Document:

inuv_ex44.htm

Exhibit 4.4

 

EXCHANGE AGENT AGREEMENT

THIS EXCHANGE AGENT AGREEMENT dated as of February 24, 2012 (the “Agreement”) is by and between Inuvo, Inc., a Nevada corporation (the “Parent”) and Colonial Stock Transfer Co, Inc., a Utah corporation (the “Colonial”).

RECITALS

WHEREAS, the Parent proposes to acquire Vertro, Inc., a Delaware corporation (the “Company”) by means of a merger (the “Merger”) of Anhinga Merger Subsidiary, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”) with and into the Company with the Company as the surviving entity and a wholly-owned subsidiary of the Parent pursuant to an Agreement and Plan of Merger dated October 16, 2011, by and among Parent, Merger Sub, and the Company (the “Merger Agreement”).

WHEREAS, pursuant to the Merger Agreement, each issued and outstanding share of common stock, par value $0.005 per share, of the Company outstanding immediately prior to the Effective Time (as hereinafter defined) (the “Company Common Stock”) shall thereupon be canceled and, subject to the provisions of the Merger Agreement, shall be automatically converted into the right to receive 1.546 fully paid and nonassessable shares of Parent’s common stock, par value $0.001 per share, as may be adjusted prior to the Effective Time (the “Parent Common Stock”), (such Parent Common Stock, together with any cash paid in respect of fractional shares in accordance with the Merger Agreement, the “Merger Consideration”).  The time at which the Merger becomes effective is referred to in the Merger Agreement and herein as the “Effective Time.”

WHEREAS, the Parent is desirous of engaging Colonial to act as exchange agent (the “Exchange Agent”) in the Merger pursuant to the terms and conditions of this Agreement, and Colonial has agreed to accept such engagement pursuant to the terms and conditions hereof.

NOW, THEREFORE, in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, and intending to be legally bound hereby, the Parent and Colonial agree as follows:

1.           Appointment of Exchange Agent; Reservation of Shares; Deposit of Funds.

a.           Subject to the provisions hereof, Parent hereby appoints Colonial, and Colonial hereby agrees to act, as the Exchange Agent for purposes of receiving, accepting for delivery and otherwise acting upon exchange of shares of the Company Common Stock in accordance with the Letter of Transmittal (as hereinafter defined), and with the terms and conditions contained in the Merger Agreement.

b.           The Parent will notify Colonial of the Effective Time in writing.  On the first business day immediately following the Effective Time, Colonial will send to each holder of record of shares of the Company Common Stock as of the Effective Time a letter of transmittal in the form attached hereto as Appendix A (the “Letter of Transmittal”) for use in the exchange of certificates representing shares of the Company Common Stock for the Merger Consideration (the “Exchange”).

c.           As of the Effective Time, Colonial is hereby irrevocably authorized and instructed and agrees, as Exchange Agent and the Parent’s transfer agent and registrar of the Parent Common Stock, to issue in the name of each holder of certificates representing shares of Company Common Stock surrendered to it in accordance with this Agreement, or in the name of the person designated by such holder in accordance with special instructions in the Letter of Transmittal, the number of whole shares of Parent Common Stock equal to 1.546 shares for every share of Company Common Stock so surrendered, as may be adjusted prior to the Effective Time, and to promptly deliver the certificate representing the whole number of shares of Parent Common Stock that such holder has a right to receive, together with any amount payable in cash to such holder in lieu of any fractional shares of Parent Common Stock in accordance with delivery instructions in the Letter of Transmittal.  Each of the shares of Parent Common Stock issued in accordance with this Agreement shall be newly issued shares of Parent Common Stock.

d.           As soon as practical following the Effective Time, the Parent shall deliver to Colonial by wire transfer a cash amount sufficient to make payments in lieu of fractional shares of Parent Common Stock that otherwise would be issuable in accordance with the Merger Agreement.  In accordance with the Merger Agreement, Colonial is hereby instructed that the cash payment for fractional shares (after aggregating all fractional shares issuable to a single holder) is the dollar amount (rounded to the nearest whole cent), without interest, in an amount equal to the product obtained by multiplying (x) the fractional share interest to which such holder (after taking into account and aggregating all shares of Company Common Stock represented by all certificates surrendered by such holder) would otherwise be entitled by (y) the closing price for a share of Parent Common Stock on the NYSE Amex on the last trading day immediately preceding the Effective Time.

  

  

  

2.           Exchange of Merger Sub Shares.

a.           In connection with Colonial’s appointment as Exchange Agent, the following documents have been, or will be delivered to Colonial by the Parent at least five (5) calendar days prior to the Effective Time:

(i)           Letter of Transmittal, to be used by holders of shares of Company Common Stock in effecting the Exchange;

(ii)           Letter from Parent to holders of shares of Company Common Stock; and

(iii)           guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9.

b.           Colonial is hereby authorized, and it hereby agrees, to act as follows to effect the Exchange:

(i)           to prepare or have prepared mailing packages to each holder of record of Company Common Stock as of the close of business on the date of the Effective Time containing the items set forth in subparagraph (ii) below;

(ii)           to furnish, by mailing first-class within one (1) business day after the Effective Time, to all holders of record of Company Common Stock as of the close of business on the date of the Effective Time (which list shall be furnished by Interwest Transfer Company, Inc., as the current transfer agent for the Company), a copy of each of the documents listed in Paragraph 2(a) hereof, together with a return envelope, and to deliver additional copies of such documents to any record holder of shares of Company Common Stock so requesting;

(iii)           to receive and examine each Letter of Transmittal and certificate(s) representing shares of Company Common Stock delivered or mailed to Colonial to determine whether or not all requirements necessary to constitute a valid surrender, as set forth in the Letter of Transmittal and in the Merger Agreement, have been met.  All certificates for Company Common Stock must be surrendered on the terms and conditions set forth in the Letter of Transmittal and in the Merger Agreement, unless waived by an authorized officer of Parent as set forth in subparagraph (v) below; provided, that in the case of persons or entities alleging loss, theft or destruction of certificate(s) representing shares of Company Common Stock, delivery to Parent of a bond, in such reasonable amount as Parent may direct, identifying Parent and Colonial as “Obligees,” or an indemnity agreement in form reasonably satisfactory to Parent, together with an affidavit of loss, shall constitute delivery of share certificate(s) for purposes of the Exchange; provided, further, in the event any Letter of Transmittal has been improperly completed or executed or if the certificate(s) for shares of Company Common Stock accompanying such Letter of Transmittal do not bear any requisite endorsements or signature guarantee or are not accompanied by any appropriate stock power, or if some other irregularity in connection with the purported surrender exists, Colonial will endeavor to take such actions as it believes necessary and appropriate to cause such irregularity or defect to be corrected; it being understood that the determination to waive any irregularities or conditions to surrender shall be made by an authorized officer of Parent as set forth in subparagraph (v) below, after consultation with Colonial, and such determination shall be final and binding;

(iv)           to record (including day, month and approximate time of receipt) and to cancel in accordance with subparagraph (viii) below, subject to any further instructions from Parent, all surrendered shares of Company Common Stock received by Colonial and determined to have been validly surrendered;

(v)           to follow and to act upon any reasonable amendments, modifications or supplements to, or waivers of, these instructions, and upon any further reasonable instructions in connection with the Exchange, any of which may be given to Colonial in writing by Parent’s Chief Financial Officer or such other person or persons as Parent shall designate in writing;

(vi)           to return to the surrendering holders any certificate(s) that were not properly surrendered and as to which the irregularities or defects were not cured or waived;

(vii)           to confirm that:

(A)           each Letter of Transmittal is duly endorsed by the registered holder of the certificate representing the shares of Company Common Stock being surrendered thereby in exactly the same way as the name appears on the face thereof without any change or alteration, or must be accompanied by proper stock power so endorsed, except as provided in subparagraph (B) hereof;

(B)           the signature of the endorser are guaranteed as specified in the Letter of Transmittal;

(C)           when the endorsement is executed by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a corporation or other person acting in a fiduciary or representative capacity, the person should so indicate when signing the endorsement and must give his or her full title in such capacity, and proper evidence satisfactory to the Exchange Agent of the authority of such person must be submitted to the Exchange Agent with the certificate(s) representing the shares of Company Common Stock;

  

  

  

(D)           in the case of joint ownership, all joint owners sign the Letter of Transmittal; and

(E)           no stock transfer taxes will arise by reason of the Exchange or will be collectible by Colonial; provided, however, that it will be a condition to the issuance of any check in any name other than the name in which the surrendered certificate(s) representing shares of Company Common Stock is registered that the person requesting the issuance of such check either pay to Colonial any transfer or other taxes required by reason of such issuance or establish to Parent’s satisfaction that such tax has been paid or is not applicable;

(viii)           to mark “CANCELED” (or otherwise indicate the same) and deliver to Parent all certificates representing shares of Company Common Stock received pursuant hereto, together with any related stock powers and other documents;

(ix)           all information as to the Exchange of Company Common Stock shall be held in strict confidence by Colonial and all its officers, employees, representatives and agents; and

(x)           to accept and respond to all telephone requests for information relative to the exchange of certificates in connection with the Merger.

c.           If, as of the date 180 calendar days after the date of the Effective Time, there remain any holders of Company Common Stock who have not surrendered their certificates for payment of the Merger Consideration pursuant to the Merger Agreement, Colonial shall return, to the extent permitted by law, to Parent any funds and any shares of Parent Common Stock held by Colonial for the benefit of holders of Company Common Stock (including any interest or other income resulting from the investment of such funds) and deliver to Parent any certificates or other documents received by Colonial pursuant to this Agreement or otherwise from any holder of Company Common Stock after such time. Upon receipt, Parent shall be solely responsible for satisfaction of any claims for receipt of Merger Consideration in accordance with the Merger Agreement

3.           Additional Duties of Exchange Agent. As the Exchange Agent, Colonial:

a.           shall have no duties or obligations other than those specifically set forth herein;

b.           shall not be required to and shall make no representations and have no responsibilities as to the validity, accuracy, value or genuineness of (i) the Exchange, (ii) any certificate(s) representing shares of Company Common Stock, Letters of Transmittal or documents deposited with Colonial, (iii) any documents prepared by Parent in connection with the Exchange, or (iv) any signatures or endorsements, other than Colonial’s own;

c.           shall not be obligated to take any legal action hereunder that might, in Colonial’s judgment, involve any expense or liability unless Colonial has been furnished with a reasonable indemnity by Parent;

d.           may rely on and shall be protected in acting on the written instructions of any officer of Parent authorized to give instructions under Paragraph 2(b)(v) hereof with respect to any matter relating to Colonial’s actions as Exchange Agent specifically covered by this Agreement;

e.           may rely on and shall be protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or any other document or security delivered to Colonial and believed by it reasonably and in good faith to be genuine and to have been signed by the proper party or parties;

f.           shall not be responsible for or liable in any respect on account of the identity, authority or rights of any person executing or delivering or purporting to execute or deliver any document or property under this Agreement, and shall have no responsibility with respect to the use or application of any property delivered by Colonial pursuant to the provisions hereof, other than to issue and distribute the certificates for the shares of Parent Common Stock and to distribute the cash in lieu of fractional shares pursuant to this Agreement;

  

  

  

g.           may consult counsel satisfactory to Colonial (including counsel for Parent), and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by Colonial hereunder in good faith and in accordance with the advice or opinion of such counsel; and

h.           shall not be liable for anything which Colonial may do or refrain from doing in connection with this Agreement, except for its own gross negligence, willful misconduct or bad faith.

4.           Compensation. Colonial shall be entitled to receive payment from Parent for fees, costs and expenses for appropriate services rendered by it hereunder in accordance with Exhibit A to this Agreement.  Parent shall reimburse Colonial on demand for all losses, liabilities, damages, disbursements, advances or expenses paid or incurred by it in the administration of its duties hereunder, including, but not limited to, all counsel, advisor and agent fees and disbursements.  The obligations contained in this Section shall survive the termination of this Agreement and the resignation or removal of Exchange Agent.

5.           Indemnification.

a.           The Parent covenants and agrees to indemnify and hold harmless Colonial, its directors, officers and employees (the “Indemnified Persons”) from and against any and all losses, damages (excluding consequential and incidental damages or lost profits), liabilities, costs or expense (including reasonable attorneys’ fees and expenses and court costs), arising out of or attributable to its acceptance of its appointment and execution and performances of its duties as the Exchange Agent hereunder, provided, however, that such indemnification shall not apply to losses, damages, liabilities, costs or expenses finally adjudicated to have been primarily caused by the gross negligence or willful misconduct of the Indemnified Persons hereunder (which gross negligence or willful misconduct must be determined by a final, non-appealable order, judgment, decree or ruling of a court of competent jurisdiction).

b.           Colonial shall notify the Parent in writing of any written asserted claim against Colonial or of any other action commenced against Colonial promptly after Colonial shall have received any such written assertion or shall have been served with a summons in connection therewith.  The Parent shall be entitled to participate at its own expenses in the defense of any such claim or other action and, if the Parent so elects, the Parent may assume the defense of any pending or threatened action against Colonial in respect of which indemnification may be sought hereunder; provided, however, that the Parent shall not be entitled to assume the defense of any such action if the named parties to such action includes the Parent and Colonial and representation of the parties by the same legal counsel would, in the written opinion of counsel for Colonial, be inappropriate due to actual or potential conflicting interests between them.

c.           Colonial agrees that, without the prior written consent of the Parent, it will not settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification could be sought in accordance with the indemnification provision of this Agreement, whether or not any Indemnified Person is an actual or potential party to such claim, action or proceeding.

d.           The provisions of this Section 5 shall survive the resignation or removal of Colonial and the termination of this Agreement.

6.           Governing Law. This Agreement shall be construed in accordance with the laws of the State of Nevada, without any application of the principles of conflicts of laws.  If it becomes necessary for any party to institute legal action to enforce the terms and conditions of this Agreement, and such legal action results in a final judgment in favor of such party ("Prevailing Party"), then the party or parties against whom said final judgment is obtained shall reimburse the Prevailing Party for all direct, indirect or incidental expenses incurred, including, but not limited to, all attorneys’ fees, court costs and other expenses incurred throughout all negotiations, trials or appeals undertaken in order to enforce the Prevailing Party's rights hereunder.  Any suit, action or proceeding with respect to this Agreement shall be brought in the state or federal courts located in Pinellas County in the State of Florida.  The parties hereto hereby accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding.  The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any judgment entered by any court in respect thereof brought in Pinellas County, Florida, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in Pinellas County, Florida, has been brought in an inconvenient forum.

7.           Notice. All notices, requests, demands, consents and other communications required or permitted under this Agreement shall be in writing (including telex and telegraphic communication) and shall be (as elected by the person giving such notice) hand delivered by messenger or courier service, telecommunicated, or mailed (airmail if international) by registered or certified mail (postage prepaid), return receipt requested, addressed to:

  

  

  

If to Parent:                                                      15550 Third Avenue,

Suite 300

Clearwater, FL  33760

Facsimile:  (727) 683-9342

Attention:  Wallace D. Ruiz, Chief Financial Officer

With copies to:                                                    143 Varick Street

New York, New York 10013

Facsimile:  (212) 736-9121

Attention:  John B. Pisaris, General Counsel

Schneider Weinberger LLP

2200 Corporate Boulevard, N.W.

Suite 210

Boca Raton, FL  33431

Facsimile:  (561) 362-9612

Attention:  James M. Schneider, Esq.

If to Colonial:                                                                Colonial Stock Transfer Company, Inc.

66 Exchange Place, Suite 100

Salt Lake City, UT 84111

Facsimile: (801) 355-6505

Attention:  Kathy Carter

8.           Assignment; Amendment. No party may transfer or assign its rights or responsibilities under this Agreement without the prior written consent of the other parties hereto.  This Agreement may be amended only in writing signed by all parties.

9.           Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to constitute an original, but all of which together shall constitute one and the same instrument.

10.           Parties in Interest.  This Agreement shall be binding upon and inure solely to the benefit of the parties hereto and nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefits or remedy of any nature whatsoever under or by reason of this Agreement.  Without limitation to the foregoing, the parties hereto expressly agree that no stockholder of the Parent or the Company shall have any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

11.           Termination; Term. Either the Parent or Colonial may terminate this Agreement upon 30 days prior written notice to the other party.  Unless so terminated, this Agreement shall continue in effect until Parent has received all remaining certificates and funds held by you for the benefit of holders of Company Common Stock (including any interest or other income resulting from the investment of such funds) that are distributed to Parent by Colonial 180 days after the date of the Effective Time in accordance with this Agreement.  In the event of earlier termination by either party, Parent will promptly retain a successor exchange agent with comparable qualifications as those of Colonial (the “Successor Exchange Agent”) and inform Colonial of the name and address of the Successor Exchange Agent so retained, provided that no failure by Parent to retain such a Successor Exchange Agent shall affect the termination of this Agreement or Colonial’s discharge as Exchange Agent hereunder.  Upon any such termination, Colonial shall be relieved and discharged of any further responsibilities with respect to its duties hereunder.  Upon any such termination, Colonial shall promptly disburse to Parent or its designee all certificates and funds held by you for the benefit of holders of Company Common Stock (including any interest or other income resulting from the investment of such funds) and forward to Parent or its designee any certificates for Company Common Stock, Letters of Transmittal or other documents that it may receive after its appointment has so terminated.

12.           USA Patriot Act.  Parent shall provide to Colonial such information as Colonial may reasonably require to permit Colonial to comply with its obligations under the federal USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001).

 

 

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective officers thereunto duly authorized as of the date first written above.

PARENT

Inuvo, Inc.

By:                                                                

Wallace D. Ruiz,

Chief Financial Officer

EXCHANGE AGENT

Colonial Stock Transfer Company, Inc.,

By:                                                                

Name:                                                                           

Title:                                                                

 

Draft # 1 - December 1, 2011

  

  

  

Appendix A

[FORM OF LETTER OF TRANSMITTAL]

 

Draft # 1 - December 1, 2011

  

  

  

Exhibit A

Fees

Parent will pay Colonial the following

	
·  

	
$35 per certificate exchanged, and

	
·  

	
printing and mailing costs as quoted

Company stockholders will be responsible for any charges for additional certificates received or additional services required.

In addition, there may be other unforeseen special handling charges.  Colonial will notify the Parent in advance if any such charges are necessary.

 

Draft # 1 - December 1, 2011

  

  

  

LETTER OF TRANSMITTAL

 

TO ACCOMPANY CERTIFICATES REPRESENTING SHARES OF VERTRO, INC. COMMON STOCK

 

IN EXCHANGE FOR SHARES OF COMMON STOCK OF INUVO, INC.

 

On February 29, 2012 the stockholders of Vertro, Inc. (“Vertro”) approved the merger with Inuvo, Inc., (“Inuvo”) pursuant to which Vertro became a wholly owned subsidiary of Inuvo.  Pursuant to the terms and conditions of the Agreement and Plan of Merger, each outstanding share of Vertro common stock has been converted into the right to receive 1.546 shares of Inuvo common stock. Inuvo will not issue any fractional shares of Inuvo common stock in exchange for shares of Vertro common stock.  Instead, each holder of a fractional share interest will be paid an amount in cash (without interest) equal to the fractional share interest multiplied by $0.90, which was the closing price of a share of Inuvo common stock on the NYSE Amex, LLC on the last trading day immediately preceding the effective time of the merger. This Letter of Transmittal is being sent to you in connection with merger. Colonial Stock Transfer Co., Inc. is acting as Exchange Agent (“Exchange Agent”) for Vertro and Inuvo.  In order to receive shares of Inuvo’s common stock, and any payment for a fractional share, please sign this Letter of Transmittal on both sides of this form and mail or deliver this completed Letter of Transmittal, or a copy thereof, in accordance with the instructions on the next page, together with the certificate(s) representing your shares of Vertro, to:

 

COLONIAL STOCK TRANSFER CO., INC.

	
66 EXCHANGE PLACE, SUITE 100

SALT LAKE CITY, UTAH 84111

 

	
DESCRIPTION OF SHARES SURRENDERED        (Please fill in.  Attach separate schedule if needed)

	
Name(s) and Address of Registered Holder(s)

If there is any error in the name or address shown below, please make the necessary corrections

	
 

Certificate No(s)

	
 

Number of Shares

	  	  	  
	  	  	  
	  	  	  
	  	
TOTAL SHARES F

	  

The undersigned represents that I (we) have full authority to surrender without restriction the certificate(s) for exchange.  If I am entitled to receive a cash payment in lieu of a fractional share, please issue the check in the name shown above and mail to the above address unless instructions are given in the boxes below.

	
FOR TELEPHONE ASSISTANCE PLEASE CALL:  Toll Free (877) 285-8605 or (801) 355-5740

Method of delivery of the certificate(s) is at the option and risk of the owner thereof.    See Instruction 1.

	

 

If  your certificate(s) have been lost, stolen, misplaced or mutilated contact Colonial Stock Transfer at 801-355-5740.

 

	  
	
SPECIAL ISSUANCE INSTRUCTIONS

	  	
SPECIAL DELIVERY INSTRUCTIONS

	
Complete ONLY if the Inuvo shares are to be issued in a name which differs from the name on the surrendered certificate(s) representing Vertro shares.  Issue to:

Name:    ____________________________________________

Address: ____________________________________________

               ____________________________________________

(Please also complete Substitute Form W-9 on the reverse AND see instructions regarding signature guarantee. See Instructions 3 ,4 and 6)

	  	
Complete ONLY if  the Inuvo shares are to be mailed to some address other than the address reflected above.   Mail to:

Name:       _______________________________________

Address:  _______________________________________

                 _______________________________________

	
YOU MUST SIGN IN THE  BOX BELOW. 

	
Also:

	

 

Sign and provide your tax ID number on the back of this form

	
SIGNATURE(S) REQUIRED

Signature(s) of Registered Holder(s) or Agent

	  	
SIGNATURE(S) GUARANTEED (IF REQUIRED)

See Instruction 3.

	
Must be signed by the registered holder(s) EXACTLY as name(s) appear(s) on stock certificate(s).  If signature is by a trustee, executor, administrator, guardian,  attorney-in-fact, officer for a corporation acting in a fiduciary or representative capacity, or other person, please set forth full title.   See Instructions 2, 3, or 4.

___________________________________________________

Registered Holder

___________________________________________________

Registered Holder

___________________________________________________

Title, if any

Date:  _________________     Phone No.:  ___________________

	  	
Unless the shares are tendered by the registered holder(s) of the common stock, or for the account of a member of a “Signature Guarantee Program” (“STAMP”), Stock Exchange Medallion Program (“SEMP”) or New York Stock Exchange Medallion Signature Program (“MSP”) (an “Eligible Institution”), the above signature(s) must be guaranteed  by an Eligible Institution.  See Instruction 3.

______________________________________________

Authorized Signature

______________________________________________

Name of Firm

______________________________________________

Address of Firm - Please Print

  

  

  

INSTRUCTIONS FOR SURRENDERING CERTIFICATES

(Please read carefully the instructions below)

1. Method of Delivery:  Your original certificate(s) representing your shares of Vertro and the Letter of Transmittal must be sent or delivered to the Exchange Agent at COLONIAL STOCK TRANSFER CO, INC. 66 EXCHANGE PLACE, SUITE 100, SALT LAKE CITY, UT 84111.  Do not send them to Vertro or Inuvo. Delivery of certificates to be surrendered to the Exchange Agent is at the option and risk of the surrendering stockholder.  Delivery will be deemed effective only when received.  We suggest that certificate(s) be sent by registered mail with return receipt requested and properly insured.

 

2. Letter of Transmittal Required:  Surrender of certificate(s), Lost certificate(s):  You will not receive a certificate representing Inuvo shares unless and until you deliver this Letter of Transmittal, properly completed and duly executed, to the Exchange Agent, together with the original certificate(s) evidencing shares of Vertro and any required accompanying evidences of authority. If your certificate(s) has been lost, stolen, misplaced or destroyed, please contact Colonial Stock Transfer for replacement instructions at 801-355-5740.

If any of the surrendered certificates are in the name of two or more joint owners, all such owners must sign this Letter of Transmittal. The signature must correspond exactly with the name as written on the face of the surrendered certificate without alteration, enlargement or any change whatsoever.  If any surrendered certificates are in different names on several certificate(s), it will be necessary to complete, sign and submit as many separate Letters of Transmittal as there are different names. Letters of Transmittal executed by trustees, executors, administrators, guardians, officers of corporations, or others acting in a fiduciary capacity who are not identified as such in the registration must be accompanied by proper evidence of the signer’s authority to act.

 

3. Shares Issued in Different Name:  If the section entitled “Special Issuance Instructions” is completed then signatures on this Letter of Transmittal must be guaranteed by an Eligible Institution which is a member in good standing of the Securities Transfer Agents’ Medallion Program.  If the surrendered Vertro certificate(s) are registered in the name of a person other than the signer of this Letter of Transmittal, or if issuance of the Inuvo shares is to be made to a person other than the signer of this Letter of Transmittal, or if the issuance of the Inuvo shares is to be made to a person other than the registered owner(s), then the surrendered certificate(s) must be endorsed or accompanied by duly executed stock powers, in either case signed exactly as the name(s) of the registered owners appear on such certificate(s) or stock power(s), with the signatures on the certificate(s) or stock power(s) guaranteed by an Eligible Institution as provided herein.

 

If the Inuvo shares are to be made to a person other than the person in whose name the surrendered certificate(s) is registered, it shall be a condition of issuance that the signer of this Letter of Transmittal shall pay any transfer or other taxes required by reason of the transfer to a person other than the registered holder of the surrendered Vertro certificate(s) or establish to the satisfaction of the Exchange Agent that such tax has been paid or is not applicable.

 

4. Special Issuance and Delivery Instructions:  Indicate the name and address in which the Inuvo certificate is to be sent if different from the name and/or address of the person(s) signing this Letter of Transmittal.  You are required to give the social security number or employer identification number of the record owner of the shares.  If Special Issuance Instructions have been completed, the stockholder named therein will be considered the record owner for this purpose.

 

5. Substitute Form W-9:  Under the Federal Income Tax Law, a non-exempt stockholder is required to provide the Exchange Agent with such stockholder’s correct Taxpayer Identification Number (“TIN”) on the Substitute Form W-9 below.  If the certificate(s) are in more than one name or are not in the name of the actual owner, consult the enclosed Substitute Form W-9 guidelines for additional guidance on which number to report.  Failure to provide the information on the form may subject the surrendering stockholder to backup withholding on any cash payment.

The surrendering stockholder must check the box in Part III if a TIN has not been issued and the stockholder has applied for a number or intends to apply for a number in the near future.  If a TIN has been applied for and the Exchange Agent is not provided with a TIN before payment is made, the Exchange Agent will withhold the required amount on all reportable payments to such surrendering stockholders of any cash consideration which may be due in lieu of fractional shares.

 

 

  

  

  

 

PAYER:    COLONIAL STOCK TRANSFER CO, INC.

	
SUBSTITUTE Form W-9

Department of the Treasury

Internal Revenue Service

	
Part I - PLEASE PROVIDE YOUR TIN AND TAXPAYER NAME IN THE SPACE AT THE RIGHT AND CERTIFY BY SIGNING AND DATING BELOW

	
Social Security No. or Employer Identification No.

 

 

Taxpayer Name

 

 

	
Payer’s Request for Taxpayer

Identification Number (TIN)

	
Part II - For Payees exempt from backup withholding, see the enclosed Guidelines For Certification of Taxpayers Identification Number on Substitute Form W-9  and complete as instructed therein.

	
Part III

Awaiting TIN :      ̈

	
Certification - Under penalties of perjury, I certify that:  (1) The number shown on this form is my correct Taxpayer Identification Number (or I am waiting for a number to be issued to me), and (2) I am not subject to backup withholding either because I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding  as a result of a failure to report all interest or dividends, or the IRS has notified me that I am no longer subject to backup withholding, and (3) I am a U.S. person (including a U.S. resident alien).

Certification  Instructions -  You must cross out item (2) above if you have been notified by the IRS that you are subject to backup withholding because of underreporting interest or dividends on your tax return.  However, if after being notified by the IRS that you were subject to backup withholding, you received another notification from the IRS that you were no longer subject to backup withholding, do not cross out item (2).

 

	
 

PLEASE SIGN HERE    F

	
 

 

Signature ________________________________________________       Date  _________________Unassociated Document

EXHIBIT 4.6

 

NEITHER THESE SECURITIES NOR THE SECURITIES FOR WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

THIS WARRANT IS REISSUED ON NOVEMBER 22, 2011 TO REFLECT A REDUCTION IN THE EXERCISE PRICE OF THE WARRANT FROM $2.20 PER SHARE TO $1.50 PER SHARE.  THIS WARRANT REPLACES IN ITS ENTIRETY THE PRIOR WARRANT REFLECTING THE $2.20 PER SHARE EXERCISE PRICE (THE “ORIGINAL WARRANT”), WHICH SUCH ORIGINAL WARRANT IS NULL AND VOD.

WARRANT TO PURCHASE COMMON STOCK

 

	
Date of Issuance: As of October 14, 2011

	
Warrant to Purchase an Aggregate of 40,000 shares of Common Stock

FOR VALUE RECEIVED, INUVO, INC., a Nevada corporation (the “Corporation”), pursuant to the terms and conditions of that certain Investor Relations Consulting Agreement effective as of October 14, 2011 (the “Agreement”) and between the Corporation and ALLIANCE ADVISORS, LLC (the "Holder") promises to issue in the name of, and sell and deliver to the Holder a certificate or certificates for up to an aggregate of FORTY THOUSAND (40,000) shares of the Corporation’s common stock, par value $0.001 per share (the “Common Stock”), following the vesting thereof upon payment by the Holder of the Exercise Price set forth as follows.

SECTION 1.

EXERCISE OF WARRANT

1.1           Exercise Period.  The Holder may exercise this Warrant, in whole or in part (but not as to fractional shares), at any time and time to time following the vesting of the various tranches thereof as set forth above and ending at 5:00 p.m., Eastern Time, on October 14, 2016 (the “Exercise Period”).

1.2           Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $1.50 per share, subject to adjustment hereunder (the “Exercise Price”).

  

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1.3           Exercise Procedure.

a.           This Warrant may be exercised in whole or in part at any time during the Exercise Period, provided however, if the last day of the Exercise Period is a day on which federal or state chartered banking institutions located in the State of Florida are authorized by law to close, then the last day of the Exercise Period shall be deemed to be the next succeeding day which shall not be such a day, by presentation and surrender to the Corporation at its principal office of this Warrant accompanied by the form of Exercise Agreement attached hereto as Exhibit 1 signed by the Holder and upon payment of the Exercise Price for the Common Stock purchased thereby, by cashier's check or by wire transfer of immediately available funds. This Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of a number of shares of Common Stock equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

	
  

	
(A) = the volume weighted average price (“VWAP”) on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

	
  

	
(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

	
  

	
(X) = the number of shares of Common Stock that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

b.           Certificates for the shares of Common Stock purchased upon exercise of this Warrant will be delivered by the Corporation to the Holder within five (5) business days after the Exercise Date.  Unless this Warrant has expired or all of the purchase rights represented hereby have been exercised, the Corporation will prepare a new Warrant representing the rights formerly represented by this Warrant that have not expired or been exercised.  The Corporation will, within such five (5) day period, deliver such new Warrant to the Holder at the address set forth in this Warrant.

c.           The shares of Common Stock issuable upon the exercise of this Warrant will be deemed to have been transferred to the Holder on the Exercise Date, and the Holder will be deemed for all purposes to have become the record holder of such Common Stock on the Exercise Date.

d.           The issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to the Holder of any issuance tax in respect thereof or any other cost incurred by the Corporation in connection with such exercise and related transfer of the shares; provided, however, that the Corporation shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any certificate or instrument in a name other than that of the Holder of this Warrant, and that the Corporation shall not be required to issue or deliver any such certificate or instrument unless and until the person or persons requiring the issue thereof shall have paid to the Corporation the amount of such tax or shall have established to the satisfaction of the Corporation that such tax has been paid.

e.           Unless the shares of Common Stock issuable upon the exercise of this Warrant have been registered under the Securities Act of 1933, as amended (the “Act”) such shares will be “restricted securities” as that term is defined in the Act. The Corporation may insert the following or similar legend on the face of the certificates evidencing shares of Common Stock if required in compliance with state securities laws:

"These securities have not been registered under any state securities laws and may not be sold or otherwise transferred or disposed of except pursuant to an effective registration statement under any applicable state securities laws, or an opinion of counsel satisfactory to counsel to the Corporation that an exemption from registration under any applicable state securities laws is available."

  

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1.4           Fractional Shares.  If a fractional share of Common Stock would be issuable upon exercise of the rights represented by this Warrant, the Corporation will, within 30 days after the Exercise Date, deliver to the Holder a check payable to the Holder, in lieu of such fractional share, in an amount equal to the market price of such fractional share as determined by the last sale price of the Corporation’s Common Stock as reported on the NYSE Amex or the principal exchange on which the Corporation’s Common Stock is then traded, as of the close of business on the Exercise Date.

SECTION 2.

EFFECT OF STOCK DIVIDENDS, REORGANIZATION, RECLASSIFICATION,

CONSOLIDATION, MERGER OR SALE

2.1           Stock Dividends, Recapitalization or Reclassification of Common Stock.  In case the Corporation shall at any time prior to the exercise or termination of this Warrant (i) pay a dividend or make a distribution of its capital stock in shares of Common Stock to all holders of shares of Common Stock, or (ii) effect a recapitalization or reclassification of such character that its Common Stock shall be changed into or become exchangeable for a larger or smaller number of shares, then, upon the effective date thereof, the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall be increased or decreased, as the case may be, in direct proportion to the increase or decrease in such number of shares of Common Stock by reason of such stock dividend, recapitalization or reclassification, and the Exercise Price of such dividend, recapitalized or reclassified Common Stock shall, in the case of an increase in the number of shares, be proportionately decreased and, in the case of a decrease in the number of shares, be proportionately increased.

2.2           Consolidation, Merger or Sale.  In case the Corporation shall at any time prior to the exercise of this Warrant, or the expiration of the Exercise Period, whichever first occurs, consolidate or merge with any other corporation (unless the Corporation shall be the surviving entity) or transfer all or substantially all of its assets to any other corporation preparatory to a dissolution, then the Corporation shall, as a condition precedent to such transaction, cause effective provision to be made so that the Holder of this Warrant, upon the exercise thereof after the effective date of such transaction, shall be entitled to receive the kind and amount of shares, evidences of indebtedness, and/or other property receivable on such transaction by a holder of the number of shares of Common Stock as to which the Warrant was exercisable immediately prior to such transaction (without giving effect to any restriction upon such exercise); and, in any such case, appropriate provision shall be made with respect to the rights and interests of the Holder hereof to the effect that the provisions of this Warrant shall thereafter be applicable (as nearly as may be practicable) with respect to any shares, evidences of indebtedness, or other securities or assets thereafter deliverable upon exercise of this Warrant.

2.3           Notice of Adjustment.  Whenever the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted as provided herein, the Corporation shall file with its corporate records a certificate of its Chief Financial Officer setting forth the computation and the adjusted number of shares of Common Stock purchasable hereunder resulting from such adjustments, and a copy of such certificate shall be mailed to the Holder.  Any such certificate or letter shall be conclusive evidence as to the correctness of the adjustment or adjustments referred to therein and shall be available for inspection by the holders of the Warrants on any day during normal business hours.

 

  

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SECTION 3.

RESERVATION OF COMMON STOCK

The Corporation will at all times use its best efforts to reserve and keep available such number of shares of Common Stock as will be sufficient to permit the exercise in full of this Warrant.  Upon exercise of this Warrant pursuant to its terms, the Holder will acquire fully paid and non-assessable ownership rights of the Common Stock, free and clear of any liens, claims or encumbrances.

SECTION 4.

NO STOCKHOLDER RIGHTS OR OBLIGATIONS

This Warrant will not entitle the Holder hereof to any voting rights or other rights as a stockholder of the Corporation.  Until the shares of Common Stock issuable upon the exercise of this Warrant are recorded as issued on the books and records of the Corporation’s transfer agent, the Holder shall not be entitled to any voting rights or other rights as a stockholder; provided, however, that the Corporation shall use its bests efforts to ensure that, upon receipt of the Exercise Agreement and payment of the Exercise Price, the appropriate documentation necessary to effectuate the exercise of the Warrant and the issuance of the Common Stock is accomplished as expeditiously as possible.  No provision of this Warrant, in the absence of affirmative action by the Holder to purchase Common Stock, and no enumeration in this Warrant of the rights or privileges of the Holder, will give rise to any obligation of such Holder for the Exercise Price or as a stockholder of the Corporation.

SECTION 5.

TRANSFERABILITY

This Warrant and any rights hereunder are transferable, in whole or in part, by the Holder with the prior written consent of the Corporation, which such consent shall not be unreasonably withheld.  In the event the Corporation should consent to such transfer, this Warrant and the rights under shall be transferable upon surrender of this Warrant with a properly executed Assignment in the form of Exhibit 2 hereto at the principal offices of the Corporation.  The Corporation has no obligation to recognize any purported transfer of this Warrant, and the transferee is not entitled to any rights under this Warrant, until such acknowledgment has been received by the Corporation.  This Warrant and the underlying shares of Common Stock may not be offered, sold or transferred except in compliance with the Act, and any applicable state securities laws, and then only against receipt of an agreement of the person to whom such offer or sale or transfer is made to comply with the provisions of this Warrant with respect to any resale or other disposition of such securities; provided that no such agreement shall be required from any person purchasing this Warrant or the underlying shares of Common Stock pursuant to a registration statement effective under the Act.  The Holder of this Warrant agrees that, prior to the disposition of any security purchased on the exercise hereof other than pursuant to a registration statement then effective under the Act, or any similar statute then in effect, the Holder shall give written notice to the Corporation, expressing his intention as to such disposition.  Upon receiving such notice, the Corporation shall present a copy thereof to its securities counsel.  If, in the sole opinion of such counsel, which such opinion shall not be unreasonably withheld, the proposed disposition does not require registration of such security under the Act, or any similar statute then in effect, the Corporation shall, as promptly as practicable, notify the Holder of such opinion, whereupon the Holder shall be entitled to dispose of such security in accordance with the terms of the notice delivered by the Holder to the Corporation.

 

  

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SECTION 6.

MISCELLANEOUS

6.1           Notices.  Any notices, requests or consents hereunder shall be deemed given, and any instruments delivered, two days after they have been mailed by first class mail, postage prepaid, or upon receipt if delivered personally or by facsimile transmission, as follows:

 

 

	If to the Corporation:	 	15550 Lightwave Drive
	 	 	Suite 300
	 	 	Clearwater, FL  33760
	 	 	Attention:  Wallace D. Ruiz, Chief Financial Officer
	 	 	 
	If to the Holder: 	 	to the address set forth in the Agreement

 

except that any of the foregoing may from time to time by written notice to the other designate another address which shall thereupon become its effective address for the purposes of this paragraph.

6.2           Entire Agreement.  This Warrant, including the exhibits and documents referred to herein which are a part hereof, contain the entire understanding of the parties hereto with respect to the subject matter and may be amended only by a written instrument executed by the parties hereto or their successors or assigns.  Any paragraph headings contained in this Warrant are for reference purposes only and shall not affect in any way the meaning or interpretation of this Warrant.

6.3           Construction and Enforcement.  This Warrant shall be governed by and construed under the laws of the State of Florida, without regard to principles of conflicts of laws and rules of such state. If it becomes necessary for any party to institute legal action to enforce the terms and conditions of this Warrant, and such legal action results in a final judgment in favor of such party ("Prevailing Party"), then the party or parties against whom said final judgment is obtained shall reimburse the Prevailing Party for all direct, indirect or incidental expenses incurred, including, but not limited to, all attorneys’ fees, court costs and other expenses incurred throughout all negotiations, trials or appeals undertaken in order to enforce the Prevailing Party's rights hereunder.  Any suit, action or proceeding with respect to this Warrant shall be brought in the state or Federal courts located in Pinellas County in the State of Florida.  The parties hereto hereby accept the exclusive jurisdiction and venue of those courts for the purpose of any such suit, action or proceeding.  The parties hereto hereby irrevocably waive, to the fullest extent permitted by law, any objection that any of them may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Warrant or any judgment entered by any court in respect thereof brought in Pinellas County, Florida, and hereby further irrevocably waive any claim that any suit, action or proceeding brought in Pinellas County, Florida, has been brought in an inconvenient forum.

 

[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

  

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IN WITNESS WHEREOF, this Warrant has been duly executed and the corporate seal affixed hereto, all as of the day and year first above written.

 

	 	INUVO, INC.	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Wallace D. Ruiz, Chief Financial Officer	 
	 	 	 	 
	ATTEST:	 	 	 
	 	 	 	 
	

________________________

	 	 	 

 

  

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EXHIBIT 1

EXERCISE AGREEMENT

 

	To: 	Dated:

 

The undersigned record Holder, pursuant to the provisions set forth in the within Warrant, hereby subscribed for and purchases   shares of Common Stock covered by such Warrant and hereby makes full cash payment of $  for such shares at the Exercise Price provided by such Warrant.

 

____________________________

(Signature)

____________________________

(Print or type name)

____________________________

(Address)

 

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

  

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EXHIBIT 2

ASSIGNMENT

FOR VALUE RECEIVED,  , the undersigned Holder hereby sell, assigns, and transfer all of the rights of the undersigned under the within Warrant with respect to the number of shares of Common Stock issuable upon the exercise of such Warrant set forth below, unto the Assignee identified below, and does hereby irrevocable constituted and appoint   to effect such transfer of rights on the books of the Corporation, with full power of substitution:

	
Name of Assignee

	
Address of Assignee

	
Number of Shares of Common Stock

	  	  	  
	  	  	  
	  	  	  

 

 

	Dated:	 	 	 	 
	 	 	 	(Signature of Holder)	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	(Print or type name)	 

 

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

CONSENT OF ASSIGNEE

I HEREBY CONSENT to abide by the terms and conditions of the within Warrant.

 

	Dated:	 	 	 	 
	 	 	 	(Signature of Assignee)	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	(Print or type name)	 

 

  

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