Document:

EX-4.1

 Exhibit 4.1 
 Amendment and Termination of Shareholder Rights Agreement 
 This Amendment
and Termination (this “Amendment and Termination”) of the Rights Agreement (as defined below) is entered into as of May 15, 2013, between Apricus Biosciences, Inc., a Nevada corporation (the
“Company”), and Wells Fargo Bank, N.A., as Rights Agent (“Wells Fargo”). All capitalized terms used herein and not otherwise defined shall having the meaning ascribed to them in the Rights Agreement.

 WITNESSETH: 
 WHEREAS, the Company is party to the Shareholder Rights Agreement, dated as of March 22, 2011 (the “Rights Agreement”) with Wells Fargo, as Rights Agent; 

WHEREAS, the Board of Directors of the Company has determined to terminate the Rights Agreement and, in furtherance thereof, the Company
desires to enter into this Amendment and Termination pursuant to which the Rights Agreement will be amended to provide that (i) the Rights will expire at the Close of Business on May 15, 2013, and (ii) the Rights Agreement will be
terminated upon the expiration of the Rights; and 
 WHEREAS, pursuant to Section 27 of the Rights Agreement, the Company
may, prior to the occurrence of a Section 11(a)(ii) Event, supplement or amend any provision of the Rights Agreement without the approval of any holders of certificates representing shares of common stock of the Company. 

NOW THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:

 1. Amendment to Section 7(a). The first sentence of Section 7(a) of the Rights Agreement is hereby amended
to read as follows: 
 “(a) Subject to Section 7(e) hereof, the registered holder of any Right Certificate may exercise
the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase and the certificate on the reverse side
thereof duly executed, to the Rights Agent at the office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Exercise Price for the total number of one ten-thousandths of a share of Preferred Stock (or
other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercised, at or prior to the earlier of (i) the Close of Business on May 15, 2013 (the “Final Expiration Date”),
(ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) or (iii) the time at which such Rights are exchanged as provided in Section 24 hereof (the earliest of (i),
(ii) or (iii) being herein referred to as the “Expiration Date”). Except as set forth in Section 7(e) hereof and notwithstanding any other provision of this Agreement, any Person who prior to the Distribution Date
becomes a record holder of shares of Common Stock of the Company may exercise all of the rights of a registered holder of a Right Certificate with respect to the Rights associated with such shares of Common Stock of the Company in accordance with
the provisions of this Agreement, as of the date such Person becomes a record holder of shares of Common Stock of the Company.” 
 2. Termination. Upon expiration of the Rights in accordance with the terms of the Rights Agreement, as amended hereby, the Rights Agreement shall terminate and be of no further force or effect
whatsoever without any further action on the part of the Company or the Rights Agent. 
 3. Governing Law. This Amendment
and Termination shall be deemed to be a contract made under the laws of the State of Nevada and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely
within such state. 

 4. Counterparts. This Amendment and Termination may be executed in any number of
counterparts, each of which shall for all purposes be deemed an original, and all of which together shall constitute but one and the same instrument. 
 [Remainder of page intentionally left blank] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment and Termination to be duly
executed as of the day and year first above written. 
  

			
	Apricus Biosciences, Inc.
		
	By:	 	 /s/ Steve Martin

	Name:	 	Steve Martin
	Title:	 	Senior Vice President, Chief Financial Officer
	
	 Wells Fargo Bank, N.A.
 as Rights Agent

		
	By:	 	 /s/ Matthew D. Paseka

	Name:	 	 Matthew D. Paseka

	Title:	 	Vice Presidentex4_9.htm

Exhibit 4.9

 

FIRST AMENDMENT TO

WARRANT NO. 1

This First Amendment to Warrant No. 1 (“First Amendment”) is entered into as of the 28th day of September, 2012 by X-Factor Communications, LLC (“Company”), X-Factor Communications Holdings, Inc. (“Holdings”) and the New Jersey Economic Development Authority (“Authority”), hereinafter, collectively referred to as “Parties”.

WHEREAS, Company executed and delivered to Authority that certain Warrant No. 1, dated July 31, 2009 (the “Original Warrant”) to subscribe for and purchase up to 28,900 units (the “Original Warrant Units”) of the fully paid and nonassessable Series B Participating Preferred Units (“Preferred Units”), “no” par value, of the Company, at a purchase price per unit equal to $4.33 each (“Original Warrant Price”), on or before, 5:00 P.M., Eastern Time, on 10 years from Warrant Date (the “Expiration Date”) in conjunction with a certain $500,000 loan made by the Authority to Company (the “Loan”).  The Loan is evidenced by a Secured Convertible Promissory Note of the same date (the “Original Note”). Capitalized terms used but not defined herein shall have the meaning ascribed to them in the Original Warrant and other Transaction Documents.

WHEREAS, in order to allow time for the Company to change its corporate structure by becoming a subsidiary of a shell holding company whose common stock is quoted on the over-the-counter market, X-Factor Communications Holdings, Inc. (“Holdings”), through a reverse merger evidenced by an Agreement and Plan of Merger dated March 5, 2012, Company requested and the Authority agreed to restructure repayment of the Original Note retroactively beginning January 1, 2012 to allow a three month deferral of principal payments until April 1, 2012 with regular monthly payments of principal plus interest resumed on May 1, 2012. In exchange for such consideration, the Company made a one-time lump sum payment towards principal in the amount of $56,818.20 (representing four months principal at $14,204.55 per month); and consented to the Authority receipt of warrants to purchase 160,414 shares of Holdings’ common stock at a strike price of $0.78 per share.

WHEREAS, as a result of the reverse merger, all issued and outstanding membership units of the Company were transferred to Holdings; and

WHEREAS, it is, therefore, necessary to amend the Original Warrant from a grant of preferred units of the Company to a grant of an equivalent value of shares of common stock of Holdings.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

1.           Line 12 on page 1, cover page of the Original Warrant is modified by deleting “X-Factor Communications, LLC” and replacing it with “X-Factor Communications Holdings, Inc.”.

2.           Line 14 on page 1, cover page of the Original Warrant is modified by deleting “28,900 Preferred Units” and replacing it with “160,414 shares of Common Stock”.

3.           First sentence of the first paragraph on page 1, cover page of the Original Warrant is deleted in its entirety and replaced with:

 

  

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“FOR VALUE RECEIVED, X-FACTOR COMMUNICATIONS HOLDINGS, INC., having an address at 3 Empire Blvd, South Hackensack, New Jersey 07606, a Delaware corporation (the “Company”), hereby certifies that THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY, or its registered transferees, successors or assigns (each person or entity holding all or part of this Warrant being referred to as a “Holder”), is the registered holder of the warrant (the “Warrant”) to subscribe for and purchase of up to 160,414 shares (the “Warrant Shares”) of the fully paid and nonassessable Common Stock (“Common Stock”), “no” par value, of the Company, at a purchase price per share equal to $0.78 each  (the “Warrant  Price”), on or before, 5:00 P.M., Eastern Time, on 10 years from Warrant Date, which is July 31, 2019 (the “Expiration Date”), subject to the provisions and upon the terms and conditions hereinafter set forth; provided, however, that in the event that any portion of this Warrant is unexercised as of the Expiration Date, the terms of Section 2.3 below shall apply.”

4.           The Original Warrant is modified by deleting the term “Warrant Units” and replacing it with “Warrant Shares” through the entire document.

5.           The Original Warrant is modified by deleting the term “Preferred Units” and replacing it with “Common Stock” through the entire document, including Appendix A, Appendix B, and Schedule 1.

6.           The following new article is added as Article 21 to the Original Warrant:

“Article 21. Continuing Obligations. For so long as this Warrant is outstanding, X-Factor Communications, LLC shall continue to comply in all respects with the following provisions of the Loan Agreement whether or not the Loan remains outstanding: Section 6(a)(ii), Section 6(a)(iii), Section 6(a)(iv), Section 6(a)(xii), Section 6(b)(x) and Section 6(b)(xi). Additionally, for so long as this Warrant is outstanding, X-Factor Communications Holdings, Inc. shall continue to comply in all respects with the following provisions of the Corporate Guarantee Agreement whether or not the Loan remains outstanding: Section 9, Section 11 and Rider A, subsections (a), (b), (d) and (e).”

7.           Appendix A “Notice of Exercise” of the Original Warrant is modified as follows:

- Line 1 is modified by deleting “X-Factor Communications, LLC” and replacing it with “X-Factor Communications Holdings, Inc.”;

- Section 1 is modified to read as follows:

“The undersigned hereby elects to purchase 160,414 shares of Common Stock of the Company pursuant to the terms of the attached Warrant”.

8.           Schedule 1 “Investment Representation Statement”, line 2 of the Original Warrant is modified by deleting “X-Factor Communications, LLC” and replacing it with “X-Factor Communications Holdings, Inc.”.

9.           Appendix B “Net Issue Election Notice” of the Original Warrant is modified by deleting “X-Factor Communications, LLC” and replacing it with “X-Factor Communications Holdings, Inc.”.

  

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10.           Except as otherwise provided in this First Amendment, all of the terms, covenants and conditions of the Original Warrant shall remain in full force and effect.

11.           All references to the term “Warrant” and “Transaction Documents” in the Original Warrant and the other Transaction Documents shall be deemed to refer to the Original Warrant, as modified by this First Amendment.

12.           This First Amendment may be executed in multiple counterparts, each of which, when so executed, shall be deemed an original, and all of which shall together constitute one and the same document, and shall be binding on the signatories.

 

[SIGNATURE PAGE FOLLOWS]

 

  

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IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed on their behalf by one of their officers thereunto duly authorized.

 

	WITNESS: 	 	X-FACTOR COMMUNICATIONS, LLC	 
	 	 	 	 	 
	
/s/ Kenneth J. Makow

	 	
By: 

	
/s/ Charles Saracino

	 
	
 

	 	 	
Charles Saracino

	 
	
 

	 	 	
President and CEO

	 
	 	 	 	 	 
	WITNESS: 	 	X-FACTOR COMMUNICATIONS HOLDINGS, INC.	 
	 	 	 	 	 
	/s/ Kenneth J. Makow       	 	
By: 

	/s/ Charles Saracino	 
	 	 	 	Charles Saracino	 
	 	 	 	President and CEO	 

 

	 	Accepted and Agreed:	 
	 	NEW JERSEY ECONOMIC DEVLEOPMENTAUTHORITY	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel Weick	 
	 	 	Daniel Weick	 
	 	 	Director-Finance & Bond Portfolio Management	 

  

 

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