation to institute any action, suit or
legal proceeding or to take any other action likely to involve expense unless
an
Issuer or one or more Warrant Holders shall furnish the Warrant Agent with
reasonable security and indemnity for any costs and expense that may be incurred
in connection with such action, suit or legal proceeding. However, this
proceeding provision shall not affect the power of the Warrant Agent to take
such action as the Warrant Agent may consider proper, whether with or without
any such security or indemnity. All rights of action under this Agreement or
under any of the Plan Warrants may be enforced by the Warrant Agent without
the
possession of any of the Warrant Certificates or the production thereof at
any
trial or other proceeding relative thereto, and any such action, suit or
proceeding instituted by the Warrant Agent shall be brought in its name as
Warrant Agent, and any recovery of judgment shall be for the ratable benefit
of
the Warrant Holders as their respective rights or interest may
appear.
g)
The
Warrant Agent and any shareholder, director, officer or employee of the Warrant
Agent may buy, sell or deal in any of the Plan Warrants or other securities
of
an Issuer or become pecuniary interested in any transaction in which an Issuer
may be interested, or contract with or lend money to an Issuer or otherwise
act
as fully and freely as though it were not Warrant Agent under this Agreement.
Nothing herein shall preclude the Warrant Agent from acting in any other
capacity for an Issuer or for any other legal entity.
6.2 Successor
Warrant Agent.
Any
corporation into which the Warrant Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Warrant Agent shall be a party, or
any
corporation succeeding to the corporate trust business of the Warrant Agent,
shall be the successor to the Warrant Agent hereunder without the execution
or
filing of any paper or any further act of a party or the parties hereto. In
any
such event or if the name of the Warrant Agent is changed, the Warrant Agent
or
its successor may adopt the countersignature of the original Warrant Agent
and
may countersign the Warrant Certificates either in the name of the predecessor
Warrant Agent or in the name of the successor Warrant Agent.
9
Plan
Warrant Agreement
6.3 Appointment
of a New Warrant Agent.
A
Warrant Agent may resign or be discharged by the applicable Issuer from its
duties under this Agreement, with or without cause, by one party giving notice
in writing to the other, and by giving a date when such resignation or discharge
shall take effect, which, unless for cause, such notice shall be sent at least
thirty (30) days prior to the date so specified.
a) If
a
Warrant Agent shall resign, be discharged or shall otherwise become incapable
of
acting, an Issuer may elect to act as its own Warrant Agent or shall appoint
a
successor to the Warrant Agent.
b) If
an
Issuer fails to make such election or appointment within a period of thirty
(30)
days after it has been notified in writing of the resignation or incapacity
of
its Warrant Agent, then any Warrant Holder may apply to the Bankruptcy Court
in
Phoenix, Arizona, for the appointment of a successor to the Warrant Agent.
c) Pending
appointment of a successor to the Warrant Agent, either by the Issuer or by
the
Bankruptcy Court, each Issuer shall carry out the duties of the Warrant Agent.
After appointment, the successor Warrant Agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been originally named
as the Warrant Agent without further act or deed and the Warrant Agent shall
deliver and transfer to the successor Warrant Agent any property at the time
held by it as the Warrant Agent, and execute and deliver any further assurance,
conveyance, act or deed necessary for effecting the delivery or transfer.
d) Failure
to give any notice provided for in this Section 6.3, shall not affect the
legality or validity of the resignation or removal of the Warrant Agent or
the
appointment of the successor Warrant Agent.
ARTICLE
VII
CONTINGENT
WARRANT HOLDER AGENT
7.1 Contingent
Warrant Holder Agent.
By
the
execution of the Warrant Acceptance and Effective Delivery Agreement and
electing Book Entry for the Plan Warrants, the accepting Warrant Holders elect
also to have an additional agent act for them only under the limited
circumstances and
in
the manner specified in the “Contingent
Agent Agreement”
attached hereto as Exhibit
G
(the
“Contingent
Agent”).
If a
Warrant Holder executing the Warrant Acceptance and Effective Delivery
Agreement, however, elects to receive physical delivery of the Plan Warrants
in
accordance with the terms of the “Election
to Certificate Agreement”
as
attached hereto as Exhibit
F,
the
electing Warrant Holder waives any of its rights and benefits to having the
Contingent Agent act for them pursuant to the Contingent Agent Agreement.
7.2 General
Duties of the Contingent Agent.
In the
event a Warrant Holder fails to exercise a Plan Warrant before an Expiration
Date or lapse of date specified in a Redemption Notice, the Contingent Agent
shall have the rights specified in the Contingent Agent Agreement to act for
the
Warrant Holder with limitations and with a duty to the Warrant Holder to remit
any benefits pro rata to the Warrant Holders of all similarly affected Plan
Warrants.
10
Plan
Warrant Agreement
7.3 Subsequent
Termination of Contingent Agent.
Subsequent to the execution of the Warrant Acceptance and Effective Delivery
Agreement, any Warrant Holder may elect to terminate the Contingent Agent
Agreement by notifying an Issuer in writing. Any such notice must be received
before the Expiration Date of the applicable Plan Warrant.
7.4 No
Duty to Appoint a Contingent Agent.
An
Issuer may elect to appoint a Contingent Agent but has no duty to do so. The
terms of the Contingent Agent Agreement are controlling regarding all issues
pertaining to the Contingent Agent.
ARTICLE
VIII
RIGHTS
AND DUTIES OF WARRANT HOLDERS
8.1 Rights
of Warrant Holders.
a) No
Warrant Holder, as such, shall have any rights as a shareholder of any Issuer,
either at law or equity, and the rights of the Warrant Holders are limited
to
those rights expressly provided in this Agreement or in the Warrant
Certificates, if issued. Notwithstanding any notice to the contrary, an Issuer
and their Warrant Agent may treat the registered Warrant Holder in respect
to
any Warrant Certificate or Book Entry or otherwise as the absolute owner thereof
for all purposes.
b) Except
as
otherwise specifically provided herein, no Warrant Holder shall be entitled
to
vote or receive dividends or be deemed the holder of Shares of the applicable
Issuer for any purpose, nor shall anything contained in any Plan Warrant or
this
Agreement be construed to confer upon the Warrant Holder including but not
limited to (i) any of the rights of a stockholder of an Issuer, (ii) any right
to vote, (iii) any right to give or withhold consent to any corporate action
(whether any reorganization, issue of stock, reclassification of stock,
consolidation, merger, conveyance or otherwise), and (iv) any right to receive
notice of meetings or receive dividends or subscription rights prior to the
issuance of the Shares that the Warrant Holder is then entitled to receive
upon
the due exercise of any Plan Warrant.
c) No
Plan
Warrant shall be construed as imposing any liabilities on any Warrant Holder
to
purchase any securities of an Issuer, whether such liabilities are asserted
by
an Issuer or by creditors of an Issuer.
8.2 Taxes.
The
Warrant Holder will pay all taxes attributable to the Plan Warrants or the
initial issuance of Shares upon exercise of the Plan Warrants, including any
tax
that may be payable with respect to any transfer involved in any issue of
Warrant Certificates or in the issue of any certificates of Shares upon the
exercise of any Plan Warrant in a name other than that of the Warrant
Holder.
ARTICLE
IX
NOTICES
9.1 Notices
to Warrant Holders.
Any
distribution, notice or demand required or authorized by this Agreement to
be
given or made by an Issuer or by a Warrant Agent to or on the Warrant Holder
shall be sufficiently given or made if sent by first class mail, postage
prepaid, addressed to the Warrant Holder at their last known address as it
appears on the Plan Warrant registration books of the Issuer or the official
Warrant Holder listing maintained by the Warrant Agent.
11
Plan
Warrant Agreement
a. Notice
of Plan Warrant Changes.
Except
for an extension of the Expiration Date, which shall be effective when such
information is a matter of public record (or upon mailing or other means of
notification agreed to by a Warrant Holder, upon any adjustment pursuant to
Sections 1.4 and 1.5, an Issuer within twenty (20) days thereafter will (i)
file
with the Warrant Agent a certificate signed by an officer of the Issuer setting
forth the details of the adjustment, the method of calculation and the facts
upon which the calculation is based, and (ii) provide written notice of the
adjustments to each Warrant Holder as of the record date.
b. Notice
of Reorganization.
If an
Issuer proposes to enter into any reorganization, reclassification, sale of
substantially all of its assets, consolidation, merger, dissolution, liquidation
or winding up, an Issuer will give notice of the fact at least twenty (20)
days
prior to the action to all Warrant Holders. This notice shall set forth the
facts to indicate the effect of the action (to the extent the effect may be
known at the date of the notice) on the Exercise Price and the kind and amount
of the Shares or other property deliverable upon exercise of the Plan Warrants.
c. Failure
to Give Notice.
Without
limiting the obligation of an Issuer to provide notice to each Warrant Holder,
failure of an Issuer to give notice shall not invalidate corporate action taken
by an Issuer.
d. Unclaimed
Notices and Bad Addresses.
All
notices, mailings and distributions under the Plan which are returned by the
Post Office undelivered or which cannot be delivered due to the failure of
the
Warrant Holder to provide the Issuers with a current address will be retained
by
the Issuer pursuant to Section 5.13 of the Plan, incorporated herein by
reference. The Warrant Agent or the Issuer is under no obligation to continue
notices, mailings and distributions to known undeliverable or bad
addresses.
9.2 Notices
to Warrant Agent and Issuers.
Any
notice or demand authorized by this Agreement to be given or made by the Warrant
Agent or by any Warrant Holder to or on an Issuer shall be sufficiently given
or
made if sent by mail, first class, certified or registered, postage prepaid,
addressed (until another address is filed in writing by an Issuer with its
Warrant Agent), to an Issuer’s official headquarters address. Any notice or
demand authorized by this Agreement to be given or made by any Warrant Holder
or
by an Issuer to or on the Warrant Agent shall be sufficiently given or made
if
sent by mail, first class, certified or registered, postage prepaid, addressed
(until another address is filed in writing by the Warrant Agent with an Issuer),
to the Warrant Agent’s official headquarters address.
12
Plan
Warrant Agreement
ARTICLE
X
MISCELLANEOUS
10.1 Reservation
of Shares.
For the
purpose of enabling an Issuer to satisfy its obligations to issue Shares upon
exercise of their Plan Warrants, Issuers will at all times reserve and keep
available, free from preemptive rights, out of the aggregate of its authorized
but unissued shares, the full number of Shares that may be issued upon the
exercise of Plan Warrants. The Shares will, upon issue, be fully paid and
non-assessable by an Issuer and free from all liens, charges and security
interest with respect to the issue thereof.
10.2 Governmental
Restrictions.
If any
Shares issuable upon the exercise of a Plan Warrant require approval of any
governmental authority, the applicable Issuer will endeavor to secure such
approval; provided that in no event shall such Shares be issued, and an Issuer
shall have the authority to suspend the exercise of all Plan Warrants, until
such approval has been obtained. If any such period of suspension continues
past
an Expiration Date, all affected Plan Warrants, the exercise of which have
been
requested on or prior to the Expiration Date and which were accompanied with
Good Funds, shall be exercisable upon the removal of such suspension until
the
close of business on the business day immediately following the expiration
of
such suspension. The Issuer or the Warrant Agent shall hold any funds received
during such suspension in escrow in a segregated and specified account. In
the
event a governmental authority requires the modification of this Agreement,
any
effected Issuer may make such modification without further agreement of any
Warrant Holder. If such modification materially impacts the rights of the
Warrant Holders, such Issuer will mail a notification of such change to the
affected Warrant Holders.
10.3 Supplements
and Amendments.
An
Issuer and the Warrant Agent may from time to time supplement or amend this
Agreement without the approval of any Warrant Holders in order to cure any
ambiguity or to correct or supplement any provision contained herein that may
be
defective or inconsistent with any other provisions herein, or to make any
other
provisions in regard to matters or questions arising hereunder that an Issuer
and the Warrant Agent may deem necessary or desirable.
10.4 Assignment.
A
Warrant Holder may transfer and assign their rights to any Plan Warrant
provided, however, that any such assignment shall not release the Warrant Holder
from their commitments and obligations hereunder unless the obligations are
formally assumed by such assignee. A Warrant Holder shall not transfer the
Plan
Warrants unless the transfer is registered or exempt from registration under
applicable securities laws. The Warrant Agent may require that such Warrant
Holder first obtain an opinion of counsel satisfactory to the Warrant Agent
and
the Issuer that the proposed disposition or transfer does not violate securities
laws. Any transfer must specifically acknowledge that this Agreement will
continue to control the Plan Warrants so transferred.
10.5 Termination.
This
Agreement shall terminate at the close of business on the Expiration Date or
such earlier date upon which all Plan Warrants of all Issuers have been
exercised or redeemed; provided, however, that if exercise of any Plan Warrants
are suspended pursuant to Section 10.2 and such suspension continues past the
Expiration Date, this Agreement shall terminate at the close of the business
on
the business day immediately following the expiration of the suspension. The
provisions of Article VI shall survive this termination.
13
Plan
Warrant Agreement
10.6 Governing
Law.
This
Agreement and each Plan Warrant Certificate or other evidence of ownership
issued hereunder shall be deemed to be a contract made under the laws of the
state in which an Issuer is incorporated at such time as a dispute arises and,
for all purposes except as superseded by the jurisdiction of the Bankruptcy
Court, shall be construed in accordance with the laws of such State. Any
disputes shall be governed by the Plan, the Bankruptcy Court, the orders of
the
Bankruptcy Court pertaining to the Plan and the Bankruptcy Code. Venue, if
in
state or federal court shall be the most convenient state or federal court
in
relationship to the applicable Issuer’s headquarters.
10.7 Successors.
All the
covenants and provision of this Agreement by or for the benefit of an Issuer,
a
Warrant Holder or a Warrant Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder.
10.8 Severability.
Should
any part of this Agreement for any reason be declared invalid or unenforceable,
such decision will not affect the validity or unenforceability of any remaining
portion, which remaining portion will remain in force and effect as if this
Agreement had been executed with the invalid portion eliminated and it is hereby
declared the intention of the parties hereto that the parties would have
executed the remaining portion of this Agreement without including therein
any
such part or portion which may, for any reason, be hereafter declared invalid
or
unenforceable.
10.9 Reliance.
The
Warrant Agent may rely on the facsimile or similar transmissions from a Warrant
Holder as original signatures and representations of the Issuer as to the names,
addresses and number of Plan Warrants of the Issuer’s Warrant Holders and their
ownership positions.
10.10 Construction.
The
parties hereto hereby acknowledge and agree that the rule of construction to
the
effect that any ambiguities are to be resolved against the drafting party will
not be applied to the interpretation of this Agreement. No inference in favor
of, or against, any party will be drawn from the fact that one party has drafted
any portion hereof.
10.11 Advice
of Counsel.
Each
party hereby acknowledges that they are entitled to and have been afforded
the
opportunity to consult legal counsel of their choice regarding the terms and
conditions and legal effects of this Agreement, as well as the advisability
and
propriety thereof. Each party hereby further acknowledges that having so
consulted with legal counsel of their choosing or having chosen not to consult,
hereby waives any right to the legal representation or effective representation
and any right to raise or rely upon the lack of representation or effective
representation in any future proceedings or in connection with any future
claim.
10.12 Complete
Agreement; Amendment.
Except
as determined by the Plan, the Bankruptcy Court, the orders of the Bankruptcy
Court and the Bankruptcy Code, this Agreement sets forth the entire
understanding between the parties hereto and supersedes all prior agreements,
arrangements and communications, whether oral or written, with respect to the
subject matter hereof. No other agreements, representations, warranties or
other
matters, whether oral or written, shall be deemed to bind the parties hereto
with respect to the subject matter hereof. This Agreement may not be modified
or
amended except by the mutual written agreement of the parties.
14
Plan
Warrant Agreement
10.13 Captions.
The
descriptive headings of the various Sections or parts of this Agreement are
for
convenience only and shall not affect the meaning or construction of any of
the
provisions hereof.
10.14 Execution
in Counterparts.
This
Agreement may be executed in any number of counterparts, each of which shall
be
deemed to be an original as against any party whose signature appears thereon
and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts hereof,
individually or taken together, shall bear the signature of all of the parties
reflected hereon as the signatories.
IN
WITNESS WHEREOF, this Agreement has been executed as of the Effective Date
written above.
“WARRANT HOLDER” deemed executed in accordance with the terms of the Plan and the Warrant Acceptance and Effective Delivery Agreement, attached hereto as Exhibit B and specifically made part hereto. | “ISSUERS”
VISITALK
CAPITAL CORPORATON
As
an Issuer and as Implementation Agent for the other
Issuers
|
||
/s/ | |||
Signature (all record holders should sign) |
By:
Its:
|
15
EXHIBIT
A
ISSUERS
COVERED BY THE PLAN WARRANT AGREEMENT
Visitalk Capital Corporation | |
VT Billing Services, Inc. | |
VT Business Products, Inc. | |
VT Consumer Services, Inc. | |
VT Financial Services, Inc. | |
VT Gaming Services, Inc. | |
VT International Corp. | |
VT Marketing Services, Inc. | |
VT Video Services, Inc. | |
VT Arabic Services, Inc. | |
VT Chinese Services, Inc. | |
VT Dutch Services, Inc. | |
VT French Services, Inc. | |
VT German Services, Inc. | |
VT Hispanos Services, Inc. | |
VT Italian Services, Inc. | |
VT Japanese Services, Inc. | |
VT Korean Services, Inc. | |
VT Portuguese Services, Inc. |
16
EXHIBIT
B
FORM
OF WARRANT ACCEPTANCE AND EFFECTIVE DELIVERY AGREEMENT
Visitalk
Capital Corporation
00000
X.
00xx Xx., Xxxxx 000
Phoenix,
AZ 85044
Dear
Sir
or Madam:
A. Capitalized
terms, unless defined herein, have the same meaning as defined in the warrant
agreement effective September 17, 2004 (the “Plan
Warrant Agreement”)
or in
the Second Joint Plan of Reorganization dated June 22, 2004, confirmed by the
United States Bankruptcy Court for the District of Arizona related to Case
No.
00-13035-PHX-RTB (the “Plan”)
of
xxxxxxxx.xxx, Inc. (“Visitalk”).
The
Undersigned represents that they have reviewed the Plan Warrant Agreement and
the Plan and have had the opportunity to ask questions regarding their terms
and
restrictions.
B. Each
Issuer is required under the Plan to issue certain warrants to various claimants
categorized under the Plan (the “Plan
Warrants”).
Such
Plan Warrants are defined in the Plan and governed in accordance with the Plan
Warrant Agreement.
C. The
Undersigned, _______________________________________,
hereby
tenders this Warrant Acceptance and Effective Delivery Agreement (the
“Acceptance
Agreement”)
to
Visitalk Capital Corporation, as an Issuer and as the Implementation Agent
for
the other Issuers,
and unless an executed “Election to Certificate Agreement” is attached,
hereby
elects to have all of their Plan Warrants issued in Book Entry form.
D. This
Acceptance Agreement has been duly authorized by all necessary action on the
part of the Undersigned and, if necessary, this Acceptance Agreement has been
duly executed by an authorized officer or representative of the Undersigned
and
such person is a legal officer or representative of the Undersigned and this
Acceptance Agreement is enforceable in accordance with its terms.
E. If
physical delivery of the Plan Warrant certificates is desired, please and return
sign BOTH this Acceptance Agreement and also sign and return the “Election to
Certificate Agreement, “ attached to the Plan Warrant Agreement as Exhibit F,
along with a check for the certificate issue fee as set forth
therein.
BY
EXECUTION BELOW, THE UNDERSIGNED ACKNOWLEDGES THAT THEY HAVE RECEIVED EFFECTIVE
DELIVERY OF THE PLAN WARRANTS. VISITALK CAPITAL CORPORATION AND EACH ISSUER
IS
RELYING UPON THE ACCURACY AND COMPLETENESS OF THE REPRESENTATIONS CONTAINED
HEREIN IN COMPLYING WITH ITS OBLIGATIONS.
Warrant
Holder Accepted and Agreed:
WARRANT
HOLDER **
|
Issuer
Acceptance VISITALK
CAPITAL CORPORATON, as an Issuer and as Implementation Agent for the
other
Issuers |
||
Signatures
(all record holders should sign)
|
By:
Its:
|
**
NOTE - If the Plan Warrants are being accepted by an “Entity”,
Warrant
Holder must sign the Certificate of Authority on Exhibit
B-2
17
EXHIBIT
B-2
CERTIFICATE
OF AUTHORIZATION
(to
be
completed if the Plan Warrants are being accepted by an “ Entity”)
I hereby certify that _________________________________________________________(“Entity”) |
(name
of company, trust, partnership or other form of entity)
|
is a_______________organized and existing under and by virtue of the laws of the State of______________ |
(entity
type)
(state)
|
and its tax ID number is__________________________and it is currently in good standing and its charter |
(federal
tax ID or SS #)
|
in full force and effect. I further certify that the______________________and/or the___________________ |
(title)
(title)
|
are fully authorized and empowered to make , execute and deliver any and all written instruments necessary or |
proper to effectuate the authority hereby conferred. I further certify that________________________now is |
(name)
|
the______________________and __________________________is now the______________________ . |
(title)
(name) (title)
|
I
further
certify that the officers set forth herein, or any one of them, are duly
authorized by the Entity to execute and carry out the terms of the Warrant
Acceptance and Effective Delivery Agreement and certify further that the
Warrant
Acceptance and Effective Delivery Agreement has been duly and validly executed
on behalf of the Entity and constitutes a legal and binding obligation of
the
Entity.
Dated this____day of___________, 200__. | |||
Signature
of certifying officer
(Must
not be signed by officer authorized to act)
|
|||
Title of certifying officer |
18
EXHIBIT
C
FORM
OF CLAIM HOLDER OWNERSHIP SCHEDULE
The
Plan
Warrants specified below are only valid if the specific named Claim Holder
named
herein, or a proper assignee, has executed a Warrant Acceptance and Effective
Delivery Agreement (“Acceptance
Agreement”)
prior
to March 31, 2006 and such agreement has been received by Visitalk Capital
Corporation as the agent of the Issuers no later than April 15,
2006.
Claim
Holder:
______________________________________ |
Investment
in Series A:
|
$________________
|
||
______________________________________ |
Investment
in Series B:
|
$________________
|
||
______________________________________ |
Investment
in Series C:
|
$________________
|
||
______________________________________ |
Investment
in Series_____
|
$________________
|
Plan
Allowed Claim:
|
$____________
|
Plan
Class:
|
_____________
|
Issuers
|
Unit
#
|
Warrant
Units**
|
___________
|
_____________________
|
|
Visitalk
Capital Corporation
|
___________
|
_____________________
|
VT
Billing Services, Inc.
|
___________
|
_____________________
|
VT
Business Products, Inc.
|
___________
|
_____________________
|
VT
Consumer Services, Inc.
|
___________
|
_____________________
|
VT
Financial Services, Inc.
|
___________
|
_____________________
|
Dynamic
Biometric Systems, Inc.
|
___________
|
_____________________
|
VT
International Corp.
|
___________
|
_____________________
|
VT
Marketing Services, Inc.
|
___________
|
_____________________
|
VT
Video Services, Inc.
|
___________
|
_____________________
|
VT
Arabic Services, Inc.
|
___________
|
_____________________
|
VT
Chinese Services, Inc.
|
___________
|
_____________________
|
VT
Dutch Services, Inc.
|
___________
|
_____________________
|
VT
French Services, Inc.
|
___________
|
_____________________
|
VT
German Services, Inc.
|
___________
|
_____________________
|
VT
Hispanos Services, Inc.
|
___________
|
_____________________
|
VT
Italian Services, Inc.
|
___________
|
_____________________
|
VT
Japanese Services, Inc.
|
___________
|
______________________
|
VT
Korean Services, Inc.
|
___________
|
_____________________
|
VT
Portuguese Services, Inc.
|
___________
|
_____________________
|
**
A
Warrant Unit consists of consist
of one A Warrant, one B Warrant, one C Warrant, one D Warrant, one E Warrant
and
one F Warrant.
19
EXHIBIT
D
FORM
OF WARRANT CERTIFICATE OR WARRANT UNIT CERTIFICATE
NAME
OF ISSUER
Plan
Warrants to Purchase __________ Shares
|
Warrant
Series ___ - Number ____
|
|
Plan
Warrant Expiration Date ______________
|
Per
Warrant Exercise Price $_____.00
|
THIS
IS
TO CERTIFY that,________________________________________or
registered assigns, is the registered holder (“Warrant
Holder”)
of the
number of warrants (“Plan
Warrants”)
set
forth above. Each
Plan
Warrant entitles the Warrant Holder to purchase, subject to the terms and
conditions in this certificate and set forth in a warrant agreement effective
September 17, 2004, (the “Plan
Warrant Agreement”)
which
is hereby incorporated herein and made a part hereof, at any time on or after
September 17, 2004, and at or prior to the close of business on the Expiration
Date, but not thereafter, unless the Plan Warrant is earlier Called or the
Plan
Warrant Expiration Date is extended by the Issuer, one fully paid and
non-assessable share of the Issuer’s common stock (“Share”),
or
equivalent security of any successor thereto, at a purchase price equal to
the
Exercise Price set forth above, as adjusted, in accordance with the Plan Warrant
Agreement.
Capitalized terms herein have the same meaning as in the Plan Warrant Agreement,
which is controlling.
Upon
(i)
exercise and satisfaction of one or more conditions precedent set forth herein
and in the Plan Warrant Agreement, (ii) presentation and surrender to the Issuer
or the Warrant Agent, or its successor, a Warrant Certificate with a
Subscription and Exercise Notice duly executed, and (iii) accompanied by payment
of the purchase price in Good Funds payable to the order of the Issuer, the
Warrant Holder will receive one or more certificates of Shares or equivalent
securities so purchased. Issuance of fractional shares is governed by the Plan
Warrant Agreement.
The
Issuer covenants and agrees that all Shares delivered upon the exercise of
these
Plan Warrants will, upon delivery, be fully paid and non-assessable. The Plan
Warrants shall not be exercisable in any jurisdiction where exercise would
be
unlawful. The Issuer shall not be required to honor the exercise of the Plan
Warrants if, in the opinion of its Board of Directors, upon advice of counsel,
the issuance of Shares upon exercise of the Plan Warrants would be unlawful.
The
number of Shares, or other equivalent equity security, issuable upon the
exercise of these Plan Warrants and the Exercise Price shall be subject to
adjustment from time to time, in certain events, as set forth in the Plan
Warrant Agreement.
The
Issuer agrees at all times to reserve or hold available, or cause to reserve
or
hold available, a sufficient number or Shares, or other equivalent equity
security, to cover the number of Shares, or other equivalent equity security,
issuable upon the exercise of these and all other Plan Warrants of like tenor
then outstanding.
This
Warrant Certificate does not entitle the Warrant Holder hereof, either at law
or
in equity, to any voting rights or other rights as a shareholder of the Issuer,
or to any other rights whatsoever except the rights expressly herein set forth,
and no dividend shall be payable or accrue in respect of these Plan Warrants
or
the interest represented hereby, or the Shares that may be purchased upon
exercise hereof until or unless, and except to the extent that, these Plan
Warrants shall be duly exercised.
20
This
Warrant Certificate is exchangeable at any time prior to expiration upon the
surrender hereof by the Warrant Holder to the Warrant Agent for one or more
new
Warrant Certificates of like tenor and date representing in the aggregate the
right to purchase the number of Shares that may be purchased upon exercise
hereof, each of the new Warrant Certificates to represent the right to purchase
the number of Shares as may be designated by the Warrant Holder at the time
of
the surrender. Any issuance or transfer costs related to this Warrant
Certificate shall be paid by the Warrant Holder.
The
Issuer may deem and treat the Warrant Holder of this Warrant Certificate at
any
time as the absolute owner hereof and of the Plan Warrants covered hereby for
all purposes and shall not be affected by any notice to the
contrary.
The
Plan
Warrants evidenced by this Warrant Certificate are subject to the terms of
the
Plan Warrant Agreement which is available at the principal corporate office
of
the Warrant Agent or the Issuer. The Plan Warrant Agreement is incorporated
herein by reference and made a part hereof and reference is hereby made to
the
Plan Warrant Agreement for a full description of the rights, limitations of
rights, obligations, duties and immunities hereunder of the Warrant Agent,
the
Issuers and the Warrant Holders of the Plan Warrants.
If
a
Third Party Warrant Agent has been appointed, this Warrant Certificate shall
not
be valid or obligatory for any purpose unless countersigned by the Warrant
Agent.
In
Witness Whereof, the
Issuer has caused this Warrant Certificate to be executed by its duly authorized
officer, and the corporate seal hereunto affixed.
ISSUER | ||
|
|
|
Dated:____________________________________ | By: | |
President |
By: | ||
Secretary |
21
Exhibit
D-1
ASSIGNMENT
FORM
To
assign
this Plan Warrant or a Book Entry Plan Warrant, fill in the form
below:
I
or we
assign and transfer___________________of
my
Plan Warrant rights under Warrant Series________(indicate
A through F or U for unit) - Certificate or Book Entry No.________to:
(must
include Assignee’s Social Security or EIN No. below)
(“Assignee”)
(Print
or
type assignee’s name
(Print or type assignee’s address and zip code)
Federal
Tax ID or Social Security Number(s):__________________________________
and
irrevocably appoint____________________________________as
agent
to transfer this Plan Warrant on the books of the Issuers. The agent may
substitute another to act for him.
I
represent that the Assignee received and has agreed to be bound by all the
terms
of the Plan Warrant Agreement dated September 17, 2004 governing this Plan
Warrant.
Date:_______________________ | Signature: | |
(Sign exactly as your name appears on the other side of this Warrant Certificate) |
Signature
Guarantee **: ________________________________________
By______________________________________________
**
- The signature must be guaranteed by an eligible guarantor institution
(a
bank, stockbroker, savings and loan association or credit union
with
Membership
in an approved signature guarantee medallion program)
pursuant
to Rule 17Ad-15 of the Securities Exchange Act of
1934.
22
EXHIBIT
E
FORM
OF SUBSCRIPTION AND EXERCISE NOTICE
(To
be
completed and signed only upon an exercise of a Plan Warrant(s) in whole or
in
part)
ISSUER:
___________________________
___________________________
___________________________
Dear
Sir
or Madam:
A. Capitalized
terms, unless defined herein, have the same meaning as defined in the warrant
agreement effective September 17, 2004 (the “Plan
Warrant Agreement”)
or in
the Second Joint Plan of Reorganization dated June 22, 2004, confirmed by the
United States Bankruptcy Court for the District of Arizona related to Case
No.
00-13035-PHX-RTB (the “Plan”)
of
xxxxxxxx.xxx, Inc. (“Visitalk”).
The
Undersigned represents that they have reviewed the Plan Warrant Agreement and
the Plan and have had the opportunity to ask questions regarding their terms
and
restrictions.
B. The
Undersigned,_______________________________________,
the
Warrant Holder of the attached Plan Warrant or Book Entry Plan Warrant
designated as______________________,
hereby
irrevocably elects to exercise the purchase right represented by such Plan
Warrants for, and to purchase from the Issuer,__________________ Shares,
and herewith makes a payment of $_____________in
Good
Funds, as such terms are defined in the Plan Warrant Agreement,. (Payment =
Plan
Warrants exercised x Exercise Price).
C. Important
Notice regarding Ownership Limitations.
This
Subscription and Exercise Notice is governed by Article V of the Plan Warrant
Agreement and is a specific representation by the Undersigned that, after giving
effect to this Exercise Notice, (i) the Warrant Holder and its Affiliates will
not beneficially own in excess of 4.99% of the outstanding Shares of the Issuer
and (ii) the Warrant Holder will not have acquired, through exercise of this
Plan Warrant or otherwise, a number of Shares that, when added to the number
of
Shares beneficially owned by the Warrant Holder at the beginning of the 60-day
period ending on and including the applicable date of exercise of these Plan
Warrants, is in excess of 4.99% of the outstanding Shares of an Issuer.
D. The
Undersigned hereby requests that the Certificate for the Shares be issued in
the
following name and delivered to the following
address:_______________________________________ (Print
or
type name, address and zip code)
E. If
this
Subscription and Exercise Notice is for an exercise of the Plan Warrants to
purchase fewer the maximum Shares to which the Undersigned is entitled under
the
Plan Warrants tendered, the Undersigned hereby requests that new Plan Warrants
for the remaining Plan Warrants be issued in the following name and delivered
to
the following address:____________________________________(Print
or
type name, address and zip code)
F. This
Subscription and Exercise Notice has been duly authorized by all necessary
action on the part of the Undersigned and, if necessary, this Subscription
and
Exercise Notice has been duly executed by an authorized officer or
representative of the Undersigned and such person is a legal officer or
representative of the Undersigned and this Subscription and Exercise Notice
is
enforceable in accordance with its terms.
BY
EXECUTION BELOW, THE UNDERSIGNED ACKNOWLEDGES THAT THE ISSUER IS RELYING UPON
THE ACCURACY AND COMPLETENESS OF THE REPRESENTATIONS CONTAINED HEREIN IN
COMPLYING WITH ITS OBLIGATIONS.
Warrant
Holder Accepted and Agreed:
|
Issuer
Acceptance
|
|
WARRANT
HOLDER **
|
||
|
||
|
By: |
|
Its:
|
**
NOTE - If the Plan Warrants are being accepted by an “Entity”,
Warrant
Holder must sign the Certificate of Authorization on Exhibit
E-2
23
EXHIBIT
E-2
CERTIFICATE
OF AUTHORIZATION
(to
be
completed if the Plan Warrants are being accepted by an “Entity”)
I hereby certify that _________________________________________________________(“Entity”) |
(name
of company, trust, partnership or other form of entity)
|
is a_______________organized and existing under and by virtue of the laws of the State of______________ |
(entity type) (state)
|
and its tax ID number is__________________________and it is currently in good standing and its charter |
(federal tax ID or SS #)
|
in full force and effect. I further certify that the______________________and/or the___________________ |
(title)
(title)
|
are fully authorized and empowered to make , execute and deliver any and all written instruments necessary or |
proper to effectuate the authority hereby conferred. I further certify that________________________now is |
(name)
|
the______________________and __________________________is now the______________________. |
(title)
(name) (title)
|
I
further
certify that the officers set forth herein, or any one of them, are duly
authorized by the Entity to execute and carry out the terms of the Subscription
and Exercise Notice and certify further that the Subscription and Exercise
Notice has been duly and validly executed on behalf of the Entity and
constitutes a legal and binding obligation of the Entity.
Dated this____day of___________, 200__. | |||
Signature
of certifying officer
(Must
not be signed by officer authorized to act)
|
|||
Title of certifying officer |
24
EXHIBIT
F
FORM
OF ELECTION TO CERTIFICATE AGREEMENT
Visitalk
Capital Corporation
00000
X.
00xx Xx., Xxxxx 000
Phoenix,
AZ 85044
Dear
Sir
or Madam:
A. Capitalized
terms, unless defined herein, have the same meaning as defined in the warrant
agreement effective September 17, 2004 (the “Plan
Warrant Agreement”)
or in
the Second Joint Plan of Reorganization dated June 22, 2004, confirmed by the
United States Bankruptcy Court for the District of Arizona related to Case
No.
00-13035-PHX-RTB (the “Plan”)
of
xxxxxxxx.xxx, Inc. (“Visitalk”).
The
Undersigned represents that they have reviewed the Plan Warrant Agreement and
the Plan and have had the opportunity to ask questions regarding their terms
and
restrictions.
B. The
Undersigned, ____________________________________________, by executing this
Election to Certificate Agreement, hereby elects to have all its Plan Warrants
issued in certificated form. The
Plan
Warrants requested will be issued in Units consisting of one A Warrant, one
B
Warrant, one C Warrant, one D Warrant, one E Warrant and one F Warrant for
each
Issuer,
in
accordance with the Plan Warrant
Agreement and as authorized under the Plan.
C. The
Undersigned is enclosing a check for $285.00 (19 certificates x $15.00 per
certificate issuance fee) payable to Visitalk Capital Corporation as the
Implementation Agent for the Issuers.
D. The
Undersigned understands and acknowledges that, by electing
to receive physical delivery of the Plan Warrants:
a. the
Undersigned waives any of the rights and benefits to having the Contingent
Agent
act for them pursuant to the Contingent Agent Agreement, and
b. transfer
fees will be imposed upon any future transfers or changes in the Units. For
example, if the Undersigned desires to exercise only the A Warrants, the
Undersigned will have to submit the Unit certificate and pay a fee to issue
a
new Unit certificate.
E. This
Election to Certificate Agreement has been duly authorized by all necessary
action on the part of the Undersigned and, if necessary, this Election to
Certificate Agreement has been duly executed by an authorized officer or
representative of the Undersigned and such person is a legal officer or
representative of the Undersigned and this Election to Certificate Agreement
is
enforceable in accordance with its terms.
BY
EXECUTION BELOW, THE UNDERSIGNED ACKNOWLEDGES THAT VISITALK CAPITAL CORPORATION
AND EACH ISSUER IS RELYING UPON THE ACCURACY AND COMPLETENESS OF THE
REPRESENTATIONS CONTAINED HEREIN IN COMPLYING WITH ITS
OBLIGATIONS.
Warrant
Holder Accepted and Agreed:
|
Issuer
Acceptance
|
|
WARRANT
HOLDER **
|
VISITALK
CAPITAL CORPORATON, as an Issuer
and
as Implementation Agent for the other Issuers
|
|
Signatures
(all record holders should sign)
|
By:
|
|
Its:
|
**
NOTE - If the Plan Warrants are being accepted by an “Entity”,
Warrant
Holder must sign the Certificate of Authorization on Exhibit
F-2
25
EXHIBIT
F-2
CERTIFICATE
OF AUTHORIZATION
(to
be
completed if the Plan Warrants are being accepted by an “Entity”)
I hereby certify that _________________________________________________________(“Entity”) |
(name
of company, trust, partnership or other form of entity)
|
is a_______________organized and existing under and by virtue of the laws of the State of______________ |
(entity
type)
(state)
|
and its tax ID number is__________________________and it is currently in good standing and its charter |
(federal
tax ID or SS #)
|
in full force and effect. I further certify that the______________________and/or the___________________ |
(title)
(title)
|
are fully authorized and empowered to make , execute and deliver any and all written instruments necessary or |
proper to effectuate the authority hereby conferred. I further certify that________________________now is |
(name)
|
the______________________and __________________________is now the______________________. |
(title)
(name) (title)
|
I
further
certify that the officers set forth herein, or any one of them, are duly
authorized by the Entity to execute and carry out the terms of the Election
to
Certificate Agreement and certify further that the Election to
Certificate Agreement has been duly and validly executed on behalf of the
Entity
and constitutes a legal and binding obligation of the Entity.
Dated this____day of___________, 200__. | |||
Signature
of certifying officer
(Must
not be signed by officer authorized to act)
|
|||
Title of certifying officer |
26
EXHIBIT
G
FORM
OF CONTINGENT AGENT AGREEMENT
This
Contingent Agent Agreement (the “Agreement”)
is
made effective as of the day last executed by and among the Issuer (the
“Issuer”)
and an
agent, (the “Contingent
Agent”),
whose
name and address appear on the signature page hereto.
RECITALS
A. The
Issuer, pursuant to the confirmed and effective Second Joint Plan of
Reorganization dated June 22, 2004 filed with the United States Bankruptcy
Court
for the District of Arizona related to Case No. 00-13035-PHX-RTB (the
“Plan”)
of
xxxxxxxx.xxx, Inc. and other Co-Proponents (jointly “Visitalk”),
has
issued certain warrants to various claimants under the Plan (the “Plan
Warrants”)
in
accordance with the Plan and a warrant agreement effective September 17, 2004
(the “Plan
Warrant Agreement”).
B. Capitalized
terms, unless defined herein, have the same meaning as defined in the Plan
Warrant Agreement or the Plan.
C. The
Plan
Warrants are all subject to redemption by the Issuer in its sole discretion
and
have a fixed Expiration Date that may be extended by the Issuer in its sole
discretion.
D. The
Plan
Warrant Agreement authorizes the Issuer to, in its sole discretion; provide
the
registered warrant holders of the certain Plan Warrants (the “Warrant
Holders”)
with a
Contingent Agent to act for such Warrant Holders to attempt to maximize the
value of the Plan Warrants for such Warrant Holders under certain limited
circumstances.
E. The
Plan
Warrant Agreement allows any Holder to elect in writing not to be bound by
this
Agreement so that any references to Warrant Holders herein only pertain to
the
Warrant Holders who have not elected out of this Agreement. The Plan Warrants
of
any Warrant Holder covered by this Agreement must have been exempt from
registration under Section 1145 of the Bankruptcy Code by meeting such
requirements.
AGREEMENTS
NOW,
THEREFORE, in consideration of the above recitals, the following
representations, warranties, covenants and conditions, and other good and
valuable consideration, the receipt of which is acknowledged, the Parties agree
as follows:
ARTICLE
I
APPOINTMENT
OF WARRANT HOLDER CONTINGENT AGENT
1.1 Appointment.
Subject
to the limitations in this Agreement, the Issuer hereby appoints the Contingent
Agent to perform limited services for the Warrant Holders.
27
Contingent
Agent Agreement
1.2 Qualifications.
The
Contingent Agent agrees to be bound by the terms of this Agreement, and this
Agreement may be modified to clarify its intent and the duties and
responsibilities of the Contingent Agent. The Contingent Agent must be a
licensed broker-dealer.
1.3 Resignation
or Removal of the Contingent Agent.
The
Contingent Agent may resign its duties and be discharged from all further duties
and liabilities hereunder after giving thirty (30) days notice in writing to
the
Issuer; provided that such shorter notice may be given, as such Issuer shall
accept as sufficient. At any time, the Issuer, upon notice and with or without
cause, may remove the Contingent Agent. In the event the office of the
Contingent Agent shall become vacant by resignation or incapacity to act or
otherwise, the Issuer may, but is not required to, appoint in writing a new
Contingent Agent in place of the Contingent Agent vacating the office.
1.4 Successor
Contingent Agent.
Upon
appointment, which requires the execution of a form of this Agreement, any
successor Contingent Agent shall be vested with the same powers, rights, duties,
responsibilities and immunities as if such agent had been originally named
as
Contingent Agent. If for any reason it becomes necessary or expedient to execute
any further assurance, conveyance, act or deed, the same shall be done at the
expense of the Issuer. Subject to the foregoing provisions, any corporation
into
which any Contingent Agent may be merged or with which it may be consolidated
or
any corporation resulting from any merger or consolidation to which any
Contingent Agent is a party shall be the successor Contingent Agent under this
Agreement without any further act. Hereinafter, any reference to the Contingent
Agent shall apply to any properly elected successor Contingent Agent.
ARTICLE
II
RIGHTS
AND DUTIES OF THE CONTINGENT AGENT IN THE EVENT OF
NON-EXERCISE
2.1 General
Duties.
The
Contingent Agent will act for the Warrant Holders to sell the Plan Warrants
or
the shares of common stock issued through the exercise of the Plan Warrants
(the
“Shares”)
to
attempt to maximize the value of the Expired Warrants, as defined in paragraph
2.2. The Contingent Agent’s decisions regarding negotiation of Share prices or
Plan Warrant prices, in public or private sales, unless grossly negligent,
are
deemed to be reasonable. The Contingent Agent has the right but not the
obligation to exercise the rights in this Article and the Contingent Agent’s
good faith exercise of these rights shall be in its sole
discretion.
2.2 Contingent
on the Expiration of Time to Exercise.
In the
event Plan Warrants expire due to either a redemption Call of any specific
Series of Plan Warrants as provided in the Plan Warrant Agreement or upon
occurrence of any Expiration Date (the “Expired
Warrants”),
the
Warrant Holder and Issuer of each such Plan Warrant hereby grant the Contingent
Agent special rights as provided in this Agreement to maximize the potential
value of any such Expired Warrants but only after the date specified in the
Redemption Notice or after the Expiration Date.
2.3 Limited
Extension of Exercise Date.
Only if
there is a Contingent Agent and only if the Expired Warrants are in Book Entry
form, the Issuer will extend the period any Expired Warrants may be exercised
for an additional thirty (30) days after the Redemption Date specified in the
Redemption Notice or after the Expiration Date (the “Special
Exercise Period”).
Only
during this Special Exercise Period, may the Contingent Agent exercise any
amount of Expired Warrants as allowed under this Agreement, subject to the
limitation in Article 3.2 below, and only for the benefit of all the Warrant
Holders of all the Expired Warrants (the “Covered
Holders”).
The
Contingent Agent may also sell any amount of the Expired Warrants for the
benefit of all the Covered Holders and may assign the Special Exercise Period
right to the buyer of any such Expired Warrants, subject to the limitation
in
Article 3.2 below. This grant of a Special Exercise Period to the Contingent
Agent in no way grants any Warrant Holder additional time to
exercise.
28
Contingent
Agent Agreement
2.4 Distribution
of Proceeds from Sale or Exercise.
In the
event that the Contingent Agent exercises its rights under this Article, the
Contingent Agent will accumulate the proceeds received from the sale of Expired
Warrants or Shares in a specifically established trust account (the
“Trust
Account”)
and
will deduct the Fees and Expenses (as defined below) to derive the net proceeds
(“Net
Proceeds”).
The
beneficiaries of such Trust Account are the Warrant Holders of all the Expired
Warrants. Within ten (10) business days of the expiration of the Special
Exercise Period, the Contingent Agent shall distribute the Net Proceeds pro
rata
to all the Covered Holders. Payment of the Net Proceeds will be accompanied
by a
summary accounting of the receipts, expenses and fees. The distribution to
any
Covered Holder will equal the Net Proceeds multiplied by a fraction that equals
the Expired Warrants the Covered Holder could have exercised prior to the
Expiration Date divided by all Expired Warrants that could have been exercised
by all Covered Holders prior to the Expiration Date.
2.5 Contingent
Agent’s Fees and Expenses.
The
Contingent Agent’s Fees and Expenses shall include (i) all reasonable expenses
incident to the performance of or compliance with its obligations under this
Agreement; (ii) all costs and expenses incurred by the Contingent Agent
(including all transfer taxes, brokerage and other discounts and commissions
and
finders’ and similar fees payable in respect to the sales of the Expired
Warrants or Shares issued upon the exercise of the Expired Warrants, and (iii)
a
Contingent Agent commission equal to a percentage of the gross sale proceeds
as
negotiated by the Issuer from time to time.
ARTICLE
III
LIMITATION
AND METHOD OF EXERCISE
3.1 Method
of Exercise.
In the
event the Contingent Agent elects to exercise Plan Warrants and sell the Shares
so received, the Issuer and the Contingent Agent agree that the Contingent
Agent
can instruct the selling broker to remit the Exercise Price directly to the
Issuer with the remaining proceeds being delivered to the Contingent Agent
for
deposit to the Trust Account. The Issuer agrees that in its sole discretion,
upon the sale confirmation and upon coordination with any broker, the Issuer
may
cause the Shares to be delivered simultaneously with the receipt of the Exercise
Price.
3.2 Limitation
on Ownership.
(a) Notwithstanding
anything to the contrary contained herein, unless specifically waived and
approved by the Issuer in writing, the number of Expired Warrants subject to
this Agreement shall not be in excess of 4.99% of the outstanding shares of
common stock of the Issuer. For purposes of this paragraph, the number of
outstanding shares of common stock will be ascertained from the Issuer’s
transfer agent as of the close of business of the Expiration Date of the subject
Plan Warrants. The number of outstanding shares of common stock shall be
determined after giving effect to the Shares not yet issued as a result of
the
exercise of Plan Warrants on or prior to the Expiration Date, including the
exercise with respect to this determination.
29
Contingent
Agent Agreement
(b) The
Contingent Agent may transfer and assign its rights to any Expiring Warrants
of
the Issuer provided, however, that any such assignment shall require that all
such obligations in the Plan Warrant Agreement regarding limitation of ownership
are formally assumed by the assignee.
3.3 Grant
by the Warrant Holder of Limited power of attorney.
The
Contingent Agent shall be the sole attorney in fact of the Warrant Holders
to
exercise or sell any Expired Warrants held in the name of the Warrant Holder
throughout the Special Exercise Period.
3.4 Special
accounts.
The
Contingent Agent has the right and authority to open a special brokerage account
or other financial institution account to maintain the securities or proceeds
and to facilitate transactions. Such accounts will be a fiduciary account for
the Covered Holders.
ARTICLE
IV
CONCERNING
THE CONTINGENT AGENT
4.1
Actions
by Contingent Agent.
The
Contingent Agent may, for the execution of the duties and in the execution
of
the powers conferred upon it, appoint or employ as agents or representatives
or
otherwise any solicitors, counsel, bankers, brokers, accountants, clerks or
inspectors or other agents, and all reasonable expenses and disbursements made
and incurred by the Contingent Agent in connection with the execution of its
duties hereunder will be included as Fees and Expenses as provided in Section
2.5 above.
4.2
Exculpatory
Provisions.
In
order to induce the Contingent Agent to act hereunder, the Issuer and each
Warrant Holder, by not electing out of this Agreement, agree that:
(a) The
Contingent Agent shall be entitled to take legal or other advice and employ
such
assistance as it may deem necessary to the proper discharge of its duties
hereunder and to pay proper and reasonable compensation therefore and may in
connection with any matter relating to this Agreement, act on the opinion or
advice or information obtained from any attorney, auditor or other expert,
whether obtained by the Contingent Agent, the Issuer or otherwise and shall
not
be responsible for any loss occasioned by acting thereon;
(b) Whenever
in the administration of its duties under this Agreement, the Contingent Agent
shall deem it necessary or desirable that any matter be provided or established
by the Issuer prior to taking or suffering any action hereunder, such matter
(unless other evidence is specifically prescribed) may be deemed to be
conclusively proved and established by a certificate of an executive officer
of
the Issuer delivered to the Contingent Agent and such certificate shall be
full
justification and cause to the Contingent Agent for any action taken or suffered
in good faith by it under the provisions of this Agreement; but in its
discretion, the Contingent Agent may in lieu thereof accept other evidence
of
such fact or matter or may require such further or additional evidence as the
Contingent Agent may deem reasonable;
30
Contingent
Agent Agreement
(c) The
Contingent Agent shall be liable hereunder only for its own negligence
or
willful misconduct;
(d) The
Contingent Agent shall not be liable for or by reason of any of the statements
of facts or recitals contained in this Agreement or in the Plan Warrant
Agreement or be required to verify the same and all such statements and recitals
are and shall be deemed to have been made by the Issuer only;
(e) The
Contingent Agent shall not be under any responsibility in respect of the
validity of this Agreement or the execution and delivery hereof or in respect
of
the validity of the execution or exercise of any Plan Warrant covered hereunder;
nor shall the Contingent Agent be responsible for any breach by the Issuer
of
any covenant or condition contained in this Agreement or in any such Plan
Warrant; nor shall the Contingent Agent by any act hereunder be deemed to make
any representation or warranty as to the authorization or reservation of any
shares to be issued upon the right of purchase provided for in the Plan Warrant
Agreement or in any Warrant or as to whether any shares will, when issued,
be
duly authorized or be validly issued and fully paid and non-assessable, it
being
hereby agreed and declared that as to all the matters and things referred to
in
this subparagraph the duty and responsibility shall rest upon the Issuer and
not
upon the Contingent Agent and the failure of the Issuer to discharge any such
duty and responsibility shall not in any way render the Contingent Agent liable
or place upon it any duty or responsibility for breach of which it would be
liable;
(f) Except
as
in this Agreement expressly provided, the Contingent Agent acts hereunder solely
for the benefit of the Warrant Holders and does not assume any fiduciary or
other relationship or agency or trust for or with the Issuer. The duties and
obligations of the Contingent Agent under this Agreement shall be determined
solely by the provisions hereof, and no implied covenants or obligations shall
be read into this Agreement against the Contingent Agent.
4.3
Indemnification.
Provided the Contingent Agent carries out its duties, within its discretion
as
provided under this Agreement, the Issuer will indemnify and hold harmless
the
Contingent Agent from and against any claim, action or loss resulting from
the
performance of its duties hereunder.
4.4 Modification
of Agreement.
The
Contingent Agent may, without the consent or concurrence of the Warrant Holders
by supplemental agreement or otherwise, concur with the Issuer in making any
modifications or corrections to this Agreement as to which it shall have been
advised by counsel (who may but need not also be counsel for the Issuer) that
the same are not prejudicial to the rights of the Warrant Holders as indicated
by the general sense or intent of the original language and are required for
the
purpose of curing or correcting the inconsistent provision or clerical omission
or mistake or manifest error herein. The Issuer or the Contingent Agent may
request a modification of the Agreement by a majority of the Warrant Holders,
voting in person or by proxy.
31
Contingent
Agent Agreement
ARTICLE
V
MISCELLANEOUS
5.1 Successors
and Assigns.
This
Agreement shall be binding upon the heirs, successors and assigns of the Warrant
Holders and the Issuers.
5.2 Severability.
Should
any part of this Agreement for any reason be declared invalid or unenforceable,
such decision will not affect the validity or unenforceability of any remaining
portion, which remaining portion will remain in force and effect as if this
Agreement had been executed with the invalid portion eliminated and it is hereby
declared the intention of the parties hereto that the parties would have
executed the remaining portion of this Agreement without including therein
any
such part or portion which may, for any reason, be hereafter declared invalid
or
unenforceable.
5.3 Reliance.
The
Contingent Agent may rely on facsimile or similar transmissions from the Warrant
Holders as original signatures and representations of the Issuer as to the
names, addresses and number of Plan Warrants of the Warrant
Holders.
5.4 Governing
Law.
This
Agreement and shall be deemed to be a contract made under the laws of the state
in which an Issuer is incorporated at such time as a dispute arises and, for
all
purposes except as superseded by the jurisdiction of the Bankruptcy Court,
shall
be construed in accordance with the laws of such State. Any disputes shall
be
governed by the Plan, the Bankruptcy Court, the orders of the Bankruptcy Court
pertaining to the Plan and the Bankruptcy Code. Venue, if in state or federal
court, shall be the most convenient state or federal court in relationship
to
the applicable Issuer’s head quarters.
5.5 Construction.
The
parties hereto hereby acknowledge and agree that the rule of construction to
the
effect that any ambiguities are to be resolved against the drafting party will
not be applied to the interpretation of this Agreement. No inference in favor
of, or against, any party will be drawn from the fact that one party has drafted
any portion hereof.
5.6 Advice
of Counsel.
Each
party hereby acknowledges that they are entitled to and have been afforded
the
opportunity to consult legal counsel of their choice regarding the terms and
conditions and legal effects of this Agreement, as well as the advisability
and
propriety thereof. Each party hereby further acknowledges that having so
consulted with legal counsel of their choosing or having chosen not to consult,
hereby waives any right to such legal representation or effective representation
and any right to raise or rely upon the lack of representation or effective
representation in any future proceedings or in connection with any future
claim.
5.7 Complete
Agreement; Amendment.
This
Agreement sets forth the entire understanding between the parties hereto and
supersedes all prior agreements, arrangements and communications, whether oral
or written, with respect to the subject matter hereof. No other agreements,
representations, warranties or other matters, whether oral or written, shall
be
deemed to bind the parties hereto with respect to the subject matter hereof.
This Agreement may not be modified or amended except by the mutual written
agreement of the parties.
32
Contingent
Agent Agreement
5.8 Captions.
The
descriptive headings of the various Sections or parts of this Agreement are
for
convenience only and shall not affect the meaning or construction of any of
the
provisions hereof.
IN
WITNESS WHEREOF, this Agreement has been executed as of the date last executed
below.
ISSUER | CONTINGENT AGENT | ||
By:
|
By: | ||
Name:
Its:
Date:
|
Name:
Its:
Date:
Address:
|
33
00000
Xxxxx 00xx Xxxxxx, Xxxxx 000
Phoenix,
AZ 85044
Phone:
000-000-0000 ▪ Fax: 000-000-0000
xxx.xxxxxxxxxxxxxxx.xxx
Xxxxxxx
X. Xxxxxxxx
President
& Chief Portfolio Officer
000-000-0000
x000
xxxx.xxxxxxxx@xxxxxxxxxxxxxxx.xxx
|
Xxxxx
X. Xxxx
Chief
Financial Officer
000-000-0000
x000
Xxxxx.xxxx@xxxxxxxxxxxxxxx.xxx
|
Xxxx
Xxxxxxxxxx
Investor
Relations
000-000-0000
x0
Xxxx.xxxxxxxxxx@xxxxxxxxxxxxxxx.xxx
|