DOCIDPHL_A #1724675 v3PHL_A #1724675 v3
PHL_A #1724675 v3
INSYNQ, INC.
1127 BROADWAY PLAZA, SUITE 202
TACOMA, WASHINGTON 98402
March 6, 2003
AJW Partners, LLC
New Millennium Capital Partners II, LLC
AJW Offshore, Ltd. (f/k/a AJW/New Millennium Offshore, Ltd.)
AJW Qualified Partners, LLC (f/k/a Pegasus Capital Partners, LLC)
1044 Northern Boulevard
Suite 302
Roslyn, New York 11576
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)
extend the maturity dates of certain debentures which are convertible into
shares of the Company's common stock, par value $.001 per share (the "Common
Stock"), originally issued by the Company to the investors listed in the
signature pages hereto (collectively, the "Investors") in June 2001, August
2001, October 2001, November 2001, January 2002 and July 2002, respectively
(collectively, the "Debentures"), as set forth on SCHEDULE 1 hereto, (ii) amend
the conversion price of the Debentures, (iii) extend the exercise period of
certain stock purchase warrants (collectively, the "Warrants") issued by the
Company to the Investors as set forth on SCHEDULE 1 hereto; (iv) amend the
exercise price of the Warrants; and (v) 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 Maturity Date (as defined in each of the Debentures) is
hereby extended until March 6, 2004.
2. 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%.
3. The Exercise Period (as defined in each of the Warrants) is
hereby extended to expire on 6:00 p.m., New York, New York
time, on the fifth (5th) anniversary of the date hereof.
4. The exercise price of each of the Warrants is hereby amended
to be equal to $.25 per share.
5. Irrespective of the 1-for-100 reverse stock split effected by
the Company in December 2002, the number of Warrants initially
issued to the Investors shall remain as set forth on SCHEDULE
1 hereto.
6. 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/ John P. Gorst
John P. Gorst
President
ACCEPTED AND AGREED:
AJW PARTNERS, LLC
By: SMS GROUP, LLC
/s/ Cory S. Ribotsky
Corey S. Ribotsky, Manager
NEW MILLENNIUM CAPITAL PARTNERS II, LLC
By: FIRST STREET MANAGER II, LLC,
/s/ Corey S. Ribotsky
Corey S. Ribotsky, Manager
AJW OFFSHORE, LTD.
By: FIRST STREET MANAGER II, LLC
/s/Corey S. Ribotsky
Corey S. Ribotsky, Manager
AJW QUALIFIED PARTNERS, LLC
By: AJW MANAGER, LLC
/s/Corey S. Ribotsky
Corey S. Ribotsky, Manager
SCHEDULE 1
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
DATE OF DEBENTURE ORIGINAL PRINCIPAL NUMBER OF WARRANTS
AMOUNT
INVESTOR
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- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC June 29, 2001 $183,334 366,668
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC June 29, 2001 $183,333 366,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. June 29, 2001 $183,333 366,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC August 10, 2001 $33,334 66,668
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC August 10, 2001 $33,333 66,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. August 10, 2001 $33,333 66,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC October 17, 2001 $50,000 100,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC October 17, 2001 $50,000 100,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. October 17, 2001 $50,000 100,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC November 2, 2001 $133,334 266,668
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC November 2, 2001 $133,333 266,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. November 2, 2001 $133,333 266,666
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC January 24, 2002 $50,000 200,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC January 24, 2002 $50,000 200,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. January 24, 2002 $100,000 400,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Qualified Partners, LLC January 24, 2002 $100,000 400,000
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Partners, LLC July 3, 2002 $41,667 166,668
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
New Millennium Capital Partners II, LLC July 3, 2002 $41,667 166,668
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Offshore, Ltd. July 3, 2002 $83,333 333,332
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
AJW Qualified Partners, LLC July 3, 2002 $83,333 333,332
- ------------------------------------------------------ ------------------------- ----------------------- --------------------
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