Document:

Debt Exchange Agreement

 Exhibit 10.19 
  
 DEBT EXCHANGE AGREEMENT 
  
 DEBT EXCHANGE AGREEMENT, dated as of May 27, 2003 (this “Agreement”), by and among Thinkspark Corporation, a Delaware corporation
(successor by merger to ThinkSpark Corporation, a Texas corporation) (the “Borrower”), Axtive Corporation, a Delaware corporation (the “Company”), and Merrill Lynch Business Financial Services Inc. (the
“Purchaser”). 
  
 RECITALS 
  
 A. Borrower has incurred indebtedness to the Purchaser pursuant to (a) the
WCMA Loan and Security Agreement No. 542-07C00 dated as of February 19, 1999 and (b) the WCMA Reducing Loan Agreement No. 542-070C01, dated as of February 19, 1999, each between Borrower, as borrower, and Purchaser, as lender (as amended, and as the
same may be further amended, restated, extended, refinanced or otherwise modified from time to time, the “WCMA Loan Agreements”). 
  
 B. Pursuant to an Agreement and Plan of Merger dated as of May 23, 2003 by and among the Company, the Borrower and the other parties named therein (the
“Merger Agreement”), a newly-formed wholly owned subsidiary of the Company will merge with and into Borrower, whereby all the outstanding common stock of the Borrower will be converted into cash and common stock of the Company (the
“Merger”). 
  
 C. The Company has agreed that,
(1) pursuant to this Agreement, it will issue to the Purchaser, in exchange for $1,970,269.40 of aggregate outstanding borrowings due under the WCMA Loan Agreements (the “Exchanged Debt”), warrants to purchase an aggregate of
5,000,000 shares of common stock, par value $0.01 per share, of the Company (the “Warrants” and the “Warrant Shares,” respectively), and (2) pursuant to the Assignment and Assumption Agreement dated of even date
herewith the Company will assume $5,000,000 of aggregate outstanding borrowings under the WCMA Loan Agreements. 
  
 D. The parties desire to enter into this Agreement to set forth certain matters relating to such exchange. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the parties agree as follows: 
  
 Article I.

 Exchange 
  
 Section 1.1 Exchange of Exchanged Debt for Warrants. Upon the following terms and conditions, and in consideration of and in express reliance upon
such terms and conditions and the representations, warranties and covenants of this Agreement, the Purchaser shall transfer to Company of all obligations owing in respect of the Exchanged Debt, and, in exchange therefor, the Company shall issue to
the Purchaser the Warrants. The exchange described in this Section 1.1 is referred to herein as the “Exchange”. 
  

 1 

 Section 1.2 Closing. The closing (the “Closing”) of the Exchange under this
Agreement shall take place at the offices of Gardere Wynne Sewell LLP, 1601 Elm Street, Suite 3000, Dallas, Texas as soon as is practical following the satisfaction or waiver of all of the conditions set forth in this Agreement, or at such other
time and place or on such date as the Purchaser and the Company may agree upon (such date on which the Closing occurs, the “Closing Date”). At the Closing, the Purchaser shall deliver or cause to be delivered to the Company the
Exchanged Debt that the Purchaser is exchanging pursuant to the terms hereof, together with all appropriate instruments of transfer. At the Closing, the Company shall deliver the Warrants to the Purchaser. 
  
 Article II. 
 Representations and Warranties 
  
 Section 2.1 Representations and Warranties of the Company and the Borrower. The Borrower and the Company hereby jointly and severally represent and warrant to the Purchaser, as of the date hereof and the
Closing Date, as follows: 
  
 (a) Organization, Good Standing
and Power of the Company. The Company and the Borrower are corporations duly incorporated, validly existing and in good standing under the laws of the State of Delaware and have the requisite power to own, lease and operate their respective
properties and assets and to conduct their respective businesses as they are now being conducted. The Company and the Borrower are duly qualified as foreign corporations to do business and are in good standing in every jurisdiction in which the
nature of the business conducted or property owned by either of them makes such qualification necessary, except for any jurisdictions (alone or in the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For
the purposes of this Agreement, “Material Adverse Effect” means any condition, circumstance, or situation that would prohibit or hinder the Company from executing this Agreement and/or performing any of its obligations hereunder in
any material respect. 
  
 (b) Authorization; Enforcement.
The Company and the Borrower each has the requisite power and authority to enter into and perform this Agreement and to consummate the Exchange. The execution, delivery and performance of this Agreement by each of the Company and the Borrower have
been duly and validly authorized by all necessary corporate action, and no further consent or authorization is required for either the Company or the Borrower to effect the transactions contemplated hereby. When executed and delivered by the Company
and the Borrower, the Agreement shall constitute a valid and binding obligation of the Company and the Borrower, enforceable against them in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 

 
 (c) Issuance of Warrants. The Warrants and Warrant Shares have
been duly authorized by all necessary corporate action and, when issued in accordance with the terms 
  

 2 

 hereof upon surrender of the Exchanged Debt in the Exchange and the exercise of the Warrants, the Warrant Shares shall be
validly issued and outstanding, fully paid and non-assessable, free of restrictions on transfer other than as described herein and under applicable state and federal securities laws, and assuming the accuracy of the Purchaser’s representations
and warranties set forth in Section 2.2 hereof, such Warrant Shares will have been issued in compliance with all applicable state and federal securities laws. 
  
 (d) No Conflicts. The execution, delivery and performance of this Agreement by each of the Company and the Borrower
and the consummation by the Company and the Borrower of the transactions contemplated hereby does not and will not, with respect to each, (i) violate any provision of the Certificate of Incorporation or Bylaws, each as amended to date, (ii) conflict
with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to which it is a party or by which any of its properties or assets are bound, or (iii) result in a violation of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations) applicable to it or by which any of its properties or assets are bound or affected, except, in all cases, other than violations pursuant to clauses (i) or (iii)
(with respect to federal and state securities laws) above, except, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect.
Neither the Company nor the Borrower is required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for
it to execute, deliver or perform any of its obligations under this Agreement or consummate the Exchange in accordance with the terms hereof (other than any filings, consents and approvals which may be required to be made by the Company under
applicable state and federal securities laws, rules or regulations prior to or subsequent to the Closing). 
  
 (e) Offering. No form of general solicitation or general advertising (as defined in Regulation D of the Securities Act of 1933, as amended) was
used by the Company or the Borrower or any of their respective representatives in connection with the offer and sale of the Warrants hereby, including, but not limited to, articles, notices or other communications published in any newspaper,
magazine or similar medium or broadcast over television or radio, or any seminar or other meeting whose attendees have been invited by any general solicitation or general advertising. No securities of the same class as the Warrants or Warrant Shares
have been issued and sold by the Company within the six-month period immediately prior to the date hereof. 
  
 Section 2.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants to the Company, as of the date hereof and
as of the Closing Date, as follows: 
  
 (a) Organization and
Standing of the Purchaser. The Purchaser is a corporation duly incorporated, validly existing and in good standing under the laws of Delaware. 
  

 3 

 (b) Authorization and Power. The Purchaser has the requisite power and authority to enter into and
perform this Agreement and to consummate the Exchange. The execution, delivery and performance of this Agreement the Purchaser and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate
action, and no further consent or authorization is required for the Purchaser to effect the transactions contemplated hereby. When executed and delivered by the Purchaser, this Agreement shall constitute valid and binding obligations of the
Purchaser enforceable against the Purchaser in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws
relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application. 
  
 (c) No Conflict. The execution, delivery and performance of this Agreement by the Purchaser and the consummation by the Purchaser of the
transactions contemplated hereby does not and will not (i) violate any provision of the Purchaser’s Certificate of Incorporation or Bylaws, each as amended to date, or (ii) result in a violation of any federal, state, local or foreign statute,
rule, regulation, order, judgment or decree (including federal and state securities laws and regulations) applicable to the Purchaser or by which any property or asset of the Purchaser is bound or affected, except, in all cases, other than
violations pursuant to clauses (i) or (ii) (with respect to federal and state securities laws) above, except, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as would not, individually or in the
aggregate, materially and adversely affect Purchaser’s ability to perform its obligations hereunder. 
  
 (d) Acquisition for Investment. The Purchaser is acquiring the Warrants solely for its own account and not with a view to or for sale in connection
with any distribution. The Purchaser acknowledges that it (i) has such knowledge and experience in financial and business matters that such Purchaser is capable of evaluating the merits and risks of such Purchaser’s investment in the Company
(by virtue of its purchase of Warrants hereunder), (ii) is able to bear the financial risks associated with an investment in the Warrants and (iii) has been given full access to such records of the Company and to the officers of the Company as it
has deemed necessary or appropriate to conduct its due diligence investigation with respect to the Warrants. 
  
 (e) No General Solicitation. The Purchaser acknowledges that the Warrants were not offered to the Purchaser by means of any form of general or
public solicitation or general advertising, or publicly disseminated advertisements or sales literature, including (i) any advertisement, article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over
television or radio or (ii) any seminar or meeting to which the Purchaser was invited by any of the foregoing means of communications. 
  
 (f) Accredited Investor. The Purchaser is an “accredited investor” (as defined in Rule 501 of Regulation D under the Securities Act of
1933, as amended). 
  
 (g) Legend. The Purchaser hereby
acknowledges and agrees that the certificates or other documents representing the Warrants and the Warrant Shares may contain 
  

 4 

 
the following, or a substantially similar, legend, which legend shall be removed only upon receipt by the Company of an opinion of its counsel, which opinion
shall be satisfactory to the Company, that such legend may be so removed: 
  

	 	  	THE SECURITIES REPRESENTED HEREBY (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR AXTIVE CORPORATION SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.	  	 

  
 (h) Certain
Fees. The Purchaser has not employed any broker or finder or incurred any liability for any brokerage, investment banking, commission, finders’, structuring or financial advisory fees or other similar fees in connection with this Agreement
or the transactions contemplated hereby. 
  
 Article III.

 Covenants of the Parties 
  
 Section 3.1 Covenants. The parties covenant with each other as follows, which covenants, as applicable, are for the benefit of such parties and
their respective permitted assigns: 
  
 (a) Further
Assurances. From and after the Closing Date, upon the request of the Purchaser, the Borrower or the Company, the parties shall execute and deliver such instruments, documents and other writings as may be reasonably necessary or desirable to
confirm and carry out and to effectuate fully the intent and purposes of this Agreement, including, without limitation, authorizing the Company’s transfer agent to issue the Warrant Shares or the shares of the Company’s common stock to the
purchasers of the Warrant Shares sold by the Purchaser. 
  
 (b)
Commercially Reasonable Efforts. Each party will use commercially reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper or advisable, consistent with applicable law, to
consummate and make effective in the most expeditious manner practicable the transactions contemplated hereby, including without limitation, making all required regulatory and other filings required by applicable law as promptly as practicable after
the date hereof. 
  
 (c) Inspection Rights. The Company
will grant the Purchaser inspection rights equivalent to those available to stockholders under Delaware law. 
  

 5 

 (d) Restrictions on Performance. The Company shall not at any time enter into an agreement or
other instrument limiting in any manner its ability to perform its obligations under this Agreement or the Warrant, or making such performance of the issuance of Warrant Shares upon exercise of the Warrant a default under any such agreement or
instrument. 
  
 (e) Modification of Other Equity
Documents. The Company shall not amend, or consent to any modification, supplement or waiver of any provision of any other agreement, plan or document relating to the equity of the Company in a way which would (i) restrict the transferability of
the Warrant or the Warrant Shares, (ii) restrict the transferability of the rights of the Purchaser in this Agreement to any transferee of all or a portion of the Warrant and/or Warrant Shares (including subsequent transferees), (iii) require any
consent or other approval of any person to the exercise of the Warrant or the issuance of Warrant Shares upon such exercise or (iv) restrict the ability of the Company to perform its obligations under this Agreement. 
  
 (f) Reserve for Warrant Stock. The Company shall at all times on and
after the issuance of the Warrant and prior to the Expiration Date (as defined in the Warrant Certificate attached as Exhibit A) of the Warrants, reserve and keep available out of its authorized but unissued shares of common stock
constituting the Warrant Shares, for the purpose of effecting the exercise of the Warrant and otherwise complying with terms of this Agreement, such number of its duly authorized shares of common stock as shall be sufficient to effect the exercise
of the Warrant from time to time outstanding or otherwise to comply with the terms of this Agreement. If, at any time, the number of authorized but unissued shares of common stock shall not be sufficient to effect the exercise of the Warrant or
otherwise to comply with the terms of this Agreement, the Company shall forthwith use commercially reasonable efforts to take such corporate action as may be necessary to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purposes. The Company shall use commercially reasonable efforts to obtain any authorization, consent, approval or other action by or make any filing with any court or administrative body that may be required
under applicable state securities laws in connection with the issuance of shares of common stock upon exercise of the Warrant. 
  
 Article IV. 
 Conditions

  
 Section 4.1 Conditions Precedent to the Obligation of
the Company and the Borrower to Close. The obligation hereunder of the Company to close and effect the Exchange at the Closing is subject to the satisfaction or waiver, at or before the Closing of the conditions set forth below: 
  
 (a) Accuracy of the Purchaser’s Representations and Warranties.
The representations and warranties of the Purchaser shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time, except for representations and warranties that are expressly made
as of a particular date, which shall be true and correct in all material respects as of such date. 
  

 6 

 (b) Performance by the Purchaser. The Purchaser shall have performed, satisfied and complied in
all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Closing. 
  
 (c) No Injunction, Statute or Rule. No statute, rule, regulation, executive order, decree, ruling or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this Agreement. 
  
 (d) Surrender of Exchanged Debt. The Purchaser shall have delivered
to the Company such agreements, documents and instruments as the Company shall require to evidence the surrender of the Exchanged Debt. 
  
 Section 4.2 Conditions Precedent to the Obligation of the Purchaser to Close. The obligation hereunder of the Purchaser to close and effect the
Exchange is subject to the satisfaction or waiver, at or before the Closing, of each of the conditions set forth below: 
  
 (a) Accuracy of the Company’s and Borrower’s Representations and Warranties. Each of the representations and warranties of the Company
and the Borrower in this Agreement shall be true and correct in all material respects as of the Closing Date, except for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as
of such date. 
  
 (b) Performance by the Company and the
Borrower. The Company and the Borrower shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by them at or prior
to the Closing. 
  
 (c) No Injunction, Statute or Rule. No
statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the
transactions contemplated by this Agreement. 
  
 (d)
Transaction Documents. The Purchaser shall have received executed copies of the Merger Agreement and all agreements, documents and instruments required by the Purchaser in connection with the assumption by the Company of $5,000,000 of the
indebtedness of the Borrower to the Purchaser. 
  
 (e)
Certificates. The Company shall have delivered to the Purchaser certificates representing the Warrants (in such denominations as the Purchaser may request) being acquired by the Purchaser at the Closing. 
  

 7 

 Article V. 
 Warrant Provisions 
  
 Section 5.1 Issuance of Warrant. At the Closing, the Company shall issue the Warrants to the Purchaser, in the form attached as Exhibit A. The Warrants shall be exercisable in whole or in part at any time or from time to time
as set forth in the Warrant for the aggregate number of shares of common stock as is set forth in the Warrant. The number of shares that the Warrant may be exercisable for and the Exercise Price is subject to adjustment as provided in the Warrant.

  
 Section 5.2 Exchange of Certificates for Warrants. Each
certificate for Warrants may be exchanged, at the option of the holder thereof, and upon surrender of such certificate to the Company, for another certificate for Warrants, or other certificates for Warrants of different denominations, of like tenor
and representing in the aggregate the right to purchase a like number of shares of Warrant Shares. Any holder desiring to exchange a certificate(s) for Warrants shall make such request in a writing delivered to the Company, and must surrender the
certificate(s) for Warrants to be so exchanged. Thereupon, the Company will execute and deliver to the holder a new certificate(s) for Warrants so requested. The certificate(s) for Warrants surrendered for exchange will be cancelled by the Company.

  
 Article VI. 
 Miscellaneous 
  
 Section 6.1 Fees and Expenses. Each party shall pay the fees and expenses of its advisors, counsel, accountants and other experts, if any, and all
other expenses, incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. 
  
 Section 6.2 Entire Agreement; Amendment. This Agreement contains the entire understanding and agreement (written or oral) of the parties with
respect to the subject matter hereof and, except as specifically set forth herein, neither the Company, the Borrower nor the Purchaser make any representation, warranty, covenant or undertaking with respect to such matters, and they supersede all
prior understandings and agreements with respect to said subject matter, all of which are merged herein. No provision of this Agreement may be waived or amended other than by a written instrument signed by each party. Any amendment or waiver
effected in accordance with this section shall be binding upon each such party and its permitted assigns. 
  
 Section 6.3 Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and
shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon 
  

 8 

 actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

	 If to the Company or the Borrower:
	 	Axtive Corporation
	 	 	1445 Ross Ave., Suite 4500
	 	 	Dallas, Texas 75205
	 	 	Attention: Chief Financial Officer
	 	 	Fax: 214-379-0228
		
	 with copies (which copies
	 	 
	 shall not constitute notice) to:
	 	Gardere Wynne Sewell LLP
	 	 	1601 Elm Street, Suite 3000
	 	 	Dallas, Texas 75201-4761
	 	 	Attention: Randall Ray, Esq.
	 	 	Phone: (214) 761-4475
	 	 	Fax: (214) 741-7139
		
	 If to the Purchaser:
	 	Merrill Lynch Business Financial Services Inc.
	 	 	222 North LaSalle Street
	 	 	Chicago, Illinois 60601
	 	 	Attn: Bill Kocolowski
	 	 	Fax: (312) 499-3252
		
	 with copies (which copies
	 	 
	 shall not constitute notice) to:
	 	Jenkens & Gilchrist, a Professional Corporation
	 	 	1445 Ross Avenue, Suite 3200
	 	 	Dallas, TX 75202
	 	 	Attn: Leila Tredemeyer
	 	 	Fax.: (214) 855-4300

  
 Any party may from time to time change
its address for notices by giving written notice of such changed address to the other parties. 
  
 Section 6.4 Waivers. No waiver by any party of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right accruing to it thereafter. 
  
 Section 6.5 Headings. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this Agreement for any other purpose and shall not be deemed to limit or affect any of the provisions hereof. 
  
 Section 6.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and
their successors and assigns. No party may assign its rights or obligations under this Agreement (by operation of law or otherwise) without the prior written 
  

 9 

 consent of each other party, and any attempted assignment without such consent shall be void ab initio.

  
 Section 6.7 No Third Party Beneficiaries. This
Agreement is intended for the benefit of the parties and their respective permitted successors and assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person or entity. 
  
 Section 6.8 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without giving effect to the choice of law provisions thereof. This Agreement shall not be interpreted or construed with any presumption against the party causing this
Agreement to be drafted. 
  
 Section 6.9 Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto,
it being understood that all parties need not sign the same counterpart. 
  
 Section 6.10 Severability. The provisions of this Agreement are severable and, in the event that any court of competent jurisdiction shall determine that any one or more of the provisions or part of the
provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this
Agreement and this Agreement shall be reformed and construed as if such invalid or illegal or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid, legal and enforceable to the
maximum extent possible. 
  

 10 

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

	AXTIVE CORPORATION
		
	 By:
	 	 /s/    DAVID N.
PILOTTE

	 Name:
	 	 David N. Pilotte

	 Title:
	 	 VP

  

	THINKSPARK CORPORATION
		
	 By:
	 	 /s/    DAVID N.
PILOTTE

	 Name:
	 	 David N. Pilotte

	 Title:
	 	 VP

  

	MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.
		
	 By:
	 	 /s/    BILL
KOCOLOWSKI

	 Name:
	 	 Bill Kocolowski

	 Title:
	 	 Vice President

  

 11Warrant to Purchase Common Stock

 Exhibit 10.20 
  
 THE SECURITIES REPRESENTED HEREBY (THE “SECURITIES”) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR AXTIVE CORPORATION SHALL HAVE RECEIVED AN
OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. 
  

	 5,000,000 Shares of Common Stock
	  	Warrant No. M1

  
 WARRANT

 To Purchase Common Stock of 
 Axtive Corporation, a Delaware corporation 
  
 1.
Grant of Warrant. THIS IS TO CERTIFY THAT Merrill Lynch Business Financial Services Inc., a Delaware corporation, or its registered assigns (the “Holder”), is entitled to exercise this Warrant to purchase from Axtive
Corporation, a Delaware corporation (the “Company”), up to an aggregate of 5,000,000 shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”), subject to adjustment determined in
accordance with Section 5, all on the terms and conditions and pursuant to the provisions hereinafter set forth. This Warrant is being granted pursuant to the terms of that certain Debt Exchange Agreement of even date herewith (the
“Agreement”), by and among the Company, the Holder and the other parties named therein, and the Company and the Holder intend to be legally bound hereby and thereby. Any capitalized terms used herein but not defined herein shall
have the meanings ascribed to them in the Agreement. 
  
 2.
Exercise Price. The purchase price payable for each of the shares of Common Stock sold upon exercise of this Warrant shall be $0.01 (the “Exercise Price”). 
  
 3. Exercise. This Warrant may be exercised in whole or in part at any time or from time to time after the date hereof
and on or before the 10th anniversary of the date hereof (the “Expiration Date”), unless otherwise extended pursuant to the terms of the Agreement. In order to exercise this Warrant, in whole or in part, the Holder hereof shall
deliver to the Company at its principal offices, or at such other office as shall be designated by the Company pursuant to the Agreement: 
  
 (a) written notice of the Holder’s election to exercise this Warrant, which notice shall be substantially in the form of the attached
“Subscription Form” and shall specify the number of shares of Common Stock to be purchased pursuant to such exercise; 

 (b) either (i) a wire transfer of immediately available funds to the Company or (ii) notice that the
Exercise Price is satisfied by reduction of the number of shares to be received by the Holder upon exercise of this Warrant as provided in Section 4 below, with the amount of such reduction specified in such notice; in each case such wire
transfer or reduction in the number of shares shall be in an amount equal to the aggregate purchase price for all shares of Common Stock to be purchased pursuant to such exercise; and 
  
 (c) this Warrant, properly endorsed. 
  
 Upon receipt thereof, the Company shall, as promptly as practicable, and in any event within 10 days thereafter, execute or cause to be
executed and delivered to the Holder a certificate or certificates representing the aggregate number of full shares of Common Stock issuable upon such exercise. The stock certificate or certificates so delivered shall be registered in the name of
the Holder or such other name as shall be designated in said notice. 
  
 This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and the Holder or any other person so designated to be named therein shall be deemed to have become a Holder of
record of such shares for all purposes, as of the date of that such notice, together with such payment and this Warrant, is delivered by the Holder as set forth above (the “Exercise Date”). Except as otherwise provided in the
Agreement or this Warrant, the Holder of this Warrant shall not, by virtue of its ownership of this Warrant, be entitled to any rights of a stockholder in the Company, either at law or in equity; provided, however, that the Holder
shall, for all purposes, be deemed to have become the Holder of record of such shares on the Exercise Date. If the exercise is for less than all of the shares of Common Stock issuable as provided in this Warrant, the Company shall issue a new
Warrant of like tenor and date for the balance of such shares issuable hereunder to the Holder. The Holder of this Warrant, by its acceptance hereof, consents to and agrees to be bound by and to comply with all of the provisions of this Warrant.

  
 4. “Cashless” Exercise. At the option of the
Holder, the Holder may exercise this Warrant without a cash payment of the Exercise Price, by designating that the number of the shares of Common Stock issuable to the Holder upon such exercise shall be reduced by the number of shares having a
Current Market Value (as defined below) as of the Exercise Date equal to the amount of the total Exercise Price for such exercise. In such instance, no cash or other consideration will be paid by the Holder in connection with such exercise other
than the surrender of the Warrant itself, and no commission or other remuneration will be paid or given by the Holder or the Company in connection with such exercise. If such exercise results in only a partial exercise of this Warrant, then the
Company shall deliver to the Holder a new Warrant evidencing the remaining rights under the Warrant, as provided in Section 3 above. For purposes of this Warrant, “Current Market Value” means, on any date, the average of the
daily closing market prices for each day for five trading days commencing one trading day before such date as of which such a price can be established in the manner set forth below. The closing market price for each such trading day shall be the
last sale price on such day as reported in the Consolidated Last Sale Reporting System or as quoted in the National Association of Securities 
  

 2 

 
Dealers Automated Quotation System, or if such last sale price is not available, the average of the closing bid and asked prices as reported in either such
system, or in any other case the higher bid price quoted for such day as reported by The Wall Street Journal and the National Quotation Bureau pink sheets. If there is no active public market, the value shall be the fair market value thereof as
reasonably determined in good faith by the Board of Directors of the Company. 
  
 5. Adjustments. The number and kind of securities or other property purchasable upon exercise of this Warrant shall be subject to adjustment from time to time upon the occurrence, after the date hereof, of any
of the following events: 
  
 (a) Subdivisions and
Combinations. If the Company shall at any time subdivide its outstanding shares of Common Stock into a greater number of shares, (i) the number of shares purchasable under this Warrant shall be proportionately increased and, conversely, in case
the Common Stock of the Company shall be combined into a smaller number of shares, the number of shares purchasable hereunder shall be proportionately reduced, and (ii) the Exercise Price shall be proportionately decreased in the case of a
subdivision and proportionately decreased in the case of a combination.. 
  
 (b) Dividends. If the Company shall declare a dividend on its Common Stock payable in stock or other securities of the Company or of any other corporation, or in cash or other property, to holders of record of
Common Stock as of a date prior to the date of exercise of the Warrants, the Holder shall, without additional cost, be entitled to receive upon the exercise of the Warrants, in addition to the Common Stock to which the Holder is otherwise entitled
upon such exercise, the number of shares of stock or other securities, cash or property that the Holder would have been entitled to receive if the Holder had been a holder of the number of shares of Common Stock that the Holder actually receives
upon exercise of this Warrant on such record date. 
  
 (c)
Reorganizations or Reclassifications. In case of any capital reorganization or reclassification of the Common Stock, or the consolidation or merger of the Company with or into another corporation, or any sale of all or substantially all of
the Company’s property or assets, or any liquidation of the Company, the Holder, upon the exercise of this Warrant, shall receive, in lieu of any shares of Common Stock, the proportionate share of all stock, securities or other property issued,
paid or delivered for or on all of the Common Stock as is allocable to the shares of Common Stock then exercisable under this Warrant. 
  
 (d) Notification. Whenever the number of shares of Common Stock or other securities purchasable upon exercise of a Warrant is adjusted as provided
in this section, the Company will promptly, and in any case at least 10 days prior to the record date or effective date of such action, as applicable, deliver to holders of Warrants, by first-class, postage prepaid mail, a brief summary of the
number and kind of securities or other property purchasable upon exercise of the Warrant as so adjusted, state that such adjustments in the number or kind of shares or other securities or property conform to the requirements of this section, and set
forth a brief statement of the facts accounting for 
  

 3 

 
such adjustments; provided, however, that failure to file or to give any notice required under this subsection, or any defect therein, shall
not affect the legality or validity of any such adjustments under this section. 
  
 (e) Definition of “Common Stock.” For the purpose of this section, the term “Common Stock” shall mean (i) the Common Stock or (ii) any other class of stock resulting from successive
changes or reclassifications of such Common Stock consisting solely of changes in par value, or from par value to no par value, or from no par value to par value. In the event that at any time as a result of an adjustment made pursuant to this
section, the holder of any Warrant thereafter surrendered for exercise shall become entitled to receive any shares of capital stock of the Company other than shares of Common Stock, thereafter the number of such other shares so receivable upon
exercise of any Warrant shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock contained in this section, and all other provisions of this
Warrant, with respect to the Common Stock, shall apply on like terms to any such other shares. 
  
 6. Replacement of Instruments. Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any certificate or instrument
evidencing any Warrants or Warrant Shares, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the common stock is not at the time publicly traded and the owner of the same is the initial
Holder or an institutional lender or investor, its own agreement of indemnity shall be deemed to be satisfactory), or (b) in the case of mutilation, upon surrender or cancellation thereof, the Company, at its expense, shall execute, register and
deliver, in lieu thereof, a new certificate or instrument for (or covering the purchase of) an equal number of Warrants or Warrant Shares. 
  
 7. Reduction of Exercise Price Below Par Value. Before taking any action that would cause an adjustment pursuant to Section 5 reducing the
portion of the Exercise Price required to purchase one share of capital stock below the then par value (if any) of a share of such capital stock, the Company will use its best efforts to take any corporate action which, in the opinion of its
counsel, may be necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such capital stock. 
  
 8. Taxes. The issuance of any Common Stock or other certificate upon the exercise of this Warrant shall be made without charge to the registered
Holder hereof, or for any tax in respect of the issuance of such certificate, unless such tax is imposed by law upon the Holder (including, without limitation, Federal, state or local income taxes), in which case such taxes shall be paid by the
Holder. The obligations of the parties under this section shall survive any redemption, repurchase or acquisition of this Warrant or the Common Stock issued upon exercise of this Warrant by the Company, and any cancellation or termination of this
Warrant. 
  

 4 

 9. Transfer. This Warrant and all rights hereunder are transferable, as to all or any part of the
number of shares of Common Stock purchasable upon its exercise, by the Holder hereof in person or by its duly authorized attorney on the books of the Company upon surrender of this Warrant at the principal offices of the Company, together with the
“Assignment Form” attached hereto duly executed. The Company shall deem and treat the registered Holder of this Warrant at any time as the absolute owner hereof for all purposes and shall not be affected by any notice to the contrary. If
this Warrant is transferred in part, the Company shall, at the time of surrender of this Warrant, issue to the transferee a Warrant covering the number of shares of Common Stock transferred and to the transferor a Warrant covering the number of
shares not transferred. 
  
 10. No Fractional Shares. No
fractional shares of Common Stock shall be issued upon the exercise of this Warrant and, in lieu thereof, any fractional shares shall be rounded down to the nearest whole. 
  
 11. Applicable Law. THIS WARRANT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PROVISIONS THEREOF. EACH OF THE PARTIES HEREBY SUBMITS TO PERSONAL JURISDICTION AND WAIVES ANY OBJECTION AS TO VENUE IN THE STATE OF DELAWARE. SERVICE OF PROCESS ON THE PARTIES IN ANY
ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE EFFECTIVE IF MAILED TO THE PARTIES IN ACCORDANCE WITH SECTION 7.10 OF THE AGREEMENT. THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY RIGHTS HEREUNDER. 
  
 12. Successors and Assigns. This
Warrant and the rights evidenced hereby shall inure to the benefit of, and be binding upon, the successors and assigns of the Holder hereof and shall be enforceable by any such Holder. In the event this Warrant is sold, transferred or assigned, the
transferor will give written notice to the Company within fifteen (15) days following such sale, transfer or assignment and in such notice designate the name and address of the transferee. 
  
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 
  

 5 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and issued on its behalf.

  
 DATED as of May 27, 2003. 
  

	 AXTIVE CORPORATION,

	 a Delaware corporation

		
	 By:
  
	 	 /s/    DAVID N.
PILOTTE

	 Name:
	 	 David N. Pilotte

	 Title:
	 	 Vice President

  

 6 

 SUBSCRIPTION FORM 
  
 (To be executed only upon exercise of Warrant) 
  
 The undersigned registered owner of this Warrant irrevocably exercises this Warrant for and purchases
                 shares of Common Stock of Axtive Corporation, a Delaware corporation, purchasable with this Warrant, and herewith makes payment therefor,
all at the price and on the terms and conditions specified in this Warrant and requests that certificates for the shares of Common Stock hereby purchased (and any securities or other property issuable upon such exercise) be issued in the name of and
delivered to
                                        
whose address is
                                       
     , and if such shares of Common Stock shall not include all of the shares of Common Stock issuable as provided in this Warrant, that a new Warrant of like tenor and date for the balance of the shares of Common Stock
issuable thereunder to be delivered to the undersigned. 
  
 DATED:
                    ,          
  

		
	 By:
  
	 	  

	 Name:
  
	 	  

	 Title:
  
	 	

			
	 Address:
  
	 	 	 	

	 	 	 	 	  

	 	 	 	 	  

  

 ASSIGNMENT FORM 
  
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee
named below all of the rights of the undersigned under this Warrant, with respect to the number of shares of Common Stock set forth below: 
  

	 Name and Address of Assignee

	  	 No. of Shares
 Common Stock

	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 
	 	  	 

  
 and does hereby irrevocably constitute
and appoint as Attorney                                  to register such transfer
on the books of                                  maintained for the purpose, with
full power of substitution in the premises. 
  
 DATED:
                ,         .              
  

		
	 By:
  
	 	

	 Name:
  
	 	  

	 Title:
  
	 	  

  

	NOTICE:	 	The signature to this assignment must correspond with the name as written upon the face of the within Warrant in every particular, without alteration or enlargement or any change
whatever. 

  
 ACKNOWLEDGMENT BY ASSIGNEE

  
 The undersigned Assignee hereby acknowledges receipt of
the Warrant Agreement, and agrees to be bound by its terms. 
  

		
	 By:
  
	 	  

	 Name:
  
	 	  

	 Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00054-of-00352.parquet"}]]