Document:

Unassociated Document

    DEBT
      RESOLVE, INC.

    707
      Westchester Avenue, Suite L7

    White
      Plains, New York 10604

     

    March
      31,
      2008

     

    Harmonie
      International, LLC

     

    30201
      Orchard Lake Road, Suite 220

     

    Farmington
      Hills, Michigan 48334

     

    Re: Registration
      Rights Agreement

     

    Ladies
      and Gentlemen:

     

    Reference
      is made to the Securities Purchase Agreement, dated as of March 31, 2008 (the
      “Purchase
      Agreement”),
      by
      and between Debt Resolve, Inc., a Delaware corporation (the “Company”),
      and
      Harmonie International, LLC (the “Purchaser”),
      pursuant to which the Company has agreed to issue and sell to the Purchaser
      2,966,102 shares of Common Stock and warrants to purchase up to 3,707,627 shares
      of Common Stock. All capitalized terms not defined herein shall have the meaning
      ascribed to them in the Purchase Agreement.

     

    The
      Company hereby agrees to the following:

     

    1. (a) Within
      180 days following the Closing Date, the Company shall cause a shelf
      registration statement on Form S-3 (or other appropriate form, the “Registration
      Statement”)
      to be
      filed with the U.S. Securities and Exchange Commission (the “Commission”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act”),
      with
      respect to (i) the shares of Common Stock and (ii) the shares of Common Stock
      issuable or issued upon the exercise of the Warrants to be issued to or on
      behalf of the Purchaser at the Closing pursuant to Section 2.1 of the Purchase
      Agreement (together, the “Securities”),
      and
      shall thereafter use its best efforts to have the Registration Statement
      declared effective and to keep it effective for three years
      thereafter.

     

    (b) Until
      the
      Registration Statement has become effective under the Securities Act, each
      certificate representing the Securities, and all certificates and instruments
      issued in transfer thereof, shall be endorsed with the restrictive legend as
      set
      forth in Section 6.2 of the Purchase Agreement. Upon the effectiveness of the
      Registration Statement, the Company shall, upon the request of any Purchaser,
      issue to the Purchaser a replacement certificate without such legend in exchange
      for any such legended certificate and issue to the Purchaser upon exercise
      of
      its Warrants a certificate without such legend.

     

    (c) The
      Company shall furnish to the Purchaser, at the Company’s expense, such number of
      copies of the Registration Statement and each amendment and supplement thereto,
      preliminary prospectus, final prospectus and such other documents as the
      Purchaser may reasonably request in order to facilitate the public offering
      of
      its shares of Common Stock.

     

    (d) The
      Company shall promptly, at the Company’s expense, use its reasonable best
      efforts to register or qualify any shares of Common Stock covered by the
      Registration Statement under such state securities or blue sky laws of such
      jurisdictions as the Purchaser may reasonably request, except that the Company
      shall not for any purpose be required to execute a general consent to service
      of
      process or to qualify to do business as a foreign corporation in any
      jurisdiction where it is not so qualified.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (e) The
      Company shall notify the Purchaser, promptly after it shall receive notice
      thereof, of the date and time when the Registration Statement and each
      post-effective amendment thereto has become effective or a supplement to any
      prospectus forming a part of the Registration Statement has been
      filed.

     

    (f) The
      Company shall advise the Purchaser, promptly after it shall receive notice
      or
      obtain knowledge thereof, of the issuance of any stop order by the Commission
      suspending the effectiveness of the Registration Statement or the initiation
      or
      threatening of any proceeding for the purpose and promptly use its best efforts
      to prevent the issuance of any stop order or to obtain its withdrawal if such
      stop order should be issued.

     

    (g) (i)
      The
      Company agrees to bear all Commission registration and filing fees, printing
      and
      mailing expenses, fees and disbursements of counsel and accountants for the
      Company and all expenses and fees incident to listing the shares of Common
      Stock
      on the American Stock Exchange and (ii) the Purchaser agrees to bear all fees
      and disbursements of counsel for all underwriters, brokers and dealers engaged
      in connection with the distribution of such shares of Common Stock and any
      discounts, commissions and fees of any such underwriters, brokers and dealers,
      NASD filing fees and expenses incurred by any Person in connection therewith,
      and the fees and disbursements of legal counsel for the Purchaser.

     

    (h) (i)
      The
      Company hereby agrees to indemnify and hold harmless the Purchaser, its
      officers, directors, legal counsel and accountants and each Person who controls
      the Company within the meaning of the Securities Act, from and against, and
      agrees to reimburse the Purchaser, its officers, directors, legal counsel,
      accountants and controlling Persons with respect to, any and all claims, actions
      (actual or threatened), demands, losses, damages, liabilities, costs and
      expenses to which the Purchaser, its officers, directors, legal counsel,
      accountants and controlling Persons may become subject under the Securities
      Act
      or otherwise, insofar as such claims, actions, demands, losses, damages,
      liabilities, costs or expenses are caused by any untrue statement or alleged
      untrue statement of any material fact contained in the Registration Statement,
      any prospectus contained therein, or any amendment or supplement thereto, or
      are
      caused by the omission or alleged omission to state therein a material fact
      required to be stated therein or necessary to make the statements therein not
      misleading; provided,
      however,
      that
      the Company shall not be liable in any such case to the extent that any such
      claim, action, demand, loss, damage, liability, cost or expense is caused by
      an
      untrue statement or alleged untrue statement or omission or alleged omission
      so
      made in conformity with information furnished in writing by the Purchaser for
      use in the preparation thereof; provided further,
      however,
      that
      this indemnity is subject to the condition that insofar as it relates to any
      untrue statement, omission or alleged omission made in a preliminary prospectus
      but eliminated or remedied in the final prospectus, such indemnity shall not
      inure to the benefit of the Purchaser if a copy of the final prospectus was
      not
      furnished to the Person asserting the claim, action, demand, loss, damage or
      liability.

     

    (ii)
      Each
      Purchaser hereby agrees to indemnify and hold harmless the Company, its
      officers, directors, legal counsel and accountants and each Person who controls
      the Company within the meaning of the Securities Act, from and against, and
      agrees to reimburse the Company, its officers, directors, legal counsel,
      accountants and controlling Persons with respect to, any and all claims,
      actions, demands, losses, damages, liabilities, costs or expenses to which
      the
      Company, its officers, directors, legal counsel, accountants or such controlling
      Persons may become subject under the Securities Act or otherwise, insofar as
      such claims, actions, demands, losses, damages, liabilities, costs or expenses
      are caused by any untrue or alleged untrue statement of any material fact
      contained in the Registration Statement, any prospectus contained or any
      amendment or supplement thereto, or are caused by the omission or the alleged
      omission to state therein a material fact required to be stated therein or
      necessary to make the statements therein, in light of the circumstances in
      which
      they were made, not misleading, in each case to the extent, but only to the
      extent that such untrue statement or alleged untrue statement or alleged untrue
      statement or omission or alleged omission was so made in reliance upon and
      in
      conformity with information furnished in writing by the Purchaser for use in
      the
      preparation thereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (iii)
      If
      any claim shall be asserted against any person (an “Indemnified
      Person”)
      for
      which such Person intends to seek indemnification pursuant to Section 1(h)(i)
      or
      (ii), as the case may be, such Indemnified Person shall give prompt written
      notice to the Company or the Purchaser, as the case may be, of the nature of
      such claim, but the failure to give such notice shall not relieve the Company
      or
      the Purchasers, as the case may be, of their obligations under this Section
      1(h)
      unless it or they have been prejudiced substantially thereby. The Company or
      the
      Purchaser shall have the exclusive right to conduct, at its expense, through
      counsel of its own choosing, which counsel is approved by the Indemnified Person
      (which approval may not be unreasonably withheld), the defense of any such
      claim, and may compromise or settle such claims with the prior consent of the
      Purchaser (which consent shall not be unreasonably withheld).

     

    The
      Company hereby confirms that this letter agreement has been duly authorized
      by
      its Board of Directors.

     

    If
      the
      foregoing is acceptable to you, please sign below where indicated and return
      a
      copy of this letter to the Company, whereupon this letter shall become a binding
      agreement between us.

    
      	 	 	 
	 	 
	 	DEBT
              RESOLVE,
              INC.
	 
 	 
 	 
 
	 	By:  	
              /s/ James
                D. Burchetta

            
	 	
              

              Name:
                James
                D. Burchetta

              Title:
                Chairman

            
	 	 

    

     

    Agreed
      to
      and Accepted:

     

    HARMONIE
      INTERNATIONAL, LLC

    
      	 	 	 	 	 
	 	 	 	 	 
	By:	
              /s/
                William
                E. Donahue, Jr.

            	 	 	 
	 	
              

              Name:
                William
                E. Donahue, Jr.

              Title:
                Chairman
                / CEO

            	 	 	
            
	 	 	 	 	 

    

     

    
      
        
        

      

      
        3AMENDMENT
      TO SUBSCRIPTION AGREEMENT AND TO COMMON STOCK

    PURCHASE
      WARRANT TO PURCHASE SHARES OF COMMON STOCK OF PURPLE

    BEVERAGE
      COMPANY, INC.

     

    This
      Amendment to the Subscription Agreement and to Common Stock Purchase Warrant
      to
      purchase shares of Common Stock of Purple Beverage Company, Inc. (this
“Amendment”),
      is
      effective as of April 2, 2008, by Purple Beverage Company, Inc., a Nevada
      corporation (the “Company”),
      in
      favor of the undersigned holder (the “Holder”).
      The
      Company and Holder are, together, the “Parties.”

     

    RECITALS

     

    WHEREAS,
      effective December 12, 2007, the Company and the Holder entered into that
      certain Subscription Agreement (the “Subscription
      Agreement”),
      pursuant to which the Company sold and issued to Holder certain Shares (as
      defined therein) and granted to Holder that a Common Stock Purchase Warrant
      to
      purchase shares of Common Stock of the Company, which warrant was dated and
      issued December 12, 2007 (the “2007
      Warrant”),
      and
      entitled Holder, upon exercise thereof in accordance with the terms contained
      therein, to purchase up to that number of shares of the Company’s Common Stock
      specified therein (the “2007
      Covered Shares”)
      at an
      initial per-share Purchase Price (as defined in the 2007 Warrant) of $2.00
      (the
“2007
      Warrant Original Purchase Price”);

     

    WHEREAS,
      the Company has determined that, in lieu of its currently procuring additional
      financing from otherwise unaffiliated third parties in order to finance the
      continued development of its business, the parties wish to amend certain terms
      contained in the Subscription Agreement and in the 2007 Warrant, as well as
      to
      provide an enhanced opportunity to obtain certain financing from Holder and
      certain other parties who received warrants at the same time and on the same
      terms as the 2007 Warrant (collectively, the “Other
      2007 Warrant Holders”),
      by
      offering a reduction to the 2007 Warrant Original Purchase Price for up to
      50%
      of the 2007 Covered Shares, which reduction shall be available until April
      2,
      2008 (the “Amendment
      Effective Period”),
      and a
      grant of certain registration rights;

     

    WHEREAS,
      in connection with the exercise of the Amended Warrant Price Shares (as that
      term is defined in Section 2.1) during the Amendment Effective Period (as that
      term is defined in Section 2.1, below), the Company will grant to the Holder
      a
      new common stock purchase warrant (a “New
      Warrant”),
      in
      the form attached hereto as Exhibit A, on a one-for-two basis, such that the
      Holder will receive a New Warrant for the purchase of fifty percent of the
      number of shares of Common Stock as the Holder purchases of Amended Warrant
      Price Shares through the exercise of a 2007 Warrant during the Amendment
      Effective Period;

     

    NOW,
      THEREFORE, in
      consideration of the premises, the covenants made herein, and for such other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Parties hereby agree as follows:

     

    
      
        
        

      

      
        -
          1
          -

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      1

    AMENDMENTS

     

    1. Amendments
      to the Subscription Agreement.

     

    1.1 Elimination
      of Certain Contractual Limitations.
      Upon
      the
      expiration of the Restriction Period (as defined in Section 4(o) of the
      Subscription Agreement), none of the Amended Warrant Price Shares (as defined
      in
      Section 1.3(b) of the Registration Rights Agreement) shall remain subject to
      any
      of the time-based contractual limitations contained in such Section,
i.e.,
      the
      Holders’ covenants therein not to sell, pledge, hypothecate, or otherwise derive
      economic value therefrom, and the issuance thereof during the Amendment
      Effective Period shall not increase the number of Shares and Warrant Shares
      (as
      defined in the recitals to the Subscription Agreement) subject to the five
      percent limitations set forth therein.

     

    1.2 Waiver
      of Certain Anti-dilution Protections.
      Notwithstanding anything to the contrary contained in the Subscription
      Agreement, none of the transactions contemplated by this Amendment, including
      the issuance of any of the Amended Warrant Price Shares during the Amendment
      Effective Period or shares of the Company’s common stock to Palladium Capital
      Advisors, LLC, or any of its affiliates, in connection with the execution of
      this Amendment or the issuance of any of the Amended Warrant Price Shares during
      the Amendment Effective Period, shall result in the imposition of any of the
      anti-dilution protections in favor of the Holder contained in the Subscription
      Agreement.

     

    1.3 Waiver
      of Certain Offering Restrictions.
      Notwithstanding anything to the contrary contained in the Subscription
      Agreement, none of the transactions contemplated by this Amendment, including,
      but not limited to, the issuance of any of the Amended Warrant Price Shares
      during the Amendment Effective Period or shares of the Company’s common stock to
      Palladium Capital Advisors, LLC, or any of its affiliates, in connection with
      the execution of this Amendment or the issuance of any of the Amended Warrant
      Price Shares during the Amendment Effective Period or the filing of any
      registration statement in respect of any of the Shares, shall be deemed to
      be a
      violation of any of the offering or other restrictions imposed upon, or granted
      by, the Company and in favor of the Holder contained in the Subscription
      Agreement.

     

    2. Amendment
      to 2007 Warrant.

     

    2.1 Limitations.
      Effective solely for any exercise by Holder of up to fifty (50%) of the 2007
      Covered Shares (collectively, the “Amended
      Warrant Price Shares”)
      occurring during the Amendment Effective Period, the “Warrant Price” specified
      in Section 9 of the 2007 Warrant shall be $1.25 per share of such 2007 Covered
      Shares. With respect to any Amended Warrant Price Shares that are not purchased
      through the exercise of the 2007 Warrant during the Amendment Effective Period,
      immediately upon the expiration thereof and without any further act of the
      Parties, the 2007 Original Warrant Price shall be reinstated to such unpurchased
      Amended Warrant Price Shares and thereafter shall apply to all unpurchased
      2007
      Covered Shares and this Amendment shall be of no further force and effect.
      The
      Company hereby represents that, concurrently with the delivery of this Amendment
      to Holder, it is delivering to each of the Other Warrant Holders an amendment
      to
      its respective outstanding 2007 Warrant for its consideration and acceptance,
      which amendment is identical to this Amendment in form and substance.
      Accordingly, the Parties agree that any exercise of the Warrants held by the
      Other Warrant Holders at the prices contained herein shall not be deemed to
      trigger, or give rise to the triggering of, any anti-dilution protection
      contained in the Warrants. The holder of the Amended Warrant Price Shares,
      New
      Warrant, and Common Stock issuable upon exercise of the New Warrant is granted
      all of the rights and benefits granted pursuant to the Transaction Documents
      (as
      defined in the Subscription Agreement) to the holder of Warrants and Warrant
      Shares (as defined in the Subscription Agreement).

     

    2.2 Waiver
      of Certain Anti-dilution Protections.
      Notwithstanding anything to the contrary contained in the 2007 Warrants, none
      of
      the transactions contemplated by this Amendment, including the issuance of
      any
      of the Amended Warrant Price Shares during the Amendment Effective Period or
      shares of the Company’s common stock to Palladium Capital Advisors, LLC, or any
      of its affiliates, in connection with the execution of this Amendment or the
      issuance of any of the Amended Warrant Price Shares during the Amendment
      Effective Period, shall result in the imposition of any of the anti-dilution
      protections in favor of the Holder contained in the 2007
      Warrants.

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    2.3 Conditions
      Precedent.
      As a
      condition precedent to the effectiveness of the Amendment and the transactions
      contemplated herein, the Other 2007 Warrant Holders holding not less than 70%
      of
      the Shares shall have signed an amendment to their respective Subscription
      Agreements and 2007 Warrants in form and content substantially similar to this
      Amendment, although it shall not be a condition precedent to the effectiveness
      of the Amendment that any or all of such Other 2007 Warrant Holders shall have
      purchased any of their respective 2007 Covered Shares during the Amendment
      Effective Period.

     

    3. Registration
      Rights.
      In
      connection with this Amendment, the Company has agreed to grant to Holder,
      and
      to each of the Other 2007 Warrant Holders who shall have signed an amendment
      to
      their respective Subscription Agreements and 2007 Warrants in form and content
      substantially similar to this Amendment, certain registration rights, as more
      specifically set forth in the form of Registration Rights Agreement, attached
      hereto as Exhibit B.

     

    4. New
      Warrants. In connection with this Amendment, the Company has agreed to grant
      to
      Holder, and to each of the Other 2007 Warrant Holders who shall have signed
      an
      amendment to their respective Subscription Agreements and 2007 Warrants in
      form
      and content substantially similar to this Amendment, certain New Warrants (in
      the form attached hereto as Exhibit A) for the purchase of fifty percent of
      the
      number of shares of Common Stock as the Holder purchases of Amended Warrant
      Price Shares through the exercise of a 2007 Warrant during the Amendment
      Effective Period.

     

    ARTICLE
      3

    MISCELLANEOUS
      PROVISIONS

     

    1. Re-affirmation
      of Representations and Warranties.
      If the
      Holder purchases any Amended Warrant Price Shares through the exercise of a
      2007
      Warrant during the Amendment Effective Period, then the Holder hereby currently
      re-affirms herein all of the representations and warranties initially made
      by
      the Holder in favor of the Company in the Subscription Agreement as if made
      as
      of the date of this Amendment and the Company hereby re-affirms herein all
      of
      the representations and warranties initially made by the Company in favor of
      the
      Holder in the Subscription Agreement as of the date of the Subscription
      Agreement.

     

    2. Miscellaneous
      Provisions.

     

    2.1 No
      Further Amendments.
      Except
      as amended by this Amendment, the Subscription Agreement and the 2007 Warrant
      remain unmodified and in full force and effect. In the event of any
      inconsistency between the provisions of either the Subscription Agreement or
      the
      2007 Warrant and the provisions of this Amendment, the provisions of this
      Amendment shall prevail. This
      Amendment may only be modified or amended by a written agreement executed by
      the
      Company, and consented to by Holder, with the same formalities and in the same
      manner as this Amendment.

     

    2.2 Counterparts.
      This
      Amendment may be executed in one or more counterparts, each of which shall
      be
      deemed an original but all of which when taken together shall constitute one
      and
      the same instrument. Facsimiles or portable document files transmitted by e-mail
      containing original signatures shall be deemed for all purposes to be originally
      signed copies of the documents which are the subject of such facsimiles or
      files.

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

    2.3 Binding
      on Successors.
      This
      Amendment shall be binding upon and shall inure to the benefit of the successors
      and permitted assigns of the Parties.

     

    2.4 Entire
      Agreement.
      Each of
      the Subscription Agreement and the 2007 Warrant, as amended by this Amendment,
      contains the entire understanding between the Parties and supersedes any prior
      written or oral agreements between them respecting the subject matter contained
      herein. There are no representations, agreements, arrangements or
      understandings, oral or written, between the Parties relating to the subject
      matter hereof that are not fully expressed herein.

     

    IN
      WITNESS WHEREOF, the Parties hereto have executed or have caused a duly
      authorized officer to execute this Amendment all effective as of the day and
      year first above written.

     

    PURPLE
      BEVERAGE COMPANY, INC.

     

    
      	
              By:

            	 
	 	
              Theodore
                Farnsworth, Chief Executive
                Officer

            

    

     

    HOLDER:

     

    I
      hereby
      consent to the amendments set forth herein and

     

     ̈ Exercise
      ________ of
      the
      2007 Warrants as of the date hereof; or

     

     ̈ Do
      not
      exercise any of the 2007 Warrants as of the date hereof.

     

    
      	 	 	
              April
                2, 2008

            
	
              [name]

            	 	 

    

     

    
      
        
        

      

      
        -
          4
          -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]