Document:

Unassociated Document

    Exhibit
10.29

     

     

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    Warrant
Certificate No. 1b

    

    PIMI
AGRO CLEANTECH, INC.

     

    AMENDED
AND RESTATED

    COMMON
STOCK PURCHASE WARRANT

    

    To
Purchase 145,985 Shares of Common Stock of

     

    This amended and restated Warrant
(“Warrant”) is
hereby issued on July 29, 2009 to amend replace and supersede the original
warrant (warreant Number 1a) originally issued to Earhbound LLC on June 7,
2009.

     

    Pimi Agro
Cleantech Inc. certifies that, for value received, EARTHBOUND LLC (the “Holder”), is
entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the
“Initial Exercise
Date”) and on or prior to the close of business on August 31, 2009 (the
“Termination
Date”) but not thereafter, to subscribe for and purchase from PIMI AGRO
CLEANTECH, INC., a Delaware corporation (the “Company”), up to
145,985 shares (the “Warrant Shares”) of
Common Stock, par value $.01 per share, of the Company (the “Common
Stock”).  The purchase price of one share of Common Stock under
this Warrant shall be equal to the Exercise Price, as defined in Section
2(b).

     

    Section
1.                                Recitals.

     

    a)           On
January 20, 2009 the Company entered into an investment agreement with Holder,
pursuant to which Holder agreed to invest an aggregate of $300,000.00 in the
Company, payable in multiple traunches. As of the Initial Exercise Date, Holder
has invested $60,000 under the Investment Agreement.

     

    b)           The
Company is issuing this Warrant in furtherance of the Investment Agreement and
as further incentive to Holder to increase its investment in the
Company.

     

    Section
2.                                Exercise.

     

    Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company of a duly executed facsimile copy of the Notice of Exercise form annexed
hereto (or such other office or agency of the Company as it may designate by
notice in writing to the registered Holder at the address of such Holder
appearing on the books of the Company); and, within three (3) Trading Days of
the date said Notice of Exercise is delivered to the Company, the Company shall
have received payment of the aggregate Exercise Price of the shares thereby
purchased by wire transfer or cashier’s check drawn on a United States
bank.  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 three (3) Trading 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 within two (2) Trading Days 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.

     

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

    Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $1.37 (the “Exercise
Price”).

     

    Mechanics of
Exercise.

     

    Authorization of Warrant
Shares.  The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

     

    Delivery of Certificates
Upon Exercise.  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 at Custodian (“DWAC”) system if the
Company is a participant in such system, and otherwise by delivery to the
address specified by the Holder in the Notice of Exercise, within five (5)
Trading Days from the delivery to the Company of the Notice of Exercise form,
surrender of this Warrant (if required) and payment of the aggregate Exercise
Price as set forth above (“Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.  The Warrant
Shares shall be deemed to have been issued, and Holder or any other person so
designated to be named therein shall be deemed to have become a holder of record
of such shares for all purposes, as of the date the Warrant has been exercised
by payment to the Company of the Exercise Price and all taxes required to be
paid by the Holder, if any, have been paid.

     

    Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this
Warrant, which new Warrant shall in all other respects be identical with this
Warrant.

     

    Rescission
Rights.  If the Company fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to this Section 2 by the
Warrant Share Delivery Date, then the Holder will have the right to rescind such
exercise.

     

    Obligation Absolute.
The Corporation’s obligations to issue and deliver the certificates representing
the Warrant Shares upon exercise of the Warrant 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 Corporation or any violation or alleged violation of
law by the Holder or any other person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Corporation to
the Holder in connection with the issuance of such certificates representing the
Warrant Shares.  The Corporation shall issue the certificates
representing the Warrant Shares upon a properly noticed exercise.

     

    No Fractional Shares or
Scrip.  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 round up to the next whole share.

     

    Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder or other incidental expense in respect of the
issuance of such certificate, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
the assignment shall be subject to Section 4 below, and
the Company may require, as a condition thereto, the payment of a sum sufficient
to reimburse it for any transfer tax incidental thereto.

     

    Closing of
Books.  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.

     

    Section
3.                                Certain
Adjustments.

     

    Stock Dividends and
Splits.  If the Company, at any time while this Warrant is
outstanding: (i) pays a stock dividend or otherwise makes a distribution or
distributions on shares of its Common Stock or any other equity or equity
equivalent securities payable in shares of Common Stock (which, for avoidance of
doubt, shall not include any shares of Common Stock issued by the Company upon
exercise of this Warrant), provided that this clause (i) subdivides outstanding
shares of Common Stock into a larger number of shares, (ii) combines (including
by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, or (iii) issues by reclassification of shares of the Common
Stock any shares of capital stock of the Company, then in each case the Exercise
Price shall be multiplied by a fraction of which the numerator shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding
immediately before such event and of which the denominator shall be the number
of shares of Common Stock outstanding immediately after such event and the
number of shares issuable upon exercise of this Warrant shall be proportionately
adjusted.  Any adjustment made pursuant to this Section 3(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

     

     

     

    
      
         

      

      
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    Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another
Person, (ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (iv) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, (a) upon exercise of this
Warrant, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate
Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is acquired in an all cash
transaction, cash equal to the value of this Warrant as determined in accordance
with the Black-Scholes option pricing formula.  For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration.  To
the extent necessary to effectuate the foregoing provisions, any successor to
the Company or surviving entity in such Fundamental Transaction shall issue to
the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to exercise such warrant into Alternate Consideration. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 3(b) and
insuring that this Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

     

    Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least ten (10) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (X) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (Y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the ten (10) day period commencing on
the date of such notice to the effective date of the event triggering such
notice.

     

    Section
4.                                Transfer of
Warrant.

     

    Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination or denominations specified in such
instrument of assignment, and shall issue to the assignor a new Warrant
evidencing the portion of this Warrant not so assigned, and this Warrant shall
promptly be cancelled.  A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

     

    New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

     

    Warrant Register. 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 hereof 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.

     

    Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (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 shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
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)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act.

     

     

     

     

    
      
         

      

      
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    Section
5.                                Transfer of
Securities.

     

    a)           This
Warrant and the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon, or otherwise, shall not be transferable
except upon compliance with the provisions of the Securities Act of 1933, as
amended (the “Securities Act”) and
applicable state securities laws with respect to the transfer of such
securities.  The Holder, by acceptance of this Warrant, agrees to be bound
by the provisions of Section 4 hereof and to indemnify and hold harmless
the Company against any loss or liability arising from the disposition of this
Warrant or the Warrant Shares issuable upon exercise hereof or any interest in
either thereof in violation of the provisions of this Warrant.

    

    b)           Each
certificate for the Warrant Shares and any shares of capital stock received in
respect thereof, whether by reason of a stock split or share reclassification
thereof, a stock dividend thereon or otherwise, and each certificate for any
such securities issued to subsequent transferees of any such certificate shall
(unless otherwise permitted by the provisions hereof) be stamped or otherwise
imprinted with a legend in substantially the following form:

     

    “NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE SECURITIES LAW AND NEITHER MAY BE SOLD OR OTHERWISE TRANSFERRED UNTIL
(I) A REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND SUCH APPLICABLE
STATE SECURITIES LAWS SHALL HAVE BECOME EFFECTIVE WITH REGARD THERETO, OR
(II) THE COMPANY SHALL HAVE RECEIVED A WRITTEN OPINION OF COUNSEL
ACCEPTABLE TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER SUCH SECURITIES
ACT AND SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH
SUCH PROPOSED TRANSFER.”

    

    Section
6.                                Miscellaneous.

     

    No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section
2.

     

    Loss, Theft, Destruction or
Mutilation of Warrant. The Company covenants that upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant or any stock certificate relating to
the Warrant Shares, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it (which, in the case of the Warrant, shall
not include the posting of any bond), and upon surrender and cancellation of
such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

     

    Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    Authorized
Shares.  The Company covenants that, during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this
Warrant.  The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action
as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be listed, if
applicable.

     

    Before taking any action which would
result in an adjustment in the number of Warrant Shares for which this Warrant
is exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction
thereof.

     

    Jurisdiction. All
questions concerning the construction, validity, enforcement, venue,
jurisdiction, and interpretation of this Warrant shall be determined in
accordance with the provisions of the Purchase Agreement.

     

    Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    Nonwaiver and
Expenses.  No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    Limitation of
Liability.  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.

     

    Remedies.  Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be
adequate.

     

    Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant
Shares.

     

    Amendment.  This
Warrant may be modified or amended or the provisions hereof waived only with the
written consent of the Company and the Holder.

     

    Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    

    ********************

     

     

     

     

    
      
         

      

      
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    IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
officer thereunto duly authorized.

     

    

    Dated:  July
29, 2009

    

      
        
          
            
              	PIMI
      AGRO CLEANTECH, INC.	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                      /s/
      Youval Saly

                    	 	 	
                       

                    	 
	
                      Name:Youval
      Saly

                    	 	 	
                       

                    	 
	
                      Title:
      Chief Executive Officer 

                    	 	 	
                       

                    	 

            

          

        

      

    

    

     

    
      
         

      

      
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    NOTICE
OF EXERCISE

    

    TO:                      PIMI
AGRO CLEANTECH, INC. (THE “COMPANY”)

    

    The
undersigned hereby elects to purchase ________ Warrant Shares of the Company
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if
any.

     

    Payment
will be made in lawful money of the United States.

     

    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:

    

    _______________________________

    

    _______________________________

    

    _______________________________

    

    (4)  Accredited
Investor.  The undersigned certifies that it is an “accredited
investor” as defined in Regulation D promulgated under the Securities Act of
1933, as amended.

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing
Entity:                                                                                                                                          

    Signature of Authorized Signatory of
Investing
Entity:                                                                                                                                          

    Name of
Authorized
Signatory:                                                                                                                                          

    Title of
Authorized
Signatory:                                                                                                                                          

    Date:                                                                                                                                          

    

    

    

    
      
         

      

      
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    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    

    

    FOR VALUE
RECEIVED, _________ shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to _________________________________whose address is
____________________________________________________________________________________________________________________________.

    

    Dated:  ______________,
_______

    

    

    Holder’s
Signature:                           _____________________________

    

    Holder’s
Address:                             _____________________________

    

                  _____________________________

    

    

    

    Signature
Guaranteed:  ___________________________________________

    

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

    

    

    

    7Unassociated Document

    Exhibit
4.12

     

     

    ELEMENT
21 GOLF COMPANY

     

    AMENDED
AND RESTATED CERTIFICATE OF THE

     

    POWERS,
DESIGNATIONS, PREFERENCES AND RIGHTS OF THE

     

    SERIES
B CONVERTIBLE PREFERRED STOCK, $.10 PAR VALUE PER SHARE

     

    Of the
5,000,000 shares of Preferred Stock authorized under the Certificate of
Incorporation of Element 21 Golf Company (the “Corporation”), 353,000 shares are
hereby designated as Series B Convertible Preferred Stock (the “Series B
Preferred Stock”) with the voting powers, preferences and relative
participating, optional or other special rights, and qualifications, limitations
or restrictions as set forth below:

     

    Section
1.                                Definitions.

    

    For the
purposes hereof, the following definitions shall apply:

     

    “Board of Directors” shall mean
the Board of Directors of this Corporation.

     

    “Conversion Price” means the
amount set forth in Section 4(a), as adjusted pursuant to Section
5.

     

    “Junior Shares” means all
shares of Common Stock and Series A Convertible Preferred Stock of this
Corporation, or any other stock ranking junior to the Series B Preferred Stock
in dividends or liquidation rights.

     

    “Original Issue Date” means the
date on which a share of Series B Preferred Stock was first issued.

     

    “Original Issue Price”
means  $17.00

     

     

     

     

    
      
         

      

      
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    Section
2.                                Dividend
Rights.

    

    From and
after the date of the issuance of any shares of Series B Preferred Stock,
dividends at the rate per annum of 4% of the base amount per share shall accrue
on such shares of Series B Preferred Stock (subject to appropriate adjustment in
the event of any stock dividend, stock split, combination or other similar
recapitalization affecting such shares) (the “Accruing
Dividends”).  Accruing Dividends shall be paid quarterly, on
the first day of each fiscal quarter (in respect of the prior quarter), for each
quarter ending after June 30, 2009.  Payment shall be made in the
Company’s common stock (the “Common Stock”) valued at the price that is the
average of the closing prices for Common Stock for the 20 trading days
immediately preceding the payment date for such dividends. Accruing Dividends
for the fiscal quarters ended on or prior to June 30, 2009 shall be paid in
Common Stock valued at the price that is the average of the closing prices for
Common Stock for the 20 trading days immediately preceding June 30,
2009.   The base amount per share shall initially be the Original
Issue Price and, with respect to Accruing Dividends for the fiscal quarters
ended prior to the effective date of this Amended and Restated Certificate,
shall be increased on each anniversary of the purchase of such share by the
amount of accrued dividends for the year ending on such
anniversary.  Accruing Dividends shall accrue from day to day, whether
or not declared, and shall be cumulative; provided however, that except
as set provided above in this Section 2, the
Corporation shall be under no obligation to pay such Accruing
Dividends.  The Corporation shall not declare, pay or set aside any
dividends on shares of any other class or series of capital stock of the
Corporation unless (in addition to the obtaining of any consents required
elsewhere in the Certificate of Incorporation) the holders of the Series B
Preferred Stock then outstanding shall first receive, or simultaneously receive,
a dividend on each outstanding share of Series B Preferred Stock in an
amount at least equal to the greater of (i) the amount of the aggregate Accruing
Dividends then accrued on such share of Series B Preferred Stock and not
previously paid and (ii) (A) in the case of a dividend on Common Stock, the sum
of (1) the amount of the aggregate Accruing Dividends then accrued on such share
of Series B Preferred Stock and not previously paid plus (2) the dividend
payable on each share of Series B Preferred Stock if such share had been
converted into Common Stock immediately prior to the record date for such
dividend, (B) in the case of a dividend on Series A Preferred Stock or any other
class or series that is convertible into Common Stock, that dividend per share
of Series B Preferred Stock as would equal the product of (1) the dividend
payable on each share of such class or series determined, if applicable, as if
all shares of such class or series had been converted into Common Stock and (2)
the number of shares of Common Stock issuable upon conversion of a share of
Series B Preferred Stock, in each case calculated on the record date for
determination of holders entitled to receive such dividend or (C) in the case of
a dividend on any class or series that is not convertible into Common Stock, at
a rate per share of Series B Preferred Stock determined by (1) dividing the
amount of the dividend payable on each share of such class or series of capital
stock by the original issuance price of such class or series of capital stock
(subject to appropriate adjustment in the event of any stock dividend, stock
split, combination or other similar recapitalization affecting such shares) and
(2) multiplying such fraction by an amount equal to the Original Issue Price (as
defined below); provided that, if the Corporation declares, pays or sets aside,
on the same date, a dividend on shares of more than one class or series of
capital stock of the Corporation, the dividend payable to the holders of Series
B Preferred Stock pursuant to this Section 2 shall be calculated based upon the
dividend on the class or series of capital stock that would result in the
highest Series B Preferred Stock dividend.   

     

    Section
3.                                Liquidation
Preference.

     

    (a)           Preference.  In
the event of any liquidation, dissolution or winding up of the affairs of the
Corporation, voluntarily or involuntarily, the holders of each share of Series B
Preferred Stock, prior to any distribution to the holders of Junior Shares,
shall be entitled to receive pro rata a preferential amount equal to the greater
of (i) such amount per share as would have been payable had each such share been
converted to into Common Stock immediately prior to such liquidation,
dissolution or winding up , or (ii) $17.00 per share (adjusted to reflect any
stock split, stock dividend, combination, recapitalization or reorganization) of
Series B Preferred Stock held by them plus all Accruing Dividends accrued
thereon, plus all other declared but unpaid dividends (the “Series B Preferred
Stock Liquidation Preference”).  If, upon such liquidation, dissolution or
winding up, the assets of the Corporation are insufficient (after payment of the
liquidation preference of any class of preferred stock ranking senior on
liquidation to the Series B Preferred Stock) to provide for the payment of the
Series B Preferred Stock Liquidation Preference for each share of Series B
Preferred Stock outstanding, such assets as are available shall be paid out pro
rata among the shares of Series B Preferred Stock and no payment shall be made
to the holders of Junior Shares. After payment to the holders of the Series B
Preferred Stock of the Series B Preferred Stock Liquidation Preference, the
entire remaining assets and funds of the Corporation legally available for
distribution, if any, shall be distributed among the holders of Junior Shares in
the manner described in the Certificate of the Powers, Designations, Preferences
And Rights Of The Series A Convertible Preferred Stock, $.001 Par Value Per
Share as filed with the Secretary of State of the State of Delaware on February
22, 2006.

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

    (b)           Acquisition Treated as
Liquidation.  Unless otherwise decided upon a vote of the holders of
at least a majority of the then outstanding shares of Series B Preferred Stock,
a merger or consolidation of the corporation with or into another corporation or
entity (whether or not the corporation is the surviving entity if, after the
merger or consolidation, more than 50% of the voting stock of the surviving
corporation is owned by persons who were not holders of voting stock of this
corporation prior to the merger or consolidation), or the sale of all or
substantially all the assets of the Corporation, shall be deemed to be a
liquidation, dissolution or winding up within the meaning of this Section
3.

     

    Section
4.                                Conversion
of Series B Preferred Stock.

    

    The
holders of the Series B Preferred Stock shall have conversion rights in
accordance with the following provisions:

     

    (a)           Right to Convert and
Conversion Price.  Each share of Series B Preferred Stock shall be
convertible, at the option of the holder thereof, at any time after the Original
Issue Date, at the office of the Corporation or any transfer agent for the
Series B Preferred Stock, into such number of fully paid and non-assessable
shares of Common Stock as is determined by dividing the Original Issue Price by
the Conversion Price, determined and adjusted as hereafter provided, in effect
at the time of conversion. The “Conversion Price” shall be $3.05, and such price
shall be subject to adjustment as provided in Section 5. The Original Issue
Price is $17.00 such that on the date of this Amended and Restated Certificate,
each share of Series B Preferred Stock is convertible into 5.57 shares of Common
Stock.(b)Mechanics of
Conversion.  No fractional shares of Common Stock shall be issued
upon conversion of Series B Preferred Stock.  In lieu of any fractional
share to which a holder of Series B Preferred Stock would otherwise be entitled,
the Corporation shall pay cash equal to such fraction multiplied by the then
effective Conversion Price.  Before any holder of Series B Preferred Stock
shall be entitled to convert the same into full shares of Common Stock, the
holder shall surrender the certificate or certificates therefor, duly endorsed
for transfer, at the office of the Corporation or of any transfer agent for the
Series B Preferred Stock, and shall give written notice to the Corporation at
such office that he elects to convert the same.  The Corporation shall, as
soon as practicable thereafter, issue and deliver at such office to such holder
of Series B Preferred Stock a certificate or certificates for the number of
shares of Common Stock to which he shall be entitled as aforesaid and a check
payable to the holder in the amount of any cash amounts payable in order to
avoid a conversion into fractional shares of Common Stock.  Such conversion
shall be deemed to have been made immediately prior to the close of business on
the date of such surrender of the shares of Series B Preferred Stock to be
converted, and the person or persons entitled to receive the shares of Common
Stock issuable upon such conversion shall be treated for all purposes as the
record holder or holders of such shares of Common Stock on such
date.

     

     

    (c)           Notices of Record Date,
etc.  In the event that the Corporation shall propose at any
time:

     

    (i)           to
declare any dividend or distribution upon its Common Stock, whether in cash,
property, stock or other securities, whether or not a regular cash dividend and
whether or not out of earnings or earned surplus;

     

    (ii)           to
offer for subscription pro rata to the holders of any class of its stock any
additional shares of stock of any class or other rights;

     

    (iii)           to
subdivide or combine its outstanding Common Stock;

     

    (iv)           to
effect any reclassification or recapitalization of its Common Stock outstanding
involving a change in the Common Stock; or

     

    (v)           to
merge or consolidate with or into any other corporation, or sell, lease or
convey all or substantially all its property or business, or to liquidate,
dissolve or wind up;

    

    then, in
connection with each such event, the Corporation shall send to the holders of
the Series B Preferred Stock:

     

    (1) 
at least 10 days' prior written notice of the date on which a record shall be
taken for such dividend, distribution, subscription rights, subdivision or
combination (and specifying the date on which the holders of Common Stock shall
be entitled thereto) or for determining rights to vote in respect of the matters
referred to in clauses (iv) and (v) above; and

     

    (2) 
in the case of the matters referred to in clauses (iv) and (v) above, at least
10 days' prior written notice of the date when the same shall take place
(specifying the date on which the holders of Common Stock shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
the occurrence of such event).

     

    Each such
written notice shall be given by certified mail, postage prepaid, addressed to
the holders of Series B Preferred Stock at the address for each such holder as
shown on the books of the Corporation.

     

    (d)           Reservation of Common
Stock.  The Corporation shall, at all times when the Series B
Preferred Stock shall be outstanding, reserve and keep available out of its
authorized but unissued stock, for the purpose of effecting the conversion of
the Series B Preferred Stock, such number of its duly authorized shares of
Common Stock as shall from time to time be sufficient to effect the conversion
of all outstanding Series B Preferred Stock.  Before taking any action
which would cause an adjustment reducing the Conversion Price below the then par
value of the shares of Common Stock issuable upon conversion of the Series B
Preferred Stock, the Corporation will take any corporate action which may, in
the opinion of its counsel, be necessary in order that the Corporation may
validly and legally issue fully paid and nonassessable shares of such Common
Stock at such adjusted Conversion Price.

     

     

     

     

    
      
         

      

      
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    (e)           Cancellation of Series B
Preferred Stock.  All shares of Series B Preferred Stock which shall
have been surrendered for conversion as herein provided shall no longer be
deemed to be outstanding and all rights with respect to such shares, including
the rights, if any, to receive notices and to vote, shall forthwith cease and
terminate except only the right of the holders thereof to receive shares of
Common Stock in exchange therefor and payment of any declared but unpaid
dividends thereon.  Any shares of Series B Preferred Stock so converted
shall be retired and cancelled, and shall not be reissued, and the Corporation
may from time to time take such appropriate action as may be necessary to reduce
the authorized Series B Preferred Stock accordingly.

     

    Section
5.                                Adjustment
of Conversion Price on Series B Preferred Stock.

    

     

    (a)           Adjustment for Stock Splits
and Combinations.  If the Corporation shall at any time or from
time to time after the effective date of this Amended and Restated Certificate
effect a subdivision of the outstanding Common Stock, the Conversion Price in
effect immediately before that subdivision shall be proportionately decreased so
that the number of shares of Common Stock issuable on conversion of each share
of such series shall be increased in proportion to such increase in the
aggregate number of shares of Common Stock outstanding.  If the
Corporation shall at any time or from time to time after the effective date of
this Amended and Restated Certificate combine the outstanding shares of Common
Stock, the Conversion Price in effect immediately before the combination shall
be proportionately increased so that the number of shares of Common Stock
issuable on conversion of each share of such series shall be decreased in
proportion to such decrease in the aggregate number of shares of Common Stock
outstanding.  Any adjustment under this subsection shall become
effective at the close of business on the date the subdivision or combination
becomes effective.

     

    (b)           Adjustment for Certain
Dividends and Distributions.  In the event the Corporation at
any time or from time to time after the effective date of this Amended and
Restated Certificate shall make or issue, or fix a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable on the Common Stock in additional shares of Common
Stock, then and in each such event the Conversion Price in effect immediately
before such event shall be decreased as of the time of such issuance or, in the
event such a record date shall have been fixed, as of the close of business on
such record date, by multiplying the Conversion Price then in effect by a
fraction: the numerator of which shall be the total number of shares of Common
Stock issued and outstanding immediately prior to the time of such issuance or
the close of business on such record date, and the denominator of which shall be
the total number of shares of Common Stock issued and outstanding immediately
prior to the time of such issuance or the close of business on such record date
plus the number of shares of Common Stock issuable in payment of such dividend
or distribution. Notwithstanding the foregoing, (X) if such record date shall
have been fixed and such dividend is not fully paid or if such distribution is
not fully made on the date fixed therefor, the Conversion Price shall be
recomputed accordingly as of the close of business on such record date and
thereafter the Conversion Price shall be adjusted pursuant to this subsection as
of the time of actual payment of such dividends or distributions; and (Y) that
no such adjustment shall be made if the holders of Series B Preferred Stock
simultaneously receive a dividend or other distribution of shares of Common
Stock in a number equal to the number of shares of Common Stock as they would
have received if all outstanding shares of Series B Preferred Stock had
been converted into Common Stock on the date of such event.

     

    (c)           Adjustment for Merger or
Reorganization, etc.  Subject to the provisions of Section
3(b), if there shall occur any reorganization, recapitalization,
reclassification, consolidation or merger involving the Corporation in which the
Common Stock (but not the Series B Preferred Stock) is converted into or
exchanged for securities, cash or other property (other than a transaction
covered by Sections 5(a) or 5(b)), then, following any such reorganization,
recapitalization, reclassification, consolidation or merger, each share of
Series B Preferred Stock shall thereafter be convertible in lieu of the Common
Stock into which it was convertible prior to such event into the kind and amount
of securities, cash or other property which a holder of the number of shares of
Common Stock of the Corporation issuable upon conversion of one share of Series
B Preferred Stock immediately prior to such reorganization, recapitalization,
reclassification, consolidation or merger would have been entitled to receive
pursuant to such transaction; and, in such case, appropriate adjustment (as
determined in good faith by the Board of Directors of the Corporation) shall be
made in the application of the provisions in this Section 5 with respect to the
rights and interests thereafter of the holders of the Series B Preferred
Stock, to the end that the provisions set forth in this Section 5 (including
provisions with respect to changes in and other adjustments of the Conversion
Price) shall thereafter be applicable, as nearly as reasonably may be, in
relation to any securities or other property thereafter deliverable upon the
conversion of the Series B Preferred Stock.

     

    (d)           Adjustments to Conversion
Price of Series B Preferred Stock for Diluting Issues.  For
purposes of this Section 5(d), the following definitions shall
apply:

    

     

    (i) “Option” shall mean rights,
options or warrants to subscribe for, purchase or otherwise acquire Common Stock
or Convertible Securities.

     

    (ii) “Series B Original Issue Date”
shall mean the date on which the first share of Series B Preferred Stock
was issued.

     

    (iii) “Convertible Securities” shall
mean any evidences of indebtedness, shares or other securities directly or
indirectly convertible into or exchangeable for Common Stock,.

     

    (iv) “Additional Shares of Common
Stock” shall mean all shares of Common Stock issued (or, pursuant to this
Section 5(d), deemed to be issued) by the Corporation after the Series B
Original Issue Date, other than the following shares of Common Stock, and shares
of Common Stock deemed issued pursuant to the following Options and Convertible
Securities (collectively “Exempted
Securities”):

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    a.           the
issuance of any shares of Common Stock as a stock dividend to holders of shares
of the Company’s capital stock or upon any subdivision or combination of shares
of the Company’s capital stock that is covered pursuant to Section 5(a), 5(b) or
5(c) above;

     

     

    b.           the
issuance of any shares of Common Stock upon conversion of shares of Series B
Preferred Stock or any other shares of convertible preferred stock outstanding
as of the date hereof;

     

     

    c.           the
issuance of up to 6,000,000 shares of Common Stock or options with respect
thereto (subject in either case to appropriate adjustment for stock splits,
stock dividends, recapitalizations and similar events occurring after the date
of this Agreement), issued or issuable to employees, directors or officers of,
or consultants to, the Company or any subsidiary of the Company pursuant to any
plan, agreement or arrangement approved by the Board of Directors of the Company
including convertible notes that are issued to employees in lieu of payment of
cash salary (it being understood that any shares subject to options that expire
or terminate unexercised or convertible notes that are repaid in cash or any
restricted stock repurchased by the Company shall not be counted towards the
maximum number set forth in this clause c. unless and until regranted or
reissued pursuant to any such plan, agreement or arrangement, and the shares
into which a convertible note may be converted don’t count unless and until
there is a conversion; provided, however, that the exception provided by this
provision is not available to the extent the 6 million share cap is exceeded by
a conversion of any such notes);

     

     

    d.           the
issuance of shares of Common Stock upon the exercise of any warrant to purchase
shares of Common Stock outstanding as of the Series B Original Issue Date or any
warrant issued to the Investor or any other purchaser of Series B Preferred
Stock in connection with the Company’s Series B Preferred Stock equity
financing;

     

     

    e.           the
issuance of securities solely in consideration for the acquisition (whether by
merger or otherwise) by the Company or any subsidiary of the Company of all or
substantially all of the stock or assets of any other entity;

     

     

    f.           the
issuance of shares of Common Stock by the Company in a firm-commitment
underwritten public offering pursuant to an effective registration statement
under the Securities Act; or

     

     

    g.           the
issuance of shares of Common Stock, or the grant of options or warrants
therefor, in connection with (i) any present or future borrowing, line of
credit, leasing or similar financing arrangement approved by the Board of
Directors of the Company, or (ii) sponsored research, collaboration, technology
license, development, OEM, marketing or other similar agreements or strategic
partnerships approved by the Board of Directors of the Company.

     

    

     

    (v) No
adjustment in the Conversion Price of Series B Preferred Stock shall be made
as the result of the issuance or deemed issuance of Additional Shares of Common
Stock if the Corporation receives written notice from the holders of at least a
majority of the then outstanding shares of Series B Preferred Stock
agreeing that no such adjustment shall be made as the result of the issuance or
deemed issuance of such Additional Shares of Common Stock.

     

    (vi) If the
Corporation at any time or from time to time after the Series B Original Issue
Date shall issue any Options or Convertible Securities (excluding Options or
Convertible Securities which are themselves Exempted Securities) or shall fix a
record date for the determination of holders of any class of securities entitled
to receive any such Options or Convertible Securities, then the maximum number
of shares of Common Stock (as set forth in the instrument relating thereto,
assuming the satisfaction of any conditions to exercisability, convertibility or
exchangeability but without regard to any provision contained therein for a
subsequent adjustment of such number) issuable upon the exercise of such Options
or, in the case of Convertible Securities and Options therefor, the conversion
or exchange of such Convertible Securities, shall be deemed to be Additional
Shares of Common Stock issued as of the time of such issue or, in case such a
record date shall have been fixed, as of the close of business on such record
date.

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    (vii) If the
terms of any Option or Convertible Security, the issuance of which resulted in
an adjustment to the Conversion Price of Series B Preferred Stock pursuant to
the terms of this Section 5(d), are revised as a result of an amendment to such
terms or any other adjustment pursuant to the provisions of such Option or
Convertible Security (but excluding automatic adjustments to such terms pursuant
to anti-dilution or similar provisions of such Option or Convertible Security)
to provide for either (1) any increase or decrease in the number of shares of
Common Stock issuable upon the exercise, conversion and/or exchange of any such
Option or Convertible Security or (2) any increase or decrease in the
consideration payable to the Corporation upon such exercise, conversion and/or
exchange, then, effective upon such increase or decrease becoming effective,
the  Conversion Price computed upon the original issue of such Option
or Convertible Security (or upon the occurrence of a record date with respect
thereto) shall be readjusted to such Conversion Price as would have obtained had
such revised terms been in effect upon the original date of issuance of such
Option or Convertible Security.  Notwithstanding the foregoing, no
readjustment pursuant to this clause (b) shall have the effect of
increasing the Conversion Price to an amount which exceeds the lower of
(i) the Conversion Price in effect immediately prior to the original
adjustment made as a result of the issuance of such Option or Convertible
Security, or (ii) the Conversion Price that would have resulted from any
issuances of Additional Shares of Common Stock (other than deemed issuances of
Additional Shares of Common Stock as a result of the issuance of such Option or
Convertible Security) between the original adjustment date and such readjustment
date.

     

    (viii) If the
terms of any Option or Convertible Security (excluding Options or Convertible
Securities which are themselves Exempted Securities), the issuance of which did
not result in an adjustment to the Conversion Price pursuant to the terms of
this Section 5(d) (either because the consideration per share of the Additional
Shares of Common Stock subject thereto was equal to or greater than the
Conversion Price then in effect, or because such Option or Convertible Security
was issued before the Series B Original Issue Date), are revised after the
Series B Original Issue Date as a result of an amendment to such terms or any
other adjustment pursuant to the provisions of such Option or Convertible
Security (but excluding automatic adjustments to such terms pursuant to
anti-dilution or similar provisions of such Option or Convertible Security) to
provide for either (1) any increase or decrease in the number of shares of
Common Stock issuable upon the exercise, conversion or exchange of any such
Option or Convertible Security or (2) any increase or decrease in the
consideration payable to the Corporation upon such exercise, conversion or
exchange, then such Option or Convertible Security, as so amended or adjusted,
and the Additional Shares of Common Stock subject thereto shall be deemed to
have been issued effective upon such increase or decrease becoming
effective.

     

    (ix) Upon the
expiration or termination of any unexercised Option or unconverted or
unexchanged Convertible Security (or portion thereof) which resulted (either
upon its original issuance or upon a revision of its terms) in an adjustment to
the Conversion Price pursuant to the terms of this Section 5(d), the Conversion
Price shall be readjusted to such Conversion Price as would have obtained had
such Option or Convertible Security (or portion thereof) never been
issued.

     

    (x) If the
number of shares of Common Stock issuable upon the exercise, conversion and/or
exchange of any Option or Convertible Security, or the consideration payable to
the Corporation upon such exercise, conversion and/or exchange, is calculable at
the time such Option or Convertible Security is issued or amended but is subject
to adjustment based upon subsequent events, any adjustment to the Conversion
Price provided for in this Section 5(d) shall be effected at the time of such
issuance or amendment based on such number of shares or amount of consideration
without regard to any provisions for subsequent adjustments (and any subsequent
adjustments shall be treated as provided in clauses (vii) and (viii) of this
Section 5(d)).  If the number of shares of Common Stock issuable upon
the exercise, conversion and/or exchange of any Option or Convertible Security,
or the consideration payable to the Corporation upon such exercise, conversion
and/or exchange, cannot be calculated at all at the time such Option or
Convertible Security is issued or amended, any adjustment to the Conversion
Price that would result under the terms of this Section 5(d) at the time of such
issuance or amendment shall instead be effected at the time such number of
shares and/or amount of consideration is first calculable (even if subject to
subsequent adjustments), assuming for purposes of calculating such adjustment to
the Conversion Price that such issuance or amendment took place at the time such
calculation can first be made.

     

    (xi) In the
event the Corporation shall at any time after the Series B Original Issue Date
issue Additional Shares of Common Stock (including Additional Shares of Common
Stock deemed to be issued pursuant to this Section 5(d)), without consideration
or for a consideration per share less than the  Conversion Price in
effect immediately prior to such issue, then the Conversion Price shall be
reduced, concurrently with such issue, to a price (calculated to the nearest
one-hundredth of a cent) determined in accordance with the following
formula:

     

    CP2 = CP1
*  (A + B)  ̧
(A + C).

     

    For
purposes of the foregoing formula, the following definitions shall
apply:

     

     

     

     

    
      
         

      

      
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    “CP2” shall
mean the Conversion Price in effect immediately after such issue of Additional
Shares of Common Stock

     

    “CP1” shall
mean the Conversion Price in effect immediately prior to such issue of
Additional Shares of Common Stock;

     

    “A” shall
mean the number of shares of Common Stock outstanding immediately prior to such
issue of Additional Shares of Common Stock (including for this purpose as
outstanding all shares of Common Stock issuable upon exercise or conversion of
Options or Convertible Securities outstanding immediately prior to such
issue);

     

    “B” shall
mean the number of shares of Common Stock that would have been issued if such
Additional Shares of Common Stock had been issued at a price per share equal to
CP1
(determined by dividing the aggregate consideration received by the Corporation
in respect of such issue by CP1);
and

     

    “C” shall
mean the number of such Additional Shares of Common Stock issued in such
transaction.

     

    For
purposes of this Section 5(d)(xi), the consideration received by the Corporation
for the issue of any Additional Shares of Common Stock shall be computed as
follows:

     

    a. Cash and
Property:  Such consideration shall insofar as it consists of cash,
(X) be computed at the aggregate amount of cash received by the Corporation,
excluding amounts paid or payable for accrued interest; and insofar as it
consists of property other than cash, (Y) be computed at the fair market value
thereof at the time of such issue, as determined in good faith by the Board of
Directors of the Corporation; and in the event Additional Shares of Common Stock
are issued together with other shares or securities or other assets of the
Corporation for consideration which covers both, be the proportion of such
consideration so received, computed as provided in clauses (X) and (Y)
above, as determined in good faith by the Board of Directors of the
Corporation.

     

    b. Options
and Convertible Securities.  The consideration per share received by
the Corporation for Additional Shares of Common Stock deemed to have been issued
pursuant to this Section 5(d), relating to Options and Convertible Securities,
shall be determined by dividing (X) the total amount, if any, received or
receivable by the Corporation as consideration for the issue of such Options or
Convertible Securities, plus the minimum aggregate amount of additional
consideration (as set forth in the instruments relating thereto, without regard
to any provision contained therein for a subsequent adjustment of such
consideration) payable to the Corporation upon the exercise of such Options or
the conversion or exchange of such Convertible Securities, or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible Securities, by (Y)
the maximum number of shares of Common Stock (as set forth in the instruments
relating thereto, without regard to any provision contained therein for a
subsequent adjustment of such number) issuable upon the exercise of such Options
or the conversion or exchange of such Convertible Securities, or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible
Securities.

     

    (xii) Multiple
Closing Dates.  In the event the Corporation shall issue on more than
one date Additional Shares of Common Stock that are a part of one transaction or
a series of related transactions and that would result in an adjustment to the
Conversion Price pursuant to the terms of Section4(d)(xi) above then, upon the
final such issuance, the Conversion Price shall be readjusted to give effect to
all such issuances as if they occurred on the date of the first such issuance
(and without giving effect to any additional adjustments as a result of any such
subsequent issuances within such period).

     

    (e)           Certificate as to
Adjustments.  Upon the occurrence of each adjustment or readjustment
of the Conversion Price pursuant to this Section 5, the Corporation at its
expense shall, as promptly as reasonably practicable but in any event not later
than 10 days thereafter, compute such adjustment or readjustment in accordance
with the terms hereof and furnish to each holder of Series B Preferred
Stock a certificate setting forth such adjustment or readjustment (including the
kind and amount of securities, cash or other property into which the Series B
Preferred Stock is convertible) and showing in detail the facts upon which such
adjustment or readjustment is based.  The Corporation shall, as
promptly as reasonably practicable after the written request at any time of any
holder of Series B Preferred Stock (but in any event not later than 10 days
thereafter), furnish or cause to be furnished to such holder a certificate
setting forth (i) the Conversion Price then in effect, and (ii) the
number of shares of Common Stock and the amount, if any, of other securities,
cash or property which then would be received upon the conversion of
Series B Preferred Stock.

     

    Section
6.                                Voting
Rights of Series B Preferred Stock.

     

    (a)           General.  Except
as expressly set forth in this Section and except as otherwise required by law,
each share of Series B Preferred Stock issued and outstanding shall entitle the
holder thereof to cast that number of votes as is equal to the number of votes
that such holder would be entitled to cast had such holder converted its shares
of Series B Preferred Stock into shares of Common Stock pursuant to Section 4
below on the record date for determining the stockholder of the Corporation
eligible to vote on any such matters.  The holders of the Series B
Preferred Stock shall vote with the Common Stock as a single class unless
otherwise set forth herein.

    

    (b)           Series B Preferred Stock
Protective Provisions.  At any time when at
least  25,000 shares of Series B Preferred Stock (subject to
appropriate adjustment in the event of any stock dividend, stock split,
combination or other similar recapitalization affecting such shares) are
outstanding, the Corporation shall not, either directly or indirectly by
amendment, merger, consolidation or otherwise, do any of the following without
(in addition to any other vote required by law or the Certificate of
Incorporation) the written consent or affirmative vote of the holders of at
least a majority of the then outstanding shares of Series B Preferred
Stock, given in writing or by vote at a meeting, consenting or voting (as the
case may be) separately as a class:

     

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

     

    (i)           effect
any merger or consolidation of the Corporation with or into another corporation
or entity (whether or not the Corporation is the surviving entity if, after the
merger or consolidation, more than 50% of the voting stock of the surviving
corporation is owned by persons who were not holders of voting stock of this
Corporation prior to the merger or consolidation), or sell all or substantially
all the assets of the Corporation, or consent to any of the
foregoing;

     

    (ii)           amend
or repeal any provision of, or add any provision to, the Corporation's
Certificate of Incorporation or By-laws if such action would alter or change the
preferences, rights, privileges or powers of, or the restrictions provided for
the benefit of, such Series B Preferred Stock.

     

    (iii)           authorize
the issuance of more than 15,000,000 shares of Common Stock (adjusted to reflect
any stock split, stock dividend, combination, recapitalization or
reorganization) exclusive of shares issued as dividends on any series of
preferred stock, or create,
or authorize the creation of, or issue or obligate itself to issue shares of,
any additional class or series of capital stock unless the same ranks junior to
the Series B Preferred Stock with respect to the distribution of assets on the
liquidation, dissolution or winding up of the Corporation, the payment of
dividends and redemption rights, or increase the authorized number of shares of
Series B Preferred Stock or increase the authorized number of shares of any
additional class or series of capital stock unless the same ranks junior to the
Series B Preferred Stock with respect to the distribution of assets on the
liquidation, dissolution or winding up of the Corporation, the payment of
dividends and redemption rights.

     

    (iv)           acquire
another entity by means of a purchase of all or a portion of the capital stock
or assets of such entity for consideration in excess of $2,000,000;

     

    (v)           liquidate,
wind up, or dissolve the Corporation or adopt any plan for the
same;

     

    (vi)           effect
any sale, lease, transfer, pledge or other disposition of assets of the
Corporation or its subsidiaries, not in the ordinary course of business, unless
the value of such assets; singly or in connection with any related series of
transactions does not in the aggregate exceed $5,000,000;

     

    (vii)                      enter
into any transaction with any officer, director or beneficial owner of five
percent (5%) or more of the Common Stock or any affiliate of any of the
foregoing, unless such transaction is in the ordinary course of business and
approved by the Corporation’s Board of Directors;

     

    (viii)                      authorize
or effect the issuance by the Corporation of any shares of capital stock or
rights to acquire capital stock pursuant to stock option, stock bonus or other
employee stock plans for the benefit of the employees of the Corporation or its
subsidiaries in existence as of such date, other than issuances referred to in
Section 5(d)(iv)(c);

     

    (ix)           incur
any Indebtedness for borrowed money in excess of $1,000,000 outstanding at any
time;

     

    (x)           acquire
any material assets of another person for consideration in excess of $2,000,000
other than acquisitions of inventory and raw material made in the ordinary
course of business; or

     

    (xi)           permit
any subsidiary to do any of the foregoing (except for payment of dividends to
the Corporation or another wholly-owned subsidiary of the
Corporation).

     

    IN
WITNESS WHEREOF, the undersigned has executed this Certificate of Designations
as of July 10, 2009.

    

    
      
        	 	ELEMENT
      21 GOLF COMPANY	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Nataliya
      Hearn	 
	 	 	Name:
      Nataliya Hearn	 
	 	 	Title:   President	 
	 	 	 	 

      

    

     

     

     

     

    8

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