Document:

Unassociated Document

 

WEB SITE DESIGN CONSULTATION AGREEMENT

 

This Web Site Design Consultation Agreement (the “Agreement”) is made and effective January 1, 2011,

	
BETWEEN:

	
beIT Visual Communications LTD (the "Consultant"), a corporation organized and existing under the laws of the State of Israel

	
AND:

	
Fits My Style Inc. (the "Customer"), a corporation organized and existing under the laws of the Nevada

RECITALS

	
  

	
A.

	
Customer desires to receive the services of Consultant, acting as an independent contractor and not as an employee, joint venture, partner or any other legal relationship, to perform certain services in connection with the development of the Customer’s web site.

	
  

	
B.

	
For good and valuable consideration, including the mutual agreements and covenants contained in this Agreement, the Consultant and the Customer hereby agree to the following terms, covenants and conditions:

NOW THEREFORE, in consideration of the covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree to the following:

	
1.

	
SERVICES TO BE PROVIDED BY CONSULTANT

	 	
1.1.

	
Appointment

Customer hereby appoints and retains the services of the Consultant, and Consultant accepts such appointment, to perform the services described in Exhibit “A” attached hereto and made a part hereof, in connection with the design and development of the Customer’s web site (the "Services"). This Agreement shall only cover the specific services described in Exhibit “A” and shall not include any other services that may be performed or provided by the Consultant. Any services beyond those described in Exhibit “A” shall be subject to separate agreement between the parties and a separate schedule of compensation to be paid by Customer for such services. Notwithstanding the above, the parties by written agreement between them may expand the scope of services to be performed subject to this Agreement.

	 	
1.2.

	
Reasonable Diligence

Consultant shall use reasonable diligence to promptly perform the Services described herein and to meet any delivery dates or project deadlines agreed to by the parties and to provide Services that are in compliance with agreed specifications and project parameters. All Services shall be provided in a professional and workmanlike manner and in compliance with standard industry standards and by qualified and experienced personnel secured by the Consultant.

	  	  
	
beIT - Design and Development Consultation Agreement

	
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1.3.

	
Work Progress

Consultant shall continually communicate with the Customer regarding progress made by the Consultant in performing the Services.

	 	
1.4.

	
Commitment

Consultant represents and warrants that it has no current commitments or obligations that will conflict with or otherwise interfere with or impede the performance of the services called for under this Agreement.

	
2.

	
SCHEDULE OF COMPENSATION

 

Customer shall compensate the Consultant at the rates set forth in the Compensation Schedule attached hereto as Exhibit “B” or as agreed between the parties in any written amendment hereto. Consultant shall provide Customer with monthly invoices for services rendered for the preceding month. All such invoices shall be due and payable within 14 days after receipt thereof by the Customer. Consultant shall be responsible for any and all expenses or costs incurred by Consultant in the performance of the Services and which are not specifically identified in Exhibit “B” attached hereto.

	
3.

	
OWNERSHIP AND USE OF PROPRIETARY PROPERTY

	 	
3.1.

	
Proprietary rights acknowledgment

Consultant expressly acknowledges and agrees that any and all proprietary materials created by Consultant in the scope of providing the Services shall be created as “works made for hire” as defined in the US Copyright Act and that Customer shall be the true and lawful sole and exclusive owner of all copyrights and other proprietary rights in and to such items and shall be considered to be the sole and exclusive author of such materials within the meaning of the US Copyright Act. These items shall include, but shall not necessarily be limited to any and all deliverables resulting from the Consultant’s Services under this Agreement, all tangible results and proceeds of the Consultant’s Services, work in progress, records, diagrams, notes, drawings, specifications, schematics, documents, designs, improvements, inventions, discoveries, developments, trademarks, trade secrets, customer lists, databases, software, programs, middleware, applications, solutions, (collectively referred to as "Proprietary Products") conceived, made or discovered by Consultant, solely or in collaboration with others, during the period of this Agreement which relate in any manner to the Services.

Furthermore, Consultant agrees to execute any and all documents and take all other actions necessary to vest full rights and ownership of such Proprietary Products and the copyrights, patents, or other proprietary rights therefore in the Customer, including but not limited to executing confirmations of the work for hire status of the Consultant, executing copyright assignments irrevocably and fully assigning all copyrights to the Customer. Consultant hereby waives any other rights in and to such Proprietary Products that may attach or arise under any federal, state, local, international laws or the laws of any other country or jurisdiction, including but not limited to so-called "moral rights."

	 	
3.2.

	
Previously Created Work

In the event that Consultant intends or plans to integrate any work that was previously created by the Consultant into any work product to be created in furtherance of the performance of Services hereunder, the Consultant shall first provide written notice to the Customer and seek customers written approval of the incorporation of such items. In the event that Customer consents, in its reasonable discretion, to the incorporation of such items into the work product to be created for the Customer, the Customer is hereby granted a worldwide, royalty free, perpetual, irrevocable license to use, distribute, modify, publish, and otherwise exploit the incorporated items in connection with the work product that is developed for the Customer.

	  	  
	
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4.

	
CONFIDENTIAL INFORMATION

	 	
4.1.

	
Nondisclosure

Consultant will not, during or subsequent to the term of this Agreement, use Customer's Confidential Information for any purpose whatsoever other than the performance of the Services on behalf of Customer or disclose Customer's Confidential Information to any third party, without the advanced written authorization of Customer. Consultant further agrees to take all reasonable precautions to prevent any unauthorized disclosure of such Confidential Information including, but not limited to, limiting access to such information to individuals within its organization that have a bona fide need to know of such information, having each employee of Consultant, if any, with access to any Confidential Information execute a nondisclosure agreement containing provisions and restrictions substantially similar to those contained in this Agreement.

 

	 	
4.2.

	
Advertising

Consultant shall not be permitted to make any press releases or disclose to any other party, in any marketing or advertising material or any other means of communication, the existence of the relationship between Customer and Consultant or the existence or any terms of conditions of this Agreement.

	 	
4.3.

	
Definitions

For purposes of this Agreement, the term "Confidential Information" means and includes, any and all proprietary information of any nature or kind, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customers, customer lists, markets, software, developments, inventions, processes, formulas. technology, designs, drawings, engineering, hardware configuration information, marketing, finances or other business information disclosed by Customer either directly or indirectly in writing or orally. Confidential Information does not include information which (i) is known to Consultant at the time of disclosure to Consultant by Customer as evidenced by written records of Consultant, (ii) has become publicly known and made generally available through no wrongful act of Consultant or (iii) has been rightfully received by Consultant from a third party who is authorized to make such disclosure.

	 	
4.4.

	
Return of Confidential Information

Upon the termination or expiration of this Agreement, or upon Customer's earlier request, Consultant will deliver to Customer all of Customer's property or Confidential Information in tangible form that Consultant may have in Consultant's possession or control.

	 	
4.5.

	
Breach of Confidentiality is a Breach of this Agreement

Consultant agrees that it would be impossible ascertain Customer's damages from any breach of the covenants set forth in this Article IV. As such, Consultant agrees that if Consultant breaches any provision of this Article IV, Customer may chose, in addition to any other right or remedy available, the right to obtain from any court of competent jurisdiction an injunction restraining such breach or threatened breach. Consultant further agrees that no bond or other security shall be required in obtaining such equitable relief and Consultant hereby consents to the issuances of such injunction and to the ordering of such specific performance.

	
5.

	
TERM AND TERMINATION

This Agreement shall continue to be in effect until the earlier of:  (i) the completion of the Scope of Work and (ii) January 31, 2012.  Notwithstanding the foregoing, either party may terminate this Agreement, with or without cause, by providing 45 days' written notice to the other party to this effect.

	  	  
	
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Upon the effective date of any termination of this Agreement or expiration thereof, all legal obligation, rights and duties arising out of this Agreement shall terminate except that: (i) Customer shall remain obligated to pay any balance due to the Consultant for services provided hereunder until the date of termination or expiration: (ii) the Confidentiality Restrictions, Ownership of Proprietary Rights Provisions, and Independent Contractor provisions of this Agreement shall continue to apply and shall survive the termination or expiration of this Agreement as ongoing covenants between the parties; (iii) Consultant shall have the continuing obligation to return to the Customer all tangible and intangible property of the customer and all versions of any Proprietary Products of the customer or developed for the Customer during the effectiveness of this Agreement; and (iv) Consultant shall have the ongoing duty and obligation to confirm in writing and take all reasonable steps to secure proprietary right in the Proprietary Products developed pursuant to this Agreement in the name and exclusive ownership of the Customer.

	
6.

	
NOTICES

Any notification or written communication required by or contemplated under the terms of this Agreement shall be in writing and shall deemed to be delivered if transmitted via Email at the Email addresses listed below, except for any notice of termination of this Agreement which shall be in writing and sent by US or Israel Mail, Certified Mail, Return Receipt Requested and shall be deemed to have been delivered 14 business days after the date of mailing. Email addresses for such notices shall be:

	 	
If To Consultant:

	
nir@beit.co.il

	 	  	  
	 	
If To Customer:

	
info@fitsmystyle.com

	
7.

	
ASSIGNMENT

The Services to be performed by Consultant hereunder are personal in nature, and Customer has engaged Consultant as a result of Consultant's unique expertise relating to such Services. Neither this Agreement nor any right, interest, duty or obligation hereunder may be assigned, transferred or delegated by Consultant without the express written consent of Customer which consent may be withheld in the discretion of the Customer.  Customer may assign or transfer this Agreement to any third party without the need to obtain Consultant's consent for such assignment or transfer.

	
8.

	
INDEPENDENT CONTRACTOR STATUS

The parties agree that Consultant shall be an independent contractor and not an agent, employee or representative of Customer. Customer shall have no right to direct or control the details of the Consultant’s work. Consultant shall not receive any fringe benefits or other perquisites that the Customer may provide to its employees and Consultant agrees to be responsible for its own business overhead and costs of doing business and to furnish (or reimburse Customer for) all tools and materials necessary to accomplish the services required of the Consultant pursuant to this Agreement, and shall incur all expenses associated with performance, except as expressly provided in Exhibits or amendments to this Agreement. Consultant shall be responsible for paying all taxes on payments received pursuant to this Agreement and that Customer shall have no obligation to withhold taxes from service fees payable to the Consultant hereunder. Consultant hereby indemnifies and holds the customer harmless any obligation that may be imposed on Customer (i) to pay in withholding taxes or similar items or (ii) resulting from Consultant's being determined not to be an independent contractor.

	
9.

	
INDEMNIFICATION

Consultant will indemnify Customer and hold it harmless from and against all claims, liabilities, damages and expenses, including reasonable attorney’s fees and costs of suit, arising out of or in connection with, any violation or claimed violation of a third party's rights resulting in whole or in part from Customer's use of the work product of Consultant under this Agreement; provided, that the total liability of Consultant hereunder shall not, under any circumstances whatsoever, exceed the actual compensation received by it hereunder.

	  	  
	
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10.

	
GOVERNIG LAW

In interpreting the terms of this Agreement, the parties agree that the laws of the State of Israel shall be applicable (without giving effect to the applicable conflict of laws rules thereof). All suits permitted to be brought in any court shall be in Tel Aviv Israel.

	
11.

	
ENTIRE AGREEMENT; SEVERABILITY

This Agreement contains the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes and replaces all prior discussions, agreements, proposals, understandings, whether orally or in writing, between the parties related to the subject matter of this Agreement. This Agreement may be changed, modified or amended only in a written agreement that is duly executed by authorized representatives of the parties. If any provisions hereof are deemed to be illegal or unenforceable by a court of competent jurisdiction, the enforceability of effectiveness of the remainder of the Agreement shall not be affected and this Agreement shall be enforceable without reference to the unenforceable provision. No party’s waiver of any breach or accommodation to the other party shall be deemed to be a waiver of any subsequent breach.

[signature page to follow]

IN WITNESS WHEREOF, the parties hereto have duly entered and executed this Agreement as of the day and year first above written and represent and warrant that the party executing this Agreement on their behalf is duly authorized.

	
CONSULTANT

	  	
CUSTOMER

	  	  	  
	  	  	  
	
Authorized Signature

	  	
Authorized Signature

	  	  	  
	
Nir Bar

	  	
Guy Turnowsky, Director

	
Print Name and Title

	  	
Print Name and Title

	  	  	  

	  	  
	
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EXHIBIT “A”

SCHEDULE OF CONSULTING SERVICES

The Consultant is hired in this Agreement to supply the Customers with Considerations Report regarding the development of a web site including, but not limited to, list of recommended technologies, design considerations, general specifications, development roadmap and an estimate cost and timeline for the development of the production / commercial website (“Commercial Website”).

The Consultant will supply the Customer with a “Proof of Concept” web site (“PoC Website”) that will include very limited capabilities from those that are expected to be available in the Commercial Website. The PoC Website may or may not resemble in its design nor should it include elements that would probably be used in the Commercial Website.

Commencement of work date – January 1, 2011.

	
Phase

	 	
Description

	 	
Estimated

Duration

	  	 	  	 	  
	
Technology to use

	 	
Thorough research of currently available technologies that best match The Customers’ needs. This phase results in constructive decisions of which technology/technologies should to be used in any aspects of the production website

	 	
6 work weeks

	  	 	  	 	  
	
PoC Website Specifications

	 	
Producing development specifications and design brief for the development of the PoC Website

	 	
4 work weeks

	  	 	  	 	  
	
User Interface and Graphic Design

	 	
Design of the PoC Website user interface and experience

	 	
4 work weeks

	  	 	  	 	  
	
Initial Development

	 	
Development of the PoC Website

	 	
20 work weeks

	  	 	  	 	  
	
Alpha release and Debugging Report

	 	
Release of an Alpha version of the PoC Website for evaluation and debugging purposes. Preparing the  Debugging Report

	 	
4 work weeks

	  	 	  	 	  
	
Debugging based alterations

	 	
PoC Website Debugging Report review (by both Customer and Consultant) in order to decide which bugs should be fixed. Implementing those decisions before the PoC Website is released.

	 	
8 work weeks

	  	 	  	 	  
	
Public Release

	 	
Uploading the PoC Website to a production server and performing pre-release checks. Releasing the PoC Website to the public.

	 	
2 work weeks

	  	 	  	 	  
	
Considerations Report

	 	
Finalizing the Considerations Report

	 	
4 work weeks

	  	  
	
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EXHIBIT “B”

COMPENSATION TO BE PAID TO CONSULTANT

The compensation to be paid for the Consultant by Customer for supplying the Services described in the Agreement is listed and scheduled in the following table. The schedule listed correlates to the consulting Services phases as they are described in Exhibit A of this agreement. Each payment should be received in full prior the Consultant performs any activity related to the specific phase.  Any delay or failure in transfer of the compensation fees for Consultant may result in changes to the consulting Services schedule described in Exhibit A.

	
Phase

	 	
Compensation

	 	
Notes

	  	 	  	 	  
	
Technology to use

	 	
$3,000 US

	 	
 

	  	 	  	 	  
	
PoC Website Specifications

	 	
$0 US

	 	  
	  	 	  	 	  
	
User Interface and Graphic Design

	 	
$2,000 US

	 	  
	  	 	  	 	  
	
Initial Development

	 	
$3,000 US

	 	  
	  	 	  	 	  
	
Alpha release and Debugging Report

	 	
$1,000 US

	 	  
	  	 	  	 	  
	
Debugging based alterations

	 	
$0 US

	 	  
	  	 	  	 	  
	
Public Release

	 	
$1,000 US

	 	  
	  	 	  	 	  
	
Considerations Report

	 	
$0 US

	 	  
	  	 	  	 	  
	
Total:   

	 	
$10,000 US

	 	  

	  	  
	
beIT - Design and Development Consultation Agreement

	
Page 7 of 7EXHIBIT 10.38

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

 

STOCK PURCHASE WARRANT

 

THIS CERTIFIES THAT, for value received, Starglow Asset, Inc., or its registered assigns, is entitled to purchase from LI-ION MOTORS CORP., a Nevada corporation (the “Company”), at any time or from time to time following the effectiveness of the first reverse split of the Common Stock, par value $.001, of the Company (the “Common Stock”), following the issuance of this Warrant and occurring during the term hereof (the “Reverse Split”), for such number of fully paid and nonassessable shares of Common Stock as is equal to the difference between (a) Seven Million Five Hundred Thousand (7,500,000) shares, subject to adjustment as provided in Section 4 (the “Reference Common Stock Ownership Amount”), and (2) the number of shares of Common Stock resulting from application of the Reverse Split to the Reference Common Stock Ownership Amount (the “Warrant Shares”), at a per share exercise price equal to One-Tenth of a Cent ($.001) (the “Exercise Price”). This Warrant is subject to the following terms, provisions, and conditions:

 

1.           Manner of Exercise.   Subject to the provisions hereof, this Warrant may be exercised by the holder hereof, in whole or in part, by the surrender of this Warrant, together with a completed exercise agreement in the form attached hereto (the “Exercise Agreement”), to the Company during normal business hours on any business day at the Company’s principal executive offices (or such other office or agency of the Company as it may designate by notice to the holder hereof), and upon payment to the Company in cash, by certified or official bank check or by wire transfer for the account of the Company of the Exercise Price for the Warrant Shares. The shares so purchased shall be deemed to be issued to the holder hereof or such holder’s designee, as the record owner of such shares, as of the close of business on the date on which this Warrant shall have been surrendered, the completed Exercise Agreement shall have been delivered, and payment shall have been made for such shares as set forth above. Certificates for the shares so purchased, representing the aggregate number of shares specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time, not exceeding seven (7) business days, after this Warrant shall have been so exercised. The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall be designated by such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to the holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised.

 

2.           Period of Exercise.   This Warrant is exercisable one time only, within thirty (30) days following the effective date of the Reverse Split (the “Exercise Period”) and shall expire following such exercise or upon expiration of the Exercise Period if theretofore not exercised, or if the Reverse Split does not take place prior to the third anniversary of the issuance of this Warrant, this Warrant shall expire at 6:00 p.m., New York, New York time on the date that is three years from the date of the issuance of this Warrant

 

3.           Certain Agreements of the Company.   The Company hereby covenants and agrees as follows:

 

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

  

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

 

(c)           Certain Actions Prohibited.   The Company will not, by amendment of its charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the holder of this Warrant in order to protect the exercise privilege of the holder of this Warrant against dilution or other impairment, consistent with the tenor and purpose of this Warrant. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, and (ii) will take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant.

 

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

 

4.          Anti-dilution Provisions.   During the term of this Warrant, the following provisions shall apply:

 

(a)           Subdivision of Common Stock.   If the Company at any time prior to the effective date of the Reverse Split subdivides (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise), the shares of Common Stock acquirable hereunder into a greater number of shares, then, after the date of record for effecting such subdivision, the Reference Common Stock Ownership Amount in effect immediately prior to such subdivision will be proportionately increased.

 

(b)           Notice of Adjustment.   Upon the occurrence of any event which requires any adjustment of the Reference Common Stock Ownership Amount, then, and in each such case, the Company shall give notice thereof to the holder of this Warrant, which notice shall state the adjusted Reference Common Stock Ownership Amount resulting from such adjustment and the increase in the number of Warrant Shares purchasable at such price upon exercise, setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Such calculation shall be certified by the Chief Financial Officer of the Company.

 

(c)           Minimum Adjustment.   No adjustment of the Reference Common Stock Ownership Amount shall be made in an amount of less than 1% of the Reference Common Stock Ownership Amount in effect at the time such adjustment is otherwise required to be made, but any such lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which, together with any adjustments so carried forward, shall amount to not less than 1% of such Reference Common Stock Ownership Amount.

 

(d)           No Fractional Shares.   No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but the Company shall pay a cash adjustment in respect of any fractional share which would otherwise be issuable in an amount equal to the same fraction of the Market Price of a share of Common Stock on the date of such exercise.

 

(e)           Certain Definitions.

 

(i)           “Market Price,” as of any date, (i) means the average of the last reported sale prices for the shares of Common Stock on the OTCBB for the five (5) Trading Days immediately preceding such date as reported by Bloomberg, or (ii) if the OTCBB is not the principal trading market for the shares of Common Stock, the average of the last reported sale prices on the principal trading market for the Common Stock during the same period as reported by Bloomberg, or (iii) if market value cannot be calculated as of such date on any of the foregoing bases, the Market Price shall be the fair market value as reasonably determined in good faith by (a) the Board of Directors of the Company or, at the option of a majority-in-interest of the holders of the outstanding Warrants by (b) an independent investment bank of nationally recognized standing in the valuation of businesses similar to the business of the corporation. The manner of determining the Market Price of the Common Stock set forth in the foregoing definition shall apply with respect to any other security in respect of which a determination as to market value must be made hereunder.

 

  

Page 2

 

(ii)           “Common Stock,” for purposes of this Paragraph 4, includes the Common Stock, no par value, and any additional class of stock of the Company having no preference as to dividends or distributions on liquidation, provided that the shares purchasable pursuant to this Warrant shall include only shares of Common Stock in respect of which this Warrant is exercisable.

 

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

 

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

 

7.           Transfer, Exchange, and Replacement of Warrant.

 

(a)           Restriction on Transfer.   This Warrant and the rights granted to the holder hereof are transferable, in whole or in part, upon surrender of this Warrant, together with a properly executed assignment in the form attached hereto, at the office or agency of the Company referred to in Paragraph 7(e) below, provided, however, that any transfer or assignment shall be subject to the conditions set forth in Paragraph 7(f) hereof. Until due presentment for registration of transfer on the books of the Company, the Company may treat the registered holder hereof as the owner and holder hereof for all purposes, and the Company shall not be affected by any notice to the contrary.

 

(b)           Warrant Exchangeable for Different Denominations.   This Warrant is exchangeable, upon the surrender hereof by the holder hereof at the office or agency of the Company referred to in Paragraph 7(e) below, for new Warrants of like tenor representing in the aggregate the right to purchase the number of shares of Common Stock which may be purchased hereunder, each of such new Warrants to represent the right to purchase such number of shares as shall be designated by the holder hereof at the time of such surrender.

 

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

 

(d)           Cancellation; Payment of Expenses.   Upon the surrender of this Warrant in connection with any transfer, exchange, or replacement as provided in this Paragraph 7, this Warrant shall be promptly canceled by the Company. The Company shall pay all taxes (other than securities transfer taxes) and all other expenses (other than legal expenses, if any, incurred by the holder or transferees) and charges payable in connection with the preparation, execution, and delivery of Warrants pursuant to this Paragraph 7.

 

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

  

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

 

8.           Notices.   All notices, requests, and other communications required or permitted to be given or delivered hereunder to the holder of this Warrant shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail or by recognized overnight mail courier, postage prepaid and addressed, to such holder at the address shown for such holder on the books of the Company, or at such other address as shall have been furnished to the Company by notice from such holder. All notices, requests, and other communications required or permitted to be given or delivered hereunder to the Company shall be in writing, and shall be personally delivered, or shall be sent by certified or registered mail or by recognized overnight mail courier, postage prepaid and addressed, to the office of the Company at 4894 Lone Mountain #168, Las Vegas, NV 89130, Attention: Chief Executive Officer, or at such other address as shall have been furnished to the holder of this Warrant by notice from the Company. Any such notice, request, or other communication may be sent by facsimile, but shall in such case be subsequently confirmed by a writing personally delivered or sent by certified or registered mail or by recognized overnight mail courier as provided above. All notices, requests, and other communications shall be deemed to have been given either at the time of the receipt thereof by the person entitled to receive such notice at the address of such person for purposes of this Paragraph 8, or, if mailed by registered or certified mail or with a recognized overnight mail courier upon deposit with the United States Post Office or such overnight mail courier, if postage is prepaid and the mailing is properly addressed, as the case may be.

 

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

 

10.        Miscellaneous.

 

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

  

Page 4

 

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

 

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

  

Page 5

 

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

 

	  	
LI-ION MOTORS CORP.

	  	  
	  	
By: 

	
/s/ Stacey Fling

	  	  	
Stacey Fling

	  	  	
Chief Executive Officer

Dated as of April 19, 2011

  

Page 6

 

FORM OF EXERCISE AGREEMENT

 

Dated: ________ __, 201_   

 

To:         ______________________

 

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

 

	  	
Name:

	
______________________________

	  	  	  
	  	
Signature:

	  
	  	
Address: 

	
____________________________

	  	  	
_____________________________

	  	
Note:

	
The above signature should correspond exactly with the name on the face of the within Warrant, if applicable.

and, if said number of shares of Common Stock shall not be all the shares purchasable under the within Warrant, a new Warrant is to be issued in the name of said undersigned covering the balance of the shares purchasable thereunder less any fraction of a share paid in cash.

  

Page 7

 

FORM OF ASSIGNMENT

 

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

 

	
Name of Assignee

	 	
Address

	 	
No of Shares

	  	 	  	 	  
	  	 	  	 	  
	  	 	  	 	  

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

 

Dated:    ________ __, 201_

 

	
In the presence of:

	
 ______________________________

	 	 
	  	
Name:______________________________

	  	  
	  	
Signature:_________________________

	  	
Title of Signing Officer or Agent (if any):

	  	
______________________________

	  	
Address:______________________________

	  	
______________________________

	  	
Note:

	
The above signature should correspond exactly with the name on the face of the within Warrant, if applicable.

  

Page 8

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