Document:

exv10w94

 

EXHIBIT 10.94

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR REGISTERED OR QUALIFIED UNDER ANY
STATE SECURITIES LAWS IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT PURSUANT TO REGULATION D AND SUCH STATE SECURITIES LAWS. NEITHER THIS WARRANT NOR
THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, OR TRANSFERRED UNTIL (i) A REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME
EFFECTIVE WITH REGARD THERETO, OR (ii) IN THE OPINION OF COUNSEL, ACCEPTABLE TO THE COMPANY,
REGISTRATION OR QUALIFICATION UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS
NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED OFFER, SALE OR TRANSFER..

THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AS SET FORTH IN A
COMMON STOCK AND WARRANT AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER DATED AS FEBRUARY 23,
2007, A COPY OF WHICH IS AVAILABLE UPON THE REQUEST OF THE REGISTERED HOLDER HEREOF TO THE
SECRETARY OF THE COMPANY.

STOCK PURCHASE WARRANT

Certificate No: WCO___

To Purchase 789,473 Shares of Common Stock of

Sedona Corporation

     THIS CERTIFIES that, for value received, Milton B. Young (the “Holder”), is entitled, upon the
terms and subject to the terms and the conditions hereinafter set forth, at any time on or after
the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on February
23, 2010 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Sedona
Corporation, a corporation incorporated in the State of Pennsylvania (the “Company”), up to Seven
hundred eighty-nine thousand four hundred seventy-three (789,473) shares (the “Warrant Shares”) of
Common Stock, $0.001 par value, of the Company (the “Common Stock”) at a purchase price of (the
“Exercise Price”) $0.285 per share. The Exercise Price and the number of shares for which the
Warrant is exercisable shall be subject to adjustment as provided herein.

     1. Title to Warrant. Prior to the Termination Date and subject to compliance with
applicable laws, this Warrant and all rights hereunder are transferable, in whole or in part, upon
the written consent of the Company and pursuant to the terms of the Purchase Agreement,

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by the holder hereof in person or by duly authorized attorney, upon surrender of this Warrant
to the Company together with the Assignment Form annexed hereto properly endorsed.

     2. Authorization of Shares. The Company covenants that all shares of Common Stock
which may be issued upon the exercise of this Warrant will, upon due and proper exercise of by
this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than any taxes in respect of any
transfer occurring contemporaneously with such issue).

     3. Exercise of Warrant.

     (a) Except as provided in Section 4 herein, exercise of the purchase rights represented by
this Warrant shall be made by the surrender of this Warrant and the Notice of Exercise Form
annexed hereto duly executed, at the office of the Company and upon payment of the Exercise Price
of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank.
The holder of this Warrant shall be entitled to receive a certificate for the number of shares of
Common Stock so purchased. Certificates for shares purchased hereunder shall be delivered to the
holder hereof within five (5) Trading Days after the date on which this Warrant shall have been
exercised as aforesaid. This Warrant shall be deemed to have been exercised and such certificate or
certificates shall be deemed to have been issued, and Holder or any other person so designated to
be named therein shall be deemed to have become a holder of record of such shares for all purposes,
as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and
all taxes required to be paid by Holder, if any, pursuant to Section 5 prior to the issuance of
such shares, have been paid.

     (b) If this Warrant shall have been exercised in part, the Company shall, at the time of
delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new
Warrant evidencing the rights of Holder to purchase the unpurchased shares of Common Stock under
this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

     (c) Each certificate representing Warrant Shares shall bear a legend substantially in the
following form:

THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR REGISTERED OR
QUALIFIED UNDER ANY STATE SECURITIES LAWS AND HAVE BEEN ISSUED IN RELIANCE UPON AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS.
NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD
OR TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH
APPLICABLE STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR
(ii) IN THE OPINION OF COUNSEL, ACCEPTABLE TO THE COMPANY, REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES ACT OR SUCH APPLICABLE

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STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED OFFER, SALE
OR TRANSFER.

THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS AS
SET FORTH IN A COMMON STOCK AND WARRANT AGREEMENT BETWEEN THE COMPANY AND THE
SHAREHOLDER DATED AS FEBRUARY 23, 2007, A COPY OF WHICH IS AVAILABLE UPON THE
REQUEST OF THE REGISTERED HOLDER HEREOF TO THE SECRETARY OF THE COMPANY.

     The foregoing legend shall be removed from the certificates representing the Warrant Shares,
at the request of the Holder, at such time as they become eligible for resale pursuant to Rule
144(k) under the Securities Act or at such time as the Holder shall have obtained an opinion of
counsel, reasonably acceptable to the Company, to the effect that the Warrant Shares proposed to be
disposed of may lawfully be so disposed of without registration, qualification or legend.

     4. Restrictions. The Warrant Shares may not be transferred until the earlier of the
following (i) registration of the Shares is completed or (ii) August 23, 2007 .

     No Fractional Shares or Scrip. No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which
Holder would otherwise be entitled to purchase upon such exercise, the Company shall pay a cash
adjustment in respect of such final fraction in an amount equal to the Exercise Price.

     5. Charges, Taxes, etc.. Issuance of certificates for shares of Common Stock upon the
exercise of this Warrant shall be made without charge to the holder hereof for any issue other
incidental expense in respect of the issuance of such certificate, which shall be paid by the
Company, and such certificates shall be issued in the name of the holder of this Warrant or in such
name or names as may be directed by the holder of this Warrant; provided, however, that in the
event certificates for shares of Common Stock are to be issued in a name other than the name of the
holder of this Warrant, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the holder hereof; and the Company may require, as
a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax
incidental thereto.

     6. Transfer, Division and Combination.

     (a) Subject to compliance with any applicable securities laws, transfer of this Warrant and
all rights hereunder, in whole or in part, shall be registered on the books of the Company to be
maintained for such purpose, upon surrender of this Warrant at the principal office of the Company,
together with a written assignment of this Warrant substantially in the form attached hereto duly
executed by Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable
upon the making of such transfer. Upon such surrender and, if

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required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of
this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly
assigned, may be exercised by a new holder for the purchase of shares of Common Stock without
having a new Warrant issued.

     (b) This Warrant may be divided or combined with other Warrants upon presentation hereof at
the aforesaid office of the Company, together with a written notice specifying the names and
denominations in which new Warrants are to be issued, signed by Holder or its agent or attorney.
Subject to compliance with Section 6(a), as to any transfer which may be involved in such division
or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the
Warrant or Warrants to be divided or combined in accordance with such notice.

     (c) The Company shall prepare, issue and deliver at its own expense (other than transfer
taxes) the new Warrant or Warrants under this Section 6.

     (d) The Company agrees to maintain, at its aforesaid office, books for the registration and
the registration of transfer of the Warrants.

     7. No Rights as Shareholder until Exercise. This Warrant does not entitle the holder
hereof to any voting rights or other rights as a shareholder of the Company prior to the exercise
hereof.

     8. Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant certificate or any stock certificate relating to the Warrant Shares, and
in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it
(which may include the posting of any bond), and upon surrender and cancellation of such Warrant
or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

     9. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or
a legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a Saturday, Sunday or legal holiday.

     10. Adjustments of Exercise Price and Number of Warrant Shares.

     (a) Stock Splits, etc. The number and kind of securities purchasable upon the
exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time
upon the happening of any of the following. In case the Company shall (i) pay a dividend in shares
of Common Stock or make a distribution in shares of Common Stock to holders of its outstanding
Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of shares
of Common Stock, (iii) combine its outstanding shares of Common Stock into

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a smaller number of shares of Common Stock or (iv) issue any shares of its capital stock in a
reclassification of the Common Stock, then the number of Warrant Shares purchasable upon exercise
of this Warrant immediately prior thereto shall be adjusted so that the holder of this Warrant
shall be entitled to receive the kind and number of Warrant Shares or other securities of the
Company which he would have owned or have been entitled to receive had such Warrant been exercised
in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other
securities of the Company which are purchasable hereunder, the holder of this Warrant shall
thereafter be entitled to purchase the number of Warrant Shares or other securities resulting from
such adjustment at an Exercise Price per Warrant Share or other security obtained by multiplying
the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares
purchasable pursuant hereto immediately prior to such adjustment and dividing by the number of
Warrant Shares or other securities of the Company resulting from such adjustment. An adjustment
made pursuant to this paragraph shall become effective immediately after the effective date of such
event retroactive to the record date, if any, for such event.

     (b) Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets.
In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or
merge with or into another corporation (where the Company is not the surviving corporation or where
there is a change in or distribution with respect to the Common Stock of the Company), or sell,
transfer or otherwise dispose of all or substantially all its property, assets or business to
another corporation and, pursuant to the terms of such reorganization, reclassification, merger,
consolidation or disposition of assets, shares of common stock of the successor or acquiring
corporation, or any cash, shares of stock or other securities or property of any nature whatsoever
(including warrants or other subscription or purchase rights) in addition to or in lieu of common
stock of the successor or acquiring corporation (“Other Property”), are to be received by or
distributed to the holders of Common Stock of the Company, then Holder shall have the right
thereafter to receive, upon exercise of this Warrant, the number of shares of common stock of the
successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other
Property receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event. In case of any such
reorganization, reclassification, merger, consolidation or disposition of assets, the successor or
acquiring corporation (if other than the Company) shall expressly assume the due and punctual
observance and performance of each and every covenant and condition of this Warrant to be performed
and observed by the Company and all the obligations and liabilities hereunder, subject to such
modifications as may be deemed appropriate (as determined in good faith by resolution of the Board
of Directors of the Company) in order to provide for adjustments of shares of Common Stock for
which this Warrant is exercisable which shall be as nearly equivalent as practicable to the
adjustments provided for in this Section 10. For purposes of this Section 10, “common stock of the
successor or acquiring corporation” shall include stock of such corporation of any class which is
not preferred as to dividends or assets over any other class of stock of such corporation and which
is not subject to redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such stock, either
immediately or upon the arrival of a specified date or the happening of a specified event and any
warrants or other rights to subscribe for or purchase any

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such stock. The foregoing provisions of this Section 10 shall similarly apply to successive
reorganizations, reclassifications, mergers, consolidations or disposition of assets.

     11. Voluntary Adjustment by the Company. The Company may, at its sole discretion, at
any time during the term of this Warrant, reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the Board of Directors of the Company. The Company
may also , at its sole discretion, extend the term of the Warrant for any period of time.

     12. Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of
securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall promptly mail by registered or certified mail,
return receipt requested, to the holder of this Warrant notice of such adjustment or adjustments
setting forth the number of Warrant Shares (and other securities or property) purchasable upon the
exercise of this Warrant and the Exercise Price of such Warrant Shares (and other securities or
property) after such adjustment, setting forth a brief statement of the facts requiring such
adjustment and setting forth the computation by which such adjustment was made. Such notice, in
the absence of manifest error, shall be conclusive evidence of the correctness of such adjustment.

     13. Notice of Corporate Action. If at any time:

     (a) the Company shall take a record of the holders of its Common Stock for the purpose of
entitling them to receive a dividend or other distribution, or any right to subscribe for or
purchase any evidences of its indebtedness, any shares of stock of any class or any other
securities or property, or to receive any other right, or

     (b) there shall be any capital reorganization of the Company, any reclassification or
recapitalization of the capital stock of the Company or any consolidation or merger of the Company
with, or any sale, transfer or other disposition of all or substantially all the property, assets
or business of the Company to, another corporation or,

     (c) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at least 10 days’
prior written notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up,
and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale,
transfer, disposition, dissolution, liquidation or winding up, at least 10 days’ prior written
notice of the date when the same shall take place. Such notice in accordance with the foregoing
clause also shall specify (i) the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, the date on which the holders of Common Stock shall be
entitled to any such dividend, distribution or right, and the amount and character thereof, and
(ii) the date on which any such reorganization, reclassification, merger, consolidation, sale,
transfer,

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disposition, dissolution, liquidation or winding up is to take place and the time, if any such time
is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their shares
of Common Stock for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up. Each such written notice shall be sufficiently given if addressed to
Holder at the last address of Holder appearing on the books of the Company and delivered in
accordance with Section 15(d).

     14. Authorized Shares. The Company covenants that during the period the Warrant is
outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of
shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the Warrant Shares upon the
exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein
without violation of any applicable law or regulation, or of any requirements of the Principal
Market upon which the Common Stock may be listed.

     The Company will (a) not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the amount payable therefor upon such exercise immediately prior
to such increase in par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock
upon the exercise of this Warrant, and (c) use its best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

     Before taking any action which would result in an adjustment in the number of shares of Common
Stock for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all
such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

     15. Miscellaneous.

     (a) Jurisdiction. This Warrant shall constitute a contract under the laws of the
Commonwealth of Pennsylvania, without regard to its conflict of law, principles or rules. Each of
the parties hereto hereby irrevocably and unconditionally consents to submit to the non-exclusive
jurisdiction of the courts of the Commonwealth of Pennsylvania and of the United States of America,
located in the Commonwealth of Pennsylvania, for any action, proceeding or investigation in any
court or before any governmental authority (“Litigation”) arising out of or relating to this
Warrant and the transactions contemplated hereby, and further agrees that service of any process,
summons, notice or document by U.S. registered mail to its respective address set forth in this
Warrant shall be effective service of process for any Litigation brought against it in any such
court. Each of the parties hereto hereby irrevocably and unconditionally waives any objection to
the laying of venue of any Litigation arising out of this Warrant in the courts of the Commonwealth
of Pennsylvania or the United States of America, located in the Commonwealth of Pennsylvania, and
hereby further irrevocably and unconditionally waives and agrees not to

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plead or claim in any such court that any such Litigation brought in any such court has been
brought in an inconvenient forum.

     (b) Restrictions. The holder hereof acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by
state and federal securities laws.

     (c) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise
any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise
prejudice Holder’s rights, powers or remedies, notwithstanding all rights hereunder terminate on
the Termination Date.

     (d) Notices. Any notice, request or other document required or permitted to be given
or delivered to the holder hereof by the Company shall be delivered to the address set forth in
that certain Common Stock and Warrants Purchase Agreement dated February 23, 2007, or at such other
address or addresses as may have been furnished in writing by any holder to the Company.

     All notices and other communications from Holder to the Company shall be delivered to:

SEDONA Corporation

1003 W. Ninth Avenue

Second Floor

King of Prussia, PA 19406

Attention: Chief Financial Officer

PHONE: (610)337-8400

FAX: (610)337-8490

With a copy to:

White and Williams, LLP

One Penn Plaza

Suite 1801

New York, New York 10119

Attention: Carl Seldin Koerner, Esq.

PHONE: 212-244-9500

FAX: 212-244-6200

or at such other address or addresses as may have been furnished in writing by the Company to
Holder.

     (e) No Rights as Shareholder. Until the exercise of this Warrant, the Holder shall
not have or exercise any rights by virtue hereof as a shareholder of the Company.

     (f) Successors and Assigns. Neither this Warrant nor any rights of the Holder or the
Company hereunder may be assigned by the Holder except as set forth in the Purchase

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Agreement and upon the written consent of the Company.. This Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of
the Company and the Holder.

     (g) Amendment. This Warrant may be modified by the Company from time to time to cure
any ambiguity or correct or supplement any provision contained herein which may be defective or
inconsistent with any other provision herein, or to make any other provisions in regard to matters
or questions arising hereunder which the Company may deem necessary or desirable and which shall
not materially adversely affect the interest of the Holder and, in addition, the Company may
modify, supplement, or alter this Warrant at any time with the written consent of the Holder.

     (h) Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provisions of this Warrant.

     (i) Headings. The headings used in this Warrant are for the convenience of reference
only and shall not, for any purpose, be deemed a part of this Warrant.

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     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

Dated:                                         

	 	 	 	 	 
	 	SEDONA Corporation

 	 
	 	By:  	 	 
	 	 	Marco A. Emrich, 	 
	 	 	President and Chief Executive Officer 	 

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NOTICE OF EXERCISE

To: Sedona Corporation

     (1) The undersigned hereby elects to purchase           shares of Common Stock (the “Common
Stock”), of Sedona Corporation pursuant to the terms of the attached Warrant, and tenders herewith
payment of the exercise price in full, together with all applicable transfer taxes, if any.

     (2) Please issue a certificate or certificates representing said shares of Common Stock in the
name of the undersigned or in such other name as is specified below:

                                                            

(Name)

                                                            

(Address)

                                                            

Dated:                                         

	 	 	 	 	 
	 

	 	Name of entity:
	 	                                                            
	 

	 	(if applicable)	 	 
	 
	 	 	 	 
	 

	 	Signed:
	 	                                                            
	 
	 	 	 	 
	 

	 	Name:
	 	                                                            
	 

	 	 	 	                       [Print]
	 
	 	 	 	 
	 

	 	Title:
	 	                                                            
	 

	 	(if applicable)	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	                                                            
	 
	 	 	 	 
	 

	 	 	 	                                                            
	 
	 	 	 	 
	 

	 	 	 	                                                            
	 
	 	 	 	 
	 	 	Tax Identification Number                                                

 

 

SEDONA CORPORATION

WARRANT ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

     FOR
VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to                      
                                         
whose address is                      
  .

Dated:                                         ,                     

	 	 	 	 	 
	 

	 	Name of entity:
	 	                                                            
	 

	 	(if applicable)	 	 
	 
	 	 	 	 
	 

	 	Signed:
	 	                                                            
	 
	 	 	 	 
	 

	 	Name:
	 	                                                            
	 

	 	 	 	                         [Print]
	 
	 	 	 	 
	 

	 	Title:
	 	                                                            
	 

	 	(if applicable)	 	 
	 
	 	 	 	 
	 

	 	Address:
	 	                                                            
	 
	 	 	 	 
	 

	 	 	 	                                                            
	 
	 	 	 	 
	 

	 	 	 	                                                            

	 	 	 
	Signature Guaranteed:
	 	 

	 	 	 

NOTE: The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in an fiduciary
or other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.exv4w3

 

Exhibit 4.3

(Face of Note)

[INSERT LEGEND, IF APPLICABLE]

[INSERT PRIVATE PLACEMENT LEGEND, IF APPLICABLE]

 

 

CUSIP:                     

8-1/8% Senior Notes due 2015

			
	No.                     
	 	$                     

ATLAS PIPELINE PARTNERS, L.P.

and

ATLAS PIPELINE Finance Corp.

promise to pay to                                          or registered assigns, the principal sum of
                                         Dollars of the United States of America [or such greater or lesser amount as
may from time to time be endorsed on the Schedule of Exchanges of Interests in the Note] on
December 15, 2015.

Interest Payment Dates: June 15 and December 15 of each year

Record Dates: June 1 and December 1 of each year

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authorization hereon has been duly executed by the Trustee referred
to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit of
this Indenture or be valid or obligatory for any purpose.

	 	 	 	 	 	 	 	 	 
	ATLAS PIPELINE PARTNERS, L.P.	 	 	 	ATLAS PIPELINE FINANCE CORP.
	 
	 	 	 	 	 	 	 	 
	By:

	 	Atlas Pipeline Partners GP, LLC,

its General Partner	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	 	 	By:
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	Name:
	 

	 	Title:	 	 	 	 	 	Title:

Certificate of Authentication:

This is one of the Notes referred to in the within-mentioned Indenture.

WACHOVIA BANK, NATIONAL ASSOCIATION, as Trustee

	 	 	 	 	 	 	 	 	 
	By:	 	 	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	 	 
	 	 

Date of Authentication:                           ,      

 

 

[Back of Note]

8-1/8% Senior Note due 2015

     Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

     1. Interest. Atlas Pipeline Partners, L.P., a Delaware limited partnership (the
“Company”), and Atlas Pipeline Finance Corp., a Delaware corporation (“Finance Co”
and, together with the Company, the “Issuers”), promise to pay interest on the principal
amount of this Note at 8-1/8% per annum and shall pay any Additional Interest payable pursuant to
Section 2 of the Registration Rights Agreement referred to below. The Issuers will pay interest
(including Additional Interest, if any) semi-annually on June 15 and December 15 of each year, or
if any such day is not a Business Day, on the next succeeding Business Day (each an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest
has been paid or, if no interest has been paid, from December 20, 2005; provided that if there is
no existing Default in the payment of interest, and if this Note is authenticated between a record
date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that the first Interest
Payment Date shall be June 15, 2007. The Issuers shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from
time to time on demand at the rate then in effect; the Issuers shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest (including Additional Interest, if any), without regard to any applicable grace periods,
from time to time on demand at the same rate to the extent lawful. Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.

     2. Method of Payment. The Issuers will pay interest (including Additional
Interest, if any) on the Notes (except defaulted interest) to the Persons who are registered
Holders of Notes at the close of business on the June 1 or December 1 next preceding the applicable
Interest Payment Date, even if such Notes are cancelled after such record date and on or before
such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to
defaulted interest. The Notes will be payable as to principal, premium and interest (including
Additional Interest, if any) at the office or agency of the Paying Agent maintained for such
purpose within the City and State of New York, or, at the option of the Issuers, payment of
interest (including Additional Interest, if any) may be made by check mailed to the Holders at
their addresses set forth in the register of Holders, and provided that payment by wire transfer of
immediately available funds will be required with respect to principal of, interest (including
Additional Interest, if any) and premium on,
all Notes the Holders of which shall have provided wire transfer
instructions to the Issuers or the Paying Agent. Such payment shall be in such coin or currency of
the United States of America as at the time of payment is legal tender for payment of public and
private debts.

     3. Paying Agent and Registrar. Initially, Wachovia Bank, National Association,
the Trustee under the Indenture and Supplemental Indenture, will act as Paying Agent and Registrar.
The Issuers may change any Paying Agent or Registrar without prior notice to any Holder. The
Issuers or any of their Subsidiaries may act in any such capacity.

     4. Indenture. The Issuers issued the Notes under an Indenture dated as of
December 20, 2005 (“Indenture”) among the Issuers, the Subsidiary Guarantors and the
Trustee and under a Supplemental Indenture dated as of May 12, 2006 (the “Supplemental
Indenture”) among the Issuers, the Subsidiary Guarantors and the Trustee. The terms of the
Notes include those stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are
subject to all such terms, and Holders are referred to the Indenture and such Act for a statement
of such terms. To the extent any provision of this Note conflicts with the express provisions of
the Indenture, the provisions of the Indenture shall govern and be controlling to the extent
permitted by law. The Notes are unsecured general obligations of the Issuers.

 

 

     5. Optional Redemption. Subject to the additional terms and conditions set forth
in the Indenture:

     (a) On and after December 15, 2010, the Issuers shall
have the option to redeem the Notes, in whole or, from time
to time, a part of the Notes upon not less than 30 nor more
than 60 days’ prior notice mailed to the registered address
of each Holder of Notes to be so redeemed, at the redemption
prices (expressed as percentages of principal amount) set
forth below, plus accrued and unpaid interest (including
Additional Interest, if any), if any, to the applicable
redemption date (subject to the rights of Holders of record
on the relevant record date to receive interest due on an
Interest Payment Date), if redeemed during the twelve-month
period beginning on December 15 of the years indicated
below:

	 	 	 	 	 
	YEAR	 	PERCENTAGE
	2010
	 	 	104.0625	%
	2011
	 	 	102.7083	%
	2012
	 	 	101.3542	%
	2013 and thereafter
	 	 	100.0000	%

     (b) On or before December 15, 2010, the Issuers may
redeem all or, from time to time, a part of the Notes upon
not less than 30 nor more than 60 days’ prior notice, at a
redemption price equal to:

     (i) 100% of the aggregate principal amount
of the Notes to be redeemed, plus accrued and
unpaid interest, if any, to the applicable
redemption date (subject to the right of
Holders of record on the relevant record date
to receive interest due on an Interest Payment
Date), plus

     (ii) the Make Whole Amount.

     (c) On or before December 15, 2008, the Issuers may on
any one or more occasions redeem in the aggregate up to 35%
of the aggregate principal amount of Notes issued under the
Indenture with the net cash proceeds of one or more Equity
Offerings at a redemption price equal to 108.125% of the
principal amount of the Notes to be redeemed, plus accrued
and unpaid interest, if any, to the redemption date (subject
to the right of Holders of record on a record date to
receive interest due on the relevant Interest Payment Date);
provided that

     (i) at least 65% of the aggregate
principal amount of Notes issued under the
Indenture remains outstanding after each such
redemption; and

     (ii) any redemption occurs within 90 days
after the closing of such Equity Offering
(without regard to any over-allotment option).

     6. Mandatory Redemption. Except as set forth in paragraph 7 below, the Issuers
shall not be required to make mandatory redemption payments with respect to the Notes.

     7. Repurchase at Option of Holder. Subject to the additional terms and conditions
set forth in the Indenture:

     (a) If there is a Change of Control, each Holder of Notes will have the
right to require the Issuers to repurchase all or any part (equal to $1,000 or
an integral multiple thereof) of such Holder’s Notes (the “Change of Control
Offer”) at a purchase price equal to 101% of the aggregate principal amount of
the Notes repurchased plus accrued and unpaid interest (including Additional
Interest, if any) thereon, if any, to the date of purchase. Within 30 days
following any Change of Control, the Issuers shall mail a notice to each Holder
setting forth the procedures governing the Change of Control Offer as required
by the Indenture and information regarding such other matters as is required
under Section 4.06 of the Indenture. The Holder of this Note may elect to have
this Note or a portion hereof in an authorized denomination purchased by
completing the form entitled “Option of Holder to Elect Purchase” appearing
below and tendering this Note pursuant to the Change of Control Offer.

 

 

     (b) If the Issuers or any Restricted Subsidiary of the Company consummates
an Asset Sale, in certain circumstances specified in Section 4.07 of the
Indenture the Issuers shall commence a pro rata offer to all Holders of Notes
and all holders of other Indebtedness that is pari passu in right of payment
with the Notes containing provisions similar to those set forth in the
Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets (an “Asset Sale Offer”) pursuant to Section 3.09 of the
Indenture to purchase the maximum principal amount of Notes and such other pari
passu Indebtedness that may be purchased out of the Excess Proceeds at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest (including Additional Interest, if any, in the case
of the Notes) thereon, if any, to the date of purchase in accordance with the
procedures set forth in the Indenture. If the aggregate principal amount of
Notes surrendered by Holders thereof exceeds the amount of Excess Proceeds
allocated for repurchase of Notes, the Trustee shall select the Notes to be
purchased on a pro rata basis. Holders of Notes that are the subject of an
Asset Sale Offer will receive an offer to purchase from the Issuers prior to
any related purchase date and may elect to have such Notes purchased by
completing the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Notes.

     8. Notice of Redemption. Notice of redemption will be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address. Notes in denominations larger than $1,000 may be redeemed in part but only
in whole multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest (including Additional Interest, if any) ceases to accrue on
Notes or portions thereof called for redemption unless the Issuers defaults in making such
redemption payment.

     9. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuers need not exchange or register the transfer of any Note or
portion of a Note selected for redemption, except for the portion of any Note being redeemed in
part that is not being redeemed. Also, the Issuers need not exchange or register the transfer of
any Notes for a period of 15 days before the mailing of a notice of redemption or during the period
between a record date and the corresponding Interest Payment Date.

     10. Persons Deemed Owners. The registered Holder of a Note may be treated as its
owner for all purposes.

     11. Amendment, Supplement and Waiver. Subject to certain exceptions, the
Indenture, the Guarantees or the Notes may be amended or supplemented with the consent of the
Holders of at least a majority in aggregate principal amount of the then outstanding Notes, and any
existing default or compliance with any provision of the Indenture, the Guarantees or the Notes may
be waived with the consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes. Without the consent of any Holder of a Note, the Indenture, the Guarantees or
the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide
for uncertificated Notes in addition to or in place of certificated Notes, to provide for the
assumption of an Issuer’s or a Subsidiary Guarantor’s obligations to Holders of the Notes in case
of a merger or consolidation or sale of all or substantially all of such Issuer’s assets, to add or
release Subsidiary Guarantors pursuant to the terms of the Indenture, to make any change that would
provide any additional rights or benefits to the Holders of the Notes or surrender any right or
power conferred upon the Issuers or the Subsidiary Guarantors by the Indenture that does not
adversely affect the rights under the Indenture of any such Holder, to provide for the issuance of
additional Notes in accordance with the limitations set forth in the Indenture, to comply with the
requirements of the SEC in order to effect or maintain the qualification of the Indenture under the
Trust Indenture Act, to evidence or provide for the acceptance of appointment under the Indenture
of a successor Trustee, to add additional Events of Default or to secure the Notes and/or the
Guarantees.

 

 

     12. Defaults and Remedies. Events of Default include in summary form: (i) default
for 30 days in the payment when due of interest on, including Additional Interest, if any, with
respect to, the Notes; (ii) default in payment when due of the principal of or premium, if any, on
the Notes; (iii) failure by the Company or any of its Restricted Subsidiaries to comply (for 30
days in the case of a failure to comply that is capable of cure) with Sections 4.06, 4.07 or 5.01
of the Indenture; (iv) failure by the Company to comply
with any of its other agreements in the Indenture for 60 days after notice to the Issuers by the
Trustee or to the Issuers and Trustee by Holders of at least 25% in aggregate principal amount of
the Notes then outstanding; (v) default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by an Issuer or any Restricted Subsidiary of the Company (or the payment of which is
guaranteed by an Issuer or any Restricted Subsidiary of the Company), whether such Indebtedness or
guarantee now exists, or is created after the date of the Indenture, if that default: (a) is caused
by a failure to pay principal of or premium, if any, or interest on such Indebtedness prior to the
expiration of the grace period provided in such Indebtedness on the date of such default (a
“Payment Default”) or (b) results in the acceleration of such Indebtedness prior to its
express maturity and, in each case, the principal amount of any such Indebtedness, together with
the principal amount of any other such Indebtedness under which there has been a Payment Default or
the maturity of which has been so accelerated, aggregates $10.0 million or more; (vi) the failure
by an Issuer or any Restricted Subsidiary of the Company to pay final judgments by courts of
competent jurisdiction aggregating in excess of $10.0 million, which judgments are not paid,
discharged or stayed for a period of 60 days; (vii) except as permitted by the Indenture, any
Guarantee of a Subsidiary Guarantor shall be held in any judicial proceeding to be unenforceable or
invalid or shall cease for any reason to be in full force and effect or any Subsidiary Guarantor,
or any Person acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its obligations
under its Guarantee; and (ix) certain events of bankruptcy or insolvency with respect to an Issuer,
the General Partner or any Restricted Subsidiary of the Company that is a Significant Subsidiary or
any group of Restricted Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary. If any Event of Default occurs and is continuing, the Trustee may or at the request of
the Holders of at least 25% in aggregate principal amount of the then outstanding Notes shall
declare all the Notes to be due and payable. Notwithstanding the foregoing, in the case of an Event
of Default arising from certain events of bankruptcy or insolvency, with respect to an Issuer or
the General Partner, all outstanding Notes will become due and payable without further action or
notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a
Default or Event of Default relating to the payment of principal or interest) if it determines that
withholding notice is in their interest.

     The Holders of a majority in aggregate principal amount of the Notes then outstanding by
notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing Default
or Event of Default and its consequences under the Indenture except a continuing Default or Event
of Default in the payment of interest (including Additional Interest, if any) on, or the principal
or premium, if any, of the Notes. The Issuers and the Subsidiary Guarantors are required to deliver
to the Trustee annually a statement regarding compliance with the Indenture, and the Issuers are
required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a
statement specifying such Default or Event of Default.

     13. Trustee Dealings with Company. The Trustee, in its commercial banking or any
other capacity, may make loans to, accept deposits from, and perform services for the Company or
its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the
Trustee.

     14. No Personal Liability of Directors, Officers, Employees and Unitholders and No
Recourse Against General Partner. Neither the General Partner nor any past, present or future
director, officer, partner, employee, incorporator, manager or unitholder or other owner of Equity
Interests of the Issuers, the General Partner or any Subsidiary Guarantor, as such, shall have any
liability for any Obligations of the Issuers or the Subsidiary Guarantors under the Notes, the
Indenture or the Guarantees or for any claim based on, in respect of, or by reason of, such
Obligations or their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of the Notes.

     15. Authentication. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

     16. Abbreviations. Customary abbreviations may be used in the name of a Holder
or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).

 

 

     17. Additional Rights and Obligations of Holders of
Restricted Certificated Notes. In addition to the rights provided to Holders of Notes under the
Indenture, Holders of Restricted Certificated Notes shall have all the
rights and obligations set forth in the Registration Rights Agreement
dated as of April 18, 2007, among the Issuers, the Subsidiary Guarantors and the parties named on the signature pages
thereof (“Registration Rights Agreement”).

     18. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Issuers have caused CUSIP numbers to be printed on
the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to
Holders. No representation is made as to the accuracy of such numbers either as printed on the
Notes or as contained in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon. The Issuers will furnish to any Holder upon written request
and without charge a copy of the Indenture and/or the Registration Rights Agreement.

Requests may be made to:

Atlas Pipeline Partners, L.P.

311 Rouser Road

Moon Township, Pennsylvania 15108

Attention: Chief Financial Officer

 

 

[FORM OF ASSIGNMENT]

     To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to:

 
(Insert assignee’s soc. sec. or tax I.D. no.)

 
(Print or type name, address and zip code of assignee)

and irrevocably appoint                                                           
           
             
              
    
to transfer this Note on the books of the Issuers. The agent may substitute another to act for him.

	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	Your

Signature:
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	(Sign exactly as name appears on the
other side of this Note)

Signature Guarantee*

 

			
	*	 	NOTICE: The Signature must be guaranteed by an Institution which is a
member of one of the following recognized signature Guarantee
Programs:

(i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The
New York Stock Exchange Medallion Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP); or (iv) in such other guarantee
program acceptable to the Trustee.

 

 

OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Note purchased by the Issuers pursuant to Sections 3.09 and
4.07 or Section 4.06 of the Indenture, check the box below:

	 	 	 
	 o Sections 3.09 and 4.07
	 	 o Section 4.06

     If you want to elect to have only part of the Note purchased by the Issuers pursuant to
Sections 3.09 and 4.07 or Section 4.06 of the Indenture, state the amount you elect to have
purchased (must be an integral multiple of $1,000):

$                     

	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	 	 	Your

Signature:
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Your

Signature:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	(Sign exactly as name appears on the
other side of this Note)

Signature Guarantee*

 

			
	*	 	NOTICE: The Signature must be guaranteed by an Institution which is a
member of one of the following recognized signature Guarantee
Programs:

(i) The Securities Transfer Agent Medallion Program (STAMP); (ii) The
New York Stock Exchange Medallion Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP); or (iv) in such other guarantee
program acceptable to the Trustee.

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