Document:

ex101.htm

    Exhibit 10.1

    

     

    FIRST
AMENDMENT

    TO
LOAN AND SECURITY AGREEMENT

     

    This
First Amendment to Loan and Security Agreement (this “Amendment”)
is dated as of May 19, 2009 and is between Anchor Funding Services, LLC (“Borrower”),
Textron Financial Corporation (acting in the capacity as lender as described in
the Loan Agreement defined below (in such capacity, “Lender”)) and Textron Financial
Corporation (acting in the capacity as administrative agent as described in the
Loan Agreement defined below (in such capacity, “Agent”)).

     

    Borrower,
Lender and Agent are party to that certain Loan and Security Agreement, dated as
of November 21, 2008 (as amended, restated, supplemented, or otherwise modified
from time to time, the “Loan
Agreement”);

     

    Borrower
has requested that Agent and Lender amend the Loan Agreement.

     

    Agent and
Lender are willing to provide the amendments subject to and upon the terms and
conditions set forth herein.

     

    In
consideration of the premises and the mutual covenants set forth herein and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto covenant and agree as
follows:

     

    1.  DEFINITIONS

     

    .  Capitalized terms
used herein and not otherwise defined herein shall have the meanings ascribed to
them in the Loan Agreement, as amended hereby.

     

    2.  AMENDMENTS TO LOAN
AGREEMENT

    .

     

    (a) The
“Definitions” section of the Loan Agreement is hereby amended by inserting the
following new definition in appropriate alphabetical order:

     

    “Funded Debt” of any
Person means, without duplication, the following: (a) all obligations for Money
Borrowed, (b) all obligations (including, during the non-cancellable term of any
lease in the nature of a title retention agreement, all future payment
obligations under such lease discounted to their present value in accordance
with GAAP) secured by any Lien to which any property or asset owned or held by
such Person is subject, whether or not the obligation secured thereby shall have
been assumed by such Person, (c) all obligations of other Persons which such
Person has guaranteed, including, but not limited to, all obligations of such
Person consisting of recourse liability with respect to accounts receivable sold
or otherwise disposed of by such Person and (d) in the case of Borrower (without
duplication) all Obligations under the Loan Documents.

     

     

    
      
        
        

      

      
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    (b) The
“Definitions” section of the Loan Agreement is hereby amended by amending and
restating the definition of “Adjusted Tangible Net Worth” as
follows:

     

    “Adjusted Tangible Net
Worth” means, with respect to Borrower, on a consolidated basis (a)
stockholder’s equity determined in accordance with GAAP, plus (b) the outstanding
principal balance of Subordinated Indebtedness, plus (c) the amount of the
non-cash preferred stock dividend accrual, minus (d) Intangible Assets
including but not limited to all unamortized debt discount and expense,
unamortized research and development expense, unamortized deferred charges,
goodwill, intellectual property, unamortized excess of investments in
subsidiaries over equity  at dates of acquisition, deferred taxes,
deferred financing costs and all similar items which should properly be treated
as intangibles in accordance with GAAP, minus (e) all loans or
advances to Affiliates of Borrower.

     

    (c) The
“Definitions” section of the Loan Agreement is hereby amended by amending and
restating the definition of “Initial Term” as follows:

     

    “Initial Term” means
the period commencing on the Agreement Date and ending on December 31,
2009.

     

    (d) The
“Definitions” section of the Loan Agreement is hereby amended by amending and
restating the definition of “Leverage Ratio” as follows:

     

    “Leverage Ratio”
means, as of the last day of each calendar month, the ratio of (a)(i) Funded
Debt of Parent and its Subsidiaries as of such day on a consolidated basis,
minus (ii) Subordinated
Indebtedness, if any, of Borrower as of such day to (b)(i) Adjusted Tangible Net
Worth of Parent and its Subsidiaries as of such day on a consolidated basis,
plus (ii) Subordinated
Indebtedness of Borrower as of such day.

     

    (e) The
“Definitions” section of the Loan Agreement is hereby amended by amending and
restating the definition of “Maximum Credit” as follows:

     

    “Maximum Credit” means
the amount of $5,000,000.

     

    (f) The
“Definitions” section of the Loan Agreement is hereby amended by deleting the
definition of “Maximum Credit Increase Conditions” and the definition of
“Maximum Credit Increase Notice.”

     

    (g) The
“Definitions” section of the Loan Agreement is hereby amended by amending and
restating the definition of “Termination Date” as follows:

     

    “Termination Date”
means the earliest to occur of: (a) the end of the Initial Term, (b) such date
as the Obligations shall have been accelerated pursuant to the provisions of
Section 10.2 or
(c) such date as all Obligations shall have been indefeasibly paid in full and
the Revolving Credit Facility shall have been terminated.

     

    (h) Section
1.1(c) of the Loan Agreement is hereby amended by amending and restating it in
its entirety as follows:

     

     

     

    
      
        
        

      

      
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    [INTENTIONALLY
OMITTED].

     

    (i) Section
2.1 of the Loan Agreement is hereby amended by amending and restating it in its
entirety as follows:

     

    Closing Date and Post
Termination Date Fees. On the Closing Date, Borrower shall pay to Agent a
fee (the “Closing
Fee”) equal to $50,000, which fee shall be non-refundable in any
circumstance and shall be fully earned by Agent on the Closing Date.
Additionally, if all Obligations have not been indefeasibly paid in full on or
before the end of the Initial Term, then on January 1, 2010 Borrower shall pay
to Agent a fee equal to $50,000, which fee shall be non-refundable in any
circumstance and shall be fully earned by Agent at the end of the Initial
Term.

     

    (j) Section
2.2 of the Loan Agreement is hereby amended by amending and restating it in its
entirety as follows:

     

    Unused Line
Fee.  Commencing January 31, 2009 and on the last Business Day
of each calendar month thereafter Borrower shall pay to Agent, for the benefit
of Lenders, the Unused Line Fee due in respect of such calendar month then
ending, which Unused Line Fee shall accrue from and include January 1, 2009,
until but not including, the Termination Date.

     

    (k) Section
8.6 of the Loan Agreement is hereby amended by amending and restating it in its
entirety as follows:

     

    (a)           Borrower
shall not permit the Leverage Ratio to be greater than (i) .5 to 1.0 as of the
last day of its 2008 Fiscal Year and (ii) 2.35 to 1.0 as of the last day of each
Fiscal Quarter thereafter.

     

    (b)           Borrower
shall not permit Adjusted Tangible Net Worth to be less than $2,500,000 as of
the last day of its 2008 Fiscal Year and as of the last day of each Fiscal
Quarter thereafter.

     

    (c)           Borrower
shall not permit EBITDA to be less than a negative $300,000 as of the last day
of each Fiscal Quarter.

     

    (d)           Borrower
shall not permit Availability at any time to be less than five percent (5%) of
the amount indicated on the most recent Borrowing Base Certificate (inclusive of
all fees, charges, expenses and all Liabilities and other payables are current
within ordinary payment terms).

     

    All
amounts referenced in this Section 8.6 shall be determined in accordance with
GAAP.

     

    3.  LENDER
CONSENT TO PORTFOLIO PURCHASES.Notwithstanding anything to the contrary
in Section 8.9 of the Loan Agreement, Lender hereby consents to Borrower
purchasing all or any substantial part of the assets of any Person if such
assets consist solely of Purchased Accounts.

     

     

     

    
      
        
        

      

      
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    4.  REPRESENTATIONS AND
WARRANTIES

     

    .  Borrower hereby
represents and warrants to Lender and Agent as follows:

     

    (a) Borrower
has the requisite power and authority to execute and deliver this Amendment and
the authority to perform its obligations hereunder and under the Loan Documents
to which it is a party.  The execution, delivery, and performance of
this Amendment and the performance by Borrower of each Loan Document to which it
is a party (i) have been duly approved by all necessary action and no other
proceedings are necessary to consummate such transactions; and (ii) are not in
contravention of (A) any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court or governmental
authority binding on it, (B) the terms of its organizational documents, or (C)
any provision of any material contract or undertaking to which it is a party or
by which any of its properties may be bound or affected;

     

    (b) This
Amendment has been duly executed and delivered by Borrower.  This
Amendment, upon its effectiveness in accordance with the terms hereof, and each
Loan Document to which Borrower is a party is the legal, valid and binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, and is in full force and effect except as such validity and
enforceability is limited by the laws of insolvency and bankruptcy, laws
affecting creditors’ rights and principles of equity applicable
hereto;

     

    (c) No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated herein
has been issued and remains in force by any Governmental Authority against
Borrower;

     

    (d) Borrower
does not have any actual or potential claim or cause of action against Lender or
Agent or both for any actions or events occurring on or before the date hereof,
and Borrower hereby waives and releases any right to assert same;

     

    (e) No
Default or Event of Default has occurred and is continuing on the date hereof or
as of the date of the effectiveness of this Amendment after giving effect to
this Amendment; and

     

    (f) The
representations and warranties in the Loan Agreement and the other Loan
Documents are true and correct in all material respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date).

     

    5.  RELEASE OF
CLAIMS

     

    . To induce Agent and Lender
to enter into this Agreement, Borrower hereby waives, remises, acquits, releases
and forever discharges Agent and Lender and their respective predecessors,
successors, assigns, affiliates, shareholders, directors, officers, directors,
accountants, attorneys, employees, agents and representatives of, from and
against any and all claims, actions, causes of action, suits, proceedings,
contracts, judgments, damages, accounts, reckonings, executions, and liabilities
whatsoever of every name and nature, whether known or unknown, whether or not
well founded in fact or in law, and whether in law, at equity or otherwise,
which Borrower ever had or now has for or by reason of any matter, cause or
anything whatsoever to this date relating to or arising out of any of the Loan
Documents or otherwise, including, without limitation, any actual or alleged act
or omission of or on behalf of Agent or Lender with respect to the Loan
Documents and any security interest, liens or collateral in connection
therewith, or the enforcement of any of Agent’s or any Lender’s rights or
remedies thereunder.  Borrower represents and warrants to Agent and
Lender that Borrower has not transferred or assigned to any Person any claim
that Borrower ever had or claimed to have against Agent or
Lender.  The terms of this Section shall survive the termination of
the Loan Documents.

     

     

    
      
        
        

      

      
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    6.      CONDITIONS PRECEDENT TO THIS
AMENDMENT

     

    .  Upon the
satisfaction of each of the following conditions precedent to the effectiveness
of this Amendment and each and every provision hereof, this Amendment will be
effective as of March 31, 2009:

     

    (a) Agent
shall have received this Amendment, duly executed by Borrower and acknowledged
by Guarantors, and the same shall be in full force and effect;

     

    (b) The
representations and warranties in the Loan Agreement and the other Loan
Documents shall be true and correct in all material respects on and as of the
date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

     

    (c) No
Default or Event of Default shall have occurred and be continuing as of the date
of the effectiveness of this Amendment after giving effect to this Amendment;
and

     

    (d) No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated herein
shall have been issued and remain in force by any Governmental Authority against
Borrower.

     

    7.

     

    6.  CONSTRUCTION

     

    .  THIS AMENDMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
RHODE ISLAND, WITHOUT REFERENCE TO APPLICABLE CONFLICT OF LAWS
PRINCIPLES.

     

    8.  ENTIRE AMENDMENT; EFFECT OF
AMENDMENT

     

    .  This Amendment,
and terms and provisions hereof, constitute the entire agreement among the
parties pertaining to the subject matter hereof and supersedes any and all prior
or contemporaneous amendments relating to the subject matter hereof. Except for
the amendments expressly set forth in Section 2
hereof, the Loan Agreement and other Loan Documents shall remain unchanged and
in full force and effect. Except as expressly set forth herein, the execution,
delivery, and performance of this Amendment shall not operate as a waiver of or
as an amendment of any right, power, or remedy of the Agent or Lender or both as
in effect prior to the date hereof.  The amendments set forth herein
are limited to the specifics hereof, shall not apply with respect to any facts
or occurrences other than those on which the same are based, shall not excuse
future non-compliance with the Loan Agreement, and shall not operate as a
consent to any further amendment or other matter, under the Loan
Documents.  To the extent any terms or provisions of this Amendment
conflict with those of the Loan Agreement or other Loan Documents, the terms and
provisions of this Amendment shall control.  This Amendment is a Loan
Document.

     

     

    
      
        
        

      

      
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    9.  COUNTERPARTS; TELEFACSIMILE
EXECUTION

     

    .  This Amendment
may be executed in any number of counterparts, all of which taken together shall
constitute one and the same instrument and any of the parties hereto may execute
this Amendment by signing any such counterpart.  Delivery of an
executed counterpart of this Amendment by telefacsimile shall be equally as
effective as delivery of an original executed counterpart of this
Amendment.  Any party delivering an executed counterpart of this
Amendment by telefacsimile also shall deliver an original executed counterpart
of this Amendment, but the failure to deliver an original executed counterpart
shall not affect the validity, enforceability, and binding effect of this
Amendment.

     

    10.    NO
NOVATION.  This Amendment is
not intended to be, nor shall it be construed to create, a novation or accord or
satisfaction, and the Loan Agreement as herein modified shall continue in full
force and effect.

     

    11.    WAIVER OF
JURY TRIAL.  THE PARTIES
HERETO HEREBY WAIVE THEIR RIGHT TO TRIAL BY JURY OF ANY MATTER ARISING OUT OF OR
RELATING TO THIS AMENDMENT OR THE SUBJECT MATTER HEREOF.

     

    12.  MISCELLANEOUS

     

    .

     

    (a) Upon the
effectiveness of this Amendment, each reference in the Loan Agreement to “this
Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to
the Loan Agreement shall mean and refer to the Loan Agreement as amended by this
Amendment.

     

    (b) Upon the
effectiveness of this Amendment, each reference in the Loan Documents to the
“Loan Agreement”, “thereunder”, “therein”, “thereof” or words of like import
referring to the Loan Agreement shall mean and refer to the Loan Agreement as
amended by this Amendment.

     

    IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed and
delivered as of the date first written above.

     

    
      	
              BORROWER:

            	
              ANCHOR
      FUNDING SERVICES, LLC

               

               

            
	 
      	 
      
	 
      	
              By:

            	
              ___________________________

            
	 
      	
              Print
      Name:

            	
              ___________________________

            
	 
      	
              Title:

            	
              ___________________________

            

    

    

    
      
        	
                LENDER:

              	
                TEXTRON
      FINANCIAL CORPORATION

                 

                 

              
	 
      	 
      
	 
      	
                By:

              	
                ___________________________

              
	 
      	
                Print
      Name:

              	
                ___________________________

              
	 	Title:	___________________________
	 
      	
                                       
      

              

      

    

    

     

     

    
      
        
        

      

      
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    ACKNOWLEDGEMENT
OF GUARANTORS

    

               The
undersigned guarantors acknowledge that Agent and Lender have no obligation to
provide them with notice of, or to obtain their consent to, the terms of the
foregoing.  The undersigned guarantors nevertheless
(i) acknowledge and agree to the terms and conditions of this Amendment;
(ii) acknowledge that their guarantees remain fully valid, binding, and
enforceable; and (iii) waive any and all defenses, claims, counterclaims,
and offsets which they may have against Agent or Lender or both through the date
of this Amendment.

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  AGREED
      AND ACKNOWLEDGED:

                                                	 
      	 
      
	 
      	 
      	 
      
	
                                                  By:

                                                	 
      	
                                                  Witness:

                                                
	
                                                  Print
      Name: Morry Rubin 

                                                	 
      	
                                                  Print
      Name:

                                                
	 
      	 
      	 
      
	
                                                  By:  

                                                	 
      	
                                                  Witness:

                                                
	
                                                  Print
      Name: Brad Bernstein

                                                	 
      	
                                                  Print
      Name:

                                                
	 
      	 
      	 
      
	 	 	 
	ANCHOR FUNDING SERVICES,
      INC.	 	 
	 	 	 
	By:  	 	Witness:
	Print
      Name:  	 	Print
      Name:
	Print
      Title:	 	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      

       

    

                                                          

                                                                                                   

    

    

                                                        

                                                                                                    

    

    7Unassociated Document

    Exhibit
4.1

    Solar
Energy Initiatives, Inc.

     

    THIS
WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT BEEN
REGIS­TERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  NEITHER
THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED IN THE
ABSENCE OF AN EFFECTIVE REGISTRA­TION STATEMENT FOR SUCH SECURITIES UNDER
SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE, CUSTOMARY FOR
OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS, THAT REGISTRATION IS NOT
REQUIRED UNDER SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR REGULATION S
UNDER SUCH ACT.

     

    Right to
Purchase [insert] Shares of Common Stock, par value $0.001 per
share

     

     

    STOCK
PURCHASE WARRANT

     

    THIS CERTIFIES THAT, for value
received, [insert name]
or his/her registered assigns, is entitled to purchase from Solar Energy Initiatives,
Inc., a Delaware corporation (the “Company”), at any time or from time to
time during the period specified in Paragraph 2 hereof, [insert number] fully
paid and nonassessable shares of the Company’s Common Stock, par value $0.001
per share (the “Common Stock”), at an exercise price per share equal to $0.60
(the “Exercise Price”).  The term “Warrant Shares,” as used herein,
refers to the shares of Common Stock purchasable hereunder.

     

    This
Warrant is subject to the following terms, provisions, and
conditions:

     

    1. Manner of Exercise; Issuance
of Certificates; Payment for Shares.

     

    Subject
to the provisions hereof, this Warrant may be exercised by the holder hereof, in
whole or in part, by the surrender of this Warrant, together with a completed
exercise agreement in the form attached hereto (the “Exercise Agreement”), to
the Company during normal business hours on any business day at the Company’s
principal executive offices (or such other office or agency of the Company as it
may designate by notice to the holder hereof), and upon payment to the Company
in cash, by certified or official bank check or by wire transfer for the account
of the Company of the Exercise Price for the Warrant Shares specified in the
Exercise Agreement.  The Warrant Shares so purchased shall be deemed
to be issued to the holder hereof or such holder’s designee, as the record owner
of such shares, as of the close of business on the date on which this Warrant
shall have been surrendered, the completed Exercise Agreement shall have been
delivered, and payment shall have been made for such shares as set forth
above.  Certificates for the Warrant Shares so purchased, representing
the aggregate number of shares specified in the Exercise Agreement, shall be
delivered to the holder hereof within a reasonable time, not exceeding ten (10)
business days, after this Warrant shall have been so exercised.  If
this Warrant shall have been exercised only in part, then, unless this Warrant
has expired, the Company shall, at its expense, at the time of delivery of such
certificates, deliver to the holder a new Warrant representing the number of
shares with respect to which this Warrant shall not then have been
exercised.

     

     

    
      
         

      

      
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    2. Period of
Exercise.

     

    This
Warrant is exercisable at any time or from time to time on or after the date on
which this Warrant is issued and delivered and before 6:00 p.m., New York, New
York time on the 36 month anniversary of the date of issuance (the “Exercise
Period”)

     

    3. Certain Agreements of the
Company.

     

    The
Company hereby covenants and agrees as follows:

     

    (a) Shares to
be Fully Paid.  All Warrant
Shares will, upon issuance in accordance with the terms of this Warrant, be
validly issued, fully paid, and nonassessable and free from all taxes, liens,
and charges with respect to the issue thereof.

     

    (b) Reservation
of Shares.  During the
Exercise Period, the Company shall at all times have authorized, and reserved
for the purpose of issuance upon exercise of this Warrant, a sufficient number
of shares of Common Stock to provide for the exercise of this
Warrant.

     

    (c) Successors
and Assigns.  This Warrant will
be binding upon any entity succeeding to the Company by merger, consolidation,
or acquisition of all or substantially all the Company’s assets.

     

    (d)           Registration
Rights.  If the Company at any time proposes to register any of
its securities under the Act, including under an S-1 Registration Statement or
otherwise, it will each such time give written notice to all holders of
outstanding warrants of its intention so to do.  Upon the written
request of a holder or holders of any such warrants given within 30 days after
receipt of any such notice, the Company will use its best efforts to cause all
shares underlying the exercise of such warrants to be registered under the Act
(with the securities which the Company at the time propose to register);
provided, however, that the Company may, as a condition precedent to its
effective such registration, require each Holder to agree with the Company and
the managing underwriter or underwriters of the offering to be made by the
Company in connection with such registration that such Holder will not sell any
securities of the same class or convertible into the same class as those
registered by the Company (including any class into which the securities
registered by the Company are convertible) for such reasonable period after such
registration becomes effective (not exceeding 90 days) as shall then be
specified in writing by such underwriter or underwriters if in the opinion of
such underwriter or underwriters the Company's offering would be materially
adversely affected in the absence of such an agreement.  All expenses
incurred by the Company in complying with this Section, including without
limitation all registration and filing fees, listing fees, printing expenses,
fees and disbursements of all independent accountants, or counsel for the
Company and the expense of any special audits incident to or required by any
such registration and the expenses of complying with the securities or blue sky
laws of any jurisdiction shall be paid by the Company.

     

     

     

    
      
         

      

      
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    4. Issue
Tax.  

     

    The
issuance of certificates for Warrant Shares upon the exercise of this Warrant
shall be made without charge to the holder of this Warrant or such shares for
any issuance tax or other costs in respect thereof, provided that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any certificate in a name
other than the holder of this Warrant.

     

    5. No Rights or Liabilities as
a Shareholder.

     

    This
Warrant shall not entitle the holder hereof to any voting rights or other rights
as a shareholder of the Company.  No provision of this Warrant, in the
absence of affirmative action by the holder hereof to purchase Warrant Shares,
and no mere enumeration herein of the rights or privileges of the holder hereof,
shall give rise to any liability of such holder for the Exercise Price or as a
shareholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

     

    6. Transfer, Exchange, and
Replacement of Warrant.

     

    (a) Restriction
on Transfer.  This Warrant and
the rights granted to the holder hereof are transferable, in whole or in part,
upon surrender of this Warrant, together with a properly executed assignment in
the form attached hereto, at the office or agency of the Company, provided,
however, that any transfer or assignment shall be subject to the conditions set
forth in Paragraph 6(f) hereof.  Until due presentment for
registration of transfer on the books of the Company, the Company may treat the
registered holder hereof as the owner and holder hereof for all purposes, and
the Company shall not be affected by any notice to the contrary.

     

    (b) Warrant
Exchangeable for Different Denominations.  This Warrant is
exchangeable, upon the surrender hereof by the holder hereof at the office or
agency of the Company, for new Warrants of like tenor representing in the
aggregate the right to purchase the number of shares of Common Stock which may
be purchased hereunder, each of such new Warrants to represent the right to
purchase such number of shares as shall be designated by the holder hereof at
the time of such surrender.

     

    (c) Replacement
of Warrant.  Upon receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction,
or mutilation of this Warrant and, in the case of any such loss, theft, or
destruc­tion, upon delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company, or, in the case of any such
mutilation, upon surrender and cancellation of this Warrant, the Company, at its
expense, will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

     

    (d) Cancellation;
Payment of Expenses.  Upon the
surrender of this Warrant in connection with any transfer, exchange, or
replacement as provided in this Paragraph 6, this Warrant shall be promptly
canceled by the Company.  The Company shall pay all taxes (other than
securities transfer taxes) and all other expenses (other than legal expenses, if
any, incurred by the holder or transferees) and charges payable in connection
with the preparation, execution, and delivery of Warrants pursuant to this
Paragraph 6.

     

    (e) Register.  The Company shall
maintain, at its principal executive offices (or such other office or agency of
the Company as it may designate by notice to the holder hereof), a register for
this Warrant, in which the Company shall record the name and address of the
person in whose name this Warrant has been issued, as well as the name and
address of each transferee and each prior owner of this Warrant.

     

     

     

    
      
         

      

      
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    (f) Exercise
or Transfer Without Registration.  If, at the time
of the surrender of this Warrant in connection with any exercise, transfer, or
exchange of this Warrant, this Warrant (or, in the case of any exercise, the
Warrant Shares issuable hereunder), shall not be registered under the Securities
Act of 1933, as amended (the “Securities Act”) and under applicable state
securities or blue sky laws, the Company may require, as a condition of allowing
such exercise, transfer, or exchange, (i) that the holder or transferee of this
Warrant, as the case may be, furnish to the Company a written opinion of
counsel, which opinion and counsel are acceptable to the Company, to the effect
that such exercise, transfer, or exchange may be made without registration under
said Act and under applicable state securities or blue sky laws, (ii) that the
holder or transferee execute and deliver to the Company an investment letter in
form and substance acceptable to the Company and (iii) that the transferee be an
“accredited investor” as defined in Rule 501(a) promulgated under the Securities
Act; provided that no such opinion, letter or status as an “accredited investor”
shall be required in connection with a transfer pursuant to Rule 144 under the
Securities Act.  The first holder of this Warrant, by taking and
holding the same, represents to the Company that such holder is acquiring this
Warrant for investment and not with a view to the distribution
thereof.  In no event shall the Holder be permitted to assign the
Warrant unless provided with express written consent by the
Company.

     

    7. [Intentionally
Omitted]

     

    

     

    8. Notices.

     

    All
notices, requests, and other communications required or permitted to be given or
delivered hereunder to the holder of this Warrant shall be in writing, and shall
be personally delivered, or shall be sent by certified or registered mail or by
recognized overnight mail courier, postage prepaid and addressed, to such holder
at the address shown for such holder on the books of the Company, or at such
other address as shall have been furnished to the Company by notice from such
holder.  All notices, requests, and other communications required or
permitted to be given or delivered hereunder to the Company shall be in writing,
and shall be personally delivered, or shall be sent by certified or registered
mail or by recognized overnight mail courier, postage prepaid and addressed, to
the office of the Company at the address set forth in the Purchase Agreement, or
at such other address as shall have been furnished to the holder of this Warrant
by notice from the Company.  Any such notice, request, or other
communication may be sent by facsimile, but shall in such case be subsequently
confirmed by a writing personally delivered or sent by certified or registered
mail or by recognized overnight mail courier as provided above.  All
notices, requests, and other communications shall be deemed to have been given
either at the time of the receipt thereof by the person entitled to re­ceive
such notice at the address of such person for purposes of this Paragraph 8, or,
if mailed by registered or certified mail or with a recognized overnight mail
courier upon deposit with the United States Post Office or such overnight mail
courier, if postage is prepaid and the mailing is properly addressed, as the
case may be.

     

    9. Governing
Law.

     

    THIS
WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF FLORIDA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICT OF
LAWS.  THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION
OF THE UNITED STATES FEDERAL COURTS LOCATED IN OR NEAR JACKSONVILLE, FLORIDA
WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT, THE AGREEMENTS ENTERED
INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.
BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT SERVICE OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING.  NOTHING HEREIN SHALL AFFECT EITHER PARTY’S RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.  BOTH PARTIES AGREE THAT
A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT
OR IN ANY OTHER LAWFUL MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN
ANY DISPUTE ARISING UNDER THIS WARRANT SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS’ FEES, INCURRED BY THE PREVAILING PARTY IN
CONNECTION WITH SUCH DISPUTE.

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

     

    10. Miscellaneous.

     

    (a) Amendments.  This Warrant and
any provision hereof may only be amended by an instrument in writing signed by
the Company and the holder hereof.

     

    (b) Descriptive
Headings.  The descriptive
headings of the several paragraphs of this Warrant are in­serted for
purposes of reference only, and shall not affect the meaning or construction of
any of the provisions hereof.

     

    (c) Remedies.  The
Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the holder, by vitiating the intent and purpose of the
transaction contemplated hereby.  Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Warrant will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Warrant, that the holder shall
be entitled, in addition to all other available remedies at law or in equity,
and in addition to the penalties assessable herein, to an injunction or
injunctions restraining, preventing or curing any breach of this Warrant and to
enforce specifically the terms and provisions thereof, without the necessity of
showing economic loss and without any bond or other security being
required.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    IN WITNESS WHEREOF, the
Company has caused this Warrant to be signed by its duly authorized
director.

     

    
      
        	 	SOLAR
      ENERGY INITIATIVES, INC.	 
	 	 	 	 
	
                Dated
      as of __________ __, 2009

              	
                By:
      

              	/s/ 	 
	 	 	Name:
      David Fann	 
	 	 	Title:
      Chief Executive Officer	 
	 	 	 	 

      

    

     

    

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

     

    FORM
OF EXERCISE AGREEMENT

     

    

     

    Dated:  ________ __,
20__

     

    

     

    To:           ______________________

     

     

    The
undersigned, pursuant to the provisions set forth in the within Warrant, hereby
agrees to purchase ________ shares of Common Stock covered by such Warrant, and
makes pay­ment herewith in full therefor at the price per share provided by
such Warrant in cash or by certified or official bank check in the amount of
equal to $_________.  Please issue a certificate or certifi­cates
for such shares of Common Stock in the name of and pay any cash for any
fractional share to:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 	 	 
	 	 	 	 
	
                                                 

                                              	
                                                 

                                              	 	 
	 	 	Name 	 
	 	 	 	 
	 	 	 	 
	 	 	Signature:	 
	 	 	 	 
	 	 	Address: 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                                                 Note:

                                              	 	      
                                                The
      above signature should correspond exactly with the name 

                                                on
      the face of the within Warrant, if
    applicable.

                                              	 
	 	 	 	 

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

     

     

    FORM
OF ASSIGNMENT

     

    

     

    

     

    FOR VALUE RECEIVED, the
undersigned hereby sells, assigns, and transfers all the rights of the
undersigned under the within Warrant, with respect to the number of shares of
Common Stock covered thereby set forth hereinbelow, to:

    

     

    Name of
Assignee                                                                           Address                                                                No of
Shares

     

    

     

    

     

    

     

    , and
hereby irrevocably constitutes and appoints ___________________________________
as agent and attorney-in-fact to trans­fer said Warrant on the books of the
within-named corporation, with full power of substitution in the
premises.

     

    Dated:                      ________
__, 20__

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	 	 	 
	 	 	 	 
	
                                                      In
      the presence of:   

                                                    	
                                                       

                                                    	 	 
	 	 	Name 	 
	 	 	 	 
	 	 	 	 
	 	 	Signature:	 
	 	 	Title
      of Signing Officer or Agent (if any):	 
	 	 	 	 
	 	 	Address: 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
                                                       Note:

                                                    	 	      
                                                            
                                                        The
      above signature should correspond exactly with the name 

                                                        on
      the face of the within Warrant, if
      applicable.

                                                      

                                                    	 
	 	 	 	 

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

       

       
8

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