Document:

f8k111308ex10_chinavalve.htm

     

    
       

       

       

      Exhibit
10.1

      CHINA
VALVES TECHNOLOGY, INC.

      

      NOTICE OF STOCK OPTION
GRANT

      

      

      

      Name:  Veronica Jing
Chen                                        Address:  No.
93 West Xinsong Road

                                                                                                               
Kaifeng, China 475000

       

      You have
been granted an option (the “Option”) to purchase common
stock (“Shares”) of
China Valves Technology, Inc. (the “Company”), subject to the
terms and conditions of the attached Stock Option Agreement, as
follows:

      

                 Date
of
Grant:                                                                            November
13,
2008                                                                       

      

                 Vesting
Commencement
Date:                                                October
7,
2009             
                                                      

      

                 Exercise
Price per
Share:                                             
                  
$3.50      
            
       

      

                 Total
Number of Shares
Granted:                              
                   100,000                                                       

      

                 Total
Exercise
Price:                                                     
                 
$350,000                    
                                           

      

                 Type
of
Option:                                                                Non-Qualified
Stock Option

      

                 Expiration
Date:                                                                November
12, 2018

      

      Vesting
Schedule:

      

      33.336%
of the Option vests on October 7, 2009. The remaining Option vest
in equal installment in every quarter after October 7, 2009 until the options
are fully exercised. Notwithstanding the foregoing, the Option will become fully
vested and exercisable upon a Change in Control.

      

      Termination
Period:

      

      To the
extent vested, this Option will be exercisable for three (3) months after the
Termination Date, unless (i) termination is due to Optionee’s death or
Disability, in which case this Option will be exercisable for twelve (12) months
after the Termination Date or (ii) the Optionee is Terminated for Cause, in
which case this Option will terminate on the Termination Date.  In no
event may this Option be exercised later than the Expiration Date provided
above.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      CHINA
VALVES TECHNOLOGY, INC.

      

      STOCK OPTION
AGREEMENT

      

      

                 This
STOCK OPTION AGREEMENT
(“Agreement”),
dated as of the 13rd day of November, 2008 is made by and between China
Valves Technology, Inc., a Nevada corporation (the “Company”), and Veronica Jing
Chen (the “Optionee”).

      

      BACKGROUND

      

                 The
Company, acting through its Board of Directors (the “Board”), approved the grant to
the Optionee, effective as of the date set forth above, of a stock option
(“Option”) to purchase
shares of the common stock, par value $.001 per share (the “Shares”), of the Company at
the price (the “Exercise
Price”) set forth in the attached Notice of Stock Option Grant (which is
expressly incorporated herein and made a part hereof, the “Notice of Grant”), upon the
terms and conditions hereinafter set forth.

       

                 NOW, THEREFORE, in
consideration of the mutual promises and undertakings hereinafter set forth, the
parties hereto agree as follows:

       

      1. Grant of
Option.  On behalf of the Company, the Board hereby grants to
the Optionee an Option to purchase, subject to the terms and conditions of this
Agreement, that number of Shares of the Company set forth in the Notice of Grant
(the “Optioned Shares”),
at an exercise price per share equal to the Exercise Price set forth in the
Notice of Grant, subject to the terms and conditions of this Agreement. The
Option is intended to be a Non-Qualified Stock Option, meaning that it is not
qualified as an “Incentive Stock Option” as described in Section 422 of the
Internal Revenue Code of 1986 (“Code”), as amended.

       

      2. Term. The term of the Option
commences on the date of this Agreement and expires on the Expiration Date set
forth in the Notice of Grant unless otherwise terminated in accordance with the
terms of the Notice of Grant or this Agreement.

       

      3. Time of
Exercise. Except as otherwise
provided in this section or unless accelerated in the discretion of the Board,
the Option will become exercisable during its term in accordance with the
Vesting Schedule set forth in the Notice of Grant.  Shares as to which
the Option becomes exercisable may be purchased at any time prior to the
expiration or termination of the Option.

       

      (a) This
Option will become fully vested and exercisable upon a Change in
Control.  Prior to the closing of a transaction that would result in a
Change in Control, the Company will notify the Optionee in writing or
electronically that the Option will be exercisable (subject, however, to the
requirement that the Change in Control actually occur) for a period of time
determined by the Company in its sole discretion, and the Option will terminate
upon the expiration of such period for no consideration, unless otherwise
determined by the Company.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      4. Termination of
Option.

       

      (a) If the
Optionee is Terminated for any reason except death or Disability, then the
Optionee may exercise the Option (i) only to the extent that the Option would
have been exercisable on the Termination Date and (ii) no later than three
months after the Termination Date, but in any event, no later than the
Expiration Date.

       

      (b) If the
Optionee is Terminated because of the Optionee’s death or Disability (or the
Optionee dies within three months after a Termination other than for Cause or
because of Optionee’s Disability), then the Option (i) may be exercised only to
the extent that such Option would have been exercisable by the Optionee on the
Termination Date and (ii) must be exercised by the Optionee (or the Optionee’s
legal representative or authorized assignee) no later than twelve months after
the Termination Date, but in any event no later than the Expiration
Date.

       

      (c) Notwithstanding
the provisions in paragraphs 4(b) and 4(c), if the Optionee is Terminated for
Cause, neither the Optionee, the Optionee’s estate nor such other person who may
then hold the Option will be entitled to exercise the Option whatsoever, whether
or not, after the Termination Date, the Optionee may receive payment from the
Company or any Parent, Subsidiary or Affiliate of the Company for vacation pay,
for services rendered prior to the Termination Date, for services rendered for
the day on which Termination occurs, for salary in lieu of notice, for severance
or for any other benefits; provided, however, that the
Board will  give the Optionee an opportunity to present to the Board
evidence on the Optionees’s behalf that the provisions of this paragraph 4(d)
should not apply and, in the alternative, paragraph 4(b) or 4(c) will
apply.  For the purpose of this paragraph 4(d), Termination will occur
on the date when the Company dispatches notice or advice to the Optionee that
the Optionee is Terminated.

       

      5. Method of Exercise.  This
Option is exercisable by delivery of an exercise notice in the form attached as
Exhibit A (the “Exercise Notice”) or in a manner and pursuant to procedures as
the Board may determine, which will state the election to exercise the Option,
the number of Shares for which the Option is being exercised, and other
representations and agreements as may be required by the Company.  The
Exercise Notice will be accompanied by payment of the aggregate Exercise Price
as to all Shares being acquired, together with any applicable tax
withholding.  This Option will be deemed to be exercised upon receipt
by the Company of a fully executed Exercise Notice accompanied by the aggregate
Exercise Price, together with any applicable tax withholding.

       

      6. Method of Payment.  Payment
of the aggregate Exercise Price may be by any of the following, or a combination
thereof, at the election of the Optionee:

       

      (a) cash;

       

      (b) check;

       

      (c) to the
extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a
promissory note;

       

      (d) to the
extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002,
surrender of other Shares which have a Fair Market Value on the date of
surrender equal to the aggregate Exercise Price of the Shares being
acquired;

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (e) by asking
the Company to withhold Shares from the total Shares to be delivered upon
exercise equal to the number of Shares having a value equal to the aggregate
Exercise Price of the Shares being acquired;

       

      (f) in
accordance with any broker-assisted cashless exercise procedures approved by the
Company and as in effect from time to time;

       

      (g) any
combination of the foregoing methods of payment; or

       

      (h) other
consideration and method of payment for the issuance of Shares to the extent
permitted by applicable laws.

       

      7. Taxes.

       

      (a) Withholding.  Optionee
agrees to arrange for the satisfaction of all federal, state, local and foreign
income and employment tax withholding requirements applicable to the Option
exercise.  Optionee acknowledges and agrees that the Company may
refuse to honor the exercise and refuse to deliver the Shares if withholding
amounts are not delivered at the time of exercise.

       

      (b) Code Section
409A.  Under Code Section 409A, an Option that vests after
December 31, 2004 that was granted with a per Share exercise price that is
determined by the Internal Revenue Service (the “IRS”) to be less than the Fair
Market Value of a Share on the date of grant (a “discount option”) may be
considered “deferred compensation.”  An Option that is a discount
option may result in (i) income recognition by the Optionee prior to the
exercise of the Option, (ii) an additional twenty percent (20%) tax, and (iii)
potential penalty and interest charges.  Optionee acknowledges that
the Company cannot and has not guaranteed that the IRS will agree that the per
Share exercise price of this Option equals or exceeds the fair market value of a
Share on the date of grant in a later examination.  Optionee agrees
that if the IRS determines that the Option was granted with a per Share exercise
price that was less than the Fair Market Value of a Share on the date of grant,
Optionee shall be solely responsible for Optionee’s costs related to such a
determination.

       

      8. Legal
Compliance.  Optionee may not exercise the Option unless the
exercise of the Option and the issuance of the Optioned Shares comply with
applicable law.  The Company will be relieved of any liability with
respect to any delayed issuance of shares or its failure to issue shares if such
delay or failure is necessary to comply with applicable laws.

       

      9. Adjustments Upon Changes in
Capitalization. In the event that any
dividend or other distribution (whether in the form of cash, Shares, other
securities, or other property), recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities of the Company, or other
change in the corporate structure of the Company affecting the Shares occurs,
the Board, in order to prevent diminution or enlargement of the benefits or
potential benefits intended to be made available under this Option, will
equitably adjust the number, class, and Exercise Price of Shares covered by this
Option to prevent enlargement or diminution of the value of this
Option.  Any such adjustment shall be done in a manner consistent with
Code Section 409A and Treasury Regulations section 1.409A-1 et seq.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      10. Investment Representation
and Legend of Certificates. 

       

      (a) The
Optionee acknowledges and agrees that, for any period in which a registration
statement, with respect to the Option and/or Shares under the Securities Act of
1933, as amended (the “Securities Act”), is not effective, the Optionee will
hold the Option and will purchase and/or own the Optioned Shares for investment
and not for resale or distribution.  The Company will have the right
to place upon the face and/or reverse side of any stock certificate or
certificates evidencing the Optioned Shares such legend as the Board may
prescribe for the purpose of preventing disposition of such Optioned Shares in
violation of the Securities Act.

       

      (b) If a
registration statement under the Securities Act is not in effect with respect to
the Shares issuable upon exercise, the Company may require as a condition
precedent that the Optionee, upon exercising the Option, deliver to the Company
a written representation and undertaking, satisfactory in form and substance to
the Company, that, among other things, the Optionee is acquiring the Shares for
his own account for investment and not with a view to or for sale in connection
with any distribution of the security.

       

      11. No Evidence of Employment or
Service. Nothing contained in
this Agreement confers upon the Optionee any right to continue in employment
with the Company, its parent or any of its subsidiaries or interfere in any way
with the right of the Company, its parent or its subsidiaries (subject to the
terms of any separate agreement to the contrary) to terminate the Optionee’s
business relationship or to increase or decrease the Optionee’s compensation at
any time.

       

      12. Non-Transferability of
Option. This
Option may not be transferred in any manner otherwise than by will or by the
laws of descent or distribution and may be exercised during the lifetime of the
Optionee only by the Optionee.  The terms of this Agreement is binding
upon the executors, administrators, heirs, successors and assigns of the
Optionee.

       

      13. Specific
Performance.  The Optionee expressly agrees that the Company
will be irreparably damaged if the provisions of this Agreement are not
specifically enforced.  Upon a breach or threatened breach of the
terms, covenants and/or conditions of this Agreement by the Optionee, the
Company will, in addition to all other remedies, be entitled to a temporary or
permanent injunction, without showing any actual damage, and/or decree for
specific performance, in accordance with the provisions hereof and
thereof.  The Board has the power to determine what constitutes a
breach or threatened breach of this Agreement.  Any such
determinations will be final and conclusive and binding upon the
Optionee.

       

      14. Notices. All notices or other
communications which are required or permitted hereunder will be in writing and
sufficient if personally delivered or sent by telecopy, sent by
nationally-recognized overnight courier, or sent by registered or certified
mail, postage prepaid, return receipt requested, addressed as
follows:

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      (a) if to the
Optionee, to the address (or telecopy number) set forth on the Notice of Grant;
and

       

      (b) if to the
Company, to its principal executive office as specified in any report filed by
the Company with the Securities and Exchange Commission or to such address as
the Company may have specified to the Optionee in writing, Attention: Corporate
Secretary;

       

      or to
such other address as the party to whom notice is to be given may have furnished
to the other party in writing in accordance herewith.  Any such
communication will be deemed to have been given (i) when delivered, if
personally delivered, or when telecopied, if telecopied, (ii) on the first
Business Day (as hereinafter defined) after dispatch, if sent by
nationally-recognized overnight courier and (iii) on the third Business Day
following the date on which the piece of mail containing such communication is
posted, if sent by mail.  As used herein, “Business Day” means a day
that is not a Saturday, Sunday or a day on which banking institutions in the
city to which the notice or communication is to be sent are not required to be
open.

       

      15. No Waiver. No waiver of any breach
or condition of this Agreement will be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different
nature.

       

      16. Optionee
Undertaking. The Optionee agrees to
take whatever additional actions and execute whatever additional documents the
Company may in its reasonable judgment deem necessary or advisable in order to
carry out or effect one or more of the obligations or restrictions imposed on
the Optionee pursuant to the express provisions of this Agreement.

       

      17. Definitions.  For
purposes of this Agreement and the Notice of Grant, capitalized terms have the
following meanings:

       

      (a) “Affiliate”
means any entity or person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with,
another entity, where “control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power
to cause the direction of the management and policies of the entity, whether
through the ownership of voting securities, by contract or
otherwise.

       

      (b) “Cause”
means (i) the conviction of the Optionee of a crime involving a sentence of
incarceration or of a felony with or without a sentence of incarceration; (ii)
the commission of an act by the Optionee constituting fraud, embezzlement or
other material financial dishonesty against the Company, or of an act of moral
turpitude which in the opinion of counsel to the Company would constitute a
crime under the laws of the United States or China (or any of their state or
local laws) and which, in case of any of the foregoing, in the good faith
judgment of the Company, is likely to cause harm to the business of the Company,
taken as a whole; (iii) the repeated refusal or failure by the Optionee to use
his reasonable and diligent efforts to follow the lawful and reasonable
directives of the Chief Executive Officer or Board with respect to a matter or
matters within the control of the Optionee; (iv) the Optionee’s willful or gross
neglect in carrying out his material duties and responsibilities under any
employment agreement with the Company; or (v) a material breach by the Optionee
of any provision of any employment agreement with the Company.

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (c) “Change
in Control” means the occurrence of any of the following events:

       

      (i)           Any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the total voting power represented by the Company's then
outstanding voting securities; and

      

      (ii)           The
consummation of the sale or disposition by the Company of all or substantially
all of the Company's assets;

      

      (iii)           A
change in the composition of the Board occurring within a two-year period, as a
result of which fewer than a majority of the directors are Incumbent
Directors.  “Incumbent Directors” means directors who either (A) are
Directors as of the effective date of the Plan, or (B) are elected, or nominated
for election, to the Board with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but will not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to
the Company); or

      

      (iv)           The
consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or its parent) at least fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity or its parent outstanding immediately after
such merger or consolidation.

      

      For the
avoidance of doubt, a transaction will not constitute a Change in Control if:
(i) its sole purpose is to change the state of the Company’s incorporation, or
(ii) its sole purpose is to create a holding company that will be owned in
substantially the same proportions by the persons who held the Company’s
securities immediately before such transaction.

      

      (d) “Disability”
has the meaning provided in the Optionee’s employment agreement.  If
“Disability” is not defined therein, “Disability” means the inability of the
Optionee to perform the duties of his position or any substantially similar
employment position by reason of a physical or mental disability or infirmity
for a continuous period of six months, as determined by the
Board.  The date of such Disability will be the last day of such
six-month period or the date on which the Optionee submits such medical
evidence, satisfactory to the Company, that the Optionee has a physical or
mental disability or infirmity that will likely prevent the Optionee from
performing the Optionee’s work duties for a continuous period of six months or
longer, as the case may be.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      (e) “Parent”
means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations in the chain
(other than the Company) owns stock possessing 50% or more of the combined
voting power of all classes of stock in one of the other corporations in the
chain.

       

      (f) “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations (other than
the last corporation) in the unbroken chain owns stock possessing 50% or more of
the total combined voting power of all classes of stock in one of the other
corporations in the chain.

       

      (g) “Termination”
or “Terminated” means that the Optionee has for any reason ceased to provide
services as an employee, officer, director, Optionee, independent contractor, or
advisor to the Company or any Parent, Subsidiary or Affiliate of the
Company.  The Optionee will not be deemed to have ceased to provide
services in the case of (i) sick leave, (ii) military leave, or (iii) any other
leave of absence approved by the Board, provided, that such leave is for a
period of not more than three months, unless reemployment or reinstatement upon
the expiration of such leave is provided by contract or statute.  In
the case the Optionee is on an approved leave of absence, the Board may suspend
vesting of the Option while the Optionee is on leave from the Company or any
Parent, Subsidiary or Affiliate of the Company.  The Board has the
sole discretion to determine whether the Optionee has ceased to provide services
and the applicable Termination Date.

       

      (h) “Termination
Date” means the effective date of Termination, as determined by the
Board.

       

      18. Interpretation.  The
Company intends that no payments under this Agreement will be subject to the tax
imposed by Code Section 409A.  This agreement will be interpreted and
administered in a manner that avoids the  imposition of any increase
in tax under Code section 409A(a)(1)(B), and any ambiguities herein will be
interpreted to satisfy the requirements of Code section 409A or any exemption
thereto.

       

      19. Governing Law. This Agreement is
governed by, and will be construed in accordance with, the laws of the State of
Nevada applicable to contracts made and to be wholly performed therein, without
giving effect to its conflicts of laws principles.

       

      20. Counterparts; Facsimile
Execution. This Agreement may be
executed in one or more counterparts, each of which will be deemed to be an
original, but all of which together will constitute one and the same
instrument.  Facsimile execution and delivery of this Agreement is
legal, valid and binding execution and delivery for all purposes.

       

      21. Entire
Agreement. This Agreement
(including the Notice of Grant and the Exercise Notice) constitute the entire
agreement between the parties with respect to the subject matter hereof, and
supersedes all previously written or oral negotiations, commitments,
representations and agreements with respect to the subject matter hereof, and
may not be modified adversely to the Optionee’s interest except by means of a
writing signed by the Company and Optionee.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      22. Severability. In the event one or more
of the provisions of this Agreement should, for any reason, be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability will not affect any other provisions of this Agreement, and
this Agreement will be construed as if such invalid, illegal or unenforceable
provision had never been contained herein.

       

      23. WAIVER OF JURY
TRIAL. THE
OPTIONEE HEREBY EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY
IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

      

                 By
Optionee’s signature and the signature of the Company’s representative below,
Optionee and the Company agree that this Option is granted under and governed by
the terms and conditions of this Agreement. Optionee has reviewed this Agreement
in its entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Agreement and fully understands all provisions of this
Agreement.

      

      

      

      
        	
                 
      

              	
                CHINA
      VALVES TECHNOLOGY, INC.

              

      

       

      By:/s/ Siping
Fang

      Name:
Siping Fang

      Title:
Chief Executive Officer

       

       

      OPTIONEE

      

      /s/ Veronica Jing
Chen

      Veronica
Jing Chen

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      EXHIBIT
A

      

      CHINA
VALVES TECHNOLOGY, INC.

      

      EXERCISE
NOTICE

      

      

      

      China
Valves Technology, Inc.

      No. 93
West Xinsong Road

      Kaifeng,
Henan Province

      China
475002

      

      1. Exercise of Option.
Effective as of today, ________________, 20__, the undersigned (“Optionee”)
hereby elects to purchase______________ shares of the common stock (the
“Shares”) of China Valves Technology, Inc. (the “Company”) under the option (the
“Option”) represented by the Stock Option Agreement dated September 28, 2008
(the “Option Agreement”).

       

      2. Delivery of Payment. Optionee
herewith delivers to the Company the full purchase price for the Shares and any
and all withholding taxes due in connection with the exercise of the
Option.

       

      3. Representations of
Optionee. Optionee acknowledges that Optionee has received, read and
understood the Option Agreement and agrees to abide by and be bound by its terms
and conditions.

       

      4. Rights as
Stockholder. Until the issuance (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company)
of the Shares, no right to vote or receive dividends or any other rights as a
stockholder will exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Shares so acquired will be issued to the Optionee as
soon as practicable after exercise of the Option. No adjustment will be made for
a dividend or other right for which the record date is prior to the date of
issuance, except as provided in the Option Agreement.

       

      5. Tax
Consultation.  Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee’s purchase or disposition of
the Shares.  Optionee represents that Optionee has consulted with any
tax consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

       

      6. Successors and
Assigns.  The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this Exercise Notice will
inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on transfer herein set forth,
this Exercise Notice is binding upon Optionee and his or her heirs, executors,
Boards, successors and assigns.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      7. Entire Agreement; Governing
Law. The Option Agreement and Notice of Grant are incorporated herein by
reference.  This Exercise Notice, the Option Agreement, and Notice of
Grant constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee’s interest except by
means of a writing signed by the Company and Optionee. This Exercise Notice is
governed by the internal substantive laws, but not the choice of law rules, of
Nevada.

       

      
        	
                Submitted by:

              	
                Accepted by:

              
	
                Optionee

              	
                CHINA VALVES
      TECHNOLOGY, INC.

              
	
                Signature

                 

                ___________________________________

                Print
      Name

                Veronica
      Jing Chen

                No.
      93 West Xinsong Road

                Kaifeng,
      Henan Province

                China
      475002

                 

              	
                Signature

                 

                ___________________________________

                Print
      Name

                _______________________

                Address

                No.
      93 West Xinsong Road

                Kaifeng,
      Henan Province

                China
      475002

                 

                 

                Date
      Received: __________Exhibit 4.1

Exhibit 4.1

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAVE BEEN ACQUIRED BY THE REGISTERED HOLDER HEREOF FOR PURPOSES OF INVESTMENT AND IN RELIANCE ON STATUTORY EXEMPTIONS UNDER THE ACT, AND UNDER ANY APPLICABLE STATE SECURITIES LAWS.  THESE SECURITIES AND THE SECURITIES ISSUED UPON EXERCISE HEREOF MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED, NOR MAY THIS WARRANT BE EXERCISED, EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT.

COMMON STOCK PURCHASE WARRANT

Date of Issuance: October 14, 2008

Number: SPW- ___

For value received, Voyant International Corporation, a Nevada corporation (the “Company”), hereby grants to The Brown Family Trust, an Alaskan trust (“Lender”), or its permitted transferees and assigns, the right to purchase from the Company a total of _________ shares of the Company’s common stock (“Common Stock”), at a price per share equal to $0.____ (the “Initial Exercise Price”).

This Warrant is being issued in connection with the Loan Agreement between Voyant International Corporation and The Brown Family Trust, dated October 14, 2008 (the “Loan Agreement”).  Certain capitalized terms used herein are defined in Section 4 hereof. 

This Warrant is subject to the following provisions: 

SECTION 1.  Exercise of Warrant. 

(a)

Terms of Warrants; Exercise Period.  Subject to the terms of this Warrant, the Registered Holder shall have the right, commencing on the date hereof and expiring on the five-year anniversary hereof (the “Expiration Date”), to exercise this Warrant, from time to time and in whole or in part, and receive from the Company the number of Warrant Shares which the Registered Holder may at the time be entitled to receive on exercise of this Warrant and payment of the Exercise Price then in effect for the Warrant Shares.  To the extent not exercised prior to the Expiration Date, this Warrant shall become void and all rights thereunder and all rights in respect thereof under this Agreement shall cease as of such time.

(b)

Exercise Procedure.

(i)

This Warrant shall be deemed to have been exercised on the date specified in a written notice from the Registered Holder to the Company (the “Exercise Time”) and within three 

business days following the Exercise Time, the Registered Holder shall deliver the following to the Company: 

(A)

a completed Exercise Agreement, as described in Section 1(c) below;

(B)

this Warrant; and either

(C)

a check payable to the Company in an amount equal to the product of the Exercise Price (as such term is defined in Section 2) multiplied by the number of Warrant Shares being purchased upon such exercise (the “Aggregate Exercise Price”) or 

(D)

a notice (a “Notice of Exchange” indicating the Registered Holder’s intent to exercise this Warrant on a cashless basis in whole or in part (a “Warrant Exchange”), for the number of Warrant Shares determined in accordance with this paragraph.   In connection with any Warrant Exchange, the Company shall issue to the Holder such number of fully paid and nonassessable shares of Common Stock as is computed using the following formula:

X = Y (A-B)

A

where 

X =

the number of shares to be issued to the Registered Holder pursuant to the Warrant Exchange.

Y =

the number of shares covered by the Warrant which the Holder has elected to exchange pursuant to this Section 4(b).

A =

the current market price per share of Common Stock (as defined below) on the Exercise Date. 

B =

the Exercise Price in effect under the Warrant on the Exercise Date.

(ii)

Certificates for Warrant Shares purchased upon exercise of this Warrant shall be delivered by the Company to the Registered Holder within five business days after the date of the Exercise Time.  Unless this Warrant has expired or all of the purchase rights represented hereby have been exercised, the Company shall prepare a new Warrant, substantially identical hereto, representing the rights formerly represented by this Warrant that have not expired or been exercised and shall, within such five-day period, deliver such new Warrant to the Person designated for delivery in the Exercise Agreement. 

(iii)

The Warrant Shares issuable upon the exercise of this Warrant shall be deemed to have been issued to the Registered Holder at the Exercise Time, and the Registered Holder shall be deemed for all purposes to have become the record holder of such Warrant Shares at the Exercise Time. 

(iv)

The Company shall not close its books against the transfer of this Warrant or of any Warrant Shares issued or issuable upon the exercise of this Warrant in any manner which interferes with the timely exercise of this Warrant.  

(v)

The Company shall make any governmental filings or obtain any governmental approvals necessary in connection with the exercise of this Warrant by the Registered Holder.

(vi)

The Company shall at all times reserve and keep available out of its authorized but unissued capital stock, solely for the purpose of issuance upon the exercise of this Warrant, the maximum number of Warrant Shares issuable upon the exercise of this Warrant.  All Warrant Shares that are so issuable shall, when issued and upon the payment of the Exercise Price therefor, be duly and validly issued, fully paid and nonassessable and free from all taxes, liens and charges.  The Company shall take all such actions as may be necessary to assure that all such Warrant Shares may be so issued without violation by the Company of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which securities of the Company may be listed (except for official notice of issuance which shall be immediately delivered by the Company upon each such issuance). 

(c)

Exercise Agreement.  Upon any exercise of this Warrant, the Registered Holder shall deliver an Exercise Agreement in the form set forth in Exhibit I hereto, except that if the Warrant Shares are not to be issued in the name of the Person in whose name this Warrant is registered, the Exercise Agreement shall also state the name of the Person to whom the certificates for the Warrant Shares are to be issued, and if the number of Warrant Shares to be issued does not include all the Warrant Shares purchasable hereunder, it shall also state the name of the Person to whom a new Warrant for the unexercised portion of the rights hereunder is to be issued.

SECTION 2.  Adjustment of Exercise Price and Number of Shares.  In order to prevent dilution of the rights granted under this Warrant, the Initial Exercise Price shall be subject to adjustment from time to time as provided in this Section 2 (such price or such price as last adjusted pursuant to the terms hereof, as the case may be, is herein called the “Exercise Price”), and the number of Warrant Shares obtainable upon exercise of this Warrant shall be subject to adjustment from time to time as provided in this Section 2. 

(a)

Reorganization, Reclassification, Consolidation, Merger or Sale.  In case of any reclassification, capital reorganization, consolidation, merger, sale of all or substantially all of the Company’s assets to another Person or any other change in the Common Stock of the Company, other than as a result of a subdivision, combination, or stock dividend provided for in Section 2(b) below (any of which, a “Change Event”), then, as a condition of such Change Event, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Registered Holder, so that the Registered Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant (subject to adjustment of the Exercise Price as provided in Section 2), the kind and amount of shares of stock and other securities and property receivable in connection with such Change Event by a holder of the same number of shares of Common Stock as were purchasable by the Registered Holder immediately prior to such Change Event.  In any such case appropriate provisions shall be made with respect to the rights and interest of the Registered 

Holder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities and property deliverable upon exercise hereof, and appropriate adjustments shall be made to the purchase price per share payable hereunder, provided the aggregate purchase price shall remain the same.

(b)

Subdivisions, Combinations and Other Issuances.  If the Company shall at any time prior to the expiration of this Warrant (i) subdivide its Common Stock, by split up or otherwise, or combine its Common Stock, or (ii) issue additional shares of its Common Stock or other equity securities as a dividend with respect to any shares of its Common Stock, the number of shares of Common Stock issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision of stock, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the purchase price payable per share, but the aggregate purchase price payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same.  Any adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

(c)

Issuance of New Warrant.  Upon the occurrence of any of the events listed in this Section 2 that results in an adjustment of the type, number or exercise price of the securities underlying this Warrant, the Registered Holder shall have the right to receive a new warrant reflecting such adjustment upon the Registered Holder tendering this Warrant in exchange.  The new warrant shall otherwise have terms identical to this Warrant.

(d)

Notices. 

(i)

The Company shall give written notice to the Registered Holder of this Warrant at least 10 days prior to the date on which the Company closes its books or takes a record for determining rights to vote with respect to any event described in this Section 2 or any dissolution or liquidation. 

(ii)

The Company shall also give written notice to the Registered Holder of this Warrant at least 10 days prior to the date on which any event described in this Section 2 or any dissolution or liquidation shall take place. 

SECTION 3.  Registration Rights.  

(a)

Demand Registration.  

(i)

As soon as practicable, but in no event later than the Filing Deadline, the Company shall file with the SEC a Registration Statement on Form SB-2 covering the resale of all the Registrable Securities.  If Form SB-2 is unavailable for such a Registration, the Company shall register the resale of the Registrable Securities on another appropriate form reasonably acceptable to the Holders of at least a majority of the Registrable Securities and undertake to register the Registrable Securities on Form SB-2 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form SB-2 covering the Registrable Securities has been declared effective by the SEC.  The Company shall use its reasonable best efforts to have such Registration Statement 

declared effective by the SEC as soon as practicable, but in no event later than the Effectiveness Deadline.

(ii)

The Company shall prepare and file with the SEC such amendments and supplements to the Registration Statement filed under this Section 3(a)(i) as may be reasonably necessary to keep such Registration Statement effective until all Registrable Securities have been sold pursuant to such Registration Statement or pursuant to Rule 144, or may be sold without restriction pursuant to Rule 144.  The Company shall comply with the provisions of the Act with respect to the disposition of all Registrable Securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the Holders as set forth in such Registration Statement  

(iii)

In the event the Registration Statement required to be filed with the SEC pursuant to Section 3(a)(i) is not filed with the SEC by the Filing Deadline, the Company shall issue to the Registered Holder an additional warrant for each 30-day period (or a portion thereof) during which time such Registration Statement has not been filed with the SEC, which additional warrants shall be issued on the last day of each 30-day period commencing on the Filing Deadline.  In addition, if the Registration Statement required to be filed with the SEC pursuant to Section 3(a)(i) is not declared effective by the SEC by the Effectiveness Deadline, the Company shall issue to the Registered Holder an additional warrant for each 30-day period (or a portion thereof) during which time such Registration Statement has not been declared effective by the SEC, which additional warrants shall be issued on the last day of each 30-day period commencing on the Effectiveness Deadline.   Each additional warrant shall be exercisable for that number of shares equal to 1% of the number of shares for which this Warrant is exercisable on the date of issuance of such additional warrant, with an exercise price per share equal to that of this Warrant on such date. If the Company is advised by legal counsel that the filing of the registration statement may preclude the private placement of securities in a PIPE transaction in an amount of not less than $3,000,000 to be consummated prior to the effectiveness of the registration statement, the Filing Deadline shall be delayed until within ten (10) business days following the earlier of (a) the completion of such PIPE financing following the Loan and (b) the day on which the Company no longer is so advised that the filing of the registration statement may preclude the private placement of securities in a PIPE transaction.

(b)

Piggyback Registration.

(i)

If, at any time commencing on the date hereof and expiring on the Expiration Date, the Company proposes to file a Registration Statement (other than under a Registration Statement pursuant to Form S-8 or Form S-4) to register its securities, and all of the Registrable Securities are not then covered by an effective Registration Statement, the Company shall: (A) give written notice by registered mail, at least 20 days prior to the filing of such Registration Statement to the Holders of its intention to do so; and (B) include all Registrable Securities in such Registration Statement with respect to which the Company has received written requests for inclusion therein within 15 days of actual receipt of the Company’s notice.

(ii)

The Company shall have the right at any time after it shall have given written notice pursuant to this Section 3(a) (irrespective of whether a written request for inclusion of any 

Registration Securities shall have been made) to elect not to file any such Registration Statement, or to withdraw the same after the filing but prior to the effective date thereof.

(iii)

If the Registration Statement pursuant to this Section 3(a) relates to a firmly underwritten public offering and the managing underwriter(s) advise the Company in writing that in their opinion the number of securities proposed to be included in the Registration Statement (including the Registrable Securities) exceeds the number of securities which can be sold therein without adversely affecting the marketability of the public offering, the Company will include in such Registration Statement the number of securities requested to be included which in the opinion of such underwriter(s) can be sold without adversely affecting the marketability of the offering, pro rata among the respective holders of all securities proposed to be included in the Registration Statement.  

(c)

Covenants of the Company with Respect to Registration.  In connection with each Registration under this Section 3, the Company covenants and agrees as follows:

(i)

The Company shall use its best efforts to have any Registration Statement declared effective at the earliest practicable time and to remain effective for not less than one year thereafter.  The Company will promptly notify each Holder of included Registrable Securities and confirm such advice in writing, (A) when such Registration Statement becomes effective, (B) when any post-effective amendment to such Registration Statement becomes effective and (C) of any request by the SEC for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information.

(ii)

The Company shall furnish to each Holder of included Registrable Securities such number of copies of such Registration Statement and of each such amendment and supplement thereto (in each case including each preliminary prospectus and summary prospectus) in conformity with the requirements of the Act, and such other documents as such Holders may reasonably request in order to facilitate their disposition of the Registrable Securities.

(iii)

If at any time the SEC should institute or threaten to institute any proceedings for the purpose of issuing a stop order suspending the effectiveness of any Registration Statement, the Company will promptly notify each Registered Holder of Registrable Securities and will use all reasonable efforts to prevent the issuance of any such stop order or to obtain the withdrawal thereof as soon as possible.  

(iv)

The Company will use its good faith reasonable efforts and take all reasonably necessary action which may be required in qualifying or registering the Registrable Securities included in a Registration Statement for offering and sale under the securities or blue sky laws of such states as reasonably are required by the Holders, provided that the Company shall not be obligated to execute or file any general consent to service of process or to qualify as a foreign corporation to do business under the laws of any such jurisdiction.

(v)

The Company shall use its good faith reasonable efforts to cause such Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities of the United States or any State thereof as may be 

reasonably necessary to enable the Holder(s) thereof to consummate the disposition of such Registrable Securities.

(vi)

The Company shall deliver promptly to each Holder that has included Registrable Securities in a Registration Statement and to the managing underwriter, if any, copies of all correspondence between the SEC and the Company, its counsel or auditors and all non-privileged memoranda relating to discussions with the SEC or its staff with respect to the Registration Statement and permit each such Holder and underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the Registration Statement as it deems reasonably necessary to comply with applicable securities laws or rules of the NASD.  Such investigation shall include access to books, records and properties and opportunities to discuss the business of the Company with its officers and independent auditors, all to such reasonable extent and at such reasonable times and as often as any such Holder shall reasonably request.

(vii)

All expenses incident to the Company’s performance of or compliance with this Agreement, including without limitation all registration and filing fees, legal opinions for shareholder certificates, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, and fees and disbursements of counsel for the Company and all independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company will be borne by the Company.  In no event shall the Company be obligated to pay any discounts or commissions with respect to the Registrable Shares sold by any Holder.  In connection with each Registration Statement, the Company will reimburse the Holders of included Registrable Securities for the reasonable fees and disbursements of one counsel chosen by the Holders of a majority of the included Registrable Securities.   

(d)

Indemnification and Contribution.

(i)

The Company shall indemnify each Holder of the Registrable Securities included in any Registration Statement, each of its officers, directors and agents (including brokers and underwriters selling Registrable Securities on behalf of the Holder), and each Person, if any, who controls such Holder within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against all losses, claims, damages, expenses and/or liabilities (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Act, the Exchange Act, any state securities laws or otherwise, arising from such Registration Statement, including, without limitation, any and all losses, claims, damages, expenses and liabilities caused by (I) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or (II) any omission or alleged omission to state in the Registration Statement a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information furnished in writing to Company by the Holder expressly for use therein.

(ii)

If requested by the Company prior to the filing of any Registration Statement covering the Registrable Securities, each Holder of the Registrable Securities to be included in such Registration Statement shall severally, and not jointly, indemnify the Company, its officers and 

directors and each Person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all losses, claims, damages, expenses and/or liabilities (including all expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from written information furnished by such Holder, or their successors or assigns, for specific inclusion in such Registration Statement, except that the maximum amount which may be recovered from each Holder pursuant to this Section 3(c)(ii) or otherwise shall be limited to the amount of net proceeds received by the Holder from the sale of the Registrable Securities under such Registration Statement.

(iii)

In case any proceeding (including any governmental investigation) shall be instituted involving any Person in respect of which indemnity may be sought pursuant to this Section 3(c), such Person (an “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the Indemnifying Party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to such Indemnified Party, and shall assume the payment of all fees and expenses; provided that the failure of any Indemnified Party so to notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder except to the extent (and only to the extent that) that the Indemnifying Party is materially prejudiced by such failure to notify.  In any such proceeding, any Indemnified Party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party unless (A) the Indemnifying Party and the Indemnified Party shall have mutually agreed to the retention of such counsel or (B) in the reasonable judgment of such Indemnified Party representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood that the Indemnifying Party shall not, in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) at any time for all such Indemnified Parties (including in the case of Holder, all of its officers, directors and controlling persons) and that all such fees and expenses shall be reimbursed as they are incurred.  In the case of any such separate firm for the Indemnified Parties, the Indemnified Parties shall designate such firm in writing to the Indemnifying Party.  The Indemnifying Party shall not be liable for any settlement of any proceeding effected without its written consent (which consent shall not be unreasonably withheld or delayed), but if settled with such consent, or if there be a final judgment for the plaintiff, the Indemnifying Party shall indemnify and hold harmless such Indemnified Parties from and against any loss or liability (to the extent stated above) by reason of such settlement or judgment.  No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all liability arising out of such proceeding.

(iv)

To the extent any indemnification by an Indemnifying Party is prohibited or limited by law, the Indemnifying Party agrees to make the maximum contribution with respect to any amounts for which, he, she or it would otherwise be liable under this Section 3(c) to the fullest extent permitted by law; provided, however, that (A) no contribution shall be made under circumstances where a party would not have been liable for indemnification under this Section 3(c) and (B) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning 

used in the Act) shall be entitled to contribution from any party who was not guilty of such fraudulent misrepresentation.

(e)

Nothing contained in this Agreement shall be construed as requiring the Holders to exercise their Warrants prior to the filing of any Registration Statement or the effectiveness thereof.

(f)

The Company shall not, directly or indirectly, enter into any merger, business combination or consolidation in which (i) the Company shall not be the surviving corporation and (ii) the shareholders of the Company are to receive, in whole or in part, capital stock or other securities of the surviving corporation, unless the surviving corporation shall, prior to such merger, business combination or consolidation, agree in writing to assume the obligations of the Company under this Agreement, and for that purpose references hereunder to “Registrable Securities” shall be deemed to include the securities which the Holders would be entitled to receive in exchange for Registrable Securities under any such merger, business combination or consolidation, provided that to the extent such securities to be received are convertible into shares of Common Stock of the issuer thereof, then any such shares of Common Stock as are issued or issuable upon conversion of said convertible securities shall also be included within the definition of “Registrable Securities.”

SECTION 4.  Definitions.  The following terms have the meanings set forth below: 

“Act” means the Securities Act of 1933, as amended.

“Equity Securities” means the capital stock of a person or entity and/or any options, warrants, calls, rights, commitments, convertible securities and other securities pursuant to which the holder, directly or indirectly, has the right to acquire (with or without additional consideration) capital stock or equity of such person or entity.

“Effectiveness Deadline” shall mean 180 days after the filing of the Registration Statement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Filing Deadline” shall mean 60 days from the Loan Closing Date.

“Holders” means the Registered Holder, and the registered holders of all other Warrants (including Additional Warrants) originally issued pursuant the Loan Agreement, and the registered holders of the Registrable Securities. 

“Loan Closing Date” means the date upon which the Loan is made to the Company pursuant to the terms of the Loan Agreement. 

“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.  

“Registered Holder” means the registered holder of this Warrant. 

“Registrable Securities” means the Warrant Shares and any securities issued with respect to the Warrant Shares by virtue of a stock dividend, stock split, reclassification or reorganization, 

provided that the Warrant Shares and such other securities shall no longer by Registrable Securities once they have been sold or transferred pursuant to an effective Registration Statement under the Act or pursuant to Rule 144.

“Registration” shall mean a registration of Registrable Securities under the Act pursuant to Section 3 of this Agreement.

“Registration Statement” shall mean the Registration Statement, as amended from time to time, filed with the SEC in connection with a Registration, and each prospectus that is used in connection with such Registration Statement (including any preliminary prospectus).

“Rule 144” means Rule 144 of the SEC under the Act.

“SEC” means the United States Securities and Exchange Commission, or any successor regulatory agency.

“Warrant” means the right to purchase one or more Warrant Shares pursuant to the terms of this Warrant, as the same may be transferred, divided or exchanged pursuant to the terms hereof.

“Warrant Shares” means shares of the Common Stock issuable upon exercise of the Warrant; provided, however, that if there is a change such that the securities issuable upon exercise of the Warrant are issued by a Person other than the Company or there is a change in the class of securities so issuable, then the term “Warrant Shares” shall mean shares of the security issuable upon exercise of the Warrant if such security is issuable in shares, or shall mean the equivalent units in which such security is issuable if such security is not issuable in shares.

SECTION 5.  No Voting Rights; Limitations of Liability.  This Warrant shall not entitle the holder hereof to any voting rights or other rights as a stockholder of the Company.  No provision hereof, in the absence of affirmative action by the Registered Holder to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Registered Holder shall give rise to any liability of such Registrable Holder for the Exercise Price or as a stockholder of the Company.  

SECTION 6.  Warrant Transferable.  Subject to compliance with applicable securities laws and the terms of this Section 6, this Warrant and all rights hereunder are transferable, in whole or in part, without charge to the Registered Holder upon surrender of this Warrant with a properly executed Assignment (in the form of Exhibit II hereto) at the principal office of the Company, subject to prior written approval by the Company.

SECTION 7.  Warrant Exchangeable for Different Denominations.  This Warrant is exchangeable, upon the surrender hereof by the Registered Holder at the principal office of the Company, for new Warrants of like tenor representing in the aggregate the purchase rights hereunder, and each of such new Warrants shall represent such portion of such rights as is designated by the Registered Holder at the time of such surrender.  The date the Company initially issues this Warrant shall be deemed to be the “Date of Issuance” hereof regardless of the number of times new certificates representing the unexpired and unexercised rights formerly represented by this Warrant shall be issued.  All Warrants representing portions of the rights hereunder are referred to herein as the “Warrants.”  

SECTION 8.  Replacement.  Upon receipt of evidence reasonably satisfactory to the Company of the ownership and the loss, theft, destruction or mutilation of any certificate evidencing this Warrant, and in the case of any such loss, theft or destruction, upon receipt of indemnity reasonably satisfactory to the Company, or, in the case of any such mutilation upon surrender of such certificate, the Company shall (at the expense of the Registered Holder) execute and deliver in lieu of such certificate a new certificate of like kind representing the same rights represented by such lost, stolen, destroyed or mutilated certificate and dated the date of such lost, stolen, destroyed or mutilated certificate.  

SECTION 9.  Notices.  All notices, requests, deliveries, consents and other communications provided for herein shall be in writing and shall be effective upon delivery in person, faxed, or mailed by certified or registered mail, return receipt requested, postage pre-paid, addressed as follows:

	
	if to Company, to:

Dana Waldman, CEO

Voyant International Corporation

444 Castro Street, Suite 318

Mountain View, CA 94041

Fax: (650) 691-4458

	with a copy to:

Richardson & Patel LLP

10900 Wilshire Boulevard, Suite 500

Los Angeles, CA 90024

Attn:  Jennifer Post

Fax:  (310) 208-1154

	if to the Lender, to:

The Brown Family Trust

Brothers Wealth Management, LLC

815-A Brazos Street #228

Austin, TX 78701

Attn: W. Jeff Black

	with a copy to:

Thompson & Knight L.L.P.

1722 Routh Street, Suite 1500

Dallas TX 75201

Attn:  William J. Schuerger, Esq.

or, in any case, at such other address or addresses as shall have been furnished in writing to the Company (in the case of a Registered Holder of Warrants) or to the Registered Holders of Warrants (in the case of the Company) in accordance with the provisions of this paragraph.

SECTION 10.  Amendment and Waiver.  Except as otherwise provided herein, the provisions of the Warrants may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Holders representing a majority of the Warrant Shares obtainable upon exercise of the then-outstanding Warrants; provided, however, that no such action may change the Exercise Price of the Warrants or the number of shares or class of capital stock obtainable upon exercise of each Warrant without the written consent of all Holders.

SECTION 11.  Descriptive Headings; Governing Law.  

(a)

The descriptive headings of the several Sections of this Warrant are inserted for convenience only and do not constitute a part of this Warrant.  

(b)

All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Nevada or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Nevada.

SECTION 12.  Warrant Register.  The Company shall maintain at its principal executive office books for the registration and the registration of transfer of this Warrant.  The Company may deem and treat the Registered Holder as the absolute owner hereof (notwithstanding any notation of ownership or other writing thereon made by anyone) for all purposes and shall not be affected by any notice to the contrary.

SECTION 13.  Fractions of Shares.  The Company may, but shall not be required, to issue a fraction of a Warrant Share upon the exercise of this Warrant in whole or in part.  As to any fraction of a share which the Company elects not to issue, the Company shall make a cash payment in respect of such fraction in an amount equal to the same fraction of the market price of a Warrant Share on the date of such exercise (as determined by the board of directors in its reasonable discretion).

SECTION 14.  Attorneys’ Fees.  If any action, suit, arbitration or other proceeding is instituted to remedy, prevent or obtain relief from a default in the performance by any party to this Warrant of its obligations under this Warrant, the prevailing party shall recover all of such party’s attorneys’ fees incurred in each and every such action, suit, arbitration or other proceeding, including any and all appeals or petitions therefrom.  As used in this Section, attorneys’ fees shall be deemed to mean the full and actual costs of any legal services actually performed in connection with the matters involved calculated on the basis of the usual fee charged by the attorney performing such services and shall not be limited to “reasonable attorneys’ fees” as defined in any statute or rule of court.

* * * * *

IN WITNESS WHEREOF, the Company has caused this Warrant to be signed and attested by its duly authorized officers and to be dated as of the Date of Issuance hereof.  

		
	 
	Voyant International Corporation

______________________________

By: David R. Wells

Its: Chief Financial Officer

	 
	 

EXHIBIT I

EXERCISE AGREEMENT

To:

Dated:  

The undersigned, pursuant to the provisions set forth in the attached Warrant (Certificate No. SPW-____), hereby subscribes for the purchase of ______ Warrant Shares covered by such Warrant and makes payment herewith in full therefor at the price per share provided by such Warrant.  Please issue the Warrant Shares in the following names and amounts:

Name

Number of Warrant Shares

		
	 
	Signature

	 
	Address

EXHIBIT II

ASSIGNMENT

FOR VALUE RECEIVED, _______________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant (Certificate No. SPW-_____) with respect to the number of the Warrant Shares covered thereby set forth below, unto:  

					
	Name of Assignee

	 
	Address

	 
	No. of Shares

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

		
	 
	Signature

	 
	Witness

The Assignee agrees to be bound by the terms of the Warrant.

		
	 
	Signature

	 
	Witness

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]