Document:

Exhibit 10.21

 

CONVERTIBLE PROMISSORY NOTE

 

NEITHER THIS NOTE, NOR THE COMMON STOCK
THIS NOTE IS CONVERTIBLE INTO, HAS, AS OF THE ISSUANCE DATE, BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
 “ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL IN THE FORM, SUBSTANCE AND SCOPE REASONABLY SATISFACTORY
TO THE COMPANY, THAT THIS NOTE MAY BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF, UNDER AN EXEMPTION FROM REGISTRATION UNDER THE
ACT AND SUCH STATE SECURITIES LAWS.

 

ELECTROMEDICAL TECHNOLOGIES, INC.

A Delaware Corporation 

 

Convertible Promissory Note

 

Dated: December 11, 2019 (“Issuance
Date”)

 

For value received,
Electromedical Technologies, Inc., a Delaware corporation, (the “Company”), hereby promises to pay to Luis
Michael Lu (together with his respective successors, representatives, transferees and permitted assigns, (collectively, the
 “Holder”), fifty thousand dollars ($50,000.00) (the “Principal Amount”). No interest accrues on
the Principal Amount. Unless earlier converted into Conversion Shares (as defined below), the principal of this Note will be due
and payable by the Company at any time on or after May 31, 2020 (“Maturity Date”) at the Company's election or upon
demand by the Holder.

 

All payments under
or pursuant to this Convertible Promissory Note refer to and shall be made in United States Dollars in immediately available funds
to the Holder at the address of the Holder first set forth above or at such other place as the Holder may designate from time to
time in writing to the Company or by wire transfer of funds to the Holder’s account, instructions for which are attached
hereto as Exhibit A.

 

_____________________________________

 

RECITALS

 

Company is a corporation
formed and operating in good standing under the laws of the State of Delaware. Company’s common stock is listed on the OTC
Markets listing service under the trading symbol “ELCQ.” On November 12, 2019, Company filed a Form S-1 registration
(the “registration”) with the U.S. Securities and Exchange Commission (“SEC”). As part of the registration,
Company will make a direct offering of ten million (10,000,000) shares of registered common stock. As of the issuance date,
the registration statement is not effective, and is subject to review, approval and the issuance of a notice of effectiveness from
the SEC. After filing the registration statement, Company received communication from the SEC that it would review and issue
comments to Company regarding the registration statement. As of the issuance date of this convertible promissory note, Company’s
registration statement is not effective.

 

     

     

    

 

ARTICLE I

 

PAYMENT

 

Section 1.1        Payment.
All payments will be made in lawful money of the United States of America at the principal office of the Company, or at such other
place as the Holder may from time to time designate in writing to the Company. Prepayment of the principal amount may not be made
without the written consent of the Holder, except in the event of a Corporate Transaction (as set forth in Section 3.2(d).

 

ARTICLE II

 

SECURITY

 

Section 2.1        Security.
This Convertible Note is a general unsecured obligation of the Company.

 

ARTICLE III

 

CONVERSION

 

Section 3.1        Conversion.
This Convertible Promissory Note will be convertible into Equity Securities pursuant to the following terms.

 

Section 3.2        Definitions.

 

(a)       "Common
Stock" means the Company's common stock, par value US $0.0001 per share.

 

(b)      "Conversion
Shares," for purposes of determining the type of Equity Securities issuable upon conversion of this Convertible Promissory
Note, means:

 

(i)        with
respect to a conversion pursuant to Section 3.2, (a) shares of the Equity Securities eligible to be sold in the direct offering
of Company pursuant to its pending registration statement with the SEC; or (B) in the event that Company’s registration statement
is not made effective by the SEC, shares of unregistered restricted common stock;

 

(c)      "Conversion
Price," means seventy-one cents ($0.71) per share.

 

    2

     

    

 

(d)      "Corporate
Transaction" means:

 

(i)        the closing of the sale, transfer or other disposition, in a single transaction or series of related
transactions, of all or substantially all of the Company's assets;

 

(ii)       the consummation of a merger or consolidation of the
Company with or into another entity (except a merger or consolidation in which the holders of capital stock of the Company
immediately prior to such merger or consolidation continue to hold a majority of the outstanding voting securities of the
capital stock of the Company or the surviving or acquiring entity immediately following the consummation of such
transaction); or

 

(iii)      the
closing of the transfer (whether by merger, consolidation or otherwise), in a single transaction or series of related transactions,
to a "person" or "group" (within the meaning of Section 13(d) and Section 14(d) of the Exchange Act), of the
Company's capital stock if, after such closing, such person or group would become the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act) of more than 50% of the outstanding voting securities of the Company (or the surviving or
acquiring entity).

 

For the avoidance of doubt, a transaction
will not constitute a "Corporate Transaction" if its sole purpose is to change the state of the Company's incorporation
or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company's securities
immediately prior to such transaction. Notwithstanding the foregoing, the sale of Equity Securities in a bona fide financing transaction
will not be deemed a "Corporate Transaction."

 

(e)       "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

 

Section 3.3        Corporate
Transaction Conversion. In the event of a Corporate Transaction prior to the conversion of this Note pursuant to Section 3.2
or the repayment of this Note, at the closing of such Corporate Transaction, the Holder may elect that either: (a) the Company
will pay the Holder an amount equal to the sum of the outstanding principal balance of this Note; or (b) this Note will convert
into that number of Conversion Shares equal to the quotient (rounded down to the nearest whole share) obtained by dividing (x)
the outstanding principal balance by (y) the applicable Conversion Price.

 

Section 3.4        Maturity
Conversion. At any time on or after the Maturity Date, at the election of the Holder, this Note will convert into that
number of Conversion Shares equal to the quotient (rounded down to the nearest whole share) obtained by dividing (x) the
outstanding principal balance of this Note on the date of such conversion by (y) the Conversion Price.

 

Section 3.5        Pre-Maturity Conversion.
At any time after the issuance date, at the election of the Holder, this Convertible Promissory Note will convert into that number
of Conversion Shares equal to the quotient (rounded down to the nearest whole share) obtained by dividing (x) the outstanding principal
balance of this Note on the date of such conversion by (y) the Conversion Price.

 

    3

     

    

 

(a)      In
the event Holder elects a Pre-Maturity Conversion, and Company’s registration statement has not been made effective by the
SEC, Holder shall receive Company’s restricted common stock in an amount equal to that number of Conversion Shares equal
to the quotient (rounded down to the nearest whole share) obtained by dividing (x) the outstanding principal balance of this Note
on the date of such conversion by (y) the Conversion Price.

 

Section
3.6        Mechanics of Conversion.  Holder shall
deliver to Company a copy of this Note and a Notice of Election to Convert in the form attached hereto as Exhibit B.

 

(a)       Certificates.
As promptly as practicable after the conversion of this Note and the issuance of the Conversion Shares, the Company (at its expense)
will issue and deliver a certificate or certificates evidencing the Conversion Shares (if certificated) to the Holder, or if the
Conversion Shares are not certificated, will deliver a true and correct copy of the Company's share register reflecting the Conversion
Shares held by the Holder. The Company will not be required to issue or deliver the Conversion Shares until the Holder has surrendered
this Note to the Company (or provided an instrument of cancellation or affidavit of loss).

 

(b)       Fractional
Shares. No fractional shares of Common Stock shall be issued upon
conversion of this Note.

 

(c)       No
Impairment. The Company shall not, by amendment of its Certificate of Incorporation 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 hereunder by the Company under this Note, but will
at all times in good faith, assist in the carrying out of all the provisions of this Note, and in the taking of all such action
as may be necessary or appropriate in order to protect the Conversion Rights of the Holder against impairment.

 

(d)      Replacement.
Upon receipt of a duly executed, notarized and unsecured written statement from the Holder with respect to the loss, theft or destruction
of this Note (or any replacement hereof), and without requiring an indemnity bond or other security, or, in the case of a mutilation
of this Note, upon surrender and cancellation of such Note, the Company shall issue a new Note, of like tenor and amount, in lieu
of such lost, stolen, destroyed or mutilated Note.

 

(e)       Reservation
of Common Stock. The Company shall at all times when this Note shall be outstanding, reserve and keep available out of its
authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect
the conversion of this Note.

 

(f)       The Company
shall, from time to time in accordance with Delaware corporate law, increase the authorized number of shares of Common Stock if
at any time the unissued number of authorized shares shall not be sufficient to satisfy the Company’s obligations under this
Note.

 

    4

     

    

 

(g)      No Rights
as Shareholder. Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the conversion of
this Note, the right to vote or to receive dividends or to consent or to receive notice as a shareholder in respect of any meeting
of shareholders for the election of directors of the Company or of any other matter, or any other rights as a shareholder of the
Company.

 

 

ARTICLE IV

 

REPRESENTATIONS OF THE COMPANY

 

Representations and Warranties of the
Company. In connection with the transactions contemplated by this Note, the Company hereby represents and warrants to the Holder
as follows:

 

Section 4.1       Due
Organization; Qualification and Good Standing. The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business
as now conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction in which
the failure to so qualify or to be in good standing would have a material adverse effect on the Company.

 

Section 4.2        Authorization
and Enforceability. Except for the authorization and issuance of the Conversion Shares, all corporate action has been taken
on the part of the Company and its officers, directors and stockholders necessary for the authorization, execution and delivery
of this Note. Except as may be limited by applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting
the enforcement of creditors' rights, the Company has taken all corporate action required to make all of the obligations of the
Company reflected in the provisions of this Note valid and enforceable in accordance with its terms.

 

Section 4.3        Company provided Holder
with full access to all information about Company Holder requested and considered necessary or appropriate to make an informed
investment decision with respect to the Convertible Promissory Note, and the Conversion Shares which may be acquired by Holder
as a result of this Convertible Promissory Note, including reference to all SEC filings made by Company and its audited financial
statements and risk factors in its registration statement. Company further answered all questions of Holder, and provided additional
information necessary to verify any information furnished to Holder or to which Holder had access.

 

ARTICLE V

 

REPRESENTATIONS OF THE HOLDER

 

Representations and Warranties of the
Holder. In connection with the transactions contemplated by this Note, the Holder hereby represents and warrants to the Company
as follows:

 

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Section 5.1        Authorization.
The Holder has full power and authority (and, if an individual, the capacity) to enter into this Note and to perform all obligations
required to be performed by it hereunder. This Note, when executed and delivered by the Holder, will constitute the Holder's valid
and legally binding obligation, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors'
rights generally, and (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies.

 

Section 5.2        Purchase Entirely
for Own Account. The Holder acknowledges that this Note is made with the Holder in reliance upon the Holder's representation
to the Company, which the Holder hereby confirms by executing this Note, that this Note, the Conversion Shares, and any Common
Stock issuable upon conversion of the Conversion Shares (collectively, the "Securities") will be acquired for investment
for the Holder's own account, not as a nominee or agent (unless otherwise specified on the Holder's signature page hereto), and
not with a view to the resale or distribution of any part thereof, and that the Holder has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Note, the Holder further represents that the Holder
does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations to
such person or to any third person, with respect to the Securities. If other than an individual, the Holder also represents it
has not been organized solely for the purpose of acquiring the Securities.

 

Section 5.3        Disclosure of Information;
Non-Reliance. The Holder acknowledges that he has received all the information he considers necessary or appropriate to enable
him to make an informed decision concerning an investment in the Securities. The Holder further represents that he has had an opportunity
to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities. The
Holder confirms that the Company has not given any guarantee or representation as to the potential success, return, effect or benefit
(either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities. In deciding to purchase
the Securities, the Holder is not relying on the advice or recommendations of the Company and has made his own independent decision
that the investment in the Securities is suitable and appropriate for the Holder. The Holder understands that no federal or state
agency has passed upon the merits or risks of an investment in the Securities or made any finding or determination concerning the
fairness or advisability of this investment.

 

Section 5.4        Investment
Experience. The Holder is an investor in securities of companies in the development stage and acknowledges that he is able
to fend for himself, can bear the economic risk of his investment and has such knowledge and experience in financial or business
matters that he is capable of evaluating the merits and risks of the investment in the Securities.

 

Section 5.5       Accredited Investor.
The Holder is an "accredited investor" within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act. The Holder agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance
with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities.

 

    6

     

    

 

Section
5.6        Restricted Securities. The Holder understands that the SEC has not made Company’s registration effective as
of the Issuance Date. As a result, there is material uncertainty concerning if and when the SEC may deem the Company’s
registration effective, and this may materially impact the Company’s ability to sell registered freely tradable shares
to Holder in the event Holder elects to convert prior to SEC effectiveness. In the event that the SEC does not make
Company’s registration effective, or there is a delay in obtaining SEC effectiveness, and Holder elects to convert the
principal amount due in this Note into common stock, Holder understands that he will receive "restricted
securities" under U.S. federal and applicable state securities laws and that, pursuant to these laws, the Holder must
hold the Securities indefinitely unless and until they are registered with the SEC and registered or qualified by state
authorities, or an exemption from such registration and qualification requirements is available. The Holder acknowledges that
whether an exemption from registration or qualification is available, may be conditioned on various requirements including,
but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the
Company which are outside of the Holder's control, and which the Company is under no obligation, and may not be able,
to satisfy.

 

(a)       No Public Market. The Holder understands that no public market now exists for the Securities
and that the Company has made no assurances that a public market will ever exist for the Securities.

 

(b)       No
General Solicitation. The Holder has not either directly or indirectly, including through a broker or finder, solicited offers
for or offered or sold the Securities by means of any form of general solicitation or general advertising within the meaning of
Rule 502 of Regulation D under the Securities Act or in any manner involving a public offering within the meaning of Section 4(a)(2)
of the Securities Act. The Holder acknowledges that neither the Company nor any other person offered to sell the Securities to
it by means of any form of general solicitation or advertising within the meaning of Rule 502 of Regulation D under the Securities
Act or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

 

(c)       Investment
Experience. Holder understands that his acquisition of the Securities involves substantial risk. Holder has experience as an
investor in securities of private companies and companies in the development stage and acknowledges that Holder is able to fend
for himself, can bear the economic risk of his investment in the Securities and has such knowledge and experience in financial
or business matters that Holder is capable of evaluating the merits and risks of this investment in the Securities and protecting
his own interests in connection with this investment.

 

(d)       Compliance with Laws. Without in any way limiting the representations set forth above, Holder
further agrees not to make any disposition of all or any portion of the Securities, except in compliance with applicable
securities laws.

 

(e)       Legend.
It is understood that the certificates evidencing the shares of restricted securities will bear a legend substantially in the form
set forth below.

 

    7

     

    

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY OTHER
JURISDICTION. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT
AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS
SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

(f)       Disclosure
of Information. Holder has received or has had full access to all the information Holder considers necessary or appropriate
to make an informed investment decision with respect to the Securities to be acquired by Holder as a result of this Note. Holder
further has had an opportunity to ask questions of and receive answers from the management of Company regarding the Securities,
and to obtain additional information necessary to verify any information furnished to Holder or to which Holder had access. Further,
Holder has undertaken its own review of the business of Company and the wisdom of an investment in the Company Securities. Holder
has had the opportunity to review all of the books, records and all SEC filings of Company, including all Company audited financial
statements, financial disclosures and risk factors that Company has published concerning its operations. Holder acknowledges being
knowledgeable about companies in the development stage, and the risk factors associated with such companies.

 

ARTICLE VI

 

MISCELLANEOUS

 

Section 6.1       Successors
and Assigns. Except as otherwise provided herein, the terms and conditions of this Note will inure to the benefit of, and
be binding upon, the respective successors and assigns of the parties; provided, however, that the Company may not assign its
obligations under this Note without the written consent of the Holder. This Note is for the sole benefit of the parties hereto
and their respective successors and permitted assigns, and nothing herein, express or implied, is intended to or will confer upon
any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Note.

 

Section 6.2       Choice of Law.
This Note, and all matters arising out of or relating to this Note, whether sounding in contract, tort, or statute will be governed
by and construed in accordance with the internal laws of the State of Delaware, without giving effect to the conflict of laws provisions
thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction other than
those of the State of Delaware.

 

Section 6.3       Counterparts.
This Note may be executed in counterparts, each of which will be deemed an original, but all of which together will be deemed to
be one and the same agreement. Counterparts may be delivered via facsimile, electronic mail (including PDF or any electronic signature
complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method, and any counterpart so
delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

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Section 6.4        Titles
and Subtitles. The titles and subtitles used in this Note are included for convenience only and are not to be considered in
construing or interpreting this Note.

 

Section 6.5       Notices. All
notices and other communications given or made pursuant hereto will be in writing and will be deemed effectively given: (a) upon
personal delivery to the party to be notified; (b) when sent by email or confirmed facsimile; (c) five (5) days after having been
sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications will be sent
to the respective parties at the addresses shown on the signature pages hereto (or to such email address, facsimile number or other
address as subsequently modified by written notice given in accordance with this Section 6.5).

 

Section 6.6       No
Finder's Fee. Each party represents that it neither is nor will be obligated to pay any finder's fee, broker's fee or commission
in connection with the transactions contemplated by this Note. The Holder agrees to indemnify and to hold the Company harmless
from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of the transactions
contemplated by this Note (and the costs and expenses of defending against such liability or asserted liability) for which the
Holder or any of its officers, employees or representatives is responsible. The Company agrees to indemnify and hold the Holder
harmless from any liability for any commission or compensation in the nature of a finder's or broker's fee arising out of the
transactions contemplated by this Note (and the costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives is responsible.

 

Section 6.7       Attorneys' Fees.
If any action at law or in equity is necessary to enforce or interpret the terms of this Note, the prevailing party will be entitled
to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

 

Section 6.8       Entire
Agreement; Amendments and Waivers. This Note constitutes the full and entire understanding and agreement between the parties
with regard to the subject hereof. Any term of this Note may be amended and the observance of any term may be waived (either generally
or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holder.
Any waiver or amendment effected in accordance with this Section 6.8 will be binding upon each future holder of this Note and
the Company.

 

Section 6.9       Severability.
If one or more provisions of this Note are held to be unenforceable under applicable law, such provisions will be excluded from
this Note and the balance of the Note will be interpreted as if such provisions were so excluded and this Note will be enforceable
in accordance with its terms.

 

    9

     

    

 

Section 6.10     Acknowledgment.
For the avoidance of doubt, it is acknowledged that the Holder will be entitled to the benefit of all adjustments in the number
of shares of the Company's capital stock as a result of any splits, recapitalizations, combinations or other similar transactions
affecting the Company's capital stock underlying the Conversion Shares that occur prior to the conversion of this Note.

 

Section 6.11     Further Assurances.
From time to time, the parties will execute and deliver such additional documents and will provide such additional information
as may reasonably be required to carry out the terms of this Note and any agreements executed in connection herewith.

 

Section 6.12      Officers
and Directors not Liable. In no event will any officer or director of the Company be liable for any amounts due and payable
pursuant to this Note.

 

Section 6.13     Approval.
The Company hereby represents that its board of directors, in the exercise of its fiduciary duty, has approved the Company's execution
of this Note based upon a reasonable belief that the principal provided hereunder is appropriate for the Company after reasonable
inquiry concerning the Company's financing objectives and financial situation. In addition, the Company hereby represents that
it intends to use the principal of this Note primarily for the operations of its business, and not for any personal, family or
household purpose.

 

Section 6.14      Waiver
of Jury Trial. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS NOTE, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING
OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT
LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS.
EACH PARTY HERETO HEREBY FURTHER REPRESENTS AND WARRANTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND
THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

    10

     

    

 

	 	Dated: December 11, 2019	 
	 	 	 
	 	 	 
	 	Luis Lu [HOLDER]	 
	 	 	 
	 	 	 
	 	By:	/s/ Luis Michael Lu	 
	 	 	 
	 	 	 	Luis Michael Lu	 
	 	 	 
	 	 	 	4480 S Rosemary Place	 
	 	 	 	Chandler, AZ 85248	 
	 	 	 	814-335-5274	 
	 	 	 	mdeyes203@hotmail.com	 

 

 

	 	ELECTROMEDICAL TECHNOLOGIES, INC.
	 	 
	 	 
	 	By:	
	 	 
	 	 	 	Matthew N. Wolfson
	 	 
	 	 	 	President, Chief Executive Officer
	 	 
	 	 	 	Electromedical Technologies, Inc.
	 	 	 	16561 N 92ND Street, Suite 101
	 	 	 	Scottsdale, AZ 85260
	 	 	 	Email: ceo@electromedtech.com
	 	 	 	Attention: Mr. Matthew Wolfson

 

    11solarmax_ex42.htm

EXHIBIT 4.2
 
Form of Representative’s Warrant to Purchase Common Stock
 
THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT OR CAUSE IT TO BE THE SUBJECT OF ANY HEDGING, SHORT SALE, DERIVATIVE, PUT, OR CALL TRANSACTION THAT WOULD RESULT IN THE EFFECTIVE ECONOMIC DISPOSITION OF THIS PURCHASE WARRANT BY ANY PERSON FOR A PERIOD OF ONE HUNDRED EIGHTY (180) DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) VIEWTRADE SECURITIES, INC. OR AN UNDERWRITER OR A SELECTED DEALER IN CONNECTION WITH THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF VIEWTRADE SECURITIES, INC. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER AND IN ACCORDANCE WITH FINRA RULE 5110(G)(2).
 
THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO______________ . VOID AFTER 5:00 P.M., EASTERN TIME, _____________ , 2025.1
 
COMMON STOCK PURCHASE WARRANT
 

For the Purchase of _________ Shares of Common Stock
of
SOLARMAX TECHNOLOGY, INC.

 
1. Purchase Warrant. THIS CERTIFIES THAT, pursuant to that certain Underwriting Agreement, dated ____________ , 2020 (the “Underwriting Agreement”), by and between SolarMax Technology, Inc., a Nevada corporation (the “Company”), and ViewTrade Securities, Inc., as representative of the underwriters named on Annex A thereto, providing for the public offering (the “Offering”) of shares of common stock, par value $0.001 per share, of the Company (the “Common Stock”), ViewTrade Securities, Inc. or its assigns (“Holder”), as registered owner of this Purchase Warrant, is entitled, at any time or from time to time from ____________ (the “Commencement Date”), and at or before 5:00 p.m., Eastern time, __________ , 20252 (the “Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to _____________3 shares of Common Stock (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized by law or executive order to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period commencing on the date hereof and ending on the Expiration Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $ __________ per Share4; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. This Purchase Warrant is being issued pursuant to the Underwriting Agreement providing for the Offering. The term “Effective Date” shall mean the effective date of the registration statement in connection with the Offering. The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context.
 
2. Exercise.
 
2.1 Exercise Form. In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check to the order of the Company. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire.
___________________
1Date that is five years from the Effective Date.
2Date that is five years from the Effective Date.
38% of the Shares sold in the Offering.
4120% of the price of the Shares sold in the Offering.
 
	 
	2
	
 
	 

 
2.2 Cashless Exercise. At any time after the Commencement Date, in lieu of exercising this Purchase Warrant by payment of cash or check payable to the order of the Company pursuant to Section 2.1 above, Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised) by surrender of this Purchase Warrant to the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder Shares in accordance with the following formula:
  
	 
	 
	Y(A-B)
	 

	X
	=
	 A
	 

 
Where,
 
	 
	X = 	The number of Shares to be issued to Holder;
	 
	Y =	The number of Shares that would be issuable upon exercise of this Purchase Warrant if such exercise were by means of a cash exercise pursuant to Section 2.1 rather than a cashless exercise pursuant to this Section 2.2;
	 
	A = 	The fair market value of one Share, as determined in accordance with the provisions of this Section 2; and
	 
	B =	The Exercise Price in effect under this Purchase Warrant at the time the election to exercise this Purchase Warrant on a cashless basis is made pursuant to this Section 2.

 
For purposes of this Section 2.2, the fair market value of a Share is defined as follows:
 
(i) if the Common Stock is traded on a national securities exchange, the fair market value shall be deemed to be the closing sales price on such exchange on the trading day immediately prior to the date the exercise form is submitted to the Company in connection with the exercise of this Purchase Warrant; or
 
(ii) if the Common Stock is traded over-the-counter (i.e., on the OTCQB or OTCQX Markets operated by OTC Markets Group, Inc., or any similar over-the-counter market), the fair market value shall be deemed to be the closing price of the Common Stock on the trading day immediately prior to the date the exercise form is submitted to the Company in connection with the exercise of this Purchase Warrant; or
 
(iii) if there is no active public market for the Common Stock, the value shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.
 
For avoidance of doubt, if there is no effective registration statement registering, or no current prospectus available for, the resale of the Shares underlying this Purchase Warrant by the Holder, then this Purchase Warrant may be exercised, in whole or in part, at such time by means of a cashless exercise in accordance with the provisions of this Purchase Warrant.
 
3. Transfer - General Restrictions. The Holder agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days following the Effective Date to anyone other than: (i) ViewTrade Securities, Inc. or another underwriter or a selected dealer participating in the Offering, or (ii) a bona fide officer or partner of ViewTrade Securities, Inc. or of any such underwriter or selected dealer, in each case in accordance with FINRA Conduct Rule 5110(g)(1), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). Commencing one hundred eighty (180) days after the Effective Date, transfers to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed with signature medallion guaranteed, together with this Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within five (5) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.
 
	 
	3
	
 
	 

 
4. Registration. The Company shall be required to keep a registration statement effective on Form S-1 (or Form S-3, if the Company is eligible to use such form) until such date that is the earlier of the date when all of the Shares underlying the Purchase Warrants have been publicly sold by the Holder or such time as Rule 144 or another similar exemption under the Securities Act of 1933, as amended, is available for the sale of all of such Holder’s Shares underlying the Purchase Warrants without limitation during a three-month period without registration.
 
5. New Purchase Warrants to be Issued.
 
5.1 Partial Exercise or Transfer. Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay any Exercise Price and/or transfer tax if exercised pursuant to Section 2 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.
 
5.2 Replacement on Loss. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and an indemnification agreement, the Company, at its own expense, shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.
 
6. Adjustments.
 
6.1 Adjustments to Exercise Price and Number of Shares. The Exercise Price and the number of Shares underlying this Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:
 
6.1.1 Share Dividends; Split Ups. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is increased by a stock dividend or distribution payable in Shares or by a split up of Shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding Shares, and the Exercise Price shall be proportionately decreased.
 
6.1.2 Aggregation of Shares. If, after the date hereof, and subject to the provisions of Section 6.3 below, the number of outstanding Shares is decreased by a consolidation, combination or reclassification of Shares, reverse split or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding Shares, and the Exercise Price shall be proportionately increased.
 
6.1.3 Replacement of Shares upon Reorganization, etc. In case of any reclassification or reorganization of the outstanding Shares other than a change covered by Section 6.1.1, 6.1.2 or 6.1.4 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation of the Company with or into another corporation or other entity (other than a consolidation or share reconstruction or amalgamation in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) to receive upon the exercise hereof, for the same aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations, sales or other transfers.
 
	 
	4
	
 
	 

 
6.1.4 Specified Merger. Notwithstanding the provisions of Section 6.13 of this Warrant, in the event of a Specified Merger, as hereinafter defined, this Warrant, if not exercised prior to the effective time of the Specified Merger, shall, at the effective time of the Specified Merger, without any action on the part of the holder, become and be converted into the right to receive cash or securities equal to the amount determined by multiplying the number of Warrant Shares issuable upon exercise of this Warrant by the amount by which (x) the consideration payable with respect to one share of Common Stock in the Specified Merger exceeds (y) the Exercise Price. A Specified Merger shall mean the merger or consolidation of the Company into another corporation or entity or the sale by the Company of all or substantially all of its business and assets in a transaction in which the net proceeds or other consideration from such sale are distributed to the Company’s stockholders in liquidation of their shares of Common Stock, if, and only if, the sole consideration to be received by the holders of the Common Stock is cash, including any contingent cash, and/or securities all of which are listed on the New York Stock Exchange, the Nasdaq Stock Market or the OTCQX or OTCQB Market or a similar over-the-counter market designated by the Company’s board of directors or a Canadian stock exchange or other stock market designated by the Company’s board of directors. Securities issued in the Specified Merger shall be valued at the average closing price thereof on the principal stock exchange or market on which the securities are listed for the three-day period ending the day prior to the effective date of the Specified Merger unless the agreement relating to the Specified Merger provides another method of determining the value thereof, in which event the valuation determined by such agreement shall prevail. Payment to the holder of this Warrant with respect to any such securities shall be payable in either cash or in such securities (valued as herein provided), as the Company shall determine. If, in a Specified Merger, the value of the consideration payable with respect to one share of Common Stock is equal to or less than the Exercise Price, no payment shall be made to the holder of this Warrant, and this Warrant shall terminate.
 
6.1.5 Changes in Form of Purchase Warrant. This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1, and any Purchase Warrant issued after such change may state the same Exercise Price and the same number of Shares as are stated in the initial Purchase Warrant. The acceptance by the Holder of the issuance of a new Purchase Warrant reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.
 
6.2 Substitute Purchase Warrant. In case of any consolidation of the Company with, or share reconstruction or amalgamation of the Company with or into, another corporation or other entity (other than a consolidation or share reconstruction or amalgamation which does not result in any reclassification or change of the outstanding Shares), the corporation or other entity formed by such consolidation or share reconstruction or amalgamation shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares of stock and other securities and property receivable upon such consolidation or share reconstruction or amalgamation, by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation, sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations..
 
6.3 Elimination of Fractional Interests. The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of this Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.
 
	 
	5
	
 
	 

 
7. Reservation and Listing. The Company shall at all times reserve and keep available out of its authorized shares, solely for the purpose of issuance upon exercise of this Purchase Warrant, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of this Purchase Warrant and payment of the Exercise Price therefor, in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive or similar rights of any stockholder and free and clear of all liens, taxes and charges. As long as this Purchase Warrant shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of this Purchase Warrant to be listed (subject to official notice of issuance) on all national securities exchanges (or, if applicable, on the OTCQB or OTCQX Markets operated by OTC Markets Group, Inc., or any similar over-the-counter market) on which the Shares issued to the public in the Offering may then be listed and/or quoted.
 
8. Certain Notice Requirements.
 
8.1 Holder’s Right to Receive Notice. Nothing herein shall be construed as conferring upon the Holder the right to vote or consent or to receive notice as a stockholder for the election of directors or any other matter, or as having any rights whatsoever as a stockholder of the Company. If, however, at any time prior to the expiration of this Purchase Warrant and its exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books (the “Notice Date”) for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other stockholders of the Company at the same time and in the same manner that such notice is given to the stockholders; provided, however, that the Company shall not be obligated to provide any written notice under this Section 8 if it makes a public announcement of the applicable event via nationally distributed press release or via a publicly available and legally compliant filing with the U.S. Securities and Exchange Commission.
 
8.2 Events Requiring Notice. The Company shall be required to give the notice described in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer to all the holders of its shares any additional shares of capital stock of the Company or securities convertible into or exchangeable for shares of capital stock of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation) or a sale of all or substantially all of its property, assets and business shall be proposed.
 
8.3 Notice of Change in Exercise Price; Notice of Exercise Price. The Company shall, within five (5) business days after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holder of such event and change (“Price Notice”). The Price Notice shall describe the event causing the change and the method of calculating the same and shall be certified as being true and accurate by the Company’s Chief Executive Officer and Chief Financial Officer. The Company shall, within five (5) business days after receipt by the Company of a written request by the Holder, send notice to the Holder of the Exercise Price then in effect and the number of Shares or the amount, if any, of other shares of stock, securities or assets then issuable upon exercise of this Purchase Warrant and shall be certified as being true and accurate by the Company’s Chief Executive Officer and Chief Financial Officer.
 
8.4 Transmittal of Notices. All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall be deemed to have been duly made when (1) hand delivered, (2) mailed by express mail or private courier service, (3) when the event requiring notice is disclosed in all material respects and filed in a publicly available and legally compliant filing with the U.S. Securities and Exchange Commission prior to the Notice Date or (4) if sent by electronic mail, on the day the notice was sent if during regular business hours and, if sent outside of regular business hours, on the following business day, to following addresses or to such other addresses as the Company or Holder may designate by notice to the other party; provided, however, that if the Holder is other than ViewTrade Securities, Inc., notice shall be sent to the address and person set forth on the Company’s warrant register:
 
	 
	6
	
 
	 

 
If to the Holder:
 
ViewTrade Securities, Inc. 
7280 W. Palmetto Park Road, Suite 310
Boca Raton, FL 33433 
Attention: Douglas Aguililla 
Email: dougagui@viewtrade.com
 
with a copy (which shall not constitute notice) to:
 
K&L Gates LLP
Southeast Financial Center, Suite 3900
200 South Biscayne Boulevard
Miami, FL 33131 
Attention: Clayton E. Parker
Email: clayton.parker@klgates.com
 
If to the Company:
 
SolarMax Technology, Inc. 
3080 12th Street
Riverside, California 92507
Attention: Stephen Brown, Chief Financial Officer
Email: sbrown@solarmaxtech.com
with a copy (which shall not constitute notice) to:
 
Ellenoff Grossman & Schole LLP
1345 Avenue of Americas, 11th Floor
New York, NY 10105
Attention: Asher S. Levitsky, PC
Email: alevitsky@egsllp.com
 
9. Miscellaneous.
 
9.1 Amendments. The Company and the Holder may from time to time supplement, modify or amend this Purchase Warrant by a written agreement signed by the Company and the Holder. All modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought.
 
9.2 Headings. The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.
 
9.3 Entire Agreement. This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.
 
9.4 Binding Effect. This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.
 
	 
	7
	
 
	 

 
9.5 Governing Law; Submission to Jurisdiction; Trial by Jury. This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8.4 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Purchase Warrant or the transactions contemplated hereby.
 
9.6 Waiver, etc. The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.
 
[Signature Page Follows]
 

	 
	8
	
 
	 

 

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the ______ day of , 2020.
 
	 	SOLARMAX TECHNOLOGY, INC.	
	 	 	 	 
		By:		
	 
	 
	Name:	 
	 	 	Title:	 

 
	Acknowledged and Agreed	
	 
	 

	VIEWTRADE SECURITIES, INC.
	 

	 	 	 
	By:		
	 
	Name:	 
	 	Title:	 

 
	 
	9
	
 
	 

 
FORM OF EXERCISE
 
The undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock (“Warrant Shares”) of SolarMax Technology, Inc., a Nevada corporation (the “Company”), evidenced by the attached Common Stock Purchase Warrant (the “Purchase Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Purchase Warrant. Please issue the Shares as to which the Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which the Purchase Warrant has not been exercised.
 
1. Form of Exercise Price. The Holder intends that payment of the Exercise Price shall be made as:
 
____________ a “Cash Exercise” with respect to _________________ Warrant Shares; and/or
 
____________ a “Cashless Exercise” with respect to _______________ Warrant Shares.
 
2. Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the aggregate Exercise Price in the sum of $ to the Company in accordance with the terms of the Purchase Warrant.
 
3. Delivery of Warrant Shares. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Purchase Warrant. Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:
 
_______________________________
 
The Warrant Shares shall be delivered to the following DWAC Account Number:
 
_______________________________
 
_______________________________
 
_______________________________
 
Date: _______________ __, ______
 
_______________________
Name of Registered Holder
 
	By:		
	 
	Name:	 
	 	Title:	 
		 	 

   
	 
	
	
 
	 

  
INSTRUCTIONS FOR REGISTRATION OF SECURITIES
 
	Name:		
	 
	 
	 

	 	(Print in Block Letters)
	 
			
	Address:
		 
	 		 
	 
	 
	 

	 
	 
	 

	 		 

 
NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.
 

	 
	2
	
 
	 

 
FORM OF ASSIGNMENT
 
FOR VALUE RECEIVED, the undersigned registered owner of this Purchase Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned to purchase shares of common stock, par value $0.001 per share, of SolarMax Technology, Inc., a Nevada corporation (the “Company”), evidenced by this Purchase Warrant, with respect to the number of shares of Common Stock set forth below.
 
	Name of Assignee
	 
	Address and Phone Number
	 
	No. of Shares

					
					
					

 
The undersigned also represents that, by assignment hereof, the Assignee acknowledges that this Purchase Warrant and the shares of stock to be issued upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this Purchase Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any state securities laws. Further, the Assignee has acknowledged that upon exercise of this Purchase Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view toward distribution or resale.
 
	 
	 

	Signature of Holder
	 

	 
	 

	Date
	 

 
The undersigned assignee agrees to be bound by all of the terms and conditions of this Purchase Warrant.
 
	 
	 

	Signature of Assignee
	 

	 
	 

	Date
	 

 
	 
	3

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