EQUITY-FOR-DEBT EXCHANGE AGREEMENT

EQUITY-FOR-DEBT EXCHANGE AGREEMENT

 

This Equity-For-Debt Exchange Agreement (the "Agreement") is made and entered into as of this 29th day of September 2003, by and between Left Right Marketing Technology, Inc. a Delaware corporation (the "Company") and The Estate of Xxxxxxx X. X'Xxxxxxx, Xx. (the "Note Holder").

 

RECITALS

 

WHEREAS, the Note Holder and the Company have agreed to exchange approximately $320,526.54 of current notes, including principal of $224,357.35 and accrued interest of approximately $96,169.19, of the Company payables to the Note Holder (the "Notes") for 213,600 shares of restricted common stock of the Company, on the terms and conditions contained in this Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the Recitals and the mutual covenants, conditions, representations and warranties hereinafter set forth, the parties agree as follows:

  1. Exchange. On September 29, 2003 (or within 2 business days thereof if the transaction cannot be consummated on the 29th), (i) Note Holder will deliver or cause to be delivered the Notes together with appropriate transfer documents executed in blank to the Company or deliver or cause to be delivered the Notes to an account of the trustee, if any, for the Notes for the benefit of the Company as requested by the Company, and (ii) the Company will cause to be issued to the Note Holder 213,600 shares of common stock of the Company (the "Shares") in the name of the Note Holder or in the name of a custodian or nominee of the Note Holder as requested by the Note Holder in exchange for the Notes plus all claims arising out of or relating to the Notes, including, but not limited to, any accrued but unpaid interest thereon.

  2. Securities Law Compliance. This Agreement, the offer, issue, exchange and delivery of the Common Stock under the circumstances contemplated by this Agreement constitutes or will constitute, as the case may be, an exempted transaction under the Securities Act of 1933, as amended and now in effect (the "Act"), and registration of the Common Stock under the Act is not required. The Company shall make such filings as may be necessary to comply with the Federal securities laws and the Blue Sky laws of any state, which filings will be made in a timely manner prior to the exchange of the Common Stock.

  3. Investment Representations. Note Holder represents and agrees that it is acquiring the Common Stock for its own account, not as a nominee or agent, for investment and not with a view to or for resale in connection with, any distribution or public offering thereof within the meaning of the Act, except pursuant to an effective registration statement under the Act.

 

  1. Access to Information. Note Holder represents that it has been given full and complete access to the Company for the purpose of obtaining such information as Note Holder or its qualified representative has reasonably requested in connection with the decision to exchange the Common Stock. Note Holder represents that it has been afforded the opportunity to ask questions of the officers of the Company regarding its business prospects and the Common Stock, all as Note Holder's qualified representative has found necessary to make an informed investment decision to exchange the Notes for the Common Stock.

  2. Accredited Investor. Note Holder is an "accredited investor" as defined in Rule 501(a) under the Act, and comes within at least one category as set forth in said Rule. Note Holder agrees to furnish any additional information which the Company deems necessary in order to verify that Note Holder is an accredited investor.

  3. Restrictive Legends. It is understood that each certificate representing the Common Stock and any other securities issued in respect of the Common Stock upon any stock split, stock dividend, conversion, recapitalization, merger or similar event (unless no longer required in the opinion of counsel for the Company) shall be stamped or otherwise imprinted with legends substantially in the following form (in addition to any legend that may now or hereafter be required by applicable state law):

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"). THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A CURRENT AND EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT WITH RESPECT TO SUCH SHARES, OR AN OPINION SATISFACTORY TO THE ISSUER AND ITS COUNSEL TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT."

  1. Closing. The Closing under this Agreement shall be held on or about September 29, 2003 at the offices of the Company or at such other time or place as the parties shall designate. At the Closing, (a) Note Holder will deliver the Notes and (b) the Company will deliver certificates for 213,600 shares of restricted common stock to Note Holder:

  2. Entire Agreement; Modification. This Agreement constitutes the entire, final and complete agreement between Note Holder and the Company and supersedes and replaces all prior or existing written and oral agreements between Note Holder and the Company and may only be modified in writing by the agreement of all parties.

  3. Applicable Law; Dispute Resolution. This Agreement shall be governed by and construed in accordance with the law of the State of Nevada without regard to the conflicts of law provisions thereof. Any dispute arising under this Agreement shall be settled by binding arbitration before a single arbitrator under the Commercial Arbitration Rules of the American Arbitration Association. The arbitrator shall award the prevailing party its costs and expenses, together with reasonable attorneys' fees (including the allocable share, if any, of in-house counsel fees) and, accountants' and expert witness fees, if any. The award of the arbitrator may be entered in and enforced by any court of competent jurisdiction.

 

  1. Notice. Each notice, instruction or other certificate required or permitted by the terms hereof shall be in writing and shall be communicated by personal delivery, fax or registered or certified mail, return receipt requested, to the parties hereto at their respective addresses, or at such other address as any of them may designate by notice to each of the others.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above mentioned.

 

 

Note Holder:                                                                                        Left Right Marketing Technology, Inc.,

The Estate of Xxxxxxx X. X'Xxxxxxx, Xx.                                                a Delaware corporation

 

 

By:/s/ Xxxxxxx X. X'Xxxxxxx, Xx.                                                             By:/s/ Xxxxxxx "Mick" Xxxx               

                                                                                                                Xxxxxxx "Xxxx" Xxxx, President

 

Its: Executor                                   

 

 

Xxxxxxx X. X'Xxxxxxx, Xx.                 

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Filed: October 20th, 2003
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