Document:

f1012g2013a1ex10xi_ubli.htm

Exhibit 10.11

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

	  	
Right to Purchase 307,500 shares of Common Stock of Name Dynamics, Inc. (subject to adjustment as provided herein)

COMMON STOCK PURCHASE WARRANT

	No. 2012-003 	Issue Date: November 19, 2012

 

NAME DYNAMICS, INC., a corporation organized under the laws of the State of Delaware (the “Company”), hereby certifies that, for value received, *  (the “Holder”), address at *, or its assigns, is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date until 5:00 p.m., E.S.T on three years after the Issue Date (the “Expiration Date”), up to Three Hundred Ninety Thousand fully paid and non-assessable shares of Common Stock at a per share purchase price of $0.15.  The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.”  The number and character of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein.  The Company may reduce the Purchase Price for some or all of the Warrants, temporarily or permanently, provided such reduction is made as to all outstanding Warrants for all Holders of such Warrants.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement (the “Subscription Agreement”), dated as of January 31, 2012, entered into by the Company, the Holder and the other signatories thereto, as amended on November 13, 2012.

As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

 

(a)           The term “Company” shall mean Name Dynamics, Inc., a Delaware corporation, and any corporation which shall succeed or assume the obligations of Name Dynamics, Inc. hereunder.

 

(b)           The term “Common Stock” includes (i) the Company's Common Stock, $0.01 par value per share, as authorized on the date of the Subscription Agreement, and (ii) any other securities into which or for which any of the securities described in (i) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

 

(c)           The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of the Warrant at any time shall be entitled to receive, or shall have received, on the exercise of the Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 4 or otherwise.

 

  

  

  

 

(d)           The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

 

1.           Exercise of Warrant.

 

1.1.           Number of Shares Issuable upon Exercise.  From and after the Issue Date through and including the Expiration Date, the Holder hereof shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of Section 1.2 or upon exercise of this Warrant in part in accordance with Section 1.3, shares of Common Stock of the Company, subject to adjustment pursuant to Section 4 below and Section 12(b) of the Subscription Agreement.

 

1.2.           Full Exercise.  This Warrant may be exercised in full by the Holder hereof by delivery to the Company of an original or facsimile copy of the form of subscription attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and delivery within two days thereafter of payment, in cash, wire transfer or by certified or official bank check payable to the order of the Company, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Purchase Price then in effect.  The original Warrant is not required to be surrendered to the Company until it has been fully exercised.

 

1.3.           Partial Exercise.  This Warrant may be exercised in part (but not for a fractional share) by delivery of a Subscription Form in the manner and at the place provided in Section 1.2, except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Subscription Form by (b) the Purchase Price then in effect.  On any such partial exercise, provided the Holder has surrendered the original Warrant, the Company, at its expense, will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common Stock for which such Warrant may still be exercised.

 

1.4.           Fair Market Value.  For purposes of this Warrant, the Fair Market Value of a share of Common Stock as of a particular date (the "Determination Date") shall mean:

 

(a)           If the Company's Common Stock is traded on an exchange or is quoted on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock Exchange or the American Stock Exchange, LLC, then the average of the closing sale prices of the Common Stock for the five (5) Trading Days immediately prior to (but not including) the Determination Date;

 

(b)           If the Company's Common Stock is not traded on an exchange or on the NASDAQ Global Market, NASDAQ Global Select Market, the NASDAQ Capital Market, the New York Stock Exchange or the NYSE AMEX Equities, but is traded on the OTC Bulletin Board or in the over-the-counter market or Pink Sheets, then the average of the closing bid and ask prices reported for the five (5) Trading Days immediately prior to (but not including) the Determination Date;

 

(c)           Except as provided in clause (d) below and Section 3.1, if the Company's Common Stock is not publicly traded, then as the Holder and the Company agree, or in the absence of such an agreement, by arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training to pass on the matter to be decided; or

 

  

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(d)           If the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company's charter, then all amounts to be payable per share to holders of the Common Stock pursuant to the charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common Stock in liquidation under the charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock then issuable upon exercise of all of the Warrants are outstanding at the Determination Date.

 

1.5.           Company Acknowledgment.  The Company will, at the time of the exercise of the Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

1.6.           Delivery of Stock Certificates, etc. on Exercise. The Company agrees that, provided the purchase price listed in the Subscription Form is received as specified in Section 2, the shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which delivery of a Subscription Form shall have occurred and payment made for such shares as aforesaid. As soon as practicable after the exercise of this Warrant in full or in part, and in any event within three (3) business days thereafter (“Warrant Share Delivery Date”), the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued, fully paid and non-assessable shares of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant to Section 1 or otherwise. The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder.  As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $100 per business day after the Warrant Share Delivery Date for each $10,000 of Purchase Price of Warrant Shares for which this Warrant is exercised which are not timely delivered.  The Company shall pay any payments incurred under this Section in immediately available funds upon demand.  Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date notice of revocation or rescission is given to the Company.

 

1.7.           Intentionally Omitted.

 

  

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2.           Cashless Exercise.

 

(a)           Payment upon exercise may be made at the option of the Holder either in (i) cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate Purchase Price, (ii) by delivery of Common Stock issuable upon exercise of the Warrants in accordance with Section (b) below or (iii) by a combination of any of the foregoing methods, for the number of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment in the total number of shares of Common Stock issuable to the holder per the terms of this Warrant) and the holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or Other Securities) determined as provided herein.  Notwithstanding the immediately preceding sentence, payment upon exercise may be made in the manner described in Section 2(b) below, only with respect to Warrant Shares not included for unrestricted public resale in an effective Registration Statement on the date notice of exercise is given by the Holder.

 

(b)           If the Fair Market Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by delivery of a properly endorsed Subscription Form delivered to the Company by any means described in Section 13, in which event the Company shall issue to the holder a number of shares of Common Stock computed using the following formula:

 

X=Y (A-B)

          A

 

	Where    	
X=

	the number of shares of Common Stock to be issued to the Holder

 

	
  

	
Y=

	
the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)

 

	
  

	
A=

	
Fair Market Value

 

	
  

	
B=

	
Purchase Price (as adjusted to the date of such calculation)

 

For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction in the manner described above shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

 

  

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3.          Adjustment for Reorganization, Consolidation, Merger, etc.

 

 

3.1. Fundamental Transaction. If, at any time while this Warrant is outstanding, (A) the Company effects any merger or consolidation of the Company with or into another entity, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (D) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, or spin-off) with one or more persons or entities whereby such other persons or entities acquire more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by such other persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such stock purchase agreement or other business combination), (E) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common Stock of the Company, or (F) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a "Fundamental  Transaction"), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder, (a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "Alternate Consideration") receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event or (b) if the Company is acquired in (1) a transaction where the consideration paid to the holders of the Common Stock consists solely of cash, (2) a “Rule 13e-3 transaction” as defined in Rule 13e-3 under the 1934 Act, or (3) a transaction involving a person or entity not traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market, cash equal to the Black-Scholes Value.  For purposes of any such exercise, the determination of the Purchase Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Purchase Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the Holder's right to exercise such warrant into Alternate Consideration.  The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3.1 and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.  “Black-Scholes Value” shall be determined in accordance with the Black-Scholes Option Pricing Model obtained from the “OV” function on Bloomberg L.P. using (i) a price per share of Common Stock equal to the VWAP of the Common Stock for the Trading Day immediately preceding the date of consummation of the applicable Fundamental Transaction, (ii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the remaining term of this Warrant as of the date of such request and (iii) an expected volatility equal to the 100 day volatility obtained from the HVT function on Bloomberg L.P. determined as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction.

3.2.           Continuation of Terms.  Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) referred to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant as provided in Section 4.

 

  

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3.3           Share Issuance.  Until the Expiration Date, if the Company shall issue any Common Stock except for the Excepted Issuances (as defined in the Subscription Agreement), prior to the complete exercise of this Warrant for a consideration less than the Purchase Price that would be in effect at the time of such issuance, then, and thereafter successively upon each such issuance, the Purchase Price shall be reduced to such other lower price for then outstanding Warrants.  For purposes of this adjustment, the issuance of any security or debt instrument of the Company carrying the right to convert such security or debt instrument into Common Stock or of any warrant, right or option to purchase Common Stock shall result in an adjustment to the Purchase Price upon the issuance of the above-described security, debt instrument, warrant, right, or option if such issuance is at a price lower than the Purchase Price in effect upon such issuance and again at any time upon any actual, permitted, optional, or allowed issuances of shares of Common Stock upon any actual, permitted, optional, or allowed exercise of such conversion or purchase rights if such issuance is at a price lower than the Purchase Price in effect upon any actual, permitted, optional, or allowed such issuance.  Common Stock issued or issuable by the Company for no consideration will be deemed issuable or to have been issued for $0.01 per share of Common Stock.  The reduction of the Purchase Price described in this Section 3.3 is in addition to the other rights of the Holder described in the Subscription Agreement.

 

4.           Extraordinary Events Regarding Common Stock.  In the event that the Company shall (a) issue additional shares of Common Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of Common Stock, then, in each such event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described herein in this Section 4. The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such exercise.

 

5.           Certificate as to Adjustments.  In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable on the exercise of the Warrants or the Purchase Price, the Company at its expense will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by the Company for any additional shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the Warrant and any Warrant Agent of the Company (appointed pursuant to Section 11 hereof).  Holder will be entitled to the benefit of the adjustment regardless of the giving of such notice.  The timely giving of such notice to Holder is a material obligation of the Company.

 

6.           Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.   The Company will at all times reserve and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time issuable on the exercise of the Warrant.  This Warrant entitles the Holder hereof, upon written request, to receive copies of all financial and other information distributed or required to be distributed to the holders of the Company's Common Stock.

 

  

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7.           Assignment; Exchange of Warrant.  Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a "Transferor"). On the surrender for exchange of this Warrant, with the Transferor's endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form") and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company will issue and deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each a "Transferee"), calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.

 

8.           Replacement of Warrant.  On 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 of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

9.           Maximum Exercise.  The Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock on such date.  For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the 1934 Act and Rule 13d-3 thereunder.  Subject to the foregoing, the Holder shall not be limited to aggregate exercises which would result in the issuance of more than 4.99%.  The restriction described in this paragraph may be waived, in whole or in part, upon sixty-one (61) days prior notice from the Holder to the Company to increase such percentage to up to 9.99%, but not in excess of 9.99%.  The Holder may decide whether to convert a Convertible Note or exercise this Warrant to achieve an actual 4.99% or up to 9.99% ownership position as described above, but not in excess of 9.99%.

 

10.         Warrant Agent.  The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section 7, and replacing this Warrant pursuant to Section 8, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.

 

11.         Transfer on the Company's Books.  Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

12.         Intentionally Omitted.

 

  

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13.         Notices.   All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.  The addresses for such communications shall be:  if to the Company, to: Name Dynamics, Inc., 6701 Camel Road, Suite 202, Charlotte, NC 28226, Attn: Doyal Bryant, CEO, facsimile: (888) 286-1432, with a copy by fax only to (which shall not constitute notice): Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006, Attn: Marc Ross, Esq., facsimile: (212) 930-9725, and (ii) if to the Holder, to the address and facsimile number listed on the first paragraph of this Warrant, with a copy by fax (which shall not constitute notice) only to: Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

14.         Law Governing This Warrant.  This Warrant shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York.  The parties to this Warrant hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens.  The Company and Holder waive trial by jury.  The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.  In the event that any provision of this Warrant or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.  Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.   Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

 

 

[-Signature Page Follows-]

 

  

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IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

	 	NAME DYNAMICS, INC.	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: Doyal Bryant	 
	 	 	Title: Chief Executive Officer	 
	 	 	 	 

 

  

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Exhibit A

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

 

TO:  NAME DYNAMICS, INC.

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

___           ________ shares of the Common Stock covered by such Warrant; or

	
___

	
the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2 of the Warrant.

The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________.  Such payment takes the form of (check applicable box or boxes):

___           $__________ in lawful money of the United States; and/or

	
___

	
the cancellation of such portion of the attached Warrant as is exercisable for a total of _______ shares of Common Stock (using a Fair Market Value of $_______ per share for purposes of this calculation); and/or

	
___

	
the cancellation of such number of shares of Common Stock as is necessary, in accordance with the formula set forth in Section 2 of the Warrant, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

After application of the cashless exercise feature as described above, _____________ shares of Common Stock are required to be delivered pursuant to the instructions below.

The undersigned requests that the certificates for such shares be issued in the name of, and delivered to __________________________________________ whose address is ___________________________ __________________                                                      .

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the "Securities Act"), or pursuant to an exemption from registration under the Securities Act.

	
Dated:___________________

	
                                                                                           

(Signature must conform to name of holder as specified on the face of the Warrant)

 

                                                                                             

                                                                                             

(Address)

 

  

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Exhibit B

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of NAME DYNAMICS, INC. to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,” respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of NAME DYNAMICS, INC. with full power of substitution in the premises.

 

	
Transferees

	
Percentage Transferred

	
Number Transferred

	  	  	  
	  	  	  
	  	  	  

 

	Dated:	 	 	 	 
	 	 	 	(Signature must conform to name of holder as specified on the face of the warrant)	 
	 	 	 	 	 
	Signed in the presence of:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	(Name)	 	 	 	 
	 	 	 	(address)	 
	ACCEPTED AND AGREED:	 	 	 	 
	[TRANSFEREE]	 	 	 	 
	 	 	 	 	 
	 	 	 	(address)	 
	 	 	 	 	 
	(Name)	 	 	 	 

 

 

 11EMPLOYMENT AGREEMENT

 

This Employment
Agreement (the "Agreement") is made and entered into as of July 3rd, 2013 by and between Luckycom, Ltd., a Hong Kong
company 100% hold by Luckycom Inc. USA (the "Company") and Kingrich Lee ("Employee").

 

RECITALS

 

The Company desires to employ Employee,
and the Employee desires to accept such employment, on the terms and subject to the conditions set forth in this Agreement.

 

In consideration of the mutual promises
set forth in this Agreement the parties hereto agree as follows:

 

ARTICLE I

Term of Employment

 

1.01 Subject to
the provisions of Article V, and upon the terms and subject to the conditions set forth in this Agreement, the Company will employ
Employee for the period beginning on July 3rd, 2013 (the "Commencement Date") and ending on July 3rd, 2015 (the "Initial
Term"). The Initial Term may be renewed for additional for such successive periods of time, and upon such terms, as the Employee
and the Company may agree. The parties understand and acknowledge that if Employee remains employed by the Company after the end
of the Initial Term, then such employment shall be "at-will" unless this Agreement is extended, or different terms are
established, by the parties in writing.

 

ARTICLE II

Duties

 

2.01 During the
term of employment, Employee will:

 

(a)    
Promote the interests, within the scope of his duties, of the Company and devote his full
working time to the Company's business and affairs; and 

(b)    
Serve as Chief Executive Officer of the Company. 

 

ARTICLE III

Base Compensation

 

3.01 Salary.
The Company will compensate Employee for the duties performed by him hereunder by payment of a base salary at the rate of per annum,
payable in equal semi-monthly installments. The Employee's initial salary will be reviewed by the Chief Executive Officer and the
Board of Directors of the Company in three (3) months from the date of this Agreement.

 

ARTICLE IV

Reimbursement and Employment Benefits

 

4.01 Health and
Other Medical. Employee and his spouse shall be eligible to participate in all health and medical employee benefits as are
available from time to time to other employees of the Company and their families, in accord with current Company policy of paying
50% of the cost of all such benefits.

    	 

    	 

    

4.02 Vacation.
Employee shall be entitled to two (2) weeks of paid vacation and five (5) personal days per year, to be taken in such amounts and
at such times as shall be mutually convenient for Employee and the Company. Any time not taken by Employee in one year shall be
forfeited and not carried forward to subsequent years. Employee shall not be entitled to be reimbursed for any unused vacation
or personal time, except as may be required under law.

 

4.03 Reimbursable
Expenses. The Company shall in accordance with its standard policies in effect from time to time reimburse Employee for all
reasonable out-of-pocket expenses actually incurred by him in the conduct of the business of the Company provided that Employee
submits all substantiation of such expenses to the Company on a timely basis in accordance with such standard policies and further
provided that Employee receives prior approval for all individual expenditures in excess of $500.

 

4.05 Savings
Plan. Employee will be eligible to enroll and participate, and be immediately vested in, all Company savings and retirement
plans, including any 401(k) plans, as are available from time to time to other employees.

 

ARTICLE V

Termination

 

5.01 General
Provisions. Except as otherwise provided in this Article V, at such time as Employee's employment is terminated by the Employee
or the Company, any and all of the Company's obligations under this Agreement shall terminate, other than the Company's obligation
to pay Employee, within thirty (30) days of Employee's termination of employment, the full amount of any unpaid salary accrued
but unpaid benefits, including any vacation pay, earned by Employee pursuant to this Agreement through and including the date of
termination and to observe the terms and conditions of any plan or benefit arrangement which, by its terms, survives such termination
of Employee' s employment. The payments to be made under this Section 5.0 I shall be made to Employee, or in the event of Employee's
death, to such beneficiary as Employee may designate in writing to the Company for that purpose, or ifEmployee has not so designated,
then to the spouse of Employee, or if none is surviving, then to the personal representative of the estate of Employee. Notwithstanding
the foregoing, termination of employment shall not affect the obligations of Employee under Article VI hereof that, pursuant to
the express provisions of this Agreement, continue in full force and effect. Upon termination of employment with the Company for
any reason, Employee shall promptly deliver to the Company all Company property including without limitation all writings, records,
data, memoranda, contracts, orders, sales literature, price lists, client lists, data processing materials, and other documents,
whether or not obtained from the Company or any affiliate, which pertain to or were used by Employee in connection with his employment
by the Company or which pertain to any affiliate, including, but not limited to, Confidential Information, as well as any computers
or other furniture, fixtures or equipment which were purchased by the Company for Employee or otherwise in Employee's possession
or control.

 

5.02 Automatic
Termination. This Agreement shall be automatically terminated upon the first to occur of the following (a) the expiration of
this Agreement in accordance with Section 1.01 hereof, (b) the Company's termination pursuant to section 5.03, (c) the Employee's
termination pursuant to section 5.04 or (d) the Employee's death.

 

5.03 By the Company.
This Agreement may be terminated by the Company upon written notice to the Employee upon the first to occur of the following:

    	2

    	 

    

(a)    
Disability. Upon the Employee's Disability (as defined herein). The tenn "Disability"
shall mean, in the sole determination of the Company's Board, whose determination shall be final and binding, the reasonable likelihood
that the Employee will be unable to perform his duties and responsibilities to the Company by reason of a physical or mental disability
or infirmity for either: (i) a continuous period off our months; or (ii) 180 days during any consecutive twelve (12) month period.

 

(b)    
Cause. Upon the Employee' s commission of Cause (as defined herein). The term "Cause"
shall mean the following: 

                                                              
i.      Any
violation by Employee of any material provision of this Agreement (including without limitation any violation of any provision
of Sections 6.01, 6.02 or 6.03 hereof any and all of which are material in all respects), upon notice of same by the Company describing
in detail the breach asserted and stating that it constitutes notice pursuant to this Section S.03(b)(i), which breach, if capable
of being cured, has not been cured to the Company's sole and absolute satisfaction within 30 days after such notice (except for
breaches of any provisions of sections 6.01, 6.02 or 6.03 which are not subject to cure or any notice);

                                                             
ii.      Embezzlement
by Employee of funds or property of the Company;

                                                           
iii.      Habitual
absenteeism, bad faith, fraud, refusal to perform his duties, gross negligence or willful misconduct on the part of Employee in
the performance of his duties as an employee of the Company, provided that the Company has given written notice of and an opportunity
of not less than 30 days to cure such breach, which notice describes in detail the breach asserted and stating that it constitutes
notice pursuant to this Section S.03(b )(iii), provided that no such notice or opportunity needs to be given if (x) in the judgment
of the Company's Board of Directors, such conduct is habitual or would unnecessarily or unreasonably expose the Company to undue
risk or harm or (y) one previous notice had already been given under this section or under section (i) above; or

                                                           
iv.      a
felonious act, conviction, or plea of nolo contendere of Employee under the laws of the United States or any state (except for
any conviction or plea based on a vicarious liability theory and not the actual conduct of the Employee). 

                                                            
v.      Failure
of the Employee to perform assigned duties adequately, as determined by the affirmative vote of a majority of the Board of Directors.

 

5.04 By the Employee.
This Agreement may be voluntarily terminated by the Employee upon written notice to the Company.

 

5.05 Consequences
of Termination. Upon any termination of Employee' s employment with the Company, except for a termination by the Company for
Cause as provided in Section 5.03(b) hereof or for a termination by the Employee pursuant to Section 5.04 hereof, the Employee
shall be entitled to: (a) a payment equal two (2) months' salary (the "Severance") and (b) retain the benefits set forth
in Article IV for six (6) months. The Severance shall be paid, at Company's option, either (x) in a lump sum upon termination with
such payments discounted by the U.S. Treasury rate most closely comparable to the applicable time period left in the Agreement
or (y) as and when normal payroll payments are made. Employee expressly acknowledges and agrees that the payment of Severance to
Employee hereunder shall be liquidated damages for and in full satisfaction of any and all claims Employee may have relating to
or arising out of Employee 's employment or termination of Employee's employment by the Company or relating to or arising out of
this Agreement and the termination thereof, including, without limitation, those causes of action arising under the Age Discrimination
in Employment Act of 1967, as amended, 29 U. S.c. §62 1 et seq., Title VII of the Civil Rights Act of 1964, as amended, 42
U.s.c. §2000e et seq., the Americans with Disabilities Act of 1990, as amended, 42 U.S.c. §1210J et seq., the Fair Labor
Standards Act of 1938, as amended, 29 U.S.c. §20 I et seq. , the Civil Rights Act of April 9, 1866.1 42 U.S.c. § 1981
et seq. , the National Labor Management Relations Act, 29 U.S.c. §141 et seq., the Occupational Safety and Health Act, 29
U.S.c. §651 et seq., and the Family Medical Leave Act of 1993, 29 U.S.c. §2601 et seq. Notwithstanding the foregoing,
Employee' s right to receive Severance Pay is contingent upon Employee not violating any of his on-going obligations under this
Agreement.

    	3

    	 

    

5.06 Representations.
Employee represents, warrants, and covenants to Company that (a) there is no other agreement or relationship which is binding on
him which prevents him from entering into or fully performing under the terms hereof and (b) the Company may contact any past,
present, or future entity with whom he has a business relationship and inform such entity of the existence of this Agreement and
the terms and conditions set forth herein.

 

ARTICLE VI

Covenants

 

6.01 Confidential
Information. Employee acknowledges that in his employment he is or will be making use of, acquiring, or adding to the Company's
confidential information which includes, but is not limited to, memoranda and other materials or records of a proprietary nature;
technical information regarding the operations of the Company; and records and policy matters relating to finance, personnel, market
research, strategic planning, current and potential customers, lease arrangements, service contracts, management, and operations.
Therefore, to protect the Company's confidential information and to protect other employees who depend on the Company for regular
employment, Employee agrees that he will not in any way use any of said confidential information except in connection with his
employment by the Company, and except in connection with the business of the Company he will not copy, reproduce, or take with
him the original or any copies of said confidential information and will not directly or indirectly divulge any of said confidential
information to anyone without the prior written consent of the Company.

 

6.02 Inventions.
All discoveries, designs, improvements, ideas, and inventions, whether patentable or not, relating to (or suggested by or resulting
from) products, services, or other technology of the Company or any Affiliate or relating to (or suggested by or resulting from)
methods or processes used or usable in connection with the business of the Company or any Affiliate that may be conceived, developed,
or made by Employee during employment with the Company (hereinafter "Inventions"), either solely or jointly with others,
shall automatically become the sole property of the Company or an Affiliate. Employee shall immediately disclose to the Company
all such Inventions and shall, without additional compensation, execute all assignments and other documents deemed necessary to
perfect the property rights of the Company or any Affiliate therein. These obligations shall continue beyond the termination of
Employee's employment with respect to Inventions conceived, developed, or made by Employee during employment with the Company.
The provisions of this Section 6 shall not apply to any Invention for which no equipment, supplies, facility, or trade secret information
of the Company or any Affiliate is used by Employee and which is developed entirely on Employee's own time, unless (a) such Invention
relates (i) to the business of the Company or an Affiliate or (ii) to the actual or demonstrably anticipated research or development
of the Company or an Affiliate, or (b) such Invention results from work performed by Employee for the Company.

    	4

    	 

    

6.03 Non-Disparagement.
For a period commencing on the date hereof and continuing indefinitely, Employee hereby covenants and agrees that he shall not,
directly or indirectly, defame, disparage, create false impressions, or otherwise put in a false or bad light the Company, its
products or services, its business, reputation, conduct, practices, past or present employees, financial condition or otherwise.

 

ARTICLEVII

Assignment

 

7.01 This Agreement shall be binding
upon and inure to the benefit of the successors and assigns of the Company. Neither this Agreement nor any rights hereunder shall
be assignable by Employee and any such purported assignment by him shall be void.

 

ARTICLE VIII

Entire Agreement

 

This Agreement constitutes
the entire understanding between the Company and Employee concerning his employment by the Company or subsidiaries and supersedes
any and all previous agreements between Employee and the Company or any of its affiliates or subsidiaries concerning such employment,
and/or any compensation, bonuses or incentives. Each party hereto shall pay its own costs and expenses (including legal fees) except
as otherwise expressly provided herein incurred in connection with the preparation, negotiation, and execution of this Agreement.
This Agreement may not be changed orally, but only in a written instrument signed by both parties hereto.

 

ARTICLE IX

Applicable Law; Miscellaneous

 

9.01 Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.

 

9.02 Attorneys'
Fees. In addition to all other rights and benefits under this Agreement, each party agrees to reimburse the other for, and
indemnify and hold harmless such party against, all costs and expenses (including attorney's fees) incurred by such party (whether
or not during the term of this Agreement or otherwise), if and to the extent that such party prevails on or is otherwise successful
on the merits with respect to any action, claim or dispute relating in any manner to this Agreement or to any termination of this
Agreement or in seeking to obtain or enforce any right or benefit provided by or claimed under this Agreement, taking into account
the relative fault of each of the parties and any other relevant considerations.

 

9.03 Waiver.
No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision
of this Agreement to be performed by such other party shall be deemed a continuing waiver or a waiver of any similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either party hereto which are not set forth expressly in
this Agreement.

    	5

    	 

    

9.04 Unenforceability.
The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and effect.

 

9.05 Counterparts.
This Agreement may be executed in several counterparts, each of which shall be deemed to be an original and all of which together
shall constitute one and the same instrument.

 

9.06 Section
Headings. The section headings contained in this Agreement are inserted for reference purposes only and shall not affect the
meaning or interpretation of this Agreement.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.

 

Luckycom Inc.

 

By: /s/ Kingrich Lee

Kingrich Lee, CEO

 

 

/s/ Kingrich Lee

Kingrich Lee, Employee

    	6

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