SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 28, 1996
ATC CAPITAL GROUP LTD.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
33-8356-NY
- --------------------------------------------------------------------------------
(Commission File No.)
13-3356966
- --------------------------------------------------------------------------------
(IRS Employer Identification No.)
245 Park Avenue, 40th Fl., New York, NY 10167
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (212) 692-1852
<PAGE>
Item 5. Other Events.
-------------
On June 28, 1996, the Company entered into a consulting agreement with
Chris F. Brown, pursuant to which Mr. Brown will provide the Company with advice
and services in connection with its establishment of strategic alliances with
banks, telecommunications companies, credit card issuers and other related
internet software providers. The agreement provides that in consideration of Mr.
Brown's consulting services, the Company will issue to Mr. Brown 500,000 shares
of its common stock, and a warrant to purchase an additional 500,000 shares of
its common stock, at an exercise price of $4.50 per share, such warrant to be
exercisable at any time until the second anniversary of the consulting
agreement.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(c) Exhibits.
(c)(1) - Consulting Agreement, dated June 28, 1996, between ATC Capital
Group, Ltd. and Chris F. Brown.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ATC CAPITAL GROUP LTD.
By: /s/ Steven A. Saide
-----------------------------------
Steven A. Saide,
Secretary
Date: July 11, 1996
<PAGE>
Exhibit (c)(1)
This CONSULTING AGREEMENT (this "Agreement") is entered into this 28th day
of June, 1996, by and between ATC Capital Group Ltd., a Delaware corporation
("ATC"), and Chris F. Brown ("Consultant").
W I T N E S S E T H :
WHEREAS, ATC recently acquired two licenses to exploit throughout the world
certain technology for use on open networks, including the Internet (the
"Licenses");
WHEREAS, Consultant rendered certain consulting services to ATC in
connection with the acquisition of the Licenses and is willing to continue to
provide consulting services to ATC on the terms and conditions set forth herein;
and
WHEREAS, ATC desires to compensate Consultant for his services rendered to
date and to engage Consultant to provide additional consulting services on the
terms and conditions set forth herein,
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:
1. ATC hereby engages Consultant on a non-exclusive basis for the term
specified in this Agreement to render advice and services as a consultant to ATC
regarding the establishment of strategic alliances throughout the world with
banks, telecommunications companies, credit card issuers and other related
Internet software providers, which services shall also include, when Consultant
shall deem appropriate and feasible, introductions to the foregoing. Consultant
shall provide such services and shall devote such time and attention as in the
consultant's reasonable discretion may be necessary or desirable for the
performance of his duties hereunder as a consultant when called upon to do so by
ATC, provided that (i) ATC shall not require that Consultant's services be
performed at any particular place or at any particular time, (ii) it is
expressly understood and agreed that Consultant's services are of great value to
ATC by reason of the Consultant's prior experience and knowledge and that
telephonic advice and judgements of Consultant are as valuable to ATC and its
subsidiaries as written reports or physical attendance at any particular place
or at any particular time, and (iii) in no event shall Consult be required to
devote more than ten (10) hours per month to the to the performance of his
services hereunder.
2. Consultant may employ sub-contractors who are individual persons to
assist in his duties, and may assign a portion of his compensation hereunder to
such sub-contractors, provided such assignment is made prior to the filing of
the registration statement on Form S-8 referred to in Section 7 hereof.
3. The term of Consultant's engagement hereunder shall commence on the date
hereof and shall terminate 90 days thereafter.
4. In consideration for all of the services heretofore rendered by
Consultant's in connection with the Licenses and to be rendered hereunder by
Consultant, ATC hereby agrees to issue to Consultant, and Consultant hereby
agrees to accept as full payment, (i) 500,000 shares (the "Shares") of par value
$.0002 per share (the "Common Stock"); and (ii) a warrant (the "Warrant") to
purchase 500,000 shares of ATC's Common Stock, at an exercise price of $4.50 per
share, exercisable at any time and from time to time after issuance until the
second anniversary thereof. The Shares and Warrant shall be delivered to
Consultant as soon as practicable following the execution of this Agreement.
5. Subject to the provisions of Section 7 hereof, the Shares, the Warrant
and the shares of Common Stock issuable upon exercise of the Warrant (the
"Underlying Shares") will not have been registered under the Securities Act of
1933, as amended (the "Act") and may not be offered, sold or otherwise
transferred unless registered under the Act or pursuant to an available
exemption. The certificates representing the Shares and the Underlying Shares
and the Warrant will contain the customary restrictive legend.
6. Notwithstanding anything to the contrary contained herein, Consultant
agrees that during each ninety (90) day period commencing on the date hereof, he
will not offer for sale or sell (which shall exclude any assignment as provided
in Section 2 hereof) more than an aggregate of 25% of the Shares and 25% of the
Underlying Shares plus any amount of the Shares and Underlying Shares that
Consultant was permitted hereunder to sell during the prior ninety day period or
periods but had not yet sold. If Consultant shall have assigned any of his
compensation hereunder as permitted under Section 2 hereof, then the foregoing
restrictions shall apply to sales made or to be made in the aggregate by
Consultant and such assignee(s).
7. On or before August 1, 1996, ATC agrees, subject to applicable law, to
file with the Securities and Exchange Commission a registration statement on
Form S-8 so as to permit the public offer and sale of the Shares and the
Underlying Shares. ATC will not be required to take any action with respect to
or make any filing under state "Blue sky" laws.
8. The parties hereto intend that Consultant will be an independent
contractor and not an employee of ATC. Therefore none of the benefits that may
be provided by ATC to its employees shall be available from ATC to Consultant.
The parties understand that it shall be Consultant's responsibility to provide
for all unemployment and other taxes, including withholding and social security,
and all estimated taxes, business licenses and insurance (including worker's
compensation insurance and public liability insurance) arising out of or
relating to this agreement.
9. Any notices or other communications or documents to be given or
permitted hereunder to any party shall be mailed first class, postage prepaid,
and if to ATC addressed to:
ATC Capital Group Ltd.
c/o Bryan Cave LLP
245 Park Avenue
New York, NY 10167
and if to Consultant, addressed to:
Chris F. Brown
712 Fifth Avenue, 9th Fl.
New York, NY 10019
10. If anyone or more of the provisions contained in this Agreement
shall, for any reason, be expressly held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Agreement, and this Agreement shall be construed as
if such invalid, illegal or unenforceable provision had never been contained
herein.
11. This Agreement shall be binding on Consultant's heirs, legal
representatives and assigns, and shall inure to the benefit of any successors
and assigns of ATC.
12. Any waiver of a right under or breach of a provision of this Agreement
shall not be a waiver or any other rights or subsequent breach of the same or
other provisions of this Agreement.
13. This Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of New York without regard to its
conflicts of laws principles.
14. This Agreement supersedes all previous agreements between the parties
with respect to the subject matter hereof. This Agreement constitutes the entire
agreement between the parties hereto and there are no understandings,
representations or warranties of any kind whatsoever except as herein set forth.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
duplicate to be effective as of the date written above.
ATC CAPITAL GROUP LTD.
By: /s/ Dennis Charter
------------------------------------
Dennis Charter
Chairman
/s/ Chris F. Brown
----------------------------------------
Chris F. Brown
