Document:

Exhibit 10.01 

 

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

Global Earth Energy Incorporated

AND

WINS INTERNATIONAL CO., LTD.

This Memorandum of Understanding (“MOU”) is entered into the 16th day of February, 2011 by and between Global Earth Energy, Inc., with offices at 1213 Culbreth Dr. Wilmington North Carolina 28405, USA (alternatively the “Company” or the “Seller”), and Wins International Co., Ltd., 3th Floor, Seokbeom Building, 636-1 Yeoksam-dong, Gangnam-gu, Seoul, South Korea (alternatively “WIC” or the “Buyer”).  The Company and WIC are described hereinafter collectively as the “Parties” or singularly as a “Party”.

This MOU states the basic understanding between the Parties that WIC desires to purchase the Company’s contracted coal reserves including all of the fine product and the course product from the reserves but subject to the coal quality specifications listed in this MOU.

NOW THEREFORE, in consideration of the mutual understandings herein contained, the Parties agree to the following:

Article 1 – Purchase of Coal Reserves 

1.1

WIC’s Intent to Purchase Coal Reserves.  Seong W. Lee, being President, CEO, and Authorized Signatory of WIC, established and existing under the laws of South Korea, hereby confirms, with full authority and legal responsibility under penalty of perjury, that WIC is ready, willing, and able to purchase the coal reserves contracted by the Company.

1.2

Specifications.  The minimum specifications for the coal reserves purchased by WIC from the Company are as follows:

MAF/BTU:

12,000 Min.

% Ash:

8% Max.

% Sulfur:

1% Max.

FSI:

7 Min.

1.3

Coal Reserves.  The coal stored at the Northfork coal reserve consists of five (5) separate piles of coarse or “forked” coal that are located primarily along hillsides, and the fine coal storage pond that was created by Island Creek Coal Company.  WIC is willing to purchase all coal reserves on the site, provided those reserves meet or exceed the coal quality specifications defined in Section 1.2.

Seller’s Initials _____

Page 1 of 4

Buyer’s Initials _____

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

Global Earth Energy Incorporated

AND

WINS INTERNATIONAL CO., LTD.

Gross reserves at the site, regardless of coal quality, are approximately as follows:

Pile No. 1:

158,276 Tons

Pile No. 2:

264,056 Tons

Pile No. 3:

214,293 Tons

Pile No. 4:

392,757 Tons

Pile No. 5:

1,546,089 Tons

Fine Coal Storage Pond:

3,028,570 Tons

Total Proven Reserve:

4,574,659 Tons

1.4

Additional Coal Reserves.  WIC is willing to purchase from the Company up to an additional 7 million tons of coal from nearby sites that may be acquired by the Company, subject to the coal quality specifications defined in Section 1.2.  FOB and the price per ton shall be the same as for the Northfork coal reserves.

1.5

FOB.  FOB is at the location of the coal reserves, but to include truck delivery to the railway loading facility nearest the location of the respective coal reserves.

1.6

Purchase Price.  $100.00 per Ton USD

1.7

Potential Contract Amount.  $457,465,900 USD based on the Total Proven Reserves from the Northfork site; an additional $700,000,000 based on the 7 million ton option described in Section 1.4; Total Potential Contract Amount is $1,157,465,900 USD.

Article 2 - Term and Termination

2.1

Term.  This MOU is in effect until the earlier of (a) the execution by the Parties of a formal Agreement to Purchase Coal (the “Agreement”), or (b) April 15, 2011.  If the Parties have been unable to agree regarding the terms and conditions of an Agreement by April 15, 2011 but are continuing to negotiate in good faith, this MOU will be automatically extended for an additional 30 days.

2.2

Termination.  In the event either Party commits any material breach of this MOU and such breach is not corrected by the breaching Party within fifteen (15) days after a written notice from the complaining Party, the complaining Party may terminate this MOU without penalty by giving written notice to the breaching Party.

Seller’s Initials _____

Page 2 of 4

Buyer’s Initials _____

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

Global Earth Energy Incorporated

AND

WINS INTERNATIONAL CO., LTD.

Article 3 - Arbitration

3.1

Arbitration.  Any dispute, arising under or by virtue of this MOU or any difference of opinions between the Parties, concerning their rights and obligations shall be finally resolved by arbitration.  Such arbitration proceedings shall be held in North Carolina, United States of America, under the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators appointed in accordance with the said Rules.  The decision of the arbitration proceedings shall be final and binding to both Parties.

Article 4 - Governing Law

4.1

Governing Law.  This MOU shall be governed by and construed with the laws of North Carolina, United States of America.

Article 5 - Waiver

5.1

Waiver.  The failure or delay of either Party to exercise any right under this MOU may not be construed as a waiver of that right, and no waiver of the terms and conditions of this MOU shall be valid or binding on either Party unless otherwise set forth in writing and signed by the waiving Party.

Article 6 - Language

6.1

Language.  All the communications, documents, and reports related to this MOU and the Agreement shall be made and provided in English.  If such documents are written in any other language, each Party shall provide an English version of the documents.

Article 7 - No Assignment 

7.1

No Assignment.  This MOU shall not be subject to assignment by either Party without the prior written consent of the other Party.  In the event that either Party assigns this MOU, without the prior written consent of the other Party, the other Party shall have been right to terminate this MOU.

Seller’s Initials _____

Page 3 of 4

Buyer’s Initials _____

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

Global Earth Energy Incorporated

AND

WINS INTERNATIONAL CO., LTD.

Article 8 - Severability

8.1

Severability.  In the event that any provision of this MOU is held to be unenforceable in any respect, such unenforceability shall not affect the enforceability of any other provision of this MOU.

Article 9 - Entire Agreement

9.1

Entire Agreement.  This MOU constitutes the entire agreement between Parties and supersedes and cancels all previous agreements, negotiations, commitments, and warranties thereto.  Any amendment of this MOU shall be made in writing with the signatures of duly authorized officers or representatives of each Party.

IN WITNESS HEREOF, the Parties have caused this MOU to be executed by their authorized representatives on the days specified below respectively.

ACCEPTED BY SELLER

ACCEPTED BY BUYER

(“Global Earth Energy, Inc.)

(“Wins International Co., Ltd.”)

____________________________

____________________________

Name:

Sydney A. Harland

Name:

Seong W. Lee

Title:

President

Title:

President

For:

Global Earth Energy, Inc.

For:

Wins International Co., Ltd.

Date:

February 16, 2011

Date:

February 16, 2011

Seller’s Initials _____

Page 4 of 4

Buyer’s Initials _____senyu8k20110217ex4-1.htm

Exhibit 4.1

NEITHER THIS WARRANT NOR THE SECURITIES INTO WHICH THIS WARRANT IS EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A FORM ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

SEN YU INTERNATIONAL HOLDINGS, INC.

SERIES F COMMON STOCK PURCHASE WARRANT

	
Warrant No.1

	
Original Issue Date:  February 17, 2011

	
Initial Holder: 

	
No. of Shares Subject to Warrant: 1,106,960

	 
D.D  Investment  Co., Limited

	
Initial Exercise Price Per Share: $2.64 (subject to adjustment)

	  	
Expiration Time:  5:00 p.m., New York time, on February 17, 2014

Sen Yu International Holdings, Inc., a Delaware corporation (the “Company”), hereby certifies that, for value received, the Initial Holder shown above, or its permitted registered assigns (the “Holder”), is entitled to purchase from the Company up to the number of shares of its common stock, par value $0.001 per share (the “Common Stock”), shown above (each such share, a “Warrant Share” and all such shares, the “Warrant Shares”) at the exercise price shown above (as may be adjusted from time to time as provided herein, the “Exercise Price”), at any time and from time to time on or after the original issue date indicated above (the “Original Issue Date”) and through and including the expiration time shown above (the “Expiration Time”), and subject to the following terms and conditions:

This Warrant is being issued pursuant to a Subscription Agreement, dated as of the date hereof by and between the Company and the Initial Holder (“Subscription Agreement”).

1.             Definitions.  In addition to the terms defined elsewhere in this Warrant, capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Subscription Agreement.

2.             List of Warrant Holders.  The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder (which shall include the Initial Holder or, as the case may be, any registered assignee to which this Warrant is permissibly assigned hereunder from time to time).  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

  

  

  

3.             List of Transfers; Restrictions on Transfer. The Company shall register any transfer of all or any portion of this Warrant in the Warrant Register, upon surrender of this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Holder.  The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations in respect of the New Warrant that the Holder has in respect of this Warrant.

4.             Exercise and Duration of Warrant.

(a)          All or any part of this Warrant shall be exercisable by the registered Holder in any manner permitted by this Section 4 at any time and from time to time on or after the Original Issue Date and through and including the Expiration Time.  At the Expiration Time, the portion of this Warrant not exercised prior thereto shall be and become void and of no value and this Warrant shall terminate and shall no longer be outstanding.

(b)           The Holder may exercise this Warrant by delivering to the Company: (i) an exercise notice, in the form attached hereto (the “Exercise Notice”), completed and duly signed, and (ii) payment by wire transfer of immediately available funds to an account designated by the Company of the Exercise Price for the number of Warrant Shares as to which this Warrant is being exercised.  The Holder shall be required to deliver the original Warrant or an indemnification undertaking with respect to such Warrant in the case of its loss, theft or destruction in order to effect an exercise hereunder.  The date both items (i) and (ii) are delivered to the Company (as determined in accordance with the notice provisions hereof) is an “Exercise Date.”    Execution and delivery of the Exercise Notice shall have the same effect as cancellation of the original Warrant and issuance of a New Warrant evidencing the right to purchase the remaining number of Warrant Shares. If as of the time of exercise the Warrant Shares constitute restricted or control securities, the Holder, by exercising, agrees not to resell them except in compliance with all applicable securities laws

(c)           The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant pursuant to the terms hereof.

5.            Delivery of Warrant Shares.

(a)           Upon exercise of this Warrant, the Company shall promptly (but in no event later than ten (10) business days after the Exercise Date) issue or cause to be issued and cause to be delivered to or upon the written order of the Holder and in such name or names as the Holder may designate, a certificate for the Warrant Shares issuable upon such exercise. The Holder, or any Person permissibly so designated by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of such Warrant Shares as of the Exercise Date.  The Company shall, upon the written request of the Holder to the extent permitted by applicable law, use its best efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically through the Depository Trust and Clearing Corporation or another established clearing corporation performing similar functions, if available (“DTC”).  If as of the time of exercise the Warrant Shares constitute restricted or control securities, the Holder, by exercising, agrees not to resell them except in compliance with all applicable securities laws. Notwithstanding the foregoing to the contrary, the Company or its transfer agent shall only be obligated to issue and deliver the shares to DTC on a Holder’s behalf via Deposit Withdrawal Agent Commission System (“DWAC”) if (i) a registration statement under the Securities Act of 1933 (“Securities Act”) providing for the resale of the Warrant Shares is then in effect or the Company has received an opinion of counsel reasonably satisfactory to the Company that the shares of Warrant Shares are otherwise eligible for resale pursuant to an exemption from registration and (ii) the Company and its transfer agent are participating in DTC through the DWAC system.

  

  

  

  

(b)           To the extent permitted by law, the Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance that might otherwise limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares.  Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

(c)           If the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates (either physical or electronic) representing the Warrant Shares pursuant to the terms hereof by the applicable delivery date, then, the Holder will have the right to rescind such exercise.

6.                     Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the registration of any certificates for Warrant Shares or the Warrants in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof.

  

  

  

7.                     Replacement of Warrant.  If this Warrant is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a condition precedent to the Company’s obligation to issue the New Warrant.

8.                     Reservation of Warrant Shares.  The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares that are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable.

9.                     Certain Adjustments to Exercise Price.  The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 9.

(a)         Adjustments for Stock Splits and Combinations and Stock Dividends.  If the Company shall at any time or from time to time after the date hereof, effect a stock split or combination of the outstanding Common Stock or pay a stock dividend in shares of Common Stock, then the Exercise Price shall be proportionately adjusted.  Any adjustments under this Section 9(a) shall be effective at the close of business on the date the stock split or combination becomes effective or the date of payment of the stock dividend, as applicable.

(b)         Merger Sale, Reclassification, etc. In case of any: (i) consolidation or merger (including a merger in which the Company is the surviving entity), (ii) sale or other disposition of all or substantially all of the Company’s assets or distribution of property to shareholders (other than distributions payable out of earnings or retained earnings), or reclassification, change or conversion of the outstanding securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the Holder of this Warrant, upon the exercise hereof at any time thereafter shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consolidation, merger, sale or other disposition, reclassification, change, conversion or reorganization, the stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised this Warrant immediately prior thereto.

  

  

  

 

10.                     No Fractional Shares.  No fractional Warrant Shares will be issued in connection with any exercise of this Warrant. In lieu of any fractional shares that would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the closing price of one Warrant Share as reported by the applicable Trading Market on the Exercise Date or round up such fractional share to a whole number.

11.                     Registration Rights. Until the Expiration Time, the Holder of this Warrant shall have piggy back registration right to the Warrant Shares. The Company’s agreements with respect to Warrants or Warrant Shares in such registration shall continue in effect regardless of the exercise and surrender of this Warrant.

12.                     Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telex (with correct answer back received), telecopy, electronic mail (i.e., e-mail) or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

	  	
(a)

	
If to the Company:

	  	  	
19 West 44th Street, Suite 1108

	  	  	
New York, NY 10036 

	  	  	
Attention: Zhenyu Shang

	  	  	
Fax Number: (212)997-8585

	  	  	  
	  	  	
with copies (which shall not constitute notice) to:

	  	  	
Ellenoff Grossman & Schole LLP

	  	  	
150 East 42nd Street

	  	  	
New York, New York 10017

	  	  	
Attn: Barry I. Grossman, Esq.

	  	  	
Tel. No.: (212) 370-1300

	  	  	
Fax No.:  (212) 370-7889

	  	  	
Email: bigrossman@egsllp.com

	  	  	  
	  	
(b)

	
If to the Holder:

	  	  	
with copies (which shall not constitute notice) to:

  

  

  

 

Any party hereto may from time to time change its address for notices by giving at least ten (10) business days written notice of such changed address to the other party hereto.

 

13.                     Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon thirty (30) days’ notice to the Holder, the Company may appoint a new warrant agent.  Any corporation into which the Company or any new warrant agent may be merged or any corporation resulting from any consolidation to which the Company or any new warrant agent shall be a party or any corporation to which the Company or any new warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor warrant agent under this Warrant without any further act. Any such successor warrant agent shall promptly cause notice of its succession as warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

14.                     Compliance with Securities Laws. The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws. In no event may the Holder exercise this Warrant in whole or in part unless the Holder meets the criteria established in one or both of subsections (a) or (b), below.

(a)        Accredited Investor. The undersigned qualifies as an “accredited investor,” as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act (“Regulation D”).

(b)       Offshore Investor.  The undersigned is not a “U.S. Person” as defined in Rule 902 of Regulation S , as amended, under the Securities Act (“Regulation S”)

This Warrant and all certificates representing the Warrant Shares issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form:

 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

  

  

  

 

15.                     Miscellaneous.

(a)           This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns.  Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of action under this Warrant.  This Warrant may be amended only in writing signed by the Company and the Holder, or their successors and assigns.

(b)           Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Warrant (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, New York for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Warrant, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  EACH PARTY HERETO (INCLUDING ITS AFFILIATES, AGENTS, OFFICERS, DIRECTORS AND EMPLOYEES) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

(c)           The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.

(d)           In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Warrant.

  

  

  

(e)           Prior to exercise of this Warrant, the Holder hereof shall not, by reason of by being a Holder, be entitled to any rights of a stockholder with respect to the Warrant Shares.

(f)           No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as of the date first indicated above.

	  	
SEN YU INTERNATIONAL HOLDINGS, INC.

	  	  
	  	  
	  	
By: /s/ Zhenyu Shang                 

	  	
      Name: Zhenyu Shang

	  	
      Title:   President and Chief Executive Officer

  

  

  

Sen Yu International Holdings, Inc.

EXERCISE NOTICE

Ladies and Gentlemen:

(1)           The undersigned hereby elects to exercise the above-referenced Warrant with respect to [                          ] warrant shares.  Capitalized terms used herein and not otherwise defined herein have the respective meanings set forth in the Warrant.

(2)           The holder shall pay the sum of $ ______________      to the Company in accordance with the terms of the Warrant.

(3)           Pursuant to this Exercise Notice, the Company shall deliver to the Holder ________________ Warrant Shares determined in accordance with the terms of the Warrant.

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:

_______________________________

_______________________________

_______________________________

(4)           Reliance on Exemption.  The undersigned agrees that he, she or it meets the criteria established in one or both of subsections (a) or (b), below.

 (a)        Accredited Investor. The undersigned qualifies as an “accredited investor,” as defined in Rule 501(a) of Regulation D, as amended, under the Securities Act of 1933 (“Regulation D”).

(b)       Offshore Investor.  The undersigned is not a “U.S. Person” as defined in Rule 902 of Regulation S , as amended, under the Securities Act of 1933 (“Regulation S”)

	
Dated:

	  	  	
HOLDER:

	  	  	  
	  	  	  
	  	  	
Print name

	  	  	  
	  	  	
By:

	  
	  	  	  	  
	  	  	
Title:

	  
	  	  	  	  

  

  

  

SEN YU INTERNATIONAL HOLDINGS, INC.

FORM OF ASSIGNMENT

To be completed and signed only upon transfer of Warrant

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _________________ the right represented by the within Warrant to purchase _________________ shares of Common Stock to which the within Warrant relates and appoints __________________ attorney to transfer said right on the books of the Company with full power of substitution in the premises.

	
Dated:

	  	  	
TRANSFEROR:

	  	  	  
	  	  	  
	  	  	
Print name

	  	  	  
	  	  	
By:

	  
	  	  	  	  
	  	  	
Title:

	  
	  	  	  	  
	  	  	  	  
	  	  	
TRANSFEREE:

	  	  	  
	  	  	  
	  	  	
Print name

	  	  	  
	  	  	
By:

	  
	  	  	  	  
	  	  	
Title:

	  
	
WITNESS:

	  	  	  
	  	  	
Address of Transferee:

	  	  	  	  
	
Print name

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