Document:

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EXHIBIT 10.3

MANAGEMENT AGREEMENT

     THIS MANAGEMENT AGREEMENT (this “Agreement") is made this 25th day of August, 2005, by and
among WQN Capital Advisors, LLC, a to be formed Delaware limited liability company having an
address at 509 Madison Avenue, New York, New York (the “Management Company") and WQN,
Inc., a Delaware corporation, having an address at 14911 Quorom Drive, Suite 140, Dallas, TX 75254
(the “Company").

W I T N E S S E T H:

     WHEREAS, the Company is being reorganized as a specialty finance company;

     WHEREAS, the Company requires the services of qualified professionals who can manage and
operate the affairs of the Company, and provide suitable facilities; and

     WHEREAS, the Management Company can provide the Company with a fully-equipped office, all
appropriate office services, and experienced professionals who can take full responsibility for
managing and operating the affairs of the Company.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the parties hereto agree as follows:

     Section 1. Services To Be Provided By The Management Company.

          (a) The Management Company hereby agrees to provide to the Company suitable experienced
professionals to enable the Company to conduct its operations.

          (b) The Management Company hereby agrees to provide to the Company, as soon as practicable, an
office facility, located within the New York City, New York metropolitan area, to enable the
Company to conduct its business operations. Such office will be furnished with office equipment
(including computers and software) and furniture suitable to enable the Company to conduct its
business operations. The Management Company also agrees to furnish all janitorial service, utility
service, local and long distance telephone, high speed internet connections and fax service, and
other similar services necessary to the conduct of such operations.

          (c) The Management Company shall seek suitable investment opportunities and manage the
investment policy of the Company; perform day-to-day investment and business operations of the
Company; provide investment advice; and prepare and disseminate all necessary reports and financial
statements to the Company’s management and Board of Directors.

          (d) The authority delegated to the Management Company pursuant to this Agreement will be
exercised in conformity with the terms and conditions of this Agreement.

 

 

Notwithstanding the foregoing, without the written approval of the board of directors of the
Company the Management Company shall not commit, or enter into any agreement on behalf of the
Company, with respect to (i) the incurrence by the Company of any indebtedness for borrowed money;
(ii) any investment by the Company, other than the investment of cash in short-term permitted
investments in the ordinary course of business; or (iii) any other material contract to which the
Company is a party.

     Section 2. Term.

          2.1. Length. This Agreement shall commence as of the date of the closing of the
Company’s asset sale to VoIP, Inc. (the “Commencement Date”) and shall continue in effect until the
earlier of (i) ten (10) years from the Commencement Date, or (ii) termination of this Agreement by
either party in accordance with Section 11 hereof (the “Term”).

        
  2.2. Surrender. Upon termination of this Agreement, the Company shall at its expense,
(i) promptly surrender to the Management Company possession of the above-described offices in good
order and repair (ordinary wear and tear excepted) and broom clean; (ii) repair any damage to such
offices caused by such removal, and (iii) if this Agreement is terminated otherwise than (x)
pursuant to Section 11 hereof or (y) as a result of the expiration of the Term, promptly pay the
Management Company a fee equal to three percent (3%) of Total Assets (as hereinafter defined), of
the Company, calculated as of the date of termination; plus the Fair Market Value (as defined
below) of the Incentive Fee and the Capital Gains Fee (as defined in Section 3 hereof) as of the
date of termination. As used herein, “Fair Market Value” means the value of the then unpaid amount
of the Incentive Fee and the Capital Gains Fee as determined, taking into account appropriate
discounts for limitations on voting rights, minority interests, illiquidity and restrictions on
transfer of the underlying investments, by an appraisal performed by an investment banking firm of
national standing selected by the Company; provided that (i) such appraiser shall be
directed to determine fair market value of such security as soon as practicable, but in no event
later than thirty (30) days from the date of its selection and (ii) the costs and expense of the
appraiser shall be paid by the Company.

     Section 3. Compensation. In consideration for the services to be provided to the
Company by the Management Company hereunder, the Company shall pay to the Management Company
management fees as follows:

	 	(i)	 	one-half of one percent (.5%) of Total Assets (as defined below), payable on
May 15, August 15, November 15 and March 31, based on the financial statements of the
Company at the end of the fiscal quarter immediately preceding the payment date (the
“Base Management Fee”); and
	 
	 	(ii)	 	an incentive fee equal to 20% of the excess, if any, of the Company’s Net
Investment Income (as defined below) for each fiscal quarter of the Company
that exceeds the Priority Return (as defined below), payable on May 15, August 15,
November 15 and March 31, based on the

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	 	 	 	financial statements of the Company determined in accordance with generally accepted accounting
principles, consistently applied, at the end of the fiscal quarter immediately
preceding the payment date (the “Incentive Fee”); and
	 
	 	(iii)	 	an incentive fee (“Capital Gains Fee”) equal to 20% of the Company’s net
Realized Capital Gains (Realized Capital Gains (as defined below) less Realized
Capital Losses (as defined below)) on a cumulative basis for each fiscal year of the
Company following the Commencement Date, minus any Unrealized Capital
Depreciation (as defined below) at the end of such fiscal year and minus the
aggregate amount of all Capital Gains Fees paid to the Management Company in prior
fiscal years of the Company, payable on April 15 of each year based on the Company’s
audited financial statements for the prior fiscal year of the Company ;
provided, however, that no Capital Gains Fees shall be paid to
the Management Company with respect to the Company’s investment in Seaview Mezzanine
Fund LP (“Seaview”).

As used herein, “Total Assets” means the amount of gross assets of the Company as set forth on the
applicable financial statements of the Company at the end of the fiscal quarter immediately
preceding the payment date, as determined in accordance with generally accepted accounting
principles, consistently applied; provided, however, that in computing Total Assets
the gross book value with respect to the Company’s investment in Seaview shall be excluded from the
calculation of Total Assets.

As used herein, “Net Investment Income” shall mean the interest income, dividend income, and any
other income (including any other fees such as commitment, origination, syndication, structuring,
diligence, managerial assistance, monitoring, and consulting fees or other fees that the Company
receives from portfolio companies or investments) which are collected during the fiscal quarter of
the Company; minus the Company’s operating expenses for the fiscal quarter (including the
Base Management Fee and any interest expense, but excluding the Incentive Fee and the Capital Gains
Fee); provided, however, that any Net Investment Income with respect to the Company’s investment in
Seaview shall be excluded from the calculation of Net Investment Income. Net Investment Income
does not include Realized Capital Gains, Realized Capital Losses or Unrealized Capital
Depreciation.

As used herein, “Priority Return” means a rate equal to 1.5% (6% annualized) of the Company’s Total
Assets.

As used herein, “Realized Capital Gains” on each investment of the Company will be calculated as
the excess of the net amount realized from the sale or other disposition of such investment over
the original cost of the investment (less any Unrealized Capital Depreciation with respect to such investment
which was deducted with respect to the payment of any Capital Gains Fees in any prior fiscal year).

As used herein, “Realized Capital Losses” on each investment of the Company will be calculated as
the amount by which the net amount realized from the sale or other disposition of such investment
is less than the original cost of such investment.

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As used herein, “Unrealized Capital Depreciation” on each investment will be calculated as the
amount by which the original cost of such investment exceeds the fair value of such investment as
of the end of a fiscal year of the Company.

     Section 4. Payment of Expenses. The Management Company shall be responsible for the
payment of: (i) the compensation of all professional and other employees of the Management
Company; (ii) the cost of providing support, management and general services to the Company (other
than the costs paid by the Company as provided below), including, without limitation: (a) office
expenses; (b) travel; (c) business development; (d) office and equipment rental; (e) bookkeeping;
and (f) the development, underwriting, due diligence, investigation and monitoring of investments.

     The Company shall pay all of its expenses directly, including, but not limited to, financial
printing, legal and independent auditor costs, directors and officers insurance, board of directors
expenses for the Company’s board of directors, any other expenses related to the Company being a
“publicly reporting company”, direct transaction expenses and the rental of facilities, other than
the office facility being provided by the Management Company pursuant to Section 1(b) hereof.

     Section 5. Use and Operation of the Office. The Company shall occupy and use the
office provided by the Management Company only for the operation of the Company. The Company shall
use such premises for no other purpose, unless approved in advance in writing by the Management
Company; such approval may be withheld at the sole discretion of the Management Company. The
Company covenants and agrees that it shall observe and comply with all laws, orders, ordinances,
rules, requirements and regulations of any and all governmental departments, bodies, bureaus,
agencies, and officers, and all rules, directions, requirements and reasonable recommendations of
the Management Company’s and the Company’s insurers and of any fire insurance underwriters or
rating organization, and of the state and local health departments, and of any other bodies or
agencies now or hereafter exercising similar functions in the location in which the Company’s
office is situated, which pertain to the use and occupancy thereof.

     Section 6. Indemnification of Management Company. To the fullest extent permitted by
law and by the Company’s certificate of incorporation or bylaws, the Company shall indemnify and
hold harmless the Management Company, its current and past members, managers, employees, agents and
assigns and any of their respective affiliates, from and against any and all liabilities, claims,
damages, actions or proceedings arising out of the activities of, or relating to, the Company.

     Section 7. Assignment. Neither the Company nor the Management Company shall have any
right to assign this Agreement, rights or obligations hereunder, without the prior written consent
of the other party. Any such assignment made without the written consent of the non-assigning
party shall be void and deemed ineffective.

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     Section 8. Other Activities. This Agreement shall not be construed or applied to
prevent the Management Company from engaging in any other business or investment activities,
including those which may be similar to the investments or business of the Company.

     Section 9. Notices. Any notice, demand, consent, approval, request or other
communication or document to be provided hereunder to a party hereto shall be given in writing, and
shall be deemed to have been given forty-eight (48) hours after being sent as certified or
registered mail in the United States mails, postage prepaid, return receipt requested, to the
address of such party set forth hereinabove or to such other address in the United States as such
party may designate from time to time by notice to the other parties.

     Section 10. General.

          10.1. Effectiveness. This Agreement shall become effective upon its execution and
delivery by each party hereto.

          10.2. Complete Understanding. This Agreement represents the complete understanding
between the parties hereto as to the subject matter hereof, and supersedes all prior and
contemporaneous written or oral negotiations, representations, warranties, statements or agreements
between the parties hereto as to the subject matter hereof.

          10.3. Amendment. This Agreement may be amended only by an instrument executed and
delivered by each party hereto.

          10.4. Applicable Law. This Agreement shall be given effect and construed by
application of the law of New York.

     Section 11. Termination. Either the Company or the Management Company may terminate
this Agreement as a result of a material breach by the other party of the terms and conditions of
this Agreement by providing written notice to the breaching party setting forth in reasonable
detail the material breach (a “Notice of Breach”). Upon receipt of a Notice of Breach, the
recipient shall have (i) ten days to cure such material breach if such material breach relates to
the failure to pay amounts due to the non-breaching party pursuant to this Agreement (a “Payment
Default”); or (ii) thirty days to cure such material breach if such material breach relates to any
material breach of this Agreement other than a Payment Breach.
Notwithstanding the foregoing, (i) if the Total Assets, for two consecutive fiscal quarters, are not at least equal to 60% of the
Total Assets on the Commencement Date (net of any amounts payable by the Company as of the
Commencement Date), (ii) if E. Denton Jones, Michael B. Adler, David S. Montoya or Scott W.
Hartman withdraw as members (whether they own their interest directly or indirectly) of the
Management Company, other than as a result of death or disability or
(iii) either Scott W. Hartman or David S. Montoya
voluntarily terminates their employment with the Company or
voluntarily resigns as an officer of the Company (each, a “Triggering Event”), the
Company may terminate this Agreement at any time upon written notice to the Management Company
during the thirty-day period following the occurrence of the Triggering Event.

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(Signatures on following page)

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     IN WITNESS WHEREOF, each party hereto has executed and sealed
this Agreement, or caused it to be executed and sealed on its behalf by its duly authorized
representatives, the day and year first above written.

	 	 	 	 	 
	 	 	WQN Capital Advisors, LLC
	 	 	(a to-be-formed entity)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:
	 	Managing Member
	 
	 	 	 	 
	 	 	WQN, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Its:
	 	Robert Farmer, Chairman

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Exhibit 4.1

Registration Rights Agreement

     THIS REGISTRATION RIGHTS AGREEMENT, dated as of July 1, 2005, among GLOBAL ENERGY GROUP, INC.,
a Delaware corporation (the “Company”), CND, L.L.C., a Oklahoma limited liability company (“CND”);
RECAP GROUP, L.L.C., a Texas limited liability company (“Recap”); CAZATUR GROUP, L.L.C., a Texas
limited liability company (“Cazatur”); ALLEN WHEELER, an individual (“Wheeler”); ROBERT J. SMITH,
an individual (“Smith”); and QUEST CAPITAL ALLIANCE, L.L.C., a Missouri limited liability company
(“Quest”) (CND, Recap, Cazatur, Wheeler, Quest, Smith are collectively, the “GEDG Group”); PETER E.
TOOMEY, an individual (“Toomey”), and JOSEPH H. RICHARDSON, an individual (“Richardson”).

     WHEREAS, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), dated as of
the date hereof, between the Company and the GEDG Group, the Company has issued to the GEDG Group
81,746,409 shares of Common Stock (as defined herein); and

     WHEREAS, pursuant to the terms of the Purchase Agreement, the Company has agreed to provide to
the GEDG Group certain registration rights under the Securities Act (as defined herein), and
applicable state securities laws.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the GEDG Group hereby agree as follows:

1. Definitions.

	 	1.1.	 	“Commission” means the Securities and Exchange Commission.
	 
	 	1.2.	 	“Common Stock” means the common stock of the Company, par value $0.001 per
share.
	 
	 	1.3.	 	“Exchange Act” means the Securities Exchange Act of 1934, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect from time
to time.
	 
	 	1.4.	 	“Initiating Holders” means the meaning specified in paragraph 2.1.
	 
	 	1.5.	 	“NASD” means the National Association of Securities Dealers.
	 
	 	1.6.	 	“Person” means an individual, a partnership, an association, a joint venture, a
corporation, a limited liability company, a business, a trust, an unincorporated
organization or a government or any department, agency or subdivision thereof.
	 
	 	1.7.	 	“Public Offering” means any offering of Common Stock to the public pursuant to
an effective registration statement under the Securities Act.
	 
	 	1.8.	 	“Registrable Securities” means (a) the 81,746,409 shares of Common Stock to be
issued to the GEDG Group pursuant to the Purchase Agreement in the amounts

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	 	 	 	set forth in Exhibit “A” attached hereto and hereby incorporated by reference to
this Agreement, (b) the 100,000 shares of Common Stock to be issued to Richardson
pursuant to the terms of the Agreement, dated June 30, 2005, between the Company and
Richardson, (c) the 75,000 shares of Common Stock to be issued to Toomey pursuant to
the terms of the Agreement, dated June 30, 2005, between the Company and Toomey, and
(d) any securities issued or issuable with respect to any Common Stock referred to
in (a), (b), or (c) above by way of stock dividend or stock split or in connection
with a combination of shares or recapitalization. As to any particular Registrable
Securities, once issued such securities shall cease to be Registrable Securities
during such time as (w) a registration statement with respect to the sale of such
securities shall have become effective under the Securities Act and such securities
shall have been disposed of in accordance with such registration statement, (x) they
are eligible to be sold pursuant to Rule 144(k) (or any successor provision) under
the Securities Act, (y) they are eligible to be sold pursuant to Rule 144 (or any
successor provisions), without limitation on amount of securities sold, or (z) they
shall have ceased to be outstanding.
	 
	 	1.9.	 	“Registration Expenses” means all expenses incident to the Company’s
performance of or compliance with paragraphs 2 and 3, including, without limitation,
all registration, filing and NASD fees, all fees and expenses of complying with
securities or blue sky laws, all word processing, duplicating and printing expenses,
messenger and delivery expenses, the fees and disbursements of counsel for the Company
and of its independent public accountants, including the expenses of any special audits
or “cold comfort” letters required by or incident to such performance and compliance,
but excluding underwriting discounts and commissions and transfer taxes, if any.
	 
	 	1.10.	 	“Securities Act” means the Securities Act of 1933, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect from time
to time.

2. Demand Registration. As long as there are Registrable Securities outstanding, upon the
written request of the holders of at least 50% of the outstanding Registrable Securities (the
“Initiating Holders”), requesting that the Company effect the registration under the Securities Act
of all or part of such Initiating Holders’ Registrable Securities and specifying the intended
method of disposition thereof, the Company will promptly give written notice of such requested
registration to all holders of outstanding Registrable Securities, and thereupon will use its
reasonable efforts to effect the registration under the Securities Act of (a) the Registrable
Securities which the Company has been so requested to register by such Initiating Holder or Holders
for disposition in accordance with the intended method of disposition stated in such request, and
(b) all other Registerable Securities the holders of which have made written requests to the
Company for registration thereof within 20 Business Days after the giving of such written notice by
the Company (which request shall specify the intended method of disposition thereof), all to the
extent required to permit the disposition (in accordance with the intended methods thereof) of the
Registrable Securities so to be registered. Subject to paragraph 2.6, the Company may include in
such registration other securities for sale for its own account or for the account of any other
Person.

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	 	2.1.	 	Number of Registrations. The Company shall not be required to effect
more than two registrations pursuant to this paragraph 2.
	 
	 	2.2.	 	Registration Statement Form. The Company may, if permitted by law,
effect any registration requested under paragraph 2 by the filing of a registration
statement on Form S-3 (or any successor or similar short form registration statement)
or, if counsel for the Company deems that such a registration statement is not
available for the registration of the Registrable Securities to which such registration
relates under applicable law, on such other form as counsel for the Company may deem to
be appropriate under the Securities Act. If requested by the Initiating Holders, any
registration statement filed pursuant to paragraph 2 will qualify as a “shelf”
registration under Securities Act Rule 415 or any successor to such rule.
	 
	 	2.3.	 	Expenses. The Company will pay all Registration Expenses in connection
with any registration effected pursuant to this paragraph 2.
	 
	 	2.4.	 	Selection of Underwriters. If, in the discretion of the holders of a
majority (by number of shares) of the Registrable Securities, any offering pursuant to
this paragraph 2 shall constitute an underwritten offering, the underwriter or
underwriters thereof shall be selected, after consultation with the Company, by such
holders and shall be acceptable to the Company, which shall not unreasonably withhold
its acceptance of such underwriter or underwriters.
	 
	 	2.5.	 	Effective Registration Statement. A registration requested pursuant to
this paragraph 2 will not be deemed to have been effected (a) unless it has become
effective, provided that a registration which does not become effective after the
Company has filed a registration statement with respect thereto solely by reason of the
refusal to proceed of the Initiating Holders shall be deemed to have been effected by
the Company at the request of such Initiating Holders, or (b) if, after it has become
effective, such registration is interfered with by any stop order, injunction or other
court order (for any reason other than a misrepresentation or an omission by the
Initiating Holders).
	 
	 	2.6.	 	Priority in Requested Registrations. If a requested registration
pursuant to this paragraph 2 involves an underwritten offering, and the managing
underwriter shall advise the Company in writing (with a copy to each holder of
Registrable Securities requesting registration) that in its opinion, the number of
securities requested to be included in such registration (including securities of the
Company which are not Registrable Securities) exceeds the number which can be sold in
such offering, the Company will include in any such registration to the extent of the
number which the Company is so advised can be sold in such offering (a) first,
Registrable Securities requested to be included in such registration by the Initiating
Holders, pro rata among such holders on the basis of the number of shares of such
securities requested to be included by such holders, (b) second, other Registrable
Securities requested to be included in such registration, pro rata among the holders
thereof requesting such registration on the basis of the number of shares of such
securities requested to be included by such holders, and (c) third,

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	 	 	 	other securities of the Company proposed to be included in such registration, in
accordance with the priorities, if any, then existing among the Company and the
holders of such other securities.
	 
	 	2.7.	 	Delay at Company’s Request. With respect to any registration requested
under this paragraph 2, the Company may postpone for not more than 120 days, on one
occasion only with respect to each such request, the filing or effectiveness of a
registration statement if the Company determines that such registration would be likely
to have an adverse effect on any proposal or plan by the Company to engage in any
acquisition of assets not in the ordinary course of business or any merger,
consolidation, tender offer or similar transaction, or any other material event not in
the ordinary course of business, provided that in case of such postponement the holders
of Registrable Securities initiating the request for registration will be entitled to
withdraw such request, and if so withdrawn such request will not count as one of the
permitted requested registrations under this paragraph 2. In any event, the Company
will pay all Registration Expenses in connection with any registration initiated under
this paragraph 2.

3. Incidental Registration. Notwithstanding any limitation contained in paragraph 2, if
the Company at any time proposes to register any of its securities under the Securities Act (other
than by a registration on Form S-4 or S-8 or any successor or similar forms), whether or not for
sale for its own account, in a manner which would permit registration of Registrable Securities for
sale to the public under the Securities Act, it will each such time give prompt written notice to
all holders of Registrable Securities of its intention to do so and of such holders’ rights under
this paragraph 3.

	 	3.1.	 	Procedure. Upon the written request of any such holder made within 20
days after receipt of any such notice (which request shall specify the Registrable
Securities intended to be disposed of by such holder and the intended method of
disposition thereof), the Company will use its reasonable efforts to effect the
registration under the Securities Act of all Registrable Securities which the Company
has been so requested to register by the holders thereof, to the extent required to
permit the disposition (in accordance with the intended methods thereof as aforesaid)
of the Registrable Securities so to be registered, by inclusion of such Registrable
Securities in the registration statement which covers the securities which the Company
proposes to register, provided that if, at any time after giving written notice of its
intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall
determine for any reason not to register or to delay registration of such securities,
the Company may, at its election, give written notice of such determination to each
holder of Registrable Securities and, thereupon, (a) in the case of a determination not
to register, shall be relieved of its obligation to register any Registrable Securities
in connection with such registration (but not from its obligation to pay the
Registration Expenses in connection therewith) without prejudice, however, to the
rights of any holder or holders of Registrable Securities entitled to do so to request
that such registration be effected as a registration under paragraph 2 and (b) in the
case of a

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	 	 	 	determination to delay registering, shall be permitted to delay registering any
Registrable Securities for the same period as the delay in registering such other
securities. No registration effected under this paragraph 3 shall relieve the
Company of its obligation to effect any registration statement upon request under
paragraph 2. The Company will pay all Registration Expenses in connection with each
registration of Registrable Securities requested pursuant to this paragraph 3.
	 
	 	3.2.	 	Priority in Incidental Registrations. If a registration pursuant to
this paragraph 3 involves an underwritten offering and the managing underwriter advises
the Company in writing that, in its opinion, the number of securities requested to be
included in such registration exceeds the number which can be sold in such offering,
the Company will include in such registration to the extent of the number which the
Company is so advised can be sold in such offering securities determined as follows:

	 	(a)	 	if such registration as initially proposed by the Company was
primarily a registration of its securities, (i) first, the securities proposed
by the Company to be sold for its own account, and (ii) second, any Registrable
Securities requested to be included in such registration, and any other
securities the Company proposes to include in such registration statement, pro
rata among the holders thereof requesting such registration on the basis of the
number of shares of such securities requested to be included by such holders;
and
	 
	 	(b)	 	if such registration as initially proposed by the Company was
in whole or in part requested by holders of securities of the Company, other
than holders of Registrable Securities, pursuant to demand registration rights,
(i) first, such securities held by the holders initiating such registration,
pro rata among the holders thereof, on the basis of the number of shares of
such securities requested to be included by such holders, and (ii) second, any
Registrable Securities requested to be included in such registration, pro rata
among (A) the holders thereof requesting such registration on the basis of the
number of shares of such securities requested to be included by such holders
together with (B) any other securities of the Company proposed to be included
in such registration, in accordance with the priorities, if any, then existing
among the Company and the holders of such other securities.

4. Registration Procedures. If and whenever the Company is required to use its reasonable
efforts to effect the registration of any Registrable Securities under the Securities Act as
provided in paragraphs 2 or 3, the Company will:

	 	(a)	 	prepare and file with the Commission the requisite registration
statement (including such audited financial statements as may be required by
the Securities Act or the rules and regulations promulgated thereunder) to
effect such registration and use its reasonable efforts to cause such
registration statement to become effective, provided that before filing such

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	 	 	 	registration statement or any amendments thereto, the Company will furnish
to the counsel selected by the holders of Registrable Securities whose
Registrable Securities are to be included in such registration copies of all
such documents proposed to be filed, which documents will be subject to the
review of such counsel (such review to be limited to matters relating to the
holders whose Registrable Securities are to be included in such registration
and matters which might adversely affect such holders), and provided,
further, that the Company may discontinue any registration of its securities
which are not Registrable Securities at any time prior to the effective date
of the registration statement relating thereto;
	 
	 	(b)	 	prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to maintain the effectiveness of such
registration statement and to comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration
statement until the earlier of such time as (i) all of such securities have
been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement, (ii) the
securities included in the registration statement are no longer Registrable
Securities or (iii) in the case of any registration pursuant to paragraph 3, 90
days after such registration statement becomes effective, provided that if less
than all the Registrable Securities are withdrawn from registration after the
relevant period, the shares to be so withdrawn shall be allocated pro rata
among the holders thereof on the basis of the respective numbers of Registrable
Securities held by them included in such registration;
	 
	 	(c)	 	furnish to each seller of Registrable Securities covered by
such registration statement such number of conformed copies of such
registration statement and of each such amendment and supplement thereto (in
each case including all exhibits), such number of copies of the prospectus
contained in such registration statement (including each preliminary prospectus
and any summary prospectus) and any other prospectus filed under Rule 424 under
the Securities Act, in conformity with the requirements of the Securities Act,
and such other documents, as such seller may reasonably request;
	 
	 	(d)	 	use its reasonable efforts to register or qualify all
Registrable Securities and other securities covered by such registration
statement under such other securities or blue sky laws of such jurisdictions as
each seller thereof shall reasonably request, to keep such registration or
qualification in effect for so long as such registration statement remains in
effect, and take any other action which may be reasonably necessary or
advisable to enable such seller to consummate the disposition in such
jurisdictions of the securities owned by such seller, except that the Company
shall not for any such purpose be required to qualify generally to do business
as a foreign

6

 

	 	 	 	corporation in any jurisdiction wherein it would not but for the
requirements of this paragraph 4(d) be obligated to be so qualified or to
consent to general service of process in any such jurisdiction;
	 
	 	(e)	 	notify each holder of Registrable Securities covered by such
registration statement, at any time when a prospectus relating thereto is
required to be delivered under the Securities Act, of the happening of any
event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances
under which they were made, and at the request of any such holder promptly
prepare and furnish to such holder a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that,
as thereafter delivered to the purchasers of such securities, such prospectus
shall not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were
made;
	 
	 	(f)	 	otherwise use its reasonable efforts to comply with all
applicable rules and regulations of the Commission;
	 
	 	(g)	 	provide a transfer agent and registrar for all Registrable
Securities covered by such registration statement not later than the effective
date of such registration statement; and
	 
	 	(h)	 	use its reasonable efforts to list all Registrable Securities
covered by such registration statement on any securities exchange on which any
of the securities of the same class as the Registrable Securities are then
listed.

	 	4.1.	 	Seller Information. The Company may require each holder of Registrable
Securities as to which any registration is being effected to furnish the Company such
information regarding such holder and the distribution of such securities as the
Company may from time to time reasonably request in writing.
	 
	 	4.2.	 	Blackout. Each holder of Registrable Securities agrees by the
acquisition of such Registrable Securities that upon receipt of any notice from the
Company of the happening of any event of the kind described in paragraph 4(e), such
holder will forthwith discontinue such holder’s disposition of Registrable Securities
pursuant to the registration statement relating to such Registrable Securities until
such holder’s receipt of the copies of the supplemented or amended prospectus
contemplated by paragraph 4(e) and, if so directed by the Company, will deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies, then
in such holder’s possession of the prospectus relating to such Registrable Securities
current at the time of receipt of such notice. In the event the Company shall give any
such notice, the periods referred to in paragraph 4(b)

7

 

	 	 	 	shall be extended by a number of days equal to the number of days during the period
from and including the giving of notice pursuant to paragraph 4(e) and including the
date when each seller of any Registrable Securities covered by such registration
statement shall receive the copies of the supplemented or amended prospectus
contemplated by paragraph 4(e).

5. Underwritten Offerings.

	 	5.1.	 	Demand Underwritten Offerings. If requested by the underwriters for
any underwritten offering by holders of Registrable Securities pursuant to the
registration requested under paragraph 2, the Company will enter into an underwriting
agreement with such underwriters for such offering, such agreement to be satisfactory
in substance and form to each such holder, the underwriters, and the Company and to
contain such representations and warranties by the Company and such other terms as are
customarily contained in agreements of this type, including, without limitation,
indemnities to the effect and to the extent provided in paragraph 6. The holders of
Registrable Securities to be distributed by such underwriters shall be parties to such
underwriting agreement.
	 
	 	5.2.	 	Incidental Underwritten offerings. If the Company at any time proposes
to register any of its securities under the Securities Act as contemplated by paragraph
3 and such securities are to be distributed by or through one or more underwriters, the
Company will, subject to the provisions of paragraph 3.2, use its reasonable efforts,
if requested by any holder of Registrable Securities, to arrange for such underwriters
to include the Registrable Securities to be offered and sold by such holder among the
securities to be distributed by such underwriters, except as may be otherwise permitted
herein. The holders of Registrable Securities to be distributed by such underwriters
shall be parties to the underwriting agreement between the Company and such
underwriters.
	 
	 	5.3.	 	Holdback Agreements. Each holder of Registrable Securities agrees by
acquisition of such Registrable Securities, if so required by the managing underwriter,
not to effect any public sale or distribution of such securities during the seven days
prior to and the 90 days after the closing of any underwritten registration pursuant to
paragraph 2 or any underwritten registration pursuant to paragraph 2 has become
effective, or, if the managing underwriter advises the Company in writing that, in its
opinion, no such public sale or distribution should be effected for a specified period
longer than 90 days after such underwritten registration in order to complete the sale
and distribution of securities included in such registration and the Company gives
notice to such holder of Registrable Securities of such advice, during a reasonable
longer period after such underwritten registration, except as part of such underwritten
registration, whether or not such holder participates in such registration. The
Company agrees not to effect any public sale or distribution of its equity securities
or securities convertible into or exchangeable or exercisable for any of such
securities during the seven days prior to and the 90 days after the closing of any
underwritten registration pursuant to paragraph 2 or any underwritten registration
pursuant to

8

 

	 	 	 	paragraph 2 has become effective, except as part of such underwritten registration
and except pursuant to registrations on Form S-4 or Form S-8 or any successor or
similar forms thereto, or if the managing underwriter advises the Company in writing
that in its opinion no such public sale or distribution should be effected for a
specified period longer than 90 days after such underwritten registration in order
to complete the sale and distribution of securities included in such registration,
during a reasonable longer period after such underwritten registration, except as
part of such underwritten registration.

6. Indemnification.

	 	6.1.	 	Indemnification by the Company. In the event of any registration of
any securities of the Company under the Securities Act, the Company will, and hereby
does, indemnify and hold harmless, in the case of any registration statement filed
pursuant to paragraph 2 or 3, the seller of Registrable Securities covered by any such
registration statement, its partners, directors and officers, each other Person who
participates as an underwriter in the offering or sale of such securities and each
other Person, if any, who controls any such seller or any such underwriter within the
meaning of the Securities Act (each a “Seller Indemnified Party”), against any losses,
claims, damages or liabilities, joint or several, to which such Seller Indemnified
Party may become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions or proceedings, whether commenced or
threatened, in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in any registration statement
under which such securities were registered under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any amendment
or supplement thereto, or any omission or alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein not
misleading, and the Company will reimburse such Seller Indemnified Party for any legal
or any other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, liability, action or proceeding; provided that the
Company shall not be liable in any such case to a Seller Indemnified Party to the
extent that any such loss, claim, damage, liability (or action or proceeding in respect
thereof) or expense arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in such registration statement,
any such preliminary prospectus, final prospectus, summary prospectus, amendment or
supplement in reliance upon and in conformity with information furnished to the Company
through an instrument duly executed by such Seller Indemnified Party specifically
stating that it is for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, summary prospectus, amendment or supplement,
and, provided, further, that the Company shall not be liable to any Person who
participates as an underwriter in the offering or sale of Registrable Securities or any
other Person, if any, who controls such underwriter within the meaning of the
Securities Act, in any such case to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or expense arises out of such
Person’s failure to

9

 

	 	 	 	send or give a copy of the final prospectus to the Person asserting an untrue
statement or alleged untrue statement or omission or alleged omission at or prior to
the written confirmation of the sale of Registrable Securities to such Person if
such statement or omission was corrected in such final prospectus.
	 
	 	6.2.	 	Indemnification by the Sellers. The seller of any Registrable
Securities in any registration statement filed pursuant to paragraph 2 or 3 will
indemnify and hold harmless (in the same manner and to the same extent as set forth in
paragraph 6.1) the Company, each director of the Company, each officer of the Company
and each other Person, if any, who controls the Company within the meaning of the
Securities Act, and each Person who participates as an underwriter in the offering or
sale of securities by the Company (each a “Company Indemnified Party” and together with
each Seller Indemnified Party, an “Indemnified Party”), with respect to any statement
or alleged statement in or omission or alleged omission from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, if such statement or alleged statement
or omission or alleged omission was made in reliance upon and in conformity with
written information furnished to the Company through an instrument duly executed by
such seller specifically stating that it is for use in the preparation of such
registration statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement provided that such seller’s obligations hereunder shall be
limited to an amount equal to the proceeds to such holder of the Registrable Securities
sold pursuant to such registration statement.
	 
	 	6.3.	 	Notices of Claims; Procedure. Promptly after receipt by an Indemnified
Party of notice of the commencement of any action or proceeding involving a claim
referred to paragraph 6.1 or 6.2, such Indemnified Party will, if a claim in respect
thereof is to be made against an indemnifying party, give written notice to the latter
(an “Indemnifying Party”) of the commencement of such action, provided that the failure
of any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under paragraph 6.1 or 6.2, except to the extent
that the Indemnifying Party is actually prejudiced by such failure to give notice. In
case any such action is brought against an Indemnified Party, unless in such
Indemnified Party’s reasonable judgment upon advice of counsel a conflict of interest
between such indemnified and indemnifying parties may exist in respect of such claim,
the Indemnifying Party shall be entitled to participate in and to assume the defense
thereof, jointly with any other Indemnifying Party similarly notified to the extent
that it may wish, with counsel reasonably satisfactory to such Indemnified Party, and
after notice from the Indemnifying Party to such Indemnified Party of its election so
to assume the defense thereof, the Indemnifying Party shall not be liable to such
Indemnified Party for any legal or other expenses subsequently incurred by the latter
in connection with the defense thereof. No Indemnifying Party shall consent to entry
of any judgment or enter into any settlement without the consent of the Indemnified
Party, which consent will not be unreasonably withheld, that (a) imposes any liability
or obligation (including, without limitation, any injunction)

10

 

	 	 	 	on the Indemnified Party or (b) does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnified Party of a release from
all liability in respect to such claim or litigation. It is understood that the
Indemnifying Party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees and expenses
of more than one separate firm (in addition to any local counsel) for the
indemnified parties.
	 
	 	6.4.	 	Indemnification Payments. The indemnification required by this
paragraph 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or expense, loss,
damage or liability is incurred.

7. Miscellaneous.

	 	7.1.	 	Remedies. Any Person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically to recover damages
caused by reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this
Agreement and that any party may in its sole discretion apply to any court of law or
equity of competent jurisdiction (without posting any bond or other security) for
specific performance and for other injunctive relief in order to enforce or prevent
violation of the provisions of this Agreement.
	 
	 	7.2.	 	Amendments and Waivers. Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior written
consent of the Company and holders of a majority of the Registrable Securities;
provided that no amendment or waiver which adversely affects any one holder of
Registrable Securities (the “Affected Holder”) vis-à-vis the other holders of
Registrable Securities shall be effective without the approval in writing of the
Affected Holder.
	 
	 	7.3.	 	Notices. Except as otherwise specified herein to the contrary, all
notices, requests, demands and other communications required or desired to be given
hereunder shall only be effective if given in writing, by hand or by fax, by certified
or registered mail, return receipt requested, postage prepaid, or by U. S. Express Mail
service, or by private overnight mail service (e.g., Federal Express). Any such notice
shall be deemed to have been given (a) on the business day actually received if given
by hand or by fax, (b) on the business day immediately subsequent to mailing, if sent
by U.S. Express Mail service or private overnight mail service, or (c) five business
days following the mailing thereof, if mailed by certified or registered mail, postage
prepaid, return receipt requested, and all such notices shall be sent to the following
addresses (or to such other address or addresses as a party may have advised the other
in the manner provided in this paragraph 7.3:

11

 

	 	 	 	 	 
	 

	 	If to the Company:
	 	Global Energy Group, Inc.
	 

	 	 	 	5000 Legacy Drive, Suite 470
	 

	 	 	 	Plano, Texas 75024
	 

	 	 	 	Facsimile: (972) 403-7659
	 

	 	 	 	Attention: Mr. John R. Bailey, President
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Conner & Winters, LLP
	 

	 	 	 	1700 One Leadership Square
	 

	 	 	 	211 North Robinson
	 

	 	 	 	Oklahoma City, OK 73102
	 

	 	 	 	Facsimile: (405) 232-2695
	 

	 	 	 	Attention: Mark H. Bennett, Esquire
	 
	 	 	 	 
	 

	 	If to CND:
	 	CND, L.L.C.
	 

	 	 	 	One Cherokee Circle
	 

	 	 	 	P.O. Box 860
	 

	 	 	 	Stilwell, Oklahoma 74960
	 

	 	 	 	Attention: Jim Majewski, President
	 

	 	 	 	Fax: (918) 696-6766
	 
	 	 	 	 
	 

	 	With a required copy to:
	 	Jones, Gotcher & Bosan, P.C.
	 

	 	 	 	15 East Fifth Street, Suite 3800
	 

	 	 	 	First Place Tower
	 

	 	 	 	Tulsa, Oklahoma 74103
	 

	 	 	 	Facsimile: (918) 583-1189
	 

	 	 	 	Attention: Robert R. Peters, II
	 
	 	 	 	 
	 

	 	If to Recap:
	 	Recap Group, L.L.C.
	 

	 	 	 	5000 Legacy Drive
	 

	 	 	 	Suite 470
	 

	 	 	 	Plano, Texas 75024
	 

	 	 	 	Attention: David E. Webb
	 

	 	 	 	Fax: (972) 403-7659
	 
	 	 	 	 
	 

	 	If to Cazatur:
	 	Cazatur Group, L.L.C.
	 

	 	 	 	5000 Legacy Drive
	 

	 	 	 	Suite 470
	 

	 	 	 	Plano, Texas 75024
	 

	 	 	 	Attention: Henry M. Burkhalter
	 

	 	 	 	Fax: (972) 403-7659
	 
	 	 	 	 
	 

	 	If to Wheeler:
	 	Allen Wheeler
	 

	 	 	 	401 West Evergreen
	 

	 	 	 	Durant, Oklahoma 74701
	 

	 	 	 	Fax: (580) 920-0547

12

 

	 	 	 	 	 
	 

	 	If to Smith:
	 	Robert J. Smith
	 

	 	 	 	3865 Turtle Hatch Road
	 

	 	 	 	Springfield, Missouri 65809
	 

	 	 	 	Fax: (417) 863-9778
	 
	 	 	 	 
	 

	 	If to Quest:
	 	Quest Capital Alliance, L.L.C.
	 

	 	 	 	3140 E. Division Street
	 

	 	 	 	Springfield, Missouri 65902
	 

	 	 	 	Attention: Steven W. Fox
	 

	 	 	 	Fax: (417) 863-9778
	 
	 	 	 	 
	 

	 	If to Toomey:
	 	Mr. Peter E. Toomey
	 

	 	 	 	119 Riding Trail Lane
	 

	 	 	 	Pittsburgh, Pennsylvania 15215
	 
	 	 	 	 
	 

	 	If to Richardson:
	 	Mr. Joseph H. Richardson
	 

	 	 	 	3584 Woodhaven Road
	 

	 	 	 	Atlanta, Georgia 30305
	 

	 	 	 	Facsimile: (724) 830-5174

	 	 	 	or such other address as shall be furnished in writing by a party to each of the
other parties. A post office box may not be used as an address for service.
	 
	 	7.4.	 	Successors and Assigns. All covenants and agreements in this Agreement
by or on behalf of any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or not.
In addition, whether or not any express assignment has been made, the provisions of
this Agreement which are for the benefit of purchasers or holders of Registrable
Securities are also for the benefit of, and enforceable by, any subsequent holder of
Registrable Securities.
	 
	 	7.5.	 	Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement is held to be prohibited by or invalid under
applicable law, such provision will be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this Agreement.
	 
	 	7.6.	 	Counterparts. This Agreement may be executed simultaneously in two or
more counterparts, any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one and the same
Agreement.
	 
	 	7.7.	 	Descriptive Headings. The descriptive headings of this Agreement are
for convenience only and shall not limit or otherwise affect the meaning of this
Agreement.

13

 

	 	7.8.	 	Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

14

 

     IN WITNESS WHEREOF, the parties hereto have executed this Registration Rights Agreement as of
the date first above written.

	 	 	 	 	 
	 	 	GLOBAL ENERGY GROUP, INC., a Delaware corporation
	 
	 	 	 	 
	 

	 	By:
	 	/s/ John R. Bailey
	 

	 	 	 	 
	 

	 	 	 	John R. Bailey, President
	 

	 	 	 	(“GEG”)
	 
	 	 	 	 
	 	 	CND, L.L.C., a Oklahoma limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Jim Majewski
	 

	 	 	 	 
	 

	 	 	 	Jim Majewski, Manager
	 
	 	 	 	 
	 	 	(“CND”)
	 
	 	 	 	 
	 	 	RECAP GROUP, L.L.C., a Texas limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Webb
	 

	 	 	 	 
	 

	 	 	 	David Webb, Member
	 
	 	 	 	 
	 	 	(“Recap”)
	 
	 	 	 	 
	 	 	CAZATUR GROUP, L.L.C., a Texas limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Henry Burkhalter
	 

	 	 	 	 
	 

	 	 	 	Henry Burkhalter, Member
	 
	 	 	 	 
	 	 	(“Cazatur”)
	 
	 	 	 	 
	 	 	/s/ Allen Wheeler
	 	 	 
	 	 	ALLEN WHEELER, Individually
	 
	 	 	 	 
	 	 	(“Wheeler”)

15

 

	 	 	 	 	 
	 	 	/s/ Robert J. Smith
	 	 	 
	 	 	ROBERT J. SMITH, Individually
	 
	 	 	 	 
	 	 	(“Smith”)
	 
	 	 	 	 
	 	 	QUEST CAPITAL ALLIANCE, L.L.C., a Missouri limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Steven Fox
	 

	 	 	 	 
	 

	 	 	 	Steven Fox, Member
	 
	 	 	 	 
	 	 	(“Quest”)
	 
	 	 	 	 
	 	 	/s/ Peter E. Toomey
	 	 	 
	 	 	PETER E. TOOMEY, Individually
	 
	 	 	 	 
	 	 	(“Toomey”)
	 
	 	 	 	 
	 	 	/s/ Joseph H. Richardson
	 	 	 
	 	 	JOSEPH H. RICHARDSON, Individually
	 
	 	 	 	 
	 	 	(“Richardson”)

16

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