ANTI-DILUTION AGREEMENT
Exhibit 4.6
This Anti-Dilution Agreement (this “Agreement”) is made and entered into as of February 12,
2004, by and among NGTV, a California corporation (the “Company”), Xxxx Xxxxxxx LLC, Xxxxx Xxxxx,
and Xxxxxxx Xxxxxxxx LLC (each referred to herein as a “Principal Shareholder” and collectively as
the “Principal Shareholders”) and the purchasers participating in the Financing (each referred to
herein as an “Investor” and collectively referred to as the “Investors”).
1. DEFINITIONS. As used in this Agreement, the following terms have the following
respective meaning:
(a) “Common Stock” means common stock of the Company.
(b) “Disputed Shares” means only shares of Common Stock issued pursuant to the Acclaim Option,
the Xxxxxx Warrant or the Mannat Warrant.
(c) “Initial Dilution” means the number of shares set forth on Exhibit A hereto, or as may be
adjusted in the event the Financing does not subscribe the maximum offering amount of $7,000,000.
(d) “Securities” means all if the Common Stock, convertible securities, options, warrants, or
other rights to acquire securities of the Company on a fully diluted basis.
2. Issuance of Additional Shares. In the event the Company issues any Disputed Shares, the
Company shall forthwith issue the number of shares of Common Stock in accordance with the
following:
3. Placement Agent. Standard Securities Capital Corporation, as placement agent for the
Financing, represents that it is authorized to sign this Agreement for and on behalf of each
Investor. Accordingly, each Investor will have the rights under this Agreement as if an original
signatory hereto.
4. Notices. All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given: (i) upon personal delivery to the Party to be notified, (ii) when sent by
confirmed facsimile if sent during normal business hours of the recipient; if not, then on the next
business day, (iii) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt.
5. Severability. In the event one or more of the provisions of this Agreement should, for
any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other provision of this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been
contained herein and the Parties hereto shall, to the extent permissible by applicable law, amend
this Agreement so as to make effective and enforceable the intent of this Agreement.
6. Counterparts. This Agreement may be executed in two or more counterparts, including
counterparts transmitted by facsimile, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
7. Assignment. The Investors’ rights and the Principal Shareholders’ rights under this
Agreement may not be assigned, transferred or otherwise delegated to any other party, except with
the prior written consent of the Company.
8. Amendments. This Agreement may not be modified or amended, or any of the provisions of
this Agreement waived, except by written agreement of all of the Parties.
9. Interpretation. If any claim is made by a Party relating to any conflict, omission or
ambiguity in the provisions of this Agreement, no presumption or burden of proof or persuasion will
be implied because this Agreement was prepared by or at the request of any Party or its counsel.
The Parties waive any statute or rule of law to the contrary.
10. Titles and Subtitles. The titles of the sections and subsections of this Agreement are
for convenience of reference only and are not to be considered in construing this Agreement.
11. Entire Agreement. This Agreement constitutes the full and entire understanding among
the Parties with regard to the subjects hereof and no Party shall be liable or bound to any other
in any manner by any representations, warranties, covenants and agreements except as specifically
set forth herein.
SIGNATURE PAGES FOLLOW
IN WITNESS WHEREOF, each of the undersigned has duly executed this Anti-Dilution Agreement as
of the date first written above.
“Company” NGTV |
||||
By: | /s/ Xxxxxxx Xxx | |||
Xxxxxxx Taj, | ||||
Chief Executive Officer | ||||
“PRINCIPAL SHAREHOLDERS” | ||||
XXXXXXX XXXXXXXX LLC | ||||
By:
|
/s/ Xxxxxxx Xxxxxxxx
|
|||
Xxxxxxx Xxxxxxxx, | ||||
Authorized Signatory | ||||
XXXX XXXXXXX LLC | ||||
By:
|
/s/ Xxxx Xxxxxxx | |||
Xxxx Xxxxxxx, | ||||
Authorized Signatory | ||||
/s/ Xxxxx Xxxxx | ||||
XXXXX XXXXX | ||||
STANDARD SECURITIES CAPITAL CORPORATION | ||||
on behalf of Investors | ||||
By:
|
/s/ Xxxx Xxxxxxxx | |||
Xxxx Xxxxxxxx, | ||||
President and Chief Executive Officer |
EXHIBIT A
Shares/Warrants/Options | Initial Dilution | |||||||
Founders: |
||||||||
Existing Common Stock |
28,280,000 | 31.00 | % | |||||
Existing Employee Options |
3,648,500 | 4.00 | % | |||||
Total-Founders |
31,928,500 | 35.00 | % | |||||
Investors: |
||||||||
Modena $250,000 |
8,977,680 | 9.84 | % | |||||
HJG Note $250,000@$0.305 |
819,672 | 0.90 | % | |||||
Offering $6,750,000@$0.305 |
22,131,148 | 24.26 | % | |||||
Total-Investors |
31,928,500 | 35.00 | % | |||||
Strategic Principals: |
||||||||
Xxxx Xxxxxxx-Stock |
5,623,977 | 6.17 | % | |||||
Xxxx Xxxxxxx-Options |
2,280,607 | 2.50 | % | |||||
Xxxxx Xxxxx-Stock |
5,623,977 | 6.17 | % | |||||
Xxxxx Xxxxx-Options |
2,280,607 | 2.50 | % | |||||
Xxxx Xxxxxxxx-Stock |
5,623,977 | 6.17 | % | |||||
Xxxx Xxxxxxxx-Options |
2,280,607 | 2.50 | % | |||||
Xxxxx Xxxxx-Stock |
3,648,971 | 4.00 | % | |||||
Total-Strategic Principals |
27,362,725 | 30.00 | % | |||||
Grand Total |
91,219,725 | 100.00 | % |
EXHIBIT B
ACCLAIM AGREEMENT
EXHIBIT C
XXXXXX AGREEMENT
EXHIBIT D
MANATT WARRANT