Document:

fs1012011ex10v_wns.htm

Exhibit 10.5

 

OFFICE SERVICE AGREEMENT

This Agreement is dated   May 16, 2009 and is entered into Brooklyn NY  by and between SE EXECUTIVE SUITES INC. (SCESII) AND  WNS STUDIOS, INC. (CLIENT).  SCESI and CLIENT agree that SCESI shall grant CLIENT for and in consideration of the agreements and fee(s) set forth herein, a License to use the Office(s) as from time to time designated by SCESII, and, in common with SCESI other CLIENT’S, a License to use SCESI Business Center facilities and services in accordance with the terms hereof.

1. BASIC TERMS

As used in this agreement, the following definitions, descriptions and limitations shall apply throughout:

	
A.  

	
Base Services: SCESI Complete Executive Program, including the use of executive offices, telephone answering and such other inclusive services as are defined in Schedule A.

	
B.  

	
Additional Services: Services that may be purchased as needed by CLIENT, including secretarial, administrative, telecommunications support and such other services as defined in Schedule B.

	
C.  

	
The Business Center: SCESI  at 1154 60 st Brooklyn NY

	
D.  

	
The Building: SCESI at 1154 60 st Brooklyn NY

	
E.  

	
Office: Office number(s)   , in the Building

	
F.  

	
Services to be provided to   1     person.

	
G.  

	
Initial Term:   Month to Month

 

	
H.  

	
Commencement Date:  May 16, 2009

	
I.  

	
Monthly Base Fee: $700

	
J.  

	
Refundable Services Retainer (2x Fixed Monthly fees):  $1400

2. OFFICE

The CLIENT shall, as part of the Base Services, be granted a license to use the Office twenty-four (24) hours a day, seven (7) days a week. SCESI agrees to provide office cleaning, maintenance services, electricity, heating, and air conditioning to the Office for normal office use in such reasonable quantities and during such reasonable hours as shall be determined by SCESI or the Building. In addition, the CLIENT will have reasonable use of SCESI common area facilities. The CLIENT shall use the Office and auxiliary areas of the Business Center solely for general office use in the conduct of the CLIENT’s business.

If, for any reason whatsoever, SCESI is unable to provide use of the Office or a mutually agreed upon alternative Office at the time herein agreed, CLIENT may either extend the Commencement Date until the Office becomes available or, as its sole remedy for such failure, cancel and terminate this Agreement if the Office is not available to Client within five (5) business days after written notice to SCESI by

 

  

1

  

  

 

CLIENT, in which case any prior payments shall be fully refunded. No such failure to provide use of the Office shall subject SCESI to any liability for loss or damage, nor affect the validity of this Agreement or the obligations of the CLIENT hereunder.

SCESI will have the right to relocate the CLIENT to another office in the Business Center, and to substitute such other office for the Office Licensed hereby provided such other office is substantially similar in area and configuration to CLIENT’s contracted Office and provided the CLIENT shall incur no increase in the Monthly Base Fee or any relocation cost or expense.

3. SERVICES

SCESI agrees, in consideration of the Monthly Base Fee, to provide Base Services to CLIENT as described in Schedule A. From time to time during the Term, SCESI may, at its option, make other services available to CLIENT of the nature described in Schedule B, at fees that are from time to time established by SCESI.  SCESI shall be under no obligation to provide Schedule B services if the monthly cost thereof exceeds the Refundable Services Retainer. In the event CLIENT is in default of this Agreement, SCESI may, at its option, cease furnishing any and all services including telephone services.

CLIENT will not offer to any party in the Business Center or the Building, any of the services that SCESI provides to its CLIENT’s including, but not limited to, the services described in Schedule A or B.

CLIENT will use only telecommunications systems and services as provided by SCESI. CLIENT will pay to SCESI a monthly equipment rental fee for the use of each telephone instrument, voice line and data line. CLIENT will also be responsible to SCESI for all charges associated with local and long distance calls. In the event SCESI discontinues the offering of long distance service, CLIENT will provide its own long distance service through a locally accessed long distance carrier.

SCESI will answer all incoming telephone calls, unless otherwise mutually agreed, during normal business hours, as determined by SCESI. Answering service will be limited to normal business communications, excluding inbound telemarketing and advertising response, which requires pre-approval by SCESI and shall be subject to fees established from time to time by SCESI.

CLIENT acknowledges that due, in part to the imperfect nature of verbal, written and electronic communications, SCESI shall not be responsible for damages, direct or consequential, which may result from the failure of SCESI to furnish any service, including but not limited to the service of conveying messages, communications and other utility or services required under this Agreement or agreed to by SCESI. CLIENT’s sole remedy and SCESI sole obligation for any failure to render any service, any error or omission, or any delay or interruption with respect thereto, is limited to an adjustment to the CLIENT’s billing in an amount equal to the charge for such service for the period during which the failure, delay or interruption occurred.

THE CLIENT EXPRESSLY AGREES TO WAIVE, AND AGREES NOT TO MAKE ANY CLAIM FOR DAMAGES, DIRECT OR CONSEQUENTIAL, ARISING OUT OF ANY FAILURE TO FURNISH ANY UTILITY, SERVICE OR FACILITY, ANY ERROR OR OMISSION WITH RESPECT THERETO, OR ANY DELAY OR INTERRUPTION OF THE SAME.

4. DURATION OF AGREEMENT

Upon the end of the Initial Term, or any extension thereof, the term of this Agreement and the License herein granted shall be automatically extended for the same period of time as the Initial Term, upon the same terms and conditions except the Monthly Base Fee, as contained herein unless either party gives notice to the other in writing to the contrary at least ninety (90) days prior to the end of terms.

Upon any termination of this Agreement, whether by lapse of time or otherwise, or upon any revocation of the CLIENT’s License herein granted, the CLIENT shall vacate the Office and the Business Center immediately. For each and every month or portion thereof that CLIENT fails to vacate the Office after the termination of the Agreement by lapse of time or otherwise, without the express written consent of SCESI, CLIENT shall pay SCESI, as liquidated damages, an amount equal to double the Monthly Base Fee computed on a per-month basis for each month or portion thereof that the CLIENT continues the use of the Office.

 

  

2

  

 

 

5. PAYMENTS AND ESCALATIONS

CLIENT agrees to pay to SCESI the Monthly Base Fee plus applicable sales or use taxes, in advance, on the first day of each calendar month during the initial Terms and all extensions thereof, without any deduction, offset, notice or demand. If the Commencement date shall be other than the first day of a month or end on other than the last day of a month, fees for any such month shall be prorated. Charges for any Schedule B service purchased by CLIENT from SCESI shall be due and payable upon receipt of each invoice. If CLIENT should question any Schedule B charge, such question must be received in writing by SCESI within 60 days of the invoice date.

Upon the end of the Initial Term of this Agreement and each and every subsequent term thereafter, the Monthly Base Fee will increase an annualized six percent (6%). Client does not have more than a one year renewal option.

All monthly base fees and other sums payable hereunder shall be payable at the office of SCESI, or at such other location, or to any agent designated in writing by SCESI.  CLIENT shall, in addition to any other sums due, pay monthly late charges equal to five percent (5%) of the total outstanding balance that is due and has not been paid to SCESI within five (5) days of the date such amount is due, which late charge shall be due together with the monthly base fee and considered as part of the monthly base fee. The parties agree that such late charges are fair and reasonable compensation for costs incurred by SCESI where there is a default in prompt payment of any amount due under the Agreement.

Upon the execution of this Agreement, CLIENT shall pay SCESI or its agent the Refundable Services Retainer.  The Refundable Services Retainer need not be kept separate and apart from other funds of SCESI, no interest shall be paid thereon, and may be used by SCESI to provide Schedule A and Schedule B services under this Agreement. In addition to the Refundable Service Retainer, CLIENT will, upon execution hereof, pay to SCESI the Monthly Base Fee for the first full month of the Initial Term and other charges shown on the Start-up and Service Fees Invoice.

CLIENT agrees that the refundable Services Retainer shall not be used by CLIENT as payment for the Monthly Base Fee for the last month of the Term or any extension hereof. In the event CLIENT defaults in the performance of any of the terms hereof, SCESI may terminate this Agreement and the License herein granted and may also use, apply or retain the whole, or any part of the Refundable Services Retainer for the payment of any service fee or any other payment due hereunder, or for payment of any other sum that SCESI may spend by reason of CLIENT’s default. If CLIENT shall, at the end of the term of this Agreement, have fully and faithfully complied with all of the terms and provisions of this Agreement and surrendered all keys, access cards and building passes, the Refundable Services Retainer, or the balance thereof, shall be returned to CLIENT within sixty (60) days subsequent to the receipt of the payment for all services.

6. DAMAGES AND INSURANCE

CLIENT will not damage or deface the furnishings, walls, floors, or ceilings, nor make holes for the hanging of pictures or make or suffer to be made any waste, obstruction or unlawful, improper or offensive use of the Office or the common area facilities. CLIENT will not cause damage to any part of the Building or the property of SCESI or disturb the quiet enjoyment of any other Licensee or occupant of the Building.

At the termination of this Agreement, the CLIENT is responsible to return the Office in as good condition as when CLIENT commenced the use thereof, normal wear and tear accepted. SCESI will have the right, from time to time, to enter the office to inspect the same, to make such repairs and alterations, as SCESI reasonably deems necessary, and the cost of any such repair resulting from the act or omission of CLIENT shall be reimbursed to SCESI by CLIENT upon demand. SCESI shall have the right to show the Office to prospective clients, provided SCESI will use reasonable efforts not to disrupt CLIENT’s business.

 

  

3

  

 

 

SCESI and its respective directors, licensors, officers, agents, servants and employees shall not, to the extent permitted by law, except upon the affirmative showing of SCESI gross negligence or willful misconduct, be liable for, and the CLIENT waives all right or recovery against such entities and destruction of any property of the CLIENT, its employees, authorized persons and invitees due to any act, omission or occurrence in or about the SCESI BUSINESS CENTER or the Building. Without limitation of any other provisions hereof, each party hereto hereby agrees to indemnify, defend and hold harmless the other party, hereto, and such other party’s officers, directors, employees, shareholders, partners, agents, and representatives from and against any liability to third parties arising out of, in the case of CLIENT as an indemnifying party, negligent act or omission of CLIENT or CLIENT’s officers, directors, employees, shareholders, customers or invitees, and, in the case of SCESI, as an indemnifying party, any negligent act or omission of SCESI or SCESI officers, directors, representatives, contractors, customers or invitees, CLIENT further agrees that all personal property of CLIENT, its agents, employees, contractors, and invitees within or about the Business Center or the Building shall be at the sole risk of CLIENT. CLIENT acknowledges that it is the CLIENT’s responsibility to maintain insurance to cover the risks set forth in this paragraph.

SCESI and CLIENT each hereby waive any and all rights of recovery against the other, or against the directors, licensor, agents, servants or employees of the other, for loss of or damage to its property or the property of other under its control, to the extent such loss or damage is covered by any insurance policy.

If the Business Center is made unusable, in whole or in part, by fire or other casualty not due to negligence of CLIENT, SCESI may, at its option, terminate the Agreement upon notice to CLIENT, effective upon such casualty, or may elect to repair, restore, or rehabilitate, or cause to be repaired, restored or rehabilitated, the Business Center, without expense to CLIENT, within ninety (90) days or within such longer period of time as may be required because of events beyond SCESI control. The Monthly Base Fee shall be abated on a per diem basis for the portions of the Office that are unusable.

 

 6a. CLIENT agrees that it shall obtain and carry insurance covering claims for any damages/loss incurred for any reason – to CLIENT’s own merchandise, contents, equipment and fixtures and any improvement, repairs and renovations made in the premises. CLIENT expressly waives any and all claims against the owner for damages or loss to its property, merchandise, contents, equipment and fixtures and for any improvement, repairs, and/or renovations made in the premises. This waiver includes, but is not limited to, claims including, but not limited to, damage from a) sewer line back-up; b) flooding; c) pipe bursting; d) pipe leaking; e)leaks from any plumbing fixture or pipe; f) water main leakage or bursting; g) leaks from roof; h) other CLIENT water overflow; and i) rain leakage; j) water damage from any source; k) fire; l) burglary; m) sprinkler system and n) loss from any cause to the warehousing or to the basement.

 

6b. CLIENT agrees to indemnify and save/waive owner/SCESI harmless from and against any claims, liabilities, losses, damages, penalties, expenses, lawsuits, and/or judgments from any personal injuries or death to any person or for any damage to any property made, assessed or entered by any reason of CLIENT or by any tenant of CLIENT occupancy of the demised premises.  In the event lawsuit will occur CLIENT will obtain legal counsel. Failure to do so will be soul responsibility of CLIENT to pay all sums of legal fees.

 

  

4

  

  

7. DEFAULT

The CLIENT shall be deemed to be in default under this Agreement: (a) if CLIENT defaults in the payment of the Monthly Base Fee or other sums due hereunder, or (b) if the CLIENT defaults in the prompt and full performance of any other provision of this Agreement and any such default continues in excess of five (5) business days after written notice by SCESI.

Should the CLIENT be in default hereunder, SCESI shall have the option to pursue any one or more of the following remedies without any additional limitation to SCESI in the exercise of any remedy:

	
(1)  

	
SCESI may, if SCESI so elects, without any additional notice of such election or demand to CLIENT, either forthwith terminate this Agreement and the License to use any portion of the SCESI BUSINESS CENTER, and may enter into the Office and take and hold possession of the contents thereof, without releasing the CLIENT, in whole or in part from the CLIENT’s obligation hereunder. In the event of such termination, SCESI may, at its option, declare the entire amount of the Monthly Base Fee which would become due and payable during the remainder of the term, to be due and payable immediately, in which event, CLIENT agrees to pay the same at once.

	
(2)  

	
Pursue any other remedy now or hereafter available to SCESI. SCESI exercise of any right or remedy shall not prevent it from exercising any other right or remedy.

CLIENT agrees to pay all costs and expenses, including reasonable attorneys fees expended or incurred by SCESI in connection with the enforcement of this Agreement, the collection of any sum due hereunder, any action for declaratory relief in any way related to this Agreement, or the protection of preservation of any rights of SCESI hereunder.

 

8. RESTRICTION ON HIRING

CLIENT, including its principals and any affiliated companies, agrees that during the term of this Agreement and during a period of one (1) year from the termination of this Agreement, neither CLIENT nor any of its employees will hire, directly or as an independent contractor, any person who is employed by SCESI at any time during the one (1) year period prior to the new hire date of said person by CLIENT. In the event that CLIENT shall breach any obligation of CLIENT contained in this paragraph, CLIENT shall be liable to SCESI for, and shall pay to SCESI, on demand, liquidated damages in the sum of $10,000.00 for each employee with respect to whom such breach shall occur, it being mutually agreed that the actual damage which would be sustained by SCESI as the result of such breach would be, from the nature of the case, extremely difficult to fix and that the aforesaid liquidated damage amount is fair and reasonable.

9. MISCELLANEOUS

	
A.  

	
This is the only Agreement between the parties. No other agreements are effective. All amendments to this Agreement shall be in writing and signed by all parties. Any other attempted amendment shall be void. The invalidity or unenforceability of any provision hereof shall not affect the remainder hereof.

 

	
B.  

	
All waivers must be in writing and signed by the waiving party. SCESI failure to enforce any provision of this Agreement or its acceptance of fees shall not be a waiver and shall not prevent SCESI from enforcing any provision of this Agreement in the future. No receipt of money by SCESI shall be deemed to waive any default of CLIENT or to extend, reinstate or continue the term hereof.

 

	
C.  

	
All schedules and Addendums attached hereto are hereby incorporated herein by this reference. The laws of the State in which the SCESI BUSINESS CENTER is located shall govern this Agreement.

 

	
D.  

	
All parties signing this Agreement, as a partnership or co-signing individuals shall be jointly and severally liable for all obligation of the CLIENT.

 

  

5

  

 

 

	
E.  

	
CLIENT represents and warrants to SCESI that there are no agents, brokers, finders or other parties except _________shmuel shneibalg           with whom CLIENT has dealt, who are or may be entitled to any commission or fee with respect to this Agreement.

 

	
F.  

	
Neither CLIENT nor anyone claiming by, through or under CLIENT shall assign this Agreement or permit the use of any portion other than the CLIENT provided, however, CLIENT may assign this Agreement to an affiliated corporation of CLIENT. In the event of any such permitted assignment, CLIENT shall not hereby be relieved of any of its obligations under this Agreement.

 

	
G.  

	
The Rules and Regulations of the Building and SCESI as defined on Schedule C and any additional Schedules that may be attached hereto are expressly made a part of this Agreement and CLIENT expressly covenants and agrees to abide by all of such Rules and Regulations, as well as such reasonable modifications as may be hereafter adopted by SCESI.

 

	
H.  

	
All notices and invoices hereunder shall be in writing. Notices and invoices to CLIENT shall be deemed to be duly given if sent by confirmed telefax transmission, hand delivered, mailed by registered or certified mail, postage prepaid, or sent by Federal Express or similar express mail service with written confirmation of delivery, and addressed to CLIENT at:

 

Telephone Number: Home

 

Notices and payments to SCESI shall be deemed to be duly given if mailed by registered mail, postage prepaid, to SCESI at the Building and as follows:

SCESI SC EXECUTIVE SUITES, INC.

1154 60 st Brooklyn NY 11219

Telephone Number: 347 7721700 Facsimile Number: 3475336823

	
I.  

	
This agreement is not intended to create a lease or any other interest in real property in favor of the CLIENT, but merely creates a revocable license in accordance with the terms hereof. This Agreement grants the CLIENT the License to use the SCESI BUSINESS CENTER and the Office for the specific purpose herein set forth without diminution of the legal possession or control thereof by SCESI and shall be revocable at the option of SCESI upon the destruction of the SCESI BUSINESS CENTER, or the breach by the CLIENT of any term or condition herein set forth. This Agreement is subject and subordinate to any underlying Lease or Contract of the building or the premises comprising the Office of the SCESI BUSINESS CENTER as such lease or contract may be amended from time to time (said underlying Lease or Contract together with any amendments, hereinafter referred to as the Master Lease). This Agreement shall terminate simultaneously with the termination of the SCESI BUSINESS CENTER operation for ANY reason. The CLIENT is not party to nor shall have any right under the Master Lease.

	
J.  

	
The CLIENT acknowledges that SCESI will comply with U.S. Postal Service regulations regarding CLIENT mail and, upon termination of this Agreement; it will be the CLIENT’s responsibility to notify all parties of termination of the use of the above described address, assigned telephone number, telex, and telefax numbers.  For thirty (30) days after the termination of this Agreement, SCESI will, at the CLIENT’s written request and cost, provide the CLIENT’s new telephone and address to all incoming callers and will hold or forward to CLIENT once a week all mail, packages, telefaxes and telexes.

	
K.  

	
SCESI may assign this Agreement and/or any fees hereunder and the CLIENT agrees to attorn to any such assignee.

  

6

  

 

 

SCESI EXECUTIVE CENTER

AND BUSINESS SERVICES, INC.

By:  /s/   Shmuel Shnielbalg          By: /s/ Yehoshua Lustig         

PERSONAL GUARANTEE

For value received, the undersigned does hereby unconditionally; irrevocably generally guarantee the prompt payment and the full performance by the CLIENT of all terms, covenants, conditions and agreements contained herein.

Date:   May 16, 2009                                                                                    /s/ Yehoshua Lustig      

 

  

7

  

 

 

SCHEDULE C

RULES AND REGULATION

 

	 1.	
Client’s employees and guests will conduct themselves in a businesslike manner. Proper business attire will be worn at all times. The noise level will be kept to a level that does not interfere with or annoy other clients and client will abide by SCESI directives regarding security, keys, parking and other such matters common to all occupants.

	 	 5.	
All corridors, halls, elevators, and stairways shall not be obstructed by Client or used for any purpose other than egress and ingress.

	 	 	 	 	 
	 2.	
Client agrees to use chair mats and desk pads in the office and any damage from failure to use the same will be the responsibility of client. Client will not affix anything to the windows, walls or any other part of the Business Center or make alterations or additions to the Business Center without the prior written consent of SCESI.

	 	 6.	No advertisements or identifying signs, other than provided by SCESI or other notices shall be inscribed, painted, or affixed on any part of the corridors, doors or public areas.
	 	 	 	 	 
	
 3.

 

 

 

4.

	
Client will not prop open any corridor doors, exit doors or door connecting corridors during or after business hours. 

 

 

Client can only use public areas with the consent of SCESI and those areas must be kept neat and attractive at all times.

	 	 7. 	
The client shall not, without SCESI written consent, store or operate any computer (except a personal computer) or any other large business machines, reproduction equipment, heating equipment, stove, radios, stereo equipment or other mechanical amplification equipments, vending or coin operated machines, refrigerator, or coffee equipment or other device that draws more that 15 amps, or conduct a mechanical business thereon, do any cooking thereon, or use or allowed to be used in the Building oil, burning fluids, gasoline, kerosene for heating, warming or lighting. No article deemed extra hazardous on account of fire or any explosives shall be brought into the Business Center. No offensive gases, odors, or liquids will be permitted.

 

  

8

  

 

 

	 8.	
The electrical current shall be used for ordinary lighting and electrical devises (excluding those mentioned in ¶7 above) only, unless written permission to do otherwise shall first have been obtained from SCESI at an agreed cost to the Client.

	 	
 19.  

	
All property belonging to the Client or any employee, agent or invitee of Client shall be at the risk of such person, only, and SCESI shall not be liable for damages thereto or for theft or misappropriation thereof.

	 	 	 	 	 
	 9.	
If Client requires any special installation or wiring for electrical use, telephone equipment or otherwise, such wiring shall be done at Client’s expense, by the personnel designated by SCESI.

	 	 20.	
If Client does not remove any property belonging to Client from the Business Center by the end of the Term, at the option of SCESI the Client shall be conclusively presumed to have conveyed such property to SCESI under this Agreement as a bill of sale without further payment or credit by SCESI to Client and SCESI may remove the same and Client shall pay SCESI all costs of such removal upon demand.

	 	 	 	 	 
	
 10. 

 

 

 

 11. 

	
Client may not conduct business in the hallways, reception area or any other areas except in its designated offices without prior written consent of SCESI. 

 

 

Client will bring no animals (other than seeing eye dogs in the company of blind persons) in the Building.

	 	 21.	Smoking shall be prohibited in all public areas including conference and training rooms. No smoking shall be permitted at any time in any area of the Building (including open offices and workstations), provided, however, with the prior written consent of SCESI, smoking shall be permitted in Client’s offices, but only with the door closed, and then only cigarette smoking will be permitted so long as Client provides an air filter device acceptable to SCESI, unless the entire Building has been designated non-smoking, in which case, smoking is not permitted in the Office(s). Cigar and pipe smoking are prohibited in all areas of the Business Center.
	 	 	 	 	 
	 12.	
Client shall not remove furniture, fixtures, or decorative material from offices without written consent of SCESI and such removal shall be under the supervision and regulation of SCESI.

	 	 22.	
Normal Business Hours:  9:00 a.m. to 5:00 p.m., Monday through Friday, except civil holidays, Jewish holidays, when work is forbidden, and from 1⁄2 hour before sunset on Fridays and days preceding Jewish holidays. A schedule of holidays and early closing will be posted each year.

	 	 	 	 	 
	 13. 	
Client will not use the Business Center for manufacturing or storage of merchandise except as such storage may be incidental to general office purposes.

	 	 	 
	 	 	 	 	 
	 14.	
Client will not occupy or permit any portion of the Business Center to be occupied or used for manufacture, sale gift, or use of liquor, narcotics or tobacco in any form.

	 	 	 
	 	 	 	 	 
	 15.	
Client will not use the office for lodging or sleeping or for any immoral or illegal purposes.

	 	 	 
	 	 	 	 	 
	 16.	
The Client shall place no additional locks or bolts of any kind upon any of the doors or windows of the Business Center, nor shall any changes be made on existing locks or the mechanisms thereof.

	 	 	 
	 	 	 	 	 
	 17.	
Client shall, before leaving the Office unattended for an extended period of time, close and securely lock all doors and windows (if applicable) and shut off all lights and other electrical apparatus. Any damage resulting from failure to so shall be paid by Client.

	 	 	 
	 	 	 	 	 
	 18.	
Canvassing, soliciting, and peddling in the Building are prohibited and Client shall not solicit other clients for any business or other purpose without prior approval of SCESI.

	 	 	 

 

 

 9f8k020111ex4i_neweratech.htm

Exhibit 4.1

 

 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK WARRANT

TO PURCHASE SHARES OF COMMON STOCK

OF

NEWERA TECHNOLOGY DEVELOPMENT CO., LTD.

Expires January 28, 2016

 

	No.:  CSW-001 	 Number of Shares: 105,745
	Date of Issuance: January 28, 2011	 

FOR VALUE RECEIVED, the undersigned, NewEra Technology Development Co., Ltd., a Nevada corporation (together with its successors and assigns, the “Issuer” or the “Company”), hereby certifies that Educhina-US International Limited or her registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter defined), up to One Hundred Five Thousand Seven Hundred Forty Five (105,745) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Common Stock of the Issuer, at an exercise price per share equal to the Warrant Price then in effect, subject, however, to the provisions and upon the terms and conditions hereinafter set forth. Capitalized terms used in this Warrant and not otherwise defined herein shall have the respective meanings specified in Section 6 hereof.

1.           Term. The term of this Warrant shall commence on January 28, 2011 and shall expire at 6:00 p.m., Eastern Time, on January 28, 2016 (such period being the “Term”).

2.            Method of Exercise; Payment; Issuance of New Warrant; Transfer and Exchange.

(a)           Time of Exercise. The purchase rights represented by this Warrant may be exercised in whole or in part during the Term.

 

 

  

1

  

 

(b)           Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by delivery to the Company (or such other office or agency of the Issuer as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Issuers) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto (“Notice of Exercise Form”); and, within three (3) Trading Days of the date said Notice of Exercise Form is delivered to the Company, the Company shall have received payment of an amount of consideration therefor equal to the Warrant Price in effect on the date of such exercise multiplied by the number of shares of Warrant Stock with respect to which this Warrant is then being exercised, payable by certified or official bank check or by wire transfer to an account designated by the Issuer. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant, or an indemnification reasonably acceptable to the Issuer undertaking with respect to such Warrant in the case of its loss, theft or destruction, to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise Form is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within one (1) Business Day of receipt of such notice.  In the event of any dispute or discrepancy, the records of the Company shall be controlling and determinative in the absence of manifest error.

(c)           Issuance of Stock Certificates. In the event of any exercise of this Warrant in accordance with and subject to the terms and conditions hereof, certificates for the shares of Warrant Stock so purchased shall be dated the date of such exercise and delivered to the Holder’s Prime Broker as specified in the Holder’s exercise form within a reasonable time, not exceeding five (5) Trading Days after such exercise (the “Delivery Date”) or, at the request of the Holder (provided that a registration statement under the Securities Act providing for the resale of the Warrant Stock is then in effect or that the shares of Warrant Stock are otherwise exempt from registration), issued and delivered to the Depository Trust Company (“DTC”) account on the Holder’s behalf via the Deposit Withdrawal Agent Commission System (“DWAC”) within a reasonable time, not exceeding five (5) Trading Days after such exercise, and the Holder hereof shall be deemed for all purposes to be the holder of the shares of Warrant Stock so purchased as of the date of such exercise. Notwithstanding the foregoing to the contrary, the Issuer or its transfer agent shall only be obligated to issue and deliver the shares to the DTC on a holder’s behalf via DWAC if such exercise is in connection with sale in reliance upon an effective Registration Statement or other exemption from registration by which the shares may be issued without a restrictive legend and the Issuer and its transfer agent are participating in DTC through the DWAC system.

 

 

  

2

  

 

(d)           Transferability of Warrant. Subject to Section 2(f) hereof, this Warrant may be transferred by a Holder, in whole or in part, without the consent of the Issuer. If transferred pursuant to this paragraph, this Warrant may be transferred on the books of the Issuer by the Holder upon surrender of this Warrant at the principal office of the Issuer or its designated agent, properly endorsed (by the Holder executing an assignment in the form attached hereto) and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer. This Warrant is exchangeable for Warrants to purchase the same aggregate number of shares of Warrant Stock, each new Warrant to represent the right to purchase such number of shares of Warrant Stock as the Holder hereof shall designate at the time of such exchange. All Warrants issued on transfers or exchanges shall be dated the Original Issue Date and shall be identical with this Warrant except as to the number of shares of Warrant Stock issuable pursuant thereto.

(e)           Continuing Rights of Holder. The Issuer shall, at the time of or at any time after each exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing the extent, if any, of its continuing obligation to afford to such Holder all rights to which such Holder shall continue to be entitled after such exercise in accordance with the terms of this Warrant, provided that if any such Holder shall fail to make any such request, the failure shall not affect the continuing obligation of the Issuer to afford such rights to such Holder.

(f)           Compliance with Securities Laws.

(i)           The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Warrant Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Warrant Stock to be issued upon exercise hereof except pursuant to an effective registration statement, or an exemption from registration, under the Securities Act and any applicable state securities laws.

(ii)           Except as provided in paragraph (iii) below, this Warrant and all certificates representing shares of Warrant Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially the following form:

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR THE ISSUER SHALL HAVE RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

 

  

3

  

 

 

(iii)           The Issuer agrees to reissue this Warrant or certificates representing any of the Warrant Stock, without the legend set forth above, if at such time, prior to making any transfer of any such securities, the Holder shall give written notice to the Issuer describing the manner and terms of such transfer and demonstrating that the following conditions are satisfied. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that the registration of such securities under the Securities Act is not required in connection with such proposed transfer, or (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by the Issuer with the Securities and Exchange Commission and has become and remains effective under the Securities Act, or (b) either (i) the Issuer has received an opinion of counsel reasonably satisfactory to the Issuer, to the effect that registration or qualification under the securities or “blue sky” laws of any state is not required in connection with such proposed disposition, or (ii) compliance with applicable state securities or “blue sky” laws has been effected or a valid exemption exists with respect thereto. The Issuer shall respond to any such notice from a holder within three (3) Trading Days. In the case of any proposed transfer under this Section 2(f), the Issuer shall use reasonable efforts to comply with any such applicable state securities or “blue sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it is not then qualified, (y) to take any action that would subject it to tax or to the general service of process in any state where it is not then subject, or (z) to comply with state securities or “blue sky” laws of any state for which registration by coordination is unavailable to the Issuer. Whenever a certificate representing the Warrant Stock is required to be issued to the Holder without a legend, in lieu of delivering physical certificates representing the Warrant Stock, the Issuer shall cause its transfer agent to electronically transmit the Warrant Stock to the Holder by crediting the account of the Holder or Holder’s Prime Broker with DTC through its DWAC system (to the extent not inconsistent with any provisions of this Warrant).

3.           Adjustment of Warrant Price. The Warrant Price shall be subject to adjustment from time to time as set forth in this Section 3. The Issuer shall give the Holder written notice of any event described below which requires an adjustment pursuant to this Section 3 in accordance with the notice provisions set forth in Section 10.

 

(a)           Adjustments for Stock Splits, Combinations, Certain Dividends and Distributions.  If the Issuer shall, at any time or from time to time after the Original Issue Date, effect a split of the outstanding Common Stock (or any other subdivision of its shares of Common Stock into a larger number of shares of Common Stock), combine the outstanding shares of Common Stock into a smaller number of shares of Common Stock, or make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution payable in shares of Common Stock, then, in each event (i) the number of shares of Common Stock for which this Warrant shall be exercisable immediately after the occurrence of any such event shall be adjusted to equal the number of shares of Common Stock that a record holder of the same number of shares of Common Stock for which this Warrant is exercisable immediately prior to the occurrence of such event would own or be entitled to receive after the happening of such event, and (ii) the Warrant Price then in effect shall be adjusted to equal (A) the Warrant Price then in effect multiplied by the number of shares of Common Stock for which this Warrant is exercisable immediately prior to the adjustment divided by (B) the number of shares of Common Stock for which this Warrant is exercisable immediately after such adjustment.

 

  

4

  

 

(b)           ­Adjustments for Reclassification, Exchange or Substitution. If the Common Stock for which this Warrant is exercisable at any time or from time to time after the Original Issue Date shall be changed to the same or different number of shares of any class or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares or stock dividends provided for in Section 3(a), or a reorganization, merger, consolidation, or sale of assets provided for in Section 3(c)), then, and in each event, an appropriate revision to the Warrant Price shall be made and provisions shall be made (by adjustments of the Warrant Price or otherwise) so that, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, in lieu of Warrant Stock, the kind and amount of shares of stock and other securities receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares of Common Stock for which this Warrant was exercisable immediately prior to such reclassification, exchange, substitution or other change, all subject to further adjustment as provided herein.

 

(c)           ­Adjustments for Reorganization, Merger, Consolidation or Sales of Assets. If at any time or from time to time after the Original Issue Date there shall be (i) a capital reorganization of the Issuer (other than by way of a stock split or combination of shares or stock dividends or distributions provided for in Section 3(a), or a reclassification, exchange or substitution of shares provided for in Section 3(b)), or (ii) a merger or consolidation of the Issuer with or into another corporation, where the holders of the Issuer’s outstanding voting securities prior to such merger or consolidation do not own over 50% of the outstanding voting securities of the merged or consolidated entity, immediately after such merger or consolidation, or (iii) the sale of all or substantially all of the Issuer’s properties or assets to any other person (an “Organic Change”), then, as a part of such Organic Change an appropriate revision to the Warrant Price shall be made if necessary and provision shall be made if necessary (by adjustments of the Warrant Price or otherwise) so that, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, in lieu of Warrant Stock, the kind and amount of shares of stock and other securities or property of the Issuer or any successor corporation resulting from the Organic Change. In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 3(c) with respect to the rights of the Holder after the Organic Change to the end that the provisions of this Section 3(c) (including any adjustment in the Warrant Price then in effect and the number of shares of stock or other securities deliverable upon exercise of this Warrant) shall be applied after that event in as nearly an equivalent manner as may be practicable.  In any such case, the resulting or surviving corporation (if not the Issuer) shall expressly assume the obligations to deliver, upon the exercise of this Warrant, such securities or property as the Holder shall be entitled to receive pursuant to the provisions hereof, and to make provisions for the protection of the rights of the Holder as provided above.

 

(d)           Record Date. In case the Issuer shall take record of the holders of its Common Stock or any other preferred stock for the purpose of entitling them to subscribe for or purchase Common Stock or securities convertible into or exchangeable for, directly or indirectly, Common Stock, then the date of the issue or sale of the shares of Common Stock shall be deemed to be such record date.

 

  

5

  

 

 

 (e)           No Impairment. The Issuer shall not, by amendment of its Articles 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, but shall at all times in good faith assist in the carrying out of all the provisions of this Section 3 and in the taking of all such action as may be necessary or appropriate in order to protect against impairment the right of the Holder to exercise this Warrant. In the event the Holder shall elect to exercise this Warrant, in whole or in part, as provided herein, the Issuer cannot refuse exercise based on any claim that the Holder or anyone associated or affiliated with such holder has been engaged in any violation of law, unless (i) the Issuer receives an order from the Securities and Exchange Commission prohibiting such exercise or (ii) an injunction from a court, on notice, restraining and/or adjoining exercise of this Warrant.

 

(f)           Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Warrant Price or number of shares of Common Stock for which this Warrant is exercisable pursuant to this Section 3, the Issuer at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Issuer shall, upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting forth such adjustments and readjustments, the Warrant Price in effect at the time, and the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon the exercise of this Warrant. Notwithstanding the foregoing, the Issuer shall not be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of at least one percent of such adjusted amount; if the Issuer so postpones delivering a certificate, such prior adjustment shall be carried forward and made as soon as such adjustment, together with other adjustments required by this Section 3 and not previously made, would result in an adjustment of one percent or more.

 

(g)           Issue Taxes. The Issuer shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that may be payable in respect of any issue or delivery of shares of Common Stock on exercise of this Warrant; provided, however, that the Issuer shall not be obligated to pay any transfer taxes resulting from any transfer requested by any holder in connection with any such conversion.

 

(h)           Fractional Shares. No fractional shares of Common Stock shall be issued upon exercise of this Warrant. In lieu of any fractional shares to which the Holder would otherwise be entitled, the Holder shall round the number of shares to be issued upon exercise up to the nearest whole number of shares.

 

 

  

6

  

 

(i)           Reservation of Common Stock. The Issuer shall, during the period within which this Warrant may be exercised, reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of effecting the exercise of this Warrant, such number of shares of Common Stock equal to at least one hundred percent (100%) of the aggregate number of shares of Common Stock as shall from time to time be sufficient to effect the exercise of this Warrant.

 

(j)           Retirement of this Warrant. Exercise of this Warrant shall be deemed to have been effected on the date of exercise hereof. Upon exercise of this Warrant only in part, the Issuer shall issue and deliver to the Holder, at the expense of the Issuer, a new Warrant covering the unexercised balance of the Warrant Shares.

 

(k)           Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of exercise of this Warrant require registration or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise before such shares may be validly issued or delivered upon conversion, the Issuer shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such registration, listing or approval, as the case may be.

4.           No Preemptive Rights. The Holder shall not be entitled to rights to subscribe for, purchase or receive any part of any new or additional shares of any class, whether now or hereinafter authorized, or of bonds or debentures, or other evidences of indebtedness convertible into or exchangeable for shares of any class, but all such new or additional shares of any class, or any bond, debentures or other evidences of indebtedness convertible into or exchangeable for shares, may be issued and disposed of by the Board on such terms and for such consideration (to the extent permitted by law), and to such person or persons as the Board in its absolute discretion may deem advisable.

5.           Exercise Restriction. Notwithstanding anything to the contrary set forth in this Warrant, at no time may the Holder exercise this Warrant, in whole or in part, if the number of shares of Common Stock to be issued pursuant to such exercise would cause the number of shares of Common Stock beneficially owned by the Holder and its affiliates at such time, when aggregated with all other shares of Common Stock beneficially owned by the Holder and its affiliates at such time, result in the Holder beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules thereunder) in excess of 9.99% of the then issued and outstanding shares of Common Stock outstanding at such time; provided, however, that upon the Holder providing the Issuer with sixty-one (61) days notice (pursuant to Section 10 hereof) (the “Waiver Notice”) that the Holder would like to waive Section 5 of this Warrant with regard to any or all shares of Common Stock for which this Warrant is exercisable, this Section 5 shall be of no force or effect with regard to those shares referenced in the Waiver Notice.

6.           Definitions. For the purposes of this Warrant, the following terms have the following meanings:

  

7

  

 

“Board” shall mean the Board of Directors of the Issuer.

“Capital Stock” means and includes (i) any and all shares, interests, participations or other equivalents of or interests in (however designated) corporate stock, including, without limitation, shares of preferred or preference stock, (ii) all partnership interests (whether general or limited) in any Person which is a partnership, (iii) all membership interests or limited liability company interests in any limited liability company, and (iv) all equity or ownership interests in any Person of any other type.

“Articles of Incorporation” means the Articles of Incorporation of the Issuer, as amended, as in effect on the Original Issue Date, and as hereafter from time to time amended, modified, supplemented or restated in accordance with the terms hereof and thereof and pursuant to applicable law.

“Common Stock” means the Common Stock, $0.001 par value per share, of the Issuer and any other Capital Stock into which such stock may hereafter be changed.

“Governmental Authority” means any governmental, regulatory or self-regulatory entity, department, body, official, authority, commission, board, agency or instrumentality, whether federal, state or local, and whether domestic or foreign.

“Holders” mean the Persons who shall from time to time own any Warrant. The term “Holder” means one of the Holders.

“Independent Appraiser” means a nationally recognized or major regional investment banking firm or firm of independent certified public accountants of recognized standing (which may be the firm that regularly examines the financial statements of the Issuer) that is regularly engaged in the business of appraising the Capital Stock or assets of corporations or other entities as going concerns, and which is not affiliated with either the Issuer or the Holder of any Warrant.

“Issuer” means NewEra Technology Development Co., Ltd., a Nevada corporation, and its successors.

“Original Issue Date” means January 28, 2011.

“OTC Bulletin Board” means the over-the-counter electronic bulletin board.

“Other Common” means any other Capital Stock of the Issuer of any class which shall be authorized at any time after the date of this Warrant (other than Common Stock) and which shall have the right to participate in the distribution of earnings and assets of the Issuer without limitation as to amount.

“Outstanding Common Stock” means, at any given time, the aggregate amount of outstanding shares of Common Stock, assuming full exercise, conversion or exchange (as applicable) of all right, warrants or options to purchase shares of Common Stock that are outstanding at such time.

 

  

8

  

 

 

“Person” means an individual, corporation, limited liability company, partnership, joint stock company, trust, unincorporated organization, joint venture, Governmental Authority or other entity of whatever nature.

“Securities” means any debt or equity securities of the Issuer, whether now or hereafter authorized, any instrument convertible into or exchangeable for Securities or a Security, and any option, warrant or other right to purchase or acquire any Security. “Security” means one of the Securities.

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

“Subsidiary” means any corporation at least 50% of whose outstanding Voting Stock shall at the time be owned directly or indirectly by the Issuer or by one or more of its Subsidiaries, or by the Issuer and one or more of its Subsidiaries.

“Term” has the meaning specified in Section 1 hereof.

“Trading Day” means (a) a day on which the Common Stock is traded on the OTC Bulletin Board or a registered national stock exchange, or (b) if the Common Stock is not traded on the OTC Bulletin Board or a registered national stock exchange, a day on which the Common Stock is quoted in the over-the-counter market as reported by Pink OTC Markets Inc. (or any similar organization or agency succeeding its functions of reporting prices); provided, however, that in the event that the Common Stock is not listed or quoted as set forth in (a) or (b) hereof, then Trading Day shall mean any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

“Voting Stock” means, as applied to the Capital Stock of any corporation, Capital Stock of any class or classes (however designated) having ordinary voting power for the election of a majority of the members of the Board (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency.

“Warrant Price” initially means $4.29, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 3 hereto.

“Warrant Share Number” means at any time the aggregate number of shares of Warrant Stock which may at such time be purchased upon exercise of a Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.

 

  

9

  

 

“Warrant Stock” means Common Stock issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

7.           Other Notices. In case at any time:

(i) the Issuer shall make any distributions to the holders of Common Stock; or

(ii) the Issuer shall authorize the granting to all holders of its Common Stock of rights to subscribe for or purchase any shares of Capital Stock of any class or other rights; or

(iii) there shall be any reclassification of the Capital Stock of the Issuer; or

(iv) there shall be any capital reorganization by the Issuer; or

(v) there shall be any (i) consolidation or merger involving the Issuer or (ii) sale, transfer or other disposition of all or substantially all of the Issuer’s property, assets or business (except a merger or other reorganization in which the Issuer shall be the surviving corporation and its shares of Capital Stock shall continue to be outstanding and unchanged and except a consolidation, merger, sale, transfer or other disposition involving a wholly-owned Subsidiary); or

(vi) there shall be a voluntary or involuntary dissolution, liquidation or winding-up of the Issuer or any partial liquidation of the Issuer or distribution to holders of Common Stock;

then, in each of such cases, the Issuer shall give written notice to the Holder of the date on which (i) the books of the Issuer shall close or a record shall be taken for such dividend, distribution or subscription rights or (ii) such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be, shall take place. Such notice also shall specify the date as of which the holders of Common Stock of record shall participate in such dividend, distribution or subscription rights, or shall be entitled to exchange their certificates for Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, disposition, dissolution, liquidation or winding-up, as the case may be. Such notice shall be given at least twenty (20) days prior to the action in question and not less than ten (10) days prior to the record date or the date on which the Issuer’s transfer books are closed in respect thereto. This Warrant entitles the Holder to receive copies of all financial and other information distributed or required to be distributed to the holders of the Common Stock.

8.           Amendment and Waiver. Any term, covenant, agreement or condition in this Warrant may be amended, or compliance therewith may be waived (either generally or in a particular instance and either retroactively or prospectively), by a written instrument or written instruments executed by (a) the Issuer and (b) the Holders of a majority of the Warrants then outstanding; provided, however, that no such amendment or waiver shall reduce the Warrant Share Number, increase the Warrant Price, shorten the period during which this Warrant may be exercised or modify any provision of this Section 8 without the consent of the Holder of this Warrant. No consideration shall be offered or paid to any person to amend or consent to a waiver or modification of any provision of this Warrant unless the same consideration is also offered to all holders of the Warrants.

 

 

  

10

  

 

9.           Governing Law; Jurisdiction. This Warrant shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Warrant shall not be interpreted or construed with any presumption against the party causing this Warrant to be drafted. The Issuer and the Holder agree that venue for any dispute arising under this Warrant will lie exclusively in the state or federal courts located in New York County, New York, and the parties irrevocably waive any right to raise forum non conveniens or any other argument that New York is not the proper venue. The Issuer and the Holder irrevocably consent to personal jurisdiction in the state and federal courts of the state of New York. The Issuer and the Holder consent to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address in effect for notices to it under this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 9 shall affect or limit any right to serve process in any other manner permitted by law. The Issuer and the Holder hereby agree that the prevailing party in any suit, action or proceeding arising out of or relating to this Warrant, shall be entitled to reimbursement for reasonable legal fees from the non-prevailing party. The parties hereby waive all rights to a trial by jury.

10.           Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally or by facsimile or three (3) business days following being mailed by certified or registered mail, postage prepaid, return-receipt requested, addressed to the holder of record at its address appearing on the books of the Issuer. The Issuer shall give written notice to the Holder at least twenty (20) calendar days prior to the date on which the Issuer closes its books or takes a record (I) with respect to any dividend or distribution upon the Common Stock, (II) with respect to any pro rata subscription offer to holders of Common Stock or (III) for determining rights to vote with respect to any Organic Change, dissolution, liquidation or winding-up and in no event shall such notice be provided to such holder prior to such information being made known to the public. The Issuer shall also give written notice to the Holder at least twenty (20) days prior to the date on which any Organic Change, dissolution, liquidation or winding-up will take place and in no event shall such notice be provided to such holder prior to such information being made known to the public. The addresses for such communications shall be:

 

If to the Issuer:                     NewEra Technology Development Co., Ltd.

c/o Hunan Xiangmei Food Co., Ltd.

Attn:    Mr. Taiping Zhou

200 Taozhu Road, Wuxi Town

Qiyang County, Yongzhou City

Hunan Province, China

Tel: [insert]

 

 

  

11

  

 

with copies (which copies shall not constitute notice) to:

 

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, NJ 07726

Attn: Richard I. Anslow, Esq.

Tel. No: (732) 409-1212

Fax No: (732) 577-1188

	
If to any Holder:

	
At the address of such Holder set forth on Exhibit A to this Agreement, with copies to Holder’s counsel as set forth on Exhibit A or as specified in writing by such Holder

Any party hereto may from time to time change its address for notices by giving written notice of such changed address to the other party hereto.

 

11.           Warrant Agent. The Issuer may, by written notice to each Holder of this Warrant, appoint an agent having an office in New York, New York for the purpose of issuing shares of Warrant Stock on the exercise of this Warrant pursuant to subsection (b) of Section 2 hereof, exchanging this Warrant pursuant to subsection (d) of Section 2 hereof or replacing this Warrant pursuant to Section 12 hereof, 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 agent.

12.           Lost or Stolen Warrant. Upon receipt by the Company of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver new Warrant of like tenor and date; provided, however, that the Company shall not be obligated to re-issue warrant(s) if the Holder contemporaneously exercise this Warrant to purchase shares of Common Stock.

13.           Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance with the provisions giving rise to such remedy and nothing herein shall limit a Holder’s right to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall be the amounts to be received by the Holder thereof and shall not, except as expressly provided herein, be subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without any bond or other security being required.

 

 

  

12

  

 

14.           Specific Shall Not Limit General; Construction. No specific provision contained in this Warrant shall limit or modify any more general provision contained herein. This Warrant shall be deemed to be jointly drafted by the Company and all initial holders of the Warrant and shall not be construed against any person as the drafter hereof.

15.           Successors and Assigns. This Warrant and the rights evidenced hereby shall inure to the benefit of and be binding upon the successors and assigns of the Issuer, the Holder hereof and (to the extent provided herein) the Holders of Warrant Stock issued pursuant hereto, and shall be enforceable by any such Holder or Holder of Warrant Stock.

16.           Modification and Severability. If, in any action before any court or agency legally empowered to enforce any provision contained herein, any provision hereof is found to be unenforceable, then such provision shall be deemed modified to the extent necessary to make it enforceable by such court or agency. If any such provision is not enforceable as set forth in the preceding sentence, the unenforceability of such provision shall not affect the other provisions of this Warrant, but this Warrant shall be construed as if such unenforceable provision had never been contained herein.

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

13

  

 

 

IN WITNESS WHEREOF, the Issuer has executed this Common Stock Warrant as of the day and year first above written.

	
  

	
NewEra Technology Development Co., Ltd.

 

By:                                                                     

Name: Taiping Zhou

Title: Chief Executive Officer

  

  

14

  

EXERCISE FORM

COMMON STOCK WARRANT

NewEra Technology Development Co., Ltd.

The undersigned _______________, pursuant to the provisions of the accompanying Common Stock Warrant, hereby elects to purchase _____ shares of Common Stock (the “Warrant Shares”) of NewEra Technology Development Co., Ltd. covered by the accompanying Common Stock Warrant.

 

	Dated: _________________	 	Signature               ___________________________	 
	 	 	 	 
	 	 	
Address                 _____________________

                                _____________________

	 

 

Number of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the date of Exercise: __________________

The undersigned is an “accredited investor” as defined in Regulation D under the Securities Act of 1933, as amended.    o Yes    o No

 

The undersigned is a not a U.S. person and certifies that the warrant is not being exercised on behalf of a U.S. person.     o Yes   o No

 

	
  

	
The undersigned intends that payment of the Warrant Price shall be made as a cash exercise.

 

The Holder shall pay the sum of $________ by certified or official bank check (or via wire transfer) to the Issuer in accordance with the terms of the Warrant.

 

The certificate(s) representing the Warrant Shares shall be delivered by

	
(a)  

	
certified mail to the above address, or

	
(b)  

	
certified mail to the prime broker of the Holder at

Name:                                                                                         

Address:                                                                                   

Attention:                                                                                  

Tel. No.:                                                                                   

 

	
(c)  

	
electronically (DWAC Instructions: ____________________), or

	
(d)  

	
other (specify) _____________________________________

If the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of this Warrant be registered in the name of the undersigned Warrantholder or the undersigned’s Assignee as below indicated and delivered to the address stated below.

 

 

  

15

  

 

 

	
Dated: _________________

 

Note:  The signature must correspond with

the name of the Holder as written

on the first page of the Warrant in every

particular, without alteration or enlargement

or any change whatever, unless the Warrant

has been assigned.    

	 	
Signature:______________________

 

______________________________

Name (please print)

 

______________________________

______________________________

Address

 

______________________________

Email

 

______________________________

Federal Identification or SSN.

Assignee:

 

 

Signature:______________________

 

____________________________

Name (please print)

 

______________________________

______________________________

Address

 

______________________________

Email

 

______________________________

Federal Identification or SSN

 

 

 

                                                                 

        

 

  

16

  

 

 

 

ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the accompanying Common Stock Placement Agent Warrant and all rights evidenced thereby and does irrevocably constitute and appoint _____________, attorney, to transfer said Common Stock Placement Agent Warrant on the books of the corporation named therein.

 

	Dated: _________________	 	Signature               ___________________________	 
	 	 	 	 
	 	 	
Address                 _____________________

                                _____________________

	 

 

 

 

 

  

17

  

 

PARTIAL ASSIGNMENT

FOR VALUE RECEIVED, _________________ hereby sells, assigns and transfers unto __________________ the right to purchase _________ shares of Warrant Stock evidenced by the accompanying Common Stock Placement Agent Warrant together with all rights therein, and does irrevocably constitute and appoint ___________________, attorney, to transfer that part of said Common Stock Placement Agent Warrant on the books of the corporation named therein.

 

	Dated: _________________	 	Signature               ___________________________	 
	 	 	 	 
	 	 	
Address                 _____________________

                                _____________________

	 

 

 

 

 

 

  

18

  

 

 

 

FOR USE BY THE ISSUER ONLY:

This Warrant No. ________ canceled (or transferred or exchanged) this _____ day of ___________, _____, shares of Common Stock issued therefor in the name of _______________, Warrant No. ________ issued for ____ shares of Common Stock in the name of _______________.

 

 

 

  

19

  

EXHIBIT A

 

	
Holder’s Name

	
Holder’s Address

	
Name and Address of Holder’s Counsel

	  	  	  

 

 

 

 

 20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]