AMENDMENT AND EXCHANGE AGREEMENT
Exhibit 10.4
AMENDMENT AND EXCHANGE AGREEMENT (this “Agreement”), dated as of August 20, 2007, by and among
Cash Systems, Inc., a Delaware corporation, with headquarters located at 0000 Xxxx Xxxxxx Xxxxx,
Xxxxx 000, Xxx Xxxxx, XX 00000 (the “Company”), and Highline Capital International, Ltd. (the
“Investor”).
WHEREAS:
A. The Company, the Investor and certain other investors (the “Other Investors”, and
collectively with the Investor, the “Investors”) are parties to that certain Securities Purchase
Agreement, dated as of October 6, 2006 (the “Existing Securities Purchase Agreement”), pursuant to
which, among other things, the Investors purchased from the Company (i) senior secured convertible
notes (the “Existing Notes”), which are convertible into shares of the Company’s common stock, par
value $0.001 per share (the “Common Stock”) (the Existing Notes as converted, the “Existing
Conversion Shares”), in accordance with the terms thereof and (ii) warrants (the “Existing
Warrants”), which are exercisable into shares of Common Stock (the “Existing Warrant Shares”).
B. In connection with the execution and delivery of the Existing Securities Purchase
Agreement, the Company entered into that certain Registration Rights Agreement, dated October 6,
2006 (the “Registration Rights Agreement”), by and among the Company and the Investors, pursuant to
which the Company agreed to provide certain registration rights with respect to the Registrable
Securities (as defined in the Registration Rights Agreement) under the Securities Act of 1933, as
amended (the “1933 Act”), and the rules and regulations promulgated thereunder, and applicable
state securities laws.
C. The Company and the Investor desire to enter into this Agreement, pursuant to which, among
other things, (i) the Company and the Investor shall amend and restate all of such Investor’s
Existing Notes for notes in the form attached hereto as Exhibit A (the “Notes”) which shall
be convertible into Common Stock (the “Conversion Shares”) and (ii) the Company and the Investor
shall amend and restate all of such Investor’s Existing Warrants for warrants in the form attached
hereto as Exhibit B (the “Warrants”) which shall be exercisable to acquire that number of
shares of Common Stock set forth opposite the Investor’s name in column (3) on the Securities
Schedule attached hereto (the “Warrant Shares”).
D. The amendment and restatement of the Existing Notes for the Notes and the amendment and
restatement of the Existing Warrants for the Warrants is being made in reliance upon the exemption
from registration provided by Section 3(a)(9) of the 1933 Act.
E. Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings ascribed to them in the Existing Securities Purchase Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter
set forth, the Company and the Investor hereby agree as follows:
| 1. | AMENDMENT AND RESTATEMENT OF EXISTING NOTES AND EXISTING WARRANTS. |
(a) Amendment and Restatement of Existing Note and Existing Warrants. Subject to
satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, at the closing
contemplated by this Agreement (the “Closing”), the Investor shall surrender to the Company its
Existing Note and its Existing Warrants and the Company shall issue and deliver to the Investor (i)
a Note in the principal amount set forth opposite the Investor’s name in column (3) of the
Securities Schedule attached hereto and (ii) the Warrants to acquire that number of Warrant Shares
as is set forth opposite the Investor’s name in column (4) on the Securities Schedule attached
hereto.
(b) Closing Date. The date and time of the Closing (the “Closing Date”) shall be
10:00 a.m., New York Time, on August 20, 2007, subject to notification of satisfaction (or waiver)
of the conditions to the Closing set forth in Sections 5 and 6 below (or such other time and date
as is mutually agreed to by the Company and the Investor). The Closing shall occur on the Closing
Date at the offices of Xxxxxxx Xxxx & Xxxxx LLP, 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000.
| 2. | AMENDMENTS TO TRANSACTION DOCUMENTS. |
(a) Ratifications. Except as otherwise expressly provided herein, the Existing
Securities Purchase Agreement and each other Transaction Document is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects, except that on and
after the Closing Date (i) all references in the Existing Securities Purchase Agreement to “this
Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Securities
Purchase Agreement shall mean the Existing Securities Purchase Agreement as amended by this
Agreement, (ii) all references in the other Transaction Documents to the “Securities Purchase
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Securities
Purchase Agreement shall mean the Existing Securities Purchase Agreement as amended by this
Agreement, and (iii) all references in the other Transaction Documents to the “Registration Rights
Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the
Registration Rights Agreement shall mean the Registration Rights Agreement as amended by this
Agreement.
(b) Amendment to Transaction Documents. Each of the Transaction Documents are hereby
amended as follows:
(i) All references to “Notes” shall be amended to include additionally the Notes as
defined in this Agreement.
(ii) All references to “Conversion Shares” shall be amended to include additionally the
Conversion Shares as defined in this Agreement.
(iii) All references to “Warrants” shall be amended to include additionally the
Warrants as defined in this Agreement.
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(iv) All references to “Warrant Shares” shall be amended to include additionally the
Warrant Shares as defined in this Agreement.
(v) The defined term “Transaction Documents” is hereby amended to include this
Agreement.
(c) Amendment to Registration Rights Agreement.
(i) The defined term “Required Registration Amount” shall be amended and restated in
its entirety as follows:
““Required Registration Amount” for the Registration Statement means 112% of the sum of (i)
the aggregate of the maximum number of Conversion Shares issued and issuable pursuant to the
Notes at the then applicable Conversion Price as of the trading day immediately preceding
the applicable date of determination and (ii) the number of Warrant Shares issued and
issuable pursuant to the Warrants as of the trading day immediately preceding the applicable
date of determination, all subject to adjustment as provided in Section 2(e) (without regard
to any limitations on conversion of the Notes or exercise of the Warrants).”
(ii) Section 3(r) of the Registration Rights Agreement is hereby amended to add the
following:
“Notwithstanding the foregoing, if the Registration Statement is unavailable for the resale
of the Registrable Securities solely because the SEC has elected to review the Prospectus
Supplement (as defined in each of the Amendment and Exchange Agreements) (the “Amendment
Review”), the Company shall be entitled to a Grace Period solely in connection with such
Amendment Review of up to ten (10) consecutive days as an Allowable Grace Period; provided,
further, that such Grace Period shall be in lieu of any other Allowable Grace Period under
this Section 3(r) with respect to such Amendment Review.”
(d) Amendment to Securities Purchase Agreement.
(i) Clause (iii) of the first sentence of Section 3(l) of the Securities Purchase
Agreement is hereby amended as follows:
“(iii) had capital expenditures individually in excess of $25,000”
| 3. | REPRESENTATIONS AND WARRANTIES |
(a) Investor Bring Down. The Investor hereby represents and warrants to the Company
with respect to itself only as set forth in Section 2 of the Existing Securities Purchase Agreement
as if such representations and warranties were made as of the date hereof and set forth in their
entirety in this Agreement. Such representations and warranties to the transactions thereunder and
the securities issued thereby are hereby deemed for purposes of this Agreement to be references to
the transactions hereunder and the issuance of the securities hereby.
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(b) Company Bring Down. Except as set forth on the Amended and Restated Schedules
attached hereto, which shall amend and restate the Schedules attached to the Existing Securities
Purchase Agreement the Company represents and warrants to the Investor as set forth in Section 3 of
the Existing Securities Purchase Agreement, as amended by Section 2(d) above, as if such
representations and warranties were made as of the date hereof and set forth in their entirety in
this Agreement. Such representations and warranties to the transactions thereunder and the
securities issued thereby are hereby deemed for purposes of this Agreement to be references to the
transactions hereunder and the issuance of the securities hereby, references therein to “Closing
Date” being deemed references to the Closing Date as defined in Section 1(b) above, and references
to “the date hereof” being deemed references to the date of this Agreement.
(c) Registration Statement. The Company represents and warrants to the Investors
that, immediately prior to the Closing, the Company’s registration statement on Form S-3 (File No.
333-139179) (the “Existing Registration Statement”) is effective and available for the resale of
the Existing Conversion Shares and the Existing Warrant Shares.
(d) No Event of Default. The Company represents and warrants to the Investor that
after giving effect to the terms of this Agreement and the Other Agreements (as defined below), no
Event of Default (as defined in the Notes) shall have occurred and be continuing as of the date
hereof.
(e) Holding Period. For the purposes of Rule 144, the Company acknowledges that the
holding period of (i) the Notes (including the corresponding Conversion Shares) may be tacked onto
the holding period of the Existing Notes and (ii) the Warrants (including the corresponding Warrant
Shares) may be tacked onto the holding period of the Existing Warrants (in the case of Cashless
Exercise (as defined in the Warrants)), and the Company agrees not to take a position contrary to
this Section 3(e). The Company’s representation, covenant and agreement set forth in this Section
3(e) shall be subject in all respects to Rule 144 and other applicable securities laws, as may be
in effect from time to time.
| 4. | CERTAIN COVENANTS AND AGREEMENTS; WAIVER |
(a) Best Efforts. Each party shall use its best efforts timely to satisfy each of the
conditions to be satisfied by it as provided in Sections 5 and 6 of this Agreement.
(b) Disclosure of Transactions and Other Material Information. On or before 8:30
a.m., New York City time, on the first Business Day following the date of this Agreement, the
Company shall issue a press release and file a Current Report on Form 8-K describing the terms of
the transactions contemplated by this Agreement in the form required by the 1934 Act and attaching
the material Transaction Documents not previously filed (including, without limitation, this
Agreement, the form of the Notes and the form of the Warrants) (including all attachments, the “8-K
Filing”). From and after the filing of the 8-K Filing with the SEC, the Investor shall not be in
possession of any material, nonpublic information received from the Company, any of its
Subsidiaries or any of its respective officers, directors, employees or agents, that is not
disclosed in the 8-K Filing. The Company shall not, and shall cause each of
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its Subsidiaries and its and each of their respective officers, directors, employees and
agents, not to, provide the Investor with any material, nonpublic information regarding the Company
or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without the
express written consent of the Investor. If the Investor has, or believes it has, received any
such material, nonpublic information regarding the Company or any of its Subsidiaries, it shall
provide the Company with written notice thereof. The Company shall, within five (5) Trading Days
(as defined in the Notes) of receipt of such notice, make public disclosure of such material,
nonpublic information. In the event of a breach of the foregoing covenant by the Company, any of
its Subsidiaries, or any of its or their respective officers, directors, employees and agents, in
addition to any other remedy provided herein or in the Transaction Documents, the Investor shall
have the right to make a public disclosure, in the form of a press release, public advertisement or
otherwise, of such material, nonpublic information without the prior approval by the Company, its
Subsidiaries, or any of its or their respective officers, directors, employees or agents. The
Investor shall not have any liability to the Company, its Subsidiaries, or any of its or their
respective officers, directors, employees, stockholders or agents for any such disclosure. Subject
to the foregoing, neither the Company, its Subsidiaries nor the Investor shall issue any press
releases or any other public statements with respect to the transactions contemplated hereby;
provided, however, that the Company shall be entitled, without the prior approval of the Investor,
to make any press release or other public disclosure with respect to such transactions (i) in
substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required
by applicable law and regulations (provided that in the case of clause (i) the Investor shall be
consulted by the Company in connection with any such press release or other public disclosure prior
to its release). Without the prior written consent of the Investor, neither the Company nor any of
its Subsidiaries or affiliates shall disclose the name of the Investor in any filing, announcement,
release or otherwise other than in connection with the Registration Statement, as contemplated
pursuant to the Registration Rights Agreement, unless such disclosure is required by law,
regulation or the Principal Market.
(c) On or before 9:30 a.m., New York City time, on the third Business Day following the date
of this Agreement, the Company shall file a prospectus supplement (the “Prospectus Supplement”) to
the Existing Registration Statement updating the disclosure to reflect this Agreement, the Notes
and the Warrants.
| 5. | CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER. |
The obligations of the Company to the Investor hereunder are subject to the satisfaction of
each of the following conditions, provided that these conditions are for the Company’s sole benefit
and may be waived by the Company at any time in its sole discretion by providing the Investor with
prior written notice thereof:
(a) The Investor shall have executed this Agreement and delivered the same to the Company.
(b) The Investor shall have delivered to the Company the Investor’s Existing Note and Existing
Warrants for cancellation.
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(c) The representations and warranties of the Investor shall be true and correct in all
material respects (except for those representations and warranties that are qualified by
materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the
date when made and as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such
specified date) and the Investor shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Investor at or prior to the Closing Date.
| 6. | CONDITIONS TO INVESTOR’S OBLIGATIONS HEREUNDER. |
The obligations of the Investor hereunder are subject to the satisfaction of each of the
following conditions, provided that these conditions are for the Investor’s sole benefit and may be
waived by the Investor at any time in its sole discretion by providing the Company with prior
written notice thereof:
(a) The Company shall have executed this Agreement and delivered the same to the Investor.
(b) The Company shall have executed and delivered to the Investor the Notes and the Warrants
being issued to such Investor at the Closing.
(c) Each of the Other Investors shall have (i) executed agreements identical to this Agreement
(the “Other Agreements”) (other than (i) proportional changes (the “Proportionate Changes”) in the
numbers reflecting the different dollar amount of such Investor’s Notes and the number of Warrant
Shares underlying such Investor’s Warrants and (ii) Section 4(d)), (ii) satisfied or waived all
conditions to the closings contemplated by such agreements and (iii) surrendered their Existing
Notes and Existing Warrants for Notes and Warrants identical to the Notes and Warrants of the
Investor hereunder (other than the Proportionate Changes).
(d) The Company shall have delivered to the Company’s transfer agent, with a copy to the
Investors, Irrevocable Transfer Agent Instructions in the form of Exhibit C attached
hereto.
(e) The Investor shall have received the opinion of Manatt, Xxxxxx & Xxxxxxxx, LLP, the
Company’s outside counsel, and Xxx Xxxxxx, Esq., the Company’s internal general counsel, each dated
as of the Closing Date, in substantially the form of Exhibit D attached hereto.
(f) The Company shall have delivered to such Buyer a certificate (or a fax or pdf copy of such
certificate) evidencing the formation and good standing of the Company and each of its Subsidiaries
in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office)
of such jurisdiction, as of a date within 10 days of the Closing Date.
(g) The Company shall have delivered to such Buyer a certificate (or a fax or pdf copy of such
certificate) evidencing the Company’s qualification as a foreign corporation and good standing
issued by the Secretary of State (or comparable office or a bring-
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down certificate from Corporation Service Company) of each jurisdiction in which the Company
conducts business and is required to so qualify, as of a date within 10 days of the Closing Date.
(h) The Company shall have delivered to the Investor a certified copy of the Certificate of
Incorporation as certified by the Secretary of State of the State of Delaware (or a fax or pdf copy
of such certificate) within ten (10) days of the Closing Date.
(i) The Company shall have delivered to the Investor a certificate, executed by the Secretary
of the Company and dated as of the Closing Date, as to (i) the resolutions approving the
transactions contemplated hereby as adopted by the Board in a form reasonably acceptable to the
Investor, (ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect as of the
Closing, in the form attached hereto as Exhibit E.
(j) The representations and warranties of the Company hereunder shall be true and correct in
all material respects (except for those representations and warranties that are qualified by
materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the
date when made and as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a specific date, which shall be true and correct as of such
specified date) and the Company shall have performed, satisfied and complied in all respects with
the covenants, agreements and conditions required by this Agreement and the other Transaction
Documents to be performed, satisfied or complied with by the Company at or prior to the Closing
Date and after giving effect to the terms of this Agreement and the Other Agreements, no default or
Event of Default shall have occurred and be continuing as of the Closing Date. The Investor shall
have received a certificate, executed by the Chief Executive Officer of the Company, dated as of
the Closing Date, to the foregoing effect and as to such other matters as may be reasonably
requested by the Investor in the form attached hereto as Exhibit F.
(k) The Common Stock (I) shall be designated for quotation or listed on the Principal Market
and (II) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market
from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have
been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market
or (B) by falling below the minimum listing maintenance requirements of the Principal Market.
(l) The Company shall have obtained all governmental, regulatory or third party consents and
approvals, if any, necessary for the sale of the Securities.
(m) The Company shall have delivered to the Investor such other documents relating to the
transactions contemplated by this Agreement as the Investor or its counsel may reasonably request.
| 7. | TERMINATION. |
In the event that the Closing does not occur on or before five (5) Business Days from the date
hereof, due to the Company’s or the Investor’s failure to satisfy the conditions set forth in
Sections 5 and 6 hereof (and the nonbreaching party’s failure to waive such unsatisfied
conditions(s)), the nonbreaching party shall have the option to terminate this Agreement with
respect to such breaching party at the close of business on such date without
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liability of any party to any other party. Upon such termination, the terms hereof shall be
null and void and the parties shall continue to comply with all terms and conditions of the
Transaction Documents, as in effect prior to the execution of this Agreement.
| 8. | MISCELLANEOUS. |
(a) Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature shall be considered due execution and shall be binding upon the
signatory thereto with the same force and effect as if the signature were an original, not a
facsimile signature.
(b) Headings. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement.
(c) Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity
or enforceability of any provision of this Agreement in any other jurisdiction.
(d) Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of New York or any other jurisdictions) that would
cause the application of the laws of any jurisdictions other than the State of New York. Each
party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit,
action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof
to such party at the address for such notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any manner
permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.
(e) No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns, and is not for the benefit
of, nor may any provision hereof be enforced by, any other Person.
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(f) Further Assurances. Each party 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 party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of
the transactions contemplated hereby.
(g) No Strict Construction. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.
(h) Entire Agreement; Effect on Prior Agreements; Amendments. Except for the
Transaction Documents in effect prior to this Agreement (to the extent any such Transaction
Document is not amended by this Agreement), this Agreement supersedes all other prior oral or
written agreements between the Investor, the Company, their affiliates and Persons acting on their
behalf with respect to the matters discussed herein, and this Agreement and the instruments
referenced herein contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or therein, neither the
Company nor the Investor makes any representation, warranty, covenant or undertaking with respect
to such matters. No provision of this Agreement may be amended other than by an instrument in
writing signed by the Company. No provision hereof may be waived other than by an instrument in
writing signed by the party against whom enforcement is sought. No consideration shall be offered
or paid to any Person to amend or consent to a waiver or modification of any provision of any of
the Transaction Documents unless the same consideration also is offered to all of the parties to
the Transaction Documents, holders of Notes or holders of the Warrants, as the case may be. The
Company has not, directly or indirectly, made any agreements with any of the Investors relating to
the terms or conditions of the transactions contemplated by the Transaction Documents except as set
forth in the Transaction Documents.
(i) Notices. Any notices, consents, waivers or other communications required or
permitted to be given under the terms of this Agreement must be in writing and will be deemed to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one Business Day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be:
If to the Company:
Cash Systems, Inc.
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxx Xxxxxx
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxx Xxxxxx
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Copy to:
Xxx Xxxxxx
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
0000 Xxxx Xxxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Copy to:
Manatt, Xxxxxx & Xxxxxxxx, LLP
00000 Xxxx Xxxxxxx Xxxxxxxxx
Xxx Xxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxx, Esq.
00000 Xxxx Xxxxxxx Xxxxxxxxx
Xxx Xxxxxxx, XX 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxx, Esq.
If to the Investor, to its address and facsimile number set forth in the Securities Schedule
attached hereto,
with a copy (for informational purposes only) to:
Xxxxxxx Xxxx & Xxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxxx X. Xxxxx, Esq.
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxxx X. Xxxxx, Esq.
or to such other address and/or facsimile number and/or to the attention of such other Person as
the recipient party has specified by written notice given to each other party five (5) days prior
to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of
such notice, consent, waiver or other communication, (B) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, recipient facsimile number and an
image of the first page of such transmission or (C) provided by an overnight courier service shall
be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight
courier service in accordance with clause (i), (ii) or (iii) above, respectively.
(j) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and assigns in accordance with the terms of
the Existing Securities Purchase Agreement.
(k) Survival. Unless this Agreement is terminated under Section 7, the
representations and warranties of the Company and the Investor contained herein and the agreements
and covenants set forth herein shall survive the Closing.
(l) Remedies. The Investor and each holder of the Securities shall have all rights
and remedies set forth in the Transaction Documents and all rights and remedies
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which such holders have been granted at any time under any other agreement or contract and all
of the rights which such holders have under any law. Any Person having any rights under any
provision of this Agreement shall be entitled to enforce such rights specifically (without posting
a bond or other security), to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes
that in the event that it fails to perform, observe, or discharge any or all of its obligations
under this Agreement, any remedy at law may prove to be inadequate relief to the Investor. The
Company therefore agrees that the Investor shall be entitled to seek temporary and permanent
injunctive relief in any such case without the necessity of proving actual damages and without
posting a bond or other security.
(m) Indemnification. In consideration of the Investor’s execution and delivery of the
Transaction Documents, acquiring the Securities thereunder and entering into this Agreement and in
addition to all of the Company’s other obligations under the Transaction Documents, the Company
shall defend, protect, indemnify and hold harmless the Investor and each other holder of the
Securities and all of their stockholders, partners, members, officers, directors, employees and
direct or indirect investors and any of the foregoing Persons’ agents or other representatives
(including, without limitation, those retained in connection with the transactions contemplated by
this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of
action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Indemnitee is a party to the action for
which indemnification hereunder is sought), and including reasonable attorneys’ fees and
disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or
arising out of, or relating to (a) any misrepresentation or breach of any representation or
warranty made by the Company in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of
the Company contained in the Transaction Documents or any other certificate, instrument or document
contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against
such Indemnitee by a third party (including for these purposes a derivative action brought on
behalf of the Company) and arising out of or resulting from (i) the execution, delivery,
performance or enforcement of the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole
or in part, directly or indirectly, with the proceeds of the issuance of the Securities, (iii) any
disclosure made by the Investor pursuant to Section 4(c), or (iv) the status of the Investor or
holder of the Securities as an investor in the Company pursuant to the transactions contemplated by
the Transaction Documents. To the extent that the foregoing undertaking by the Company may be
unenforceable for any reason, the Company shall make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under applicable law.
Except as otherwise set forth herein, the mechanics and procedures with respect to the rights and
obligations under this Section 8(m) shall be the same as those set forth in Section 6 of the
Registration Rights Agreement.
(n) Independent Nature of Investor’s Obligations and Rights. The obligations of the
Investor under any Transaction Document (including this Agreement) are several and not joint with
the obligations of any Other Investor, and the Investor shall not be responsible in any way for the
performance of the obligations of any Other Investor under any
11
Transaction Document. Nothing contained herein or in any other Transaction Document, and no
action taken by the Investor pursuant hereto, shall be deemed to constitute the Investor and Other
Investors as a partnership, an association, a joint venture or any other kind of entity, or create
a presumption that the Investor and Other Investors are in any way acting in concert or as a group,
and the Company will not assert any such claim with respect to the obligations or the transactions
contemplated by the Transaction Documents and the Company acknowledges that the Investor and Other
Investors are not acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Transaction Documents. The Company acknowledges and the Investor
confirms that the Investor has independently participated in the negotiation of the transactions
contemplated hereby with the advice of its own counsel and advisors. The Investor shall be
entitled to independently protect and enforce its rights, including, without limitation, the rights
arising out of this Agreement or out of any other Transaction Documents, and it shall not be
necessary for any Other Investor to be joined as an additional party in any proceeding for such
purpose.
[Signature Page Follows]
12
IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature page
to this Agreement to be duly executed as of the date first written above.
| COMPANY: CASH SYSTEMS, INC. |
||||
| By: | /s/ Xxxxxxx Xxxxxxx | |||
| Name: | Xxxxxxx Xxxxxxx | |||
| Title: | CEO | |||
[Signature Page to Amendment and Exchange Agreement]
IN WITNESS WHEREOF, the Investor and the Company have caused their respective signature page
to this Agreement to be duly executed as of the date first written above.
| INVESTOR: HIGHLINE CAPITAL INTERNATIONAL, LTD. |
||||
| By: | /s/ Xxxxxxx Xxxxxxx | |||
| Name: | Xxxxxxx Xxxxxxx | |||
| Title: | CFO of Highline Capital Management, LLC | |||
[Signature Page to Amendment and Exchange Agreement]
SECURITIES SCHEDULE
| (1) | (2) | (3) | (4) | (5) | ||||||||
| Aggregate | ||||||||||||
| Principal | ||||||||||||
| Address and | Amount of | Number of | Legal Representative’s | |||||||||
| Investor | Facsimile Number | Notes | Warrant Shares | Address and Facsimile Number | ||||||||
Portside Growth and Opportunity Fund |
c/o Ramius Capital Group, L.L.C. 000 Xxxxx Xxxxxx, 00xx Xxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxxxx Xxxxx Xxxx Xxxxxxx Facsimile: (000) 000-0000 (000) 000-0000 Telephone: (000) 000-0000 (000) 000-0000 Residence: Cayman Islands |
$ | 12,100,000 | 268,125 | Xxxxxxx Xxxx & Xxxxx LLP 000 Xxxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxxxx Xxxxx, Esq. Facsimile: (000) 000-0000 Telephone: (000) 000-0000 |
|||||||
Highbridge International LLC |
c/o Highbridge Capital Management, LLC 0 Xxxx 00xx Xxxxxx, 00xx Xxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxx X. Xxxxxx Xxxx X. Chill Facsimile: (000) 000-0000 Telephone: (000) 000-0000 Residence: Cayman Islands |
$ | 4,400,000 | 97,500 | ||||||||
Highline Capital Partners, LP
|
0 Xxxxxxxxxxx Xxxxx, 00xx Xxxxx Xxx Xxxx, XX 00000 Attention: Xxxxxx Xxxxxx Facsimile: 000-000-0000 Telephone: 000-000-0000 |
476,135 | 10,551 | |||||||||
Highline Capital Partners QP, LP |
0 Xxxxxxxxxxx Xxxxx, 00xx Xxxxx Xxx Xxxx, XX 00000 Attention: Xxxxxx Xxxxxx Facsimile: 000-000-0000 Telephone: 000-000-0000 |
1,470,293 | 32,580 | |||||||||
Highline
Capital International, Ltd. |
0 Xxxxxxxxxxx Xxxxx, 00xx Xxxxx Xxx Xxxx, XX 00000 Attention: Xxxxxx Xxxxxx Facsimile: 000-000-0000 Telephone: 000-000-0000 |
3,553,572 | 78,744 | |||||||||
EXHIBITS
Exhibit A
|
Form of Note | |
Exhibit B
|
Form of Warrant | |
Exhibit C
|
Form of Irrevocable Transfer Agent Instructions | |
Exhibit D
|
Form of Opinion of Company’s Counsel | |
Exhibit E
|
Form of Secretary’s Certificate | |
Exhibit F
|
Form of Officers Certificate |
SCHEDULES
Schedule 3(a)
|
Subsidiaries | |
Schedule 3(c)
|
Issuance of Securities | |
Schedule 3(d)
|
No Conflicts | |
Schedule 3(e)
|
Consents | |
Schedule 3(l)
|
Absence of Certain Changes | |
Schedule 3(p)
|
Xxxxxxxx-Xxxxx Act | |
Schedule 3(r)
|
Equity Capitalization | |
Schedule 3(s)
|
Indebtedness and Other Contracts | |
Schedule 3(t)
|
Absence of Litigation | |
Schedule 3(w)
|
Title | |
Schedule 3(bb)
|
Internal Accounting and Disclosure Controls | |
Schedule 3(cc)
|
Ranking of Notes | |
Schedule 3(ll)
|
Certain Liens |
