EXHIBIT 10(q)
 
THIS WARRANT AND THE SHARES OF COMMON STOCK PURCHASABLE HEREUNDER HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  SUCH WARRANTS AND
SHARES MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO SUCH SECURITIES
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
 
Power Sports Factory, Inc.
 
COMMON STOCK PURCHASE WARRANT
 
May 25th, 2010
 
Holder:  Juggernaut Financial Group, LLC
 
Number of Shares of Common Stock: 3,000,000 at $0.03
 
FOR VALUE RECEIVED, the undersigned, Power Sports Factory, Inc., a Minnesota
corporation (the “Company”), hereby certifies that Juggernaut Financial Group,
LLC, a Florida limited liability company, or its registered assigns (the
“Holder”), is entitled to purchase from the Company up to three million
(3,000,000) shares of common stock, $.001 par value per share, of the Company,
subject to adjustment  as provided in this Warrant (the “Warrant Shares”).
 
Warrant to Purchase Common Stock.  The Holder shall have the right to purchase
all or any part of the Warrant Shares as follows:
 
●  3,000,000 (three million) shares at an exercise price of $0.03
 
Right to Exercise Warrants.
 
(a)  The rights represented by this Warrant may be exercised for any number of
Warrant Shares represented by this Warrant at any time from the date hereof
until May 25th, 2012.
 
(b)  Notwithstanding the foregoing, in the event of a proposed complete
liquidation of the Company or a proposed merger, reorganization, or
consolidation of the Company with any other corporation in which the Company is
not the surviving corporation or the Company becomes a wholly-owned subsidiary
of another corporation, or the Company proposes to sell all or substantially all
of its assets (each such event referred to herein as a "Corporate Event"), this
Warrant shall remain exercisable in full. The Company shall provide written
notice of the proposed Corporate Event to Holder at least thirty-five (35) days
prior to the occurrence of any such Corporate Event, describing all material
terms of the proposed Corporate Event and providing the opportunity to Holder to
review all relevant documents in connection with the Corporate Event.
 
 
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Exercise of Warrants.
 
(a)  Subject to Paragraph 2 and the other provisions of this Warrant, the rights
represented by this Warrant may be exercised at any time by (i) delivery of the
Election to Purchase Form attached hereto and properly executed, at the
principal executive office of the Company (or such other office or agency of the
Company as it may designate by notice in writing to Holder at the address of
Holder appearing on the books of the Company) and (ii) payment to the Company of
the Exercise Price for the number of Warrant Shares specified in the above
mentioned purchase form together with applicable stock transfer taxes, if any.
This Warrant shall be deemed to have been exercised immediately prior to the
close of business on the date the Warrant is surrendered and payment is made in
accordance with the foregoing provisions of this Paragraph 3, and the person or
persons in whose name or names the certificates for the Warrant Shares shall be
issuable upon such exercise shall become the holder or holders of record of such
Warrant Shares at that time and date. Once all or any portions of this Warrant
is exercised and accepted by the Company, all transactions are final and
irrevocable.
 
(b)  Notwithstanding anything herein to the contrary, the Holder shall not be
required to physically surrender this Warrant to the Company until the Holder
has purchased all of the Warrant Shares available hereunder and the Warrant has
been exercised in full, in which case, the Holder shall surrender this Warrant
to the Company for cancellation within 3 Business Days of the date the final
Notice of Exercise is delivered to the Company. Partial exercises of this
Warrant resulting in purchases of a portion of the total number of Warrant
Shares available hereunder shall have the effect of lowering the outstanding
number of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the Company shall
maintain records showing the number of Warrant Shares purchased and the date of
such purchases. The Company shall deliver any objection to any Notice of
Exercise Form within 1 Business Day of receipt of such notice.  The Holder and
any assignee, by acceptance of this Warrant, acknowledge and agree that, by
reason of the provisions of this paragraph, following the purchase of a portion
of the Warrant Shares hereunder, the number of Warrant Shares available for
purchase hereunder at any given time may be  less than the amount stated on the
face hereof.
 
(c)  Certificates for Warrant Shares purchased hereunder shall be transmitted by
the transfer agent of the Company to the Holder by crediting the account of the
Holder’s prime broker with the Depository Trust Company through its Deposit
Withdrawal Agent Commission (“DWAC”) system if the Company is a participant in
such system, and otherwise by physical delivery to the address specified by the
Holder in the Election to Purchase Form within 3 Business Days from the delivery
to the Company of the Election to Purchase Form, surrender of this Warrant (if
required) and payment of the aggregate Exercise Price as set forth above.
 
(d)  No fractional shares or scrip representing fractional shares shall be
issued upon the exercise of this Warrant. As to any fraction of a share which
Holder would otherwise be entitled to purchase upon such exercise, the Company
shall at its election, either pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price or
round up to the next whole share.
 
Assignment. This Warrant may be transferred, sold, assigned or hypothecated only
pursuant to a valid and effective registration statement or if the Company has
received from its counsel a written opinion to the effect that registration of
the Warrant or the Warrant Shares underlying the Warrant is not necessary in
connection with such transfer, sale, assignment or hypothecation. Any such
assignment shall be effected by Holder by (i) executing the form of assignment
attached hereto; (ii) surrendering the Warrant for cancellation at the office or
agency of the Company referred to in Paragraph 4 hereof, accompanied by the
opinion of counsel referred to above; and (iii) delivery to the Company of a
statement by the transferee Holder (in a form acceptable to the Company and its
counsel) that such Warrant is being acquired by such Holder for investment and
not with a view to its distribution or resale; whereupon the Company shall
issue, in the name or names specified by Holder (including Holder), new Warrants
representing in the aggregate rights to purchase the same number of Warrant
Shares as are purchasable under the Warrant surrendered. The term “Holder” shall
be deemed to include any person to whom this Warrant is transferred in
accordance with the terms herein. Any Warrants assigned shall be subject to the
provisions of this Warrant.
 
 
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Common Stock. The Company covenants and agrees that all the Warrant Shares
issuable upon exercise hereof will, upon issuance, be duly and validly issued,
fully paid and non-assessable and no personal liability will attach to the
holder thereof. The Company further covenants and agrees that, during the
periods within which this Warrant may be exercised, the Company will at all
times have authorized and reserved a sufficient number of shares of the
Company’s common stock for issuance upon exercise of this Warrant and all other
Warrants.  The Company shall cause its counsel to issue a legal opinion, in a
form suitable to the Holder, to the Company’s transfer agent instructing the
transfer agent to remove all restrictive legends and applicable stop transfer
instructions, and the Company shall deliver such executed and undated legal
opinion to the Holder simultaneously with the execution of this Warrant, and the
Holder shall be entitled and authorized to date such opinion in the event it
elects to transfer any of the Warrant Shares in accordance with Rule 144 of the
Securities Act.  The Company further covenants to provide any such future legal
opinions, in a form suitable to the Holder, if requested by the Holder to effect
the removal of any legend or stop transfer instruction with respect to the sale
of any of the Warrant Shares.
 
No Stockholder Rights.  This Warrant shall not entitle Holder to any voting
rights or other rights as a shareholder of the Company.
 
Adjustment of Rights. In the event that the outstanding shares of common stock
of the Company are at any time changed into or exchanged for a different number
or kind of share or other security of the Company or of another corporation
through reorganization, merger, consolidation, liquidation, or recapitalization,
appropriate adjustments in the number and kind of such securities then subject
to this Warrant shall be made effective as of the date of such occurrence so
that the position of Holder upon exercise will be the same as it would have been
had it owned immediately prior to the occurrence of such events the Warrant
Shares subject to this Warrant and so that the Holder shall be entitled to
receive upon exercise of the Warrant the kind and amount of securities and
property (including cash) which would have been received by the Holder had the
Warrant been exercised.  If the Company at any time subdivides (by any stock
split, stock dividend, recapitalization or otherwise) its outstanding common
stock into a greater number of shares of common stock, the number of the Warrant
Shares in effect immediately prior to such subdivision will be proportionately
increased. If the Company at any time combines (by reverse stock split or
otherwise) its outstanding shares of common stock, the number of the Warrant
Shares in effect immediately prior to such combination will be proportionately
decreased. Such adjustment shall be made successively whenever any event listed
above shall occur and the Company will notify the Holder of the Warrant of each
such adjustment.
 
Notices.  All notices, requests, demands and other communications under or in
respect of this Warrant or any transactions hereunder shall be in writing (which
may include telegraphic or telecopied communication) and shall be personally
delivered or mailed (by prepaid registered or certified mail, return receipt
requested), sent by prepaid recognized overnight courier service, or telegraphed
or telecopied by facsimile transmission to the applicable party at its address
or telecopier number indicated below.
 
If to the Holder:
 
Juggernaut Financial Group, LLC
37 North Orange Avenue, Suite 500
Orlando, FL  32801
Attention:  Gabriel Klein
Fax:  (407) 926-6607

 
If to the Company:
 
Power Sports Factory, Inc.
300 Walnut Street
Philadelphia, PA 19106
Attention: Shawn Landgraf, CEO
Fax:  (267) 546-9074

 
 
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or, as to each party, at such other address or telecopier number as shall be
designated by such party in a written notice to the other party delivered as
aforesaid.  All such notices, requests, demands and other communications shall
be deemed given (a) when personally delivered, (b) three (3) Business Days after
being deposited in the mails with postage prepaid (by registered or certified
mail, return receipt requested), (c) one (1) Business Day after being delivered
to the telegraph company or overnight courier service, if prepaid and sent
overnight delivery, addressed as aforesaid and with all charges prepaid or
billed to the account of the sender, or (d) when sent by facsimile transmission
to a telecopier number designated by such addressee.  “Business Day” shall mean
a day other than (a) a Saturday, (b) a Sunday, or (c)  a day on which banking
institutions in the State of California are authorized or required by law or
executive order to close.
 
Governing Law.  This Warrant shall be governed by and construed in accordance
with the internal laws of the State of Florida, without regard for its conflict
of laws rules.
 
Exchange and Replacement of Warrant.  This Warrant is exchangeable without
expense, upon the surrender hereof by the registered Holder at the principal
office of the Company, for a new Warrant of like tenor and date representing in
the aggregate the right to purchase the same number of Warrant Shares as are
purchasable hereunder in such denominations as shall be designated by the Holder
hereof at the time of such surrender.  Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant, and, in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to the Company, and return and
cancellation of this Warrant, if mutilated, the Company will make and deliver a
new Warrant of like tenor, in lieu of this Warrant.
 
Severability.  If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from the
Warrant and the balance of the Warrant shall be interpreted as if such provision
were so excluded and shall be enforceable in accordance with its terms.
 
Successors.  All of the covenants, agreements, representations and warranties
contained in this Warrant shall bind the parties hereto and their respective
heirs, executors, administrators, distributes, successors and assigns.
 
Amendment.  This Warrant may only be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.
 
IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
authorized officer and to be dated as of the date set forth above.
 

  Power Sports Factory, Inc., a Minnesota corporation          
 
By:
        Shawn Landgraf, CEO

 
 
 
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ELECTION TO PURCHASE
 
 

Dated:                                                                         ,
        TO:   POWER SPORTS FACTORY, INC.  

 
The registered holder of the attached Warrant as named below (the “Holder”)
hereby subscribes for _______ shares of the Common Stock of Power Sports
Factory, Inc., a Minnesota corporation, covered by the attached Warrant and
tenders herewith payment of the exercise price in full, together with all
applicable transfer taxes, if any.
 
Please issue a certificate or certificates representing said Warrant Shares in
the name of the undersigned or in such other name as is specified below:

______________________________                                                                           

The Warrant Shares shall be delivered to the following DWAC Account Number or by
physical delivery of a certificate to:

_______________________________

_______________________________
 
_______________________________
 

 
[SIGNATURE OF HOLDER]

Name of Holder:
_______________________________________________________________________________________________

Signature of Authorized Signatory of Holder:
________________________________________________________________________

Name of Authorized Signatory:
___________________________________________________________________________________

Title of authorized Signatory:
___________________________________________________________________________________________________________

Date:
______________________________________________________________________________________________________

 
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TRANSFER OF WARRANT FORM
 
For value received _______________________ hereby sells, assigns and transfers
unto _________________________ the right to purchase _______ shares of Common
Stock, $.001 par value per share, of Power Sports Factory, Inc., a Minnesota
corporation, which rights are represented by the attached Warrant, and does
hereby irrevocably constitute and appoint ________________ attorney to transfer
said rights on the books of such corporation.

 Dated:  
,
      In the Presence of

 
[SIGNATURE OF HOLDER]

Name of Holder:
_______________________________________________________________________________________________

Signature of Authorized Signatory of Holder:
________________________________________________________________________

Name of Authorized Signatory:
___________________________________________________________________________________

Title of authorized Signatory:
___________________________________________________________________________________________________________
 
NOTE:  The signature to this Transfer of Warrant Form must correspond with the
name as it appears on the face of the Warrant, without alteration or enlargement
or any change whatsoever.  Officers of corporations and those acting in a
fiduciary or other representative capacity should file proper evidence of
authority to assign the foregoing Warrant.
 
 
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CASHLESS EXERCISE FORM
 
(To be executed upon partial or full
exercise of Warrant pursuant to Paragraph 4 of the Warrant)
 
The undersigned hereby irrevocably elects to surrender ____________ shares of
Common Stock of Power Sports Factory, Inc., a Minnesota corporation, purchasable
under the Warrant for _____ shares of Common Stock issuable in exchange therefor
pursuant to the Cashless Exercise provisions of the within Warrants, as provided
for in Paragraph 4 of such Warrant.
 
Please issue a certificate or certificates for such Common Stock in the name of,
and pay cash for fractional shares in the name of:
 
(Please print name, address, and social security number/tax identification
number:)
 
and, if said number of shares of Common Stock shall not be all the shares of
Common Stock purchasable thereunder, that a new Warrant for the balance
remaining of the shares of Common Stock purchasable under the within Warrant be
registered in the name of the undersigned Holder or its transferee as below
indicated and delivered to the address stated below.
 
Dated:  ______________

By:_________________________________
                 (Signature of Registered Holder)
 
Name of Warrant Holder
or
transferee: ________________________________________________________________________________________________________________________
(Please print)
Address: ___________________________________________________________________________________________________________________________                                                                                                                                          
 
Signature: __________________________________________________________________________________________________________________________
 
NOTICE:
The signature on this form must correspond with the name as written upon the
face of this Warrant in every particular, without alteration or enlargement or
any change whatsoever.

 
 
 
 
 
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