Document:

EX-10.2

 

Exhibit 10.2

JAG Media Holdings, Inc.

6865 S.W. 18th Street, Suite B13

Boca Raton, FL 33433

January 31, 2008

YA Global Investments, L.P.

101 Hudson Street

Suite 3700

Jersey City, NJ 07302

Gentlemen:

This will confirm our understanding that the terms and conditions of the Debentures, Warrants and
other related documents between YA Global Investments, L.P. (“YA Global”) and JAG Media Holdings,
Inc. (“JAG Media”) are hereby amended as set forth below.

DEFINITIONS

     “Debentures” means the following debentures with JAG Media as Obligor and YA Global as Holder
thereunder:

	 	•	 	Debenture No. CCP-1 in the original principal amount of $1,900,000, dated May
24, 2006 (“Debenture No. CCP-1);
	 
	 	•	 	Debenture No. CCP-2 in the original principal amount of $1,250,000, dated May
24, 2006 (“Debenture No. CCP-2”); and
	 
	 	•	 	Debenture No. CCP-3 in the original principal amount of $1,000,000, dated May
30, 2006 (“Debenture No. CCP-3”).

     “Effective Date” means the date the proposed merger between JAG Media and Cryptometrics, Inc.
set forth in that certain merger agreement between such parties dated December 27, 2005, as amended
closes and becomes effective.

     “Investor Registration Rights Agreement” means that certain investor registration rights
agreement between YA Global and JAG Media dated May 4, 2006.

     “Irrevocable Transfer Agent Instructions” means the irrevocable transfer agent instructions
among JAG Media, YA Global and Transfer Online, Inc. dated May 4, 2006.

     “Security Agreements” means those certain security agreements between JAG Media and YA Global
and between Pixaya LLC and YA Global dated May 4, 2006.

 

 

     “Securities Purchase Agreement” means that certain securities purchase agreement between YA
Global and JAG Media dated May 4, 2006.

     “Warrants” means Warrant Nos. CCP-1, CCP-2, CCP-3, CCP-4 and CCP-5 for 2,000,000, 2,000,000,
2,000,000, 3,000,000 and 3,000,000 shares of Common Stock, respectively, each dated May 24, 2006
and issued by JAG Media to YA Global as Holder thereunder

1. JAG Media and YA Global acknowledge that as of the date hereof, the principal balances of the
Debentures are as follows:

	 	 	 	 	 
	Debenture No. CCP-1

	 	$	-0-	 
	Debenture No. CCP-2

	 	$	-0-	 
	Debenture No. CCP-3

	 	$	325,000	 

2. Promptly after the execution of this agreement YA Global shall convert into JAG Media common
stock the remaining principal balance of $325,000 on Debenture CCP-3 and all accrued and unpaid
interest under all of the Debentures pursuant to the terms of the respective Debentures
(“Conversion Shares”) and (ii) exercise 700,000 shares under Warrant No. CCP-1 on a cash basis;
provided, however, that the shares issued to YA Global in connection with such
conversion and exercise shall be restricted securities and the standard Rule 144 restrictive legend
shall be affixed to each stock certificate representing such shares.

3. Effective as of the date of issuance to YA Global of the Conversion Shares:

	 	(a)	 	all amounts outstanding under the Debentures shall be deemed paid in full and
the Debentures shall automatically terminate and be of no further force and effect;
	 
	 	(b)	 	the reservation for conversion shares set forth in paragraph 2 a. of the
Irrevocable Transfer Agent Instructions shall automatically terminate and JAG Media
shall no longer be required to reserve any shares in connection with the Debentures but
shall continue to reserve 12,000,000 shares for issuance upon exercise of the Warrants
(“Warrants Shares Reservation”). (Notwithstanding anything to the contrary in the
Irrevocable Transfer Agent Instructions, the Warrant Shares Reservation shall
automatically be reduced by one share for each Warrant share exercised by, and issued
to, YA Global);
	 
	 	(c)	 	as a result of the Debentures being retired, all restrictive covenants
contained in Section 4 of the Securities Purchase Agreement shall automatically
terminate and be of no further force and effect;
	 
	 	(d)	 	the Security Agreements shall automatically terminate and be of no further
force and effect; and

 

 

	 	(e)	 	the Investor Registration Rights Agreement shall automatically terminate and be
of no further force and effect and JAG Media shall have no further obligation to
register any shares in connection with the Debentures and the Warrants.

4. The following agreements shall become effective as of the Effective Date:

	 	(a)	 	The definition of “Warrant Exercise Price” as set forth in Section 1 (b) (xiii)
of each of the Warrants shall be deleted in its entirety, and a new definition of
“Warrant Exercise Price” shall be substituted in each of the remaining four Warrants,
which shall read as follows:

(xiii) “Warrant Exercise Price” means 88% of the average of the Volume
Weighted Average Price of the Common Stock as quoted by Bloomberg, L.P.
during the thirty (30) trading days immediately prior to the “Exercise
Restriction Date.”

	 	(d)	 	A new defined term entitled “Exercise Restriction Date” shall be added to
Section 1 (b) of the Warrants, each of which shall read as follows:

Warrant No. CCP-1

(xv) “Exercise Restriction Date” means thirty (30) trading days following the
Effective Date, the first date upon which this Warrant may be exercised;
provided, however, that the above Exercise Restriction Date shall
not apply with respect to 700,000 shares under this warrant which may be exercised
by YA Global at any time prior to such Exercise Restriction Date.

Warrant No CCP-2

(xv) “Exercise Restriction Date” means March 31, 2008, the first date upon
which this Warrant may be exercised.

Warrant No CCP-3 

(xv) “Exercise Restriction Date” means June 30, 2008, the first date upon
which this Warrant may be exercised.

Warrant No. CCP-4

(xv) “Exercise Restriction Date” means September 30, 2008, the first date
upon which this Warrant may be exercised.

Warrant No. CCP-5

(xv) “Exercise Restriction Date” means December 31, 2008, the first date
upon which this Warrant may be exercised.

 

 

     (e) Notwithstanding anything to the contrary in the Warrants, the Warrants are hereby amended
so that each Warrant may be exercised by its respective holder of record on any Business Day
commencing on the Exercise Restriction Date for that Warrant and prior to 11:59 PM Eastern Time on
the Expiration Date. In no event shall any Warrant be exercisable prior to its Exercise Restriction
Date, except as may be otherwise expressly set forth herein. YA Global shall affix, and keep
affixed, to all Warrants a copy of this agreement. All Warrant shares issued in connection with any
exercise of the Warrants, in whole or part, shall be restricted securities and the standard Rule
144 restrictive legend shall be affixed to each stock certificate representing such Warrant shares.

5. In consideration of YA Global’s agreement to convert the remainder of JAG Media’s indebtedness
to YA Global under the Debentures into common stock and other good and valuable consideration, JAG
Media hereby agrees to waive the notice period that would otherwise be required and allow YA Global
to presently increase the ownership cap set forth in Section 3(b)(i) of the each of the Debentures
and in the first paragraph of each of the Warrants from 4.99% to 9.99%, effective as of the date
hereof and accepts YA Global’s signature below as such notice to increase the respective caps.

6. JAG Media shall publicly disclose the contents of this agreement on a Form 8-K or other suitable
form within four (4) business days of its execution by YA Global and JAG Media.

7. The Warrants, Irrevocable Transfer Agent Instructions and Securities Purchase Agreement shall be
deemed amended, mutatis mutandis, in accordance with the foregoing. Except as otherwise set forth
in this agreement, the Warrants, Irrevocable Transfer Agent Instructions and Securities Purchase
Agreement shall remain unchanged and in full force and effect.

8. The terms and conditions set forth in paragraph 4 of this agreement shall automatically
terminate, and the parties hereto shall have no rights or obligations hereunder in the event that
the Effective Date has not occurred by the end of business on February 27, 2008, unless extended in
writing by the parties hereto.

If the foregoing accurately reflects your understanding of our agreement regarding the above
matter, please indicate your agreement and acceptance by signing in the appropriate space below and
returning a fully executed and dated copy of this agreement to the undersigned.

Sincerely yours,

JAG Media Holdings, Inc.

	 	 	 	 	 
	By:

	 	/s/ Thomas J. Mazzarisi	 	 
	 

	 	 	 	 
	 

	 	Name: Thomas J. Mazzarisi
	 	 
	 

	 	Title: Chairman & CEO	 	 
	 

	 	Date: January 31, 2008	 	 

AGREED AND ACCEPTED:

YA Global Investments, L.P.

(formerly, Cornell Capital Partners, L.P.)

By: Yorkville Advisors, LLC

Its: Investment Manager

	 	 	 	 	 
	By:

	 	/s/ David Gonzalez	 	 
	 

	 	 	 	 
	 

	 	Name: David Gonzalez
Date: January 31, 2008exv4wxhy

 

Exhibit 4(h)

AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE

     This Agreement of Resignation, Appointment and Acceptance, dated February 13, 2007, is made by
and among Sysco Corporation and Sysco International Co., a wholly-owned subsidiary of Sysco
Corporation; both herein referred to as the “Issuer” (the “Issuer”), U.S. Bank National
Association, a banking corporation with trust powers duly organized and existing under the laws of
the United States of America and having its principal corporate trust office at 5555 San Felipe
Street, Suite 1150, Houston, Texas 77056 (the “Bank”) and The Bank of New York Trust Company, N.
A.(“BNYTC”), a national banking association duly organized and existing under the laws of the
United States and having its principal office in Los Angeles, California.

RECITALS:

     WHEREAS, the Issuer and the Bank entered into one or more trust indentures, paying agency
agreements, registrar agreements, or other relevant agreements as such are more particularly
described in the Exhibit under the section entitled “Agreements” (individually and collectively
referred to herein as the “Agreements”) under which the Bank was appointed in the capacity or
capacities identified in the Exhibit (individually and collectively the “Capacities”);

     WHEREAS, the Issuer desires to appoint BNYTC as the successor to the Bank in its Capacities
under the Agreements; and

     WHEREAS, BNYTC is willing to accept such appointment as the successor to the Bank in its
Capacities under the Agreements.

     NOW, THEREFORE, the Issuer, the Bank and BNYTC, for and in consideration of the premises
and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, hereby consent and agree as follows:

ARTICLE I

THE BANK

     SECTION 1.01. The Bank hereby resigns from its Capacities under the Agreements.

     SECTION 1.02. The Bank hereby assigns, transfers, delivers and confirms to BNYTC all right,
title and interest of the Bank in its

 Capacity(s) relating to the Agreements.

ARTICLE II

THE ISSUER

     SECTION 2.01. The Issuer hereby accepts the resignation of the Bank from its Capacities under
the Agreements.

     SECTION 2.02. All conditions relating to the appointment of BNYTC as the successor to the Bank
in its Capacities under the Agreements have been met by the Issuer, and

 

 

the Issuer hereby appoints BNYTC to its Capacities under the Agreements with like effect as if
originally named to such Capacities under the Agreements.

ARTICLE III

BNYTC

     SECTION 3.01. BNYTC hereby represents and warrants to the Bank and to the Issuer that BNYTC
is not disqualified to act in the Capacities under the Agreements.

     SECTION 3.62. BNYTC hereby accepts its appointment to the Capacities under the Agreements and
accepts and assumes the rights, powers, duties and obligations of the Bank under the Agreements,
upon the terms and conditions set forth therein, with like effect as if originally named to such
Capacities under the Agreements.

ARTICLE IV

MISCELLANEOUS

     SECTION 4.01. This Agreement and the resignation, appointment and acceptance effected hereby
shall be effective as of 12:01 A.M. local Los Angeles time on the Effective Date set forth in the
Exhibit.

     SECTION 4.02. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York

     SECTION 4.03. This Agreement may be executed in any number of counterparts each of which
shall be an original, but such counterparts shall together constitute but one and the same
instrument,

     SECTION 4.04. The persons signing this Agreement on behalf of the Issuer, BNYTC and the Bank
are duly authorized to execute it on behalf of the each party, and each party warrants that it is
authorized to execute this Agreement and to perform its duties hereunder.

     SECTION 4.05. The Issuer represents that it is the type of entity as identified in the
Exhibit and has been duly organized and is validly existing under the laws of the jurisdiction
and with the principal office as identified in the Exhibit.

-2-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement of Resignation, Appointment
and Acceptance to be duly executed and acknowledged all as of the day and year first above written.

	 	 	 	 	 
	 	Sysco Corporation

 	 
	 	By:  	/s/ Kathy Oates Gisk
 	 
	 	 	Name:  	Kathy Oates Gisk 	 
	 	 	Title V.P. & Assistant Treasurer 	 
	 
	 	Sysco International Co.

 	 
	 	By:  	/s/ Kathy Oates Gisk
 	 
	 	 	Name:  	Kathy Oates Gisk 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	U.S. Bank National Association

 	 
	 	By:  	/s/ Steven A. Finklea
 	 
	 	 	Name:  	Steven A. Finklea 	 
	 	 	Title:  	Vice President 	 
	 
	 	The Bank of New York Trust Company, N.A.

 	 
	 	By:  	/s/ Mauri J. Cowen
 	 
	 	 	Name:  	Mauri J. Cowen 	 
	 	 	Title:  	Vice President 	 

-3-

 

	 	 	 	 	 

EXHIBIT A

Issuer: Sysco Corporation and Sysco International Co. as
outlined below

Effective Date: February 13, 2007

Agreement(s): As
listed below

	 	 	 	 	 	 	 
	 	 	The Bank of	 	Description of	 	 
	 	 	New York’s	 	relevant	 	The Bank of New
	Name/Description of transaction	 	Account Nos.,	 	Agreement & Date	 	York’s Capacity(s)
	 
	SYSCO Corp Notes, 7.25% due 4/15/07

	 	SYSCO07
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar
	 
	SYSCO International, 6.10.% due 6/01/12

	 	SYSCOINTL
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar
	 
	SYSCO Corp Notes, 4.60% due 3/15/14

	 	SYSCO14
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar
	 
	SYSCO Corp Notes, 7.16% due 4/15/27

	 	SYSCO727
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar
	 
	SYSCO Corp Notes, 6.50% due 08/01/28

	 	SYSCO07
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar
	 
	SYSCO Corp Notes, 5.375% due 9/21/35

	 	SYSCO35
	 	Trust Indenture
	 	Trustee, Paying
	 

	 	 	 	 	 	Agent and Registrar

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