INSYNQ, INC.
0000 XXXXXXXX XXXXX, XXXXX 000
XXXXXX, XXXXXXXXXX 00000
Xxxxx 0, 0000
XXX Partners, LLC
New Millennium Capital Partners II, LLC
AJW Offshore, Ltd.
AJW Qualified Partners, LLC
0000 Xxxxxxxx Xxxxxxxxx
Xxxxx 000
Xxxxxx, Xxx Xxxx 00000
Re: INSYNQ, INC. (THE "COMPANY") -
AMENDMENT OF DEBENTURES AND WARRANTS
Ladies and Gentlemen:
This letter sets forth the agreement of the parties hereto to (i) amend
the conversion price of certain debentures which are convertible into shares of
the Company's common stock, par value $.001 per share (the "Common Stock"),
issued by the Company to the investors listed in the signature pages hereto
(collectively, the "Investors"), as set forth on SCHEDULE 1 hereto, and to be
issued hereafter in accordance with the Securities Purchase Agreement, between
and among the Company and the Investors, dated September 27, 2002 (the "Purchase
Agreement") (collectively, the "Debentures"), (ii) amend the exercise price of
certain stock purchase warrants issued by the Company to the Investors, as set
forth on SCHEDULE 1 hereto and as issued hereafter in accordance with the
Purchase Agreement (collectively, the "Warrants"); and (iii) confirm the number
or Warrants.
By execution hereof, for good and valuable consideration the receipt
and sufficiency of is hereby acknowledged, the parties hereto agree that:
1. The Conversion Price (as defined in the Debentures) of each of
the Debentures is hereby amended to be equal to the lesser of
(i) $.30 and (ii) the Variable Conversion Price (as defined in
the Debentures), provided that the meaning of the term
Applicable Percentage in each of the Debentures is hereby
amended to mean 40%.
2. The exercise price of each of the Warrants is hereby amended
to be equal to $.25 per share.
3. Irrespective of the 1-for-100 reverse stock split effected by
the Company in December 2002, the number of Warrants issued
and to be issued to the Investors shall remain as set forth on
SCHEDULE 1 hereto and as provided in the Purchase Agreement.
4. All other provisions of the Debentures and the Warrants shall
remain in full force and effect.
The parties shall do and perform, or cause to be done and performed,
all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other parties hereto
may reasonably request in order to carry out the intent and accomplish the
purposes of this letter agreement, including without limitation the issuance of
amended Debentures and Warrants.
[Signature Page Follows]
Please signify your agreement with the foregoing by signing a copy of
this letter where indicated and returning it to the undersigned.
Sincerely,
INSYNQ, INC.
/s/ Xxxx X. Xxxxx
Xxxx X. Xxxxx
President
ACCEPTED AND AGREED:
AJW PARTNERS, LLC
By: SMS GROUP, LLC
/s/ Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Manager
NEW MILLENNIUM CAPITAL PARTNERS II, LLC
By: FIRST STREET MANAGER II, LLC,
/s/Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Manager
AJW OFFSHORE, LTD.
By: FIRST STREET MANAGER II, LLC
/s/ Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Manager
AJW QUALIFIED PARTNERS, LLC
By: AJW MANAGER, LLC
/s/Xxxxx X. Xxxxxxxx
Xxxxx X. Xxxxxxxx, Manager
SCHEDULE 1
------------------------------------------------------ -------------------------- ---------------------- --------------------
DATE OF DEBENTURE ORIGINAL PRINCIPAL NUMBER OF WARRANTS
AMOUNT
INVESTOR
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Partners, LLC September 27, 2002 $120,000 240,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
New Millennium Capital Partners II, LLC September 27, 2002 $120,000 240,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Offshore, Ltd. November 5, 2002 $15,000 30,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Qualified Partners, LLC November 5, 2002 $15,000 30,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Partners, LLC December 6, 2002 $10,000 20,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Offshore, Ltd. December 6, 2002 $10,000 20,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Qualified Partners, LLC December 6, 2002 $10,000 20,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Partners, LLC January 31, 2003 $20,000 40,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Offshore, Ltd. January 31, 2003 $20,000 40,000
------------------------------------------------------ -------------------------- ---------------------- --------------------
AJW Qualified Partners, LLC January 31, 2003 $20,000 40,000
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