Document:

Form of Second Amendment to Warrant Agreement

  
 Exhibit 4.5 

 
 SECOND AMENDMENT, CONSENT AND WAIVER 
  
 This Second Amendment, Consent and Waiver (“Amendment”) is
effective as of August 14, 2003 and relates to the Note Agreement dated as of May 12, 2003 (the “Note Agreement”) among NewWest Mezzanine Fund, LP (“NewWest”), KCEP Ventures II, L.P. (“KCEP”), Convergent Capital
Partners I, L.P. (“Convergent”), James F. Seifert Management Trust dated October 8, 1992 (the “Trust”), ACT Teleconferencing, Inc. (“Holdings”), ACT Teleconferencing Services, Inc. (the “Services”) and certain
Co-Borrowers listed on the signature page of this Amendment (the “Co-Borrowers), as amended pursuant to the First Amendment, Consent and Wavier dated as of May 12, 2003 among the parties. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Note Agreement. 
  
 Recitals 
  
 Holdings and Services have requested
that the Purchaser waive certain Events of Default under the Note Agreement, subject to the terms and conditions set forth herein, and the Purchaser has agreed to grant such waiver and effect such amendment, on the terms and conditions set forth
herein. 
  
 NOW, THEREFORE, in consideration of the foregoing
premises and the mutual covenants hereinafter stated, the parties hereby agree as follows: 
  
 1. Waiver and Note Agreement Amendment. 
  
 (a) Subject to the conditions set forth in this Amendment, the Purchaser hereby waives any Events of Default resulting from the matters
set forth on Exhibit A. With respect to any covenants set forth on the Financial Covenants Schedule, such waiver is effective only for the period ended June 30, 2003 and not for any future periods. 
  
 (b) Holdings and Services agree (i) to increase
Holding’s directors and officers insurance to at least $2,000,000 and provide evidence of such change to the Purchaser no later than September 15, 2003, (ii) obtain a waiver of any defaults or events of default under the Bank Agreement
(including, without limitation, the net worth covenant under the Bank Agreement) and provide evidence of such waiver no later than September 15, 2003, (iii) file any required additional listing application with Nasdaq for the Underlying Shares and
provide evidence of such filing to the Purchaser no later than September 15, 2003 and (iv) provide Purchaser with copies of the borrowing base certificates filed with Vectra Bank for March, April, May and June 2003 on or before September 15, 2003.
Any failure by Holdings and Services to comply with the provisions of this Amendment shall constitute an Event of Default under the Note Agreement. 
  
 2. Conditions to Effectiveness. The effectiveness of this Amendment is expressly conditioned upon Holdings and Borrower delivering to the Purchaser
all of the following, all in form and substance acceptable to the Purchaser: (a) this Amendment duly executed by Holdings, Services, the Co-Borrowers and the Principals; (b) evidence satisfactory to the Purchaser that all events of default under any
other promissory notes or loan agreements have been waived and such waivers are in full force and effect; and (c) a waiver and amendment fee of $15,000 (to be paid in addition to any expenses to be paid pursuant to Section 8.3 of the Note
Agreement). 
  

 3. Reaffirmation of Financing Documents. All terms, conditions and provisions of the Note
Agreement and the other Financing Documents are hereby reaffirmed and continued in full force and effect and shall remain unaffected and unchanged, except as specifically amended by this Amendment. All covenants, representations and warranties of
Holdings and Borrower in this Amendment shall survive the closing and delivery of this Amendment. The Events of Default specified in the Note Agreement shall continue to be the events of default under the Note. The Purchaser’s remedies with
respect to the occurrence of an Event of Default shall continue to be as set forth in the Note Agreement and in the Financing Documents. Borrower confirms that, in accordance with Section 8.3 of the Note Agreement, Borrower will promptly reimburse
the Purchaser for all reasonable expenses relating to this Amendment. 
  
 4. Representations and Warranties. Holdings and Borrower represent and warrant to the Purchaser that (i) they have full power and authority to consummate this Amendment and the execution and delivery by Holdings and Borrower of this
Amendment have been duly and properly made and authorized, (ii) this Amendment and the Financing Documents to which Holdings and Borrower are a party each constitutes a valid and binding obligation of Holdings and Borrower, enforceable against
Holdings and Borrower in accordance with its respective terms, (iii) the execution and delivery of this Amendment will not violate any provisions of any law or any order of any court or governmental authority or agency and will not conflict with or
result in any breach of any of the terms, conditions or provisions of, or constitute a default under Holdings and Borrower’s articles of incorporation or bylaws or any indenture or other agreement or instrument to which Holdings or Borrower is
a party or by which they may be bound or result in the imposition of any Liens or encumbrances on any of its property (other than as contemplated in the other Financing Documents and as contemplated hereby), (iv) no approval, consent or withholding
of objection on the part of any regulatory body, federal, state or local, is necessary in connection with the execution and delivery by Holdings and Borrower of this Amendment, (v) Holdings and Borrower have no defense, offset or counterclaim with
respect to the payment of any sum owed to the Purchaser, or with respect to the performance or observance of any warranty or covenant contained in the Financing Documents, and the Purchaser has performed all obligations and duties owed to Holdings
and Borrower through the date of this Amendment, and (vi) giving effect to this Amendment, there is no Default or Event of Default. 
  
 5. General Release. In consideration of, among other things, the Amendment provided for herein, each of Holdings and Borrower, on behalf of itself
and its stockholders and other Affiliates and their successors and assigns (collectively, the “Releasors”), hereby forever waives, releases and discharges to the fullest extent permitted by law any and all claims (including, without
limitation, cross claims, counterclaims, rights of set-off and recoupment), causes of action, demands, suits, costs, expenses and damages (collectively, the “Claims”), that any Releasor now has or hereafter may have, of whatsoever nature
and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law or in equity, against the Purchaser and any of their affiliates, partners, shareholders and “controlling persons” (within the meaning of
the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, agents, attorneys and other representatives of each of the foregoing (collectively, the “Releasees”), based
in whole or in part on facts, whether or not now known, existing on or before the execution of this Amendment. In entering into this Amendment, Holdings and Borrower has consulted with and been represented by counsel and expressly disclaims any
reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the release set forth above do not depend in any way on any such representations, acts and/or
omissions or the accuracy, completeness or validity thereof. The provisions of this Section shall survive the termination of the Note Agreement and the other Financing Documents and payment in full of the Obligations. 
  

 -2- 

 6. Governing Law. This Amendment and all matters concerning this Amendment shall be governed by
the laws of the State of Colorado for contracts entered into and to be performed in such state without regard to principles of conflicts of laws. 
  
 7. Entire Agreement. Except as modified by this Amendment, the Note Agreement remains in full force and effect. The Note Agreement, as modified by
this Amendment, and together with the other Financing Documents, embody the entire agreement and understanding among the parties to this Amendment, and supersedes all prior agreements and understandings among the parties relating to the subject
matter of the Note Agreement as modified by this Amendment. 
  
 8.
Counterparts; Telecopy Execution. This Amendment may be executed in any number of separate counterparts, each of which, when taken together, shall constitute one and the same instrument, admissible into evidence, notwithstanding the fact that
all parties have not signed the same counterpart. Delivery of an executed counterpart of this Amendment by facsimile shall be equally as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering an executed
counterpart of this Amendment by facsimile shall also deliver a manually executed counterpart of this Amendment, but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this
Amendment. 
  
 [Signature page follows] 
  

 -3- 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the day, month and
year first above written. 
  

			
	 HOLDINGS: ACT Teleconferencing, Inc.

		
	By	 	 
	 	 	

	 Its
	 	 
	 	 	

  

			
	 SERVICES: ACT Teleconferencing Services, Inc.

		
	By	 	 
	 	 	

	 Its
	 	 
	 	 	

  

			
	 CO-BORROWER: ACT VideoConferencing, Inc.

		
	By	 	 
	 	 	

	 Its
	 	 
	 	 	

  

			
	 CO-BORROWER: ACT Proximity, Inc.

		
	By	 	 
	 	 	

	 Its
	 	 
	 	 	

  

			
	 CO-BORROWER: ACT Research, Inc.

		
	By	 	 
	 	 	

	 Its
	 	 
	 	 	

  

 -4- 

 Accepted as of the date of this Amendment: 
  

			
	 INVESTORS:

	 
	 NEWWEST MEZZANINE FUND LP
 By Touchstone Capital Group LLLP, General Partner

	
	 
	

	 David L. Henry, Managing General Partner

  

			
	 KCEP VENTURES II, L.P.
 By KCEP II, LC, General Partner

	
	 
	

	 Terry Matlack, Managing Director

  

			
	 CONVERGENT CAPITAL PARTNERS I, L.P.
 By Convergent Capital, LLC, General Partner

	
	 
	

	 Keith S. Bares, Executive Vice President

  
 JAMES F. SEIFERT MANAGEMENT TRUST DATED OCTOBER 8, 1992 
 By James F. Seifert and Nancy L. Seifert, as Trustees and not individually 

			
	
	 
	

	 James F. Seifert, Trustee

  

			
	
	 
	

	 Nancy L. Seifert, Trustee

  

 -5- 

 Exhibit A 
  

			
	 Issue

	  	Section

	 D & O Coverage was not increased to $2MM by June 12, 2003 as required.
	  	6.2 (i)
		
	 •      April 03 Monthly Financials:
 •      not received within 30 days
 •      did not include a cash flow statement
 •      not presented as consolidated and consolidating
 •      did not include a “fixed cash cost report” in the form attached to the Note
Agreement
 •      did not include A/R and A/P aging reports
 •      not presented in comparative form against the company’s budget
 •      not certified by CFO
  
 •      May 03 Monthly financials
 •      not received within 30 days
 •      did not include a cash flow statement
 •      did not include a “fixed cash cost report” in the form attached to the Note
Agreement
 •      A/R and A/P aging reports not received within 30
days
 •      not presented in comparative form against the company’s
budget
 •      not certified by CFO
  
 •      June 03
Monthly financials
 •      did not include a “fixed cash cost report”
in the form attached to the Note Agreement
 •      did not include A/R and A/P
aging reports
 •      not presented in comparative form against the
company’s budget
 •      not certified by CFO
	  	6.6 (a)
		
	 •      Did not receive officer’s certificate for Q2 03, or monthly certificates for May, June or July
of 2003
	  	6.6(h)
		
	 •      Capitalization Table
 •      Did not include capitalization schedule in the form attached to the Note
Agreement
	  	6.6(i)
		
	 •      Investors did not receive copies of Borrowing Base Certificates
filed with Vectra Bank for July, June, May or April.
 •      Investors
haven’t received copies of correspondence related to the Vectra Minimum Net Worth covenant which is being reset (other than the April 11, 2003 letter).
 •      Did not receive copy of Vectra Covenant compliance certificate for Q2
03.
	  	6.6 (m)

  

 -1- 

			
		
	 Investors have not received copies of correspondence with NASDAQ in relation to 2d Note Amendment
	  	6.6(g)
		
	 The Company exceeded the $9.75MM Fixed Cash Cost Covenant, when tested for the period ending June 30, 2003
	  	Financial
Covenant 1
		
	 Representation and warranty with respect to compliance with Nasdaq shareholder approval requirements.
	  	23
(Reps)
		
	 Nasdaq additional listing application
	  	3
(Warrant)

  

 -2-Form of Third Amendment to Warrant Agreement

  
 Exhibit 4.6 

 
 THIRD AMENDMENT 
  
 This Third Amendment (“Amendment”) is executed as of October 23,
2003 and is effective as of May 12, 2003 and relates to the Warrant Agreement dated as of May 12, 2003, as amended effective May 12, 2003 (the “Warrant Agreement”) among NewWest Mezzanine Fund, LP (“NewWest”), KCEP Ventures II,
L.P. (“KCEP”), Convergent Capital Partners I, L.P. (“Convergent”), James F. Seifert Management Trust dated October 8, 1992 (the “Trust”), ACT Teleconferencing, Inc. (“Holdings”), ACT Teleconferencing Services,
Inc. (the “Services”) and certain Principals set forth on the signature page of this Amendment (the “Principals”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Note
Agreement dated as of May 12, 2003, as amended, among Holdings, Services, NewWest, KCEP, Convergent, the Trust and certain co-borrowers (the “Note Agreement”). 
  
 Recitals 
  
 Holdings has requested that the Purchaser amend the Warrant Agreement, subject to the terms and conditions set forth herein, and the Purchaser has agreed
to effect such amendment, on the terms and conditions set forth herein. 
  
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants hereinafter stated, the parties hereby agree as follows: 
  
 1. Warrant Agreement Amendments. 
  
 (a) Section 6 of the Warrant Agreement is amended to insert the following provisions immediately following the last line of §6:

  
 “Notwithstanding anything to the
contrary in this Agreement, the Company agrees that it will not, without the affirmative approval of the holders of a majority of the common stock issued and outstanding on a record date at least 30 but no more than 60 days prior to an election for
such purpose, issue or Transfer any Shares, or take any other action that, in accordance with this §6, is deemed to be an issuance or Transfer of any Shares, in each case for a consideration per Share less than the Exercise Price in effect
immediately prior to such issue or Transfer. If the requirement for such stockholder approval is waived by the Holders in accordance with §18.4 of this Warrant Agreement, then the maximum number of Underlying Shares, following any adjustment
pursuant to this §6 in connection with such issuance or Transfer, that will have an adjusted Exercise Price of less than $2.42 shall be 2,048,655 (804,829 of which shall be Underlying Shares initially held by KCEP Ventures II, L.P., 475,581 of
which shall be Underlying Shares initially held by NewWest Mezzanine Fund LP, 475,581 of which shall be Underlying Shares initially held by Convergent Capital Partners I, L.P., and 292,664 of which shall be Underlying Shares initially held by the
James F. Seifert Management Trust dated October 8, 1992), with the balance of such Underlying Shares having an increased Exercise Price such that the average of the Exercise Prices for all Underlying Shares is $2.42. 
  
 “If the adjusted Exercise Price, calculated in
accordance with this §6 as a result of any such issuance or Transfer (i) would be $1.50 or more, such adjustment shall not be 

 
necessary and the Exercise Price shall remain $2.50; and (ii) would be less than $1.50, then the Exercise Price shall be adjusted to such amount plus
$1.00.” 
  
 (b) Section 7 of the Warrant
Agreement is amended and restated to read as follows: 
  
 “If the average of the closing bid prices of the Shares over the last 45 trading days prior to April 30, 2004, is greater than $1.50, then no adjustment of the Exercise Price shall be made pursuant to this §7. If such average is
less than $1.50, then the Exercise Price shall be adjusted to an amount equal to such average plus $1.00. If any adjustment to the Exercise Price is made under this §7, then the provisions of §6 of this Warrant Agreement shall apply as if
the Exercise Price, as adjusted under this §7, had been the Exercise Price at all times since the date of this Warrant Agreement. 
  
 “Each Holder agrees, individually and not jointly, that such Holder will not sell any Shares short prior to April 30, 2004. 
  
 “Notwithstanding anything to the contrary in this Agreement, if any
adjustment to the Exercise Price occurs as a result of this §7 which lowers the Exercise Price to less than $2.42, then the Exercise Price otherwise determined pursuant to this §7 shall apply only with respect to 2,048,655 Underlying
Shares (804,829 of which shall be Underlying Shares initially held by KCEP Ventures II, L.P., 475,581 of which shall be Underlying Shares initially held by NewWest Mezzanine Fund LP, 475,581 of which shall be Underlying Shares initially held by
Convergent Capital Partners I, L.P., and 292,664 of which shall be Underlying Shares initially held by the James F. Seifert Management Trust dated October 8, 1992), and the Exercise Price with respect to all Underlying Shares in excess of such
2,048,655 Underlying Shares shall be increased such that the average of the Exercise Prices of all Underlying Shares shall be $2.42. The limitations of this paragraph shall not apply with respect to any Underlying Shares if the issuance of such
Underlying Shares has been approved by the stockholders of the Company prior to the issuance of such Underlying Shares.” 
  
 (c) The definition of Exercise Price in the Warrant Agreement is amended to add the following: 
  
 “Notwithstanding anything in this Agreement to the contrary, any
adjustment to the Exercise Price applicable to any Underlying Shares initially issued to the James F. Seifert Management Trust dated October 8, 1992 shall be made in accordance with this Warrant Agreement, but the resulting adjusted Exercise Price
for such Underlying Shares shall in no event be less than $2.22.” 
  
 (d) Section 6 of the Warrant Agreement is amended to add the following at the end of the second paragraph of such §6: 
  
 “All numbers and dollar amounts set forth in this Warrant Agreement shall be appropriately adjusted for any such subdivision or combination, if any,
occurring after May 12, 2003.” 

 2. Covenants of Holdings and Services. On or prior to October 31, 2003 (or such later date as
specified by the Purchaser), Holdings and Services agree to retain a consultant, reasonably acceptable to the Purchaser, and to cooperate fully with such consultant and provide such consultant with full access to documents, employees or other
information so that such consultant can prepare a report for the Holdings Board of Directors with respect to a proposed transaction. Holdings and Services shall not be obligated to incur more than $25,000 in fees for such consultant. 

  
 3. Conditions to Effectiveness. The effectiveness of
this Amendment is expressly conditioned upon Holdings and Services delivering to the Purchaser this Amendment duly executed by Holdings, Services and the Principals and Nasdaq approving this Amendment as complying with Nasdaq’s listing
standards. 
  
 4. Reaffirmation of Financing Documents. All
terms, conditions and provisions of the Note Agreement and the other Financing Documents are hereby reaffirmed and continued in full force and effect and shall remain unaffected and unchanged, except as specifically amended by this Amendment. All
covenants, representations and warranties of Holdings and Services in this Amendment shall survive the closing and delivery of this Amendment. The Events of Default specified in the Note Agreement shall continue to be the events of default under the
Note, and Purchaser is not, by executing this Amendment, waiving any existing or future Event of Default or default under any Financing Document. The Purchaser’s remedies with respect to the occurrence of an Event of Default shall continue to
be as set forth in the Note Agreement and in the Financing Documents. Holdings and Services confirm that, in accordance with Section 8.3 of the Note Agreement, Borrower will promptly reimburse the Purchaser for all reasonable expenses relating to
this Amendment. 
  
 5. Representations and Warranties.
Holdings and Services represent and warrant to the Purchaser that (i) they have full power and authority to consummate this Amendment and the execution and delivery by Holdings and Services of this Amendment have been duly and properly made and
authorized, (ii) this Amendment and the Financing Documents to which Holdings and Borrower are a party each constitutes a valid and binding obligation of Holdings and Borrower, enforceable against Holdings and Borrower in accordance with its
respective terms, (iii) the execution and delivery of this Amendment will not violate any provisions of any law or any order of any court or governmental authority or agency and will not conflict with or result in any breach of any of the terms,
conditions or provisions of, or constitute a default under Holdings and Borrower’s articles of incorporation or bylaws or any indenture or other agreement or instrument to which Holdings or Borrower is a party or by which they may be bound or
result in the imposition of any Liens or encumbrances on any of its property (other than as contemplated in the other Financing Documents and as contemplated hereby), (iv) no further approval, consent or withholding of objection on the part of any
regulatory body, federal, state or local, is necessary in connection with the execution and delivery by Holdings and Services of this Amendment, except for review and approval by Nasdaq, and (v) Holdings and Borrower have no defense, offset or
counterclaim with respect to the payment of any sum owed to the Purchaser, or with respect to the performance or observance of any warranty or covenant contained in the Financing Documents, and the Purchaser has performed all obligations and duties
owed to Holdings and Borrower through the date of this Amendment. 
  
 6. General Release. In consideration of, among other things, the Amendment provided for herein, each of Holdings and Services, on behalf of itself and its stockholders and other Affiliates and their successors and assigns
(collectively, the “Releasors”), hereby forever waives, releases and discharges to the fullest extent permitted by law any and all claims (including, without limitation, cross claims, 

 
counterclaims, rights of set-off and recoupment), causes of action, demands, suits, costs, expenses and damages (collectively, the “Claims”), that
any Releasor now has or hereafter may have, of whatsoever nature and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law or in equity, against the Purchaser and any of their affiliates, partners,
shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, agents, attorneys and other representatives of
each of the foregoing (collectively, the “Releasees”), based in whole or in part on facts, whether or not now known, existing on or before the execution of this Amendment. In entering into this Amendment, Holdings and Services have
consulted with and been represented by counsel and expressly disclaims any reliance on any representations, acts or omissions by any of the Releasees and hereby agrees and acknowledges that the validity and effectiveness of the release set forth
above do not depend in any way on any such representations, acts and/or omissions or the accuracy, completeness or validity thereof. The provisions of this Section shall survive the termination of the Note Agreement and the other Financing Documents
and payment in full of the Obligations. 
  
 7. Governing
Law. This Amendment and all matters concerning this Amendment shall be governed by the laws of the State of Colorado for contracts entered into and to be performed in such state without regard to principles of conflicts of laws. 
  
 8. Entire Agreement. Except as modified by this Amendment, the Note
Agreement and the Warrant Agreement remain in full force and effect. The Note Agreement and the Warrant Agreement, as modified by this Amendment, and together with the other Financing Documents, embody the entire agreement and understanding among
the parties to this Amendment, and supersedes all prior agreements and understandings among the parties relating to the subject matter of the Note Agreement and the Warrant Agreement as modified by this Amendment. 
  
 9. Counterparts; Telecopy Execution. This Amendment may be executed in
any number of separate counterparts, each of which, when taken together, shall constitute one and the same instrument, admissible into evidence, notwithstanding the fact that all parties have not signed the same counterpart. Delivery of an executed
counterpart of this Amendment by facsimile shall be equally as effective as delivery of a manually executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by facsimile shall also deliver a manually
executed counterpart of this Amendment, but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. 
  
 [Signature page follows] 
  

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the day, month and
year first above written. 
  

			
	HOLDINGS: ACT Teleconferencing, Inc.
		
	By	 	 
	 	 	

	Its	 	 
	 	 	

  

			
	SERVICES: ACT Teleconferencing Services, Inc.
		
	By	 	 
	 	 	

	Its	 	 
	 	 	

  

	
	PRINCIPALS:
	
	  
	

	 Gerald V. Eeckhout

	
	  
	

	 Gavin J. Thomson

	
	  
	

	 Gene Warren

 Accepted as of the date of this Amendment: 
  
 INVESTORS: 
  

	
	 NEWWEST MEZZANINE FUND LP
 By Touchstone Capital Group
LLLP, General Partner

	
	  
	

	 David L. Henry, Managing General Partner

  

	
	 KCEP VENTURES II, L.P.
 By KCEP II, LC, General
Partner

	
	  
	

	 Terry Matlack, Managing Director

  

	
	 CONVERGENT CAPITAL PARTNERS I, L.P.
 By Convergent
Capital, LLC, General Partner

	
	  
	

	 Keith S. Bares, Executive Vice President

  

	
	 JAMES F. SEIFERT MANAGEMENT TRUST DATED OCTOBER 8, 1992
 By James F. Seifert and Nancy L. Seifert, as Trustees and not individually

	
	  
	

	 James F. Seifert, Trustee

	
	  
	

	 Nancy L. Seifert, Trustee

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