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If the form is filed by more than one reporting person, see Instruction 5(b)(v). |
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Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). |
(1) |
Pursuant to the merger of WTI Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of RCG Companies Incorporated, with and into Farequest Holdings, Inc., a Delaware corporation of which Mr. Bercoon is a holder of 50,000 shares of Farequest Common stock, Mr. Bercoon has a right to receive RCG Common shares, RCG Preferred Series B shares, Contingent shares and a portion of a 4% Promissory Note which is payable within one year at RCG's option in either cash or RCG Common shares. Assuming all warrant/option holders convert, it is estimated that Mr. Bercoon's Farequest Common shares will convert at a ratio of 1.7099771. |
(2) |
Series B Preferred Stock shall automatically convert at such time as the stockholders of RCG approve the issuance of Conversion shares. Upon conversion and assuming all warrant/option holders convert, it is estimated that Mr. Bercoon will receive 27,325 shares of RCG Series B Preferred stock whicy may be converted 1:10 into RCG Common stock. |
(3) |
Farequest Warrant and Option holders, of which Mr. Bercoon is holder of 20,000 options, are entitled upon exercise, to receive RCG Common stock and RCG Series B Preferred stock out of a reserved Option/Warrant Escrow Account. The Option/Warrant Escrow Account shall terminate at the earlier of five years or at such time as all options/warrants have been distributed. Assuming all warrant/option holders convert, it is estimated that Mr. Bercoon's Farequest options will convert at 1.7099771 or into an estimated 34,200 shares of RCG Common stock and 10,930 shares of RCG Series B Preferred stock. The RCG Series B Preferred stock shall, upon RCG stockholder approval, convert 1:10 or into 109,299 shares of RCG Common. |