Exhibit 99.11
Preferred Stock Features
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Series A Series D
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Shares 37,186 3,000
Outstanding
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Amount Paid Per $100 $1000
Share
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Dividends 10% per annum payable quarterly in arrears 6% per annum payable quarterly in arrears,
beginning June 1, 1999; payable in shares of ATSI beginning March 31, 2000; payable in cash or
common stock registered shares of ATSI common stock, at ATSI's
election
participate in distributions to common stock
holders as if preferred stock had been converted
into common stock on record date for distribution
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Dividend Prior to common stock, ratably with series D Prior to common stock, ratably with Series A
Preference preferred stock preferred stock
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Liquidation Prior to common stock, shares ratably with series D Prior to common stock, ratably with Series A
Preference preferred stock; liquidation payment of $100 per preferred stock; liquidation payment of $1300 per
share outstanding plus accrued and unpaid dividends share outstanding plus accrued and unpaid dividends
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Voting Rights Votes as if conversion of outstanding shares None, except as required by Delaware law
occurred on record date for vote; majority
approval required for significant corporate events
such as merger or sale
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Conversion Price Average of closing sale prices for the 20 trading Lesser of $5.4375 or 83% of the average of the
days preceding issuance times $100 per share, plus lowest 5 closing bid prices for the common stock
accrued and unpaid dividends; reset on each during the 10 trading days prior to conversion
anniversary date to greater of 75% of initial
conversion price or 75% of 20 day trading average
prior to anniversary date
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Conversion Time From date of issuance to February 28, 2005; Any time after February 22, 2000, except for a
mandatory conversion on February 28, 2005 single 30 day lock out if common stock price falls
below $2.50; mandatory conversion of any remaining
shares on February 22, 2002
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Adjustments to As appropriate in event of stock split, reverse Upon notice of stock split, dividend, or issuance
Conversion Price stock split or stock dividend of additional shares at a discount to market,
holder may elect to convert based on average
closing bid price during five or fewer trading days
preceding conversion;
If common stock becomes ineligible for trading on
OTCBB, AMEX or NASDAQ, conversion price adjusted to
65% of average of five lowest closing bid prices
during ten trading days preceding conversion.
If ATSI issues common stock, common stock warrants
or securities convertible into common stock at a
lower price than conversion price for Series D
preferred, and agrees to register the common stock,
---
holder's conversion price is adjusted to lowest
price for new issuance
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Change of no special provision holder may elect redemption at 120% of sum of $1300
Control of ATSI per share and accrued and unpaid dividends, or
convert to whatever type of security the common
stockholders received in the change of control;
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Mandatory N/A Upon change of control of ATSI, holder may elect
Redemption redemption at 120% of sum of $1300 per share and
accrued and unpaid dividends, or convert to
whatever type of security the common stockholders
received in the change of control;
Holder may elect redemption at $1270 per share plus
accrued and unpaid dividends if ATSI refuses to
honor conversion notice or third party brings suit
challenging conversion
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Optional At ATSI's option after first anniversary of issue At ATSI's option if price of common stock falls
Redemption date if market price of common stock is 200% or below price at closing date, for $1270 per share
more of conversion price, for $100 per share plus plus accrued but unpaid dividends plus additional
accrued and unpaid dividends warrant for 150,000 shares of common stock (on
same terms as warrant issued to The Shaar Fund on
February 22, 2000)
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Trading/ restricted, common shares issued on conversion Restricted; common shares issued on conversion to
Conversion restricted with exception of common shares be restricted until registration;
Restrictions underlying 10,000 shares of Series A which ATSI has
agreed to register one time 30 day lock out if price of common stock
is $2.50 or less
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Registration For 10,000 shares issued February 4, 2000, Registration Statement for underlying common stock
Rights registration statement for underlying common stock to be filed by April 1, 2000 and effective by June
to be filed by April 30, 2000; with agreement that 1, 2000
first third may not be converted into common stock
until April 30, 2000, second third until July 31,
2000 and final third until October 31, 2000.
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Liquidated $25,000 for failure to file registration statement $60,000 for failing to file by April 1, 2000 or
Damages for by April 30, 2000 or obtain effectiveness by 90 obtain effectiveness by June 1, 2000; $60,000 for
Failure to Meet days from filing, and $25,000 for each subsequent each subsequent 30 day period
Registration 30 day period that targets are not met
Deadlines
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Other N/A Ten day right of first refusal on issuance of
common stock, warrants for common stock, or
securities convertible into common stock for price
less than then-current market price, or debt with
interest greater than 9.9%
No issuances of common stock that would cause
holder to own more than 5% of ATSI's total common
stock at any given time; if 5% limit would be
exceeded on mandatory conversion date ATSI may
redeem excess shares or extend conversion date for
one year
Total issuances of common stock during term of
Series D not to exceed 11,509,944 (20% of
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ATSI's total shares outstanding at closing date)
ATSI must redeem any excess
May not create new stock having liquidation
preference over Series D
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