Document:

stwa_8k-ex1003.htm

Exhibit 10.3

FORM OF STOCK PURCHASE WARRANT

THIS WARRANT AND ANY SHARES ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION OF ANY SHARES ISSUED UPON EXERCISE HEREOF MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT THE TRANSFER OF THIS WARRANT IS RESTRICTED AS SET FORTH HEREIN.

 

	No. __XXXXX___  	September/October __, 2011                              

 

 

SAVE THE WORLD AIR, INC.

WARRANT TO PURCHASE COMMON STOCK

VOID AFTER 5:00 P.M. P.S.T. ON ____________,___, 2013

THIS CERTIFIES that, for the value received, the holder identified on the last page of this Warrant (the "Holder") is entitled, upon the terms and subject to the conditions hereinafter set forth, at any time on or after the date of this Warrant and on or prior to 5:00 p.m. P.S.T. on the second anniversary of the date of this Warrant (the "Expiration Time"), but not thereafter, to subscribe for and purchase, from SAVE THE WORLD AIR, INC., a Nevada corporation (the "Company"), up to ____XXXX_____ shares of the Company's Common Stock (the "Shares") at a purchase price per share equal to $0.30 (the "Exercise Price").

	
1.

	
Exercise of Warrant.

(a) The purchase rights represented by this Warrant are exercisable by the Holder, in whole or in part, at any time after the date of this Warrant  and before the Expiration Time by the surrender of this Warrant and the Notice of Exercise annexed hereto duly executed at the office of the Company, in Morgan Hill, California (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company), and upon payment of an amount equal to the aggregate Exercise Price for the number of Shares thereby purchased (by cash or by check or certified bank check payable to the order of the Company in an amount equal to the purchase price of the shares thereby purchased); whereupon the Holder shall be entitled to receive a stock certificate representing the number of Shares so purchased. The Company agrees that if at the time of the surrender of this Warrant and purchase of the Shares, the Holder shall be entitled to exercise this Warrant, the Shares so purchased shall be and be deemed to be issued to such holder as the record owner of such Shares as of the close of business on the date on which this Warrant shall have been exercised as aforesaid.

 

Upon partial exercise of this Warrant, the Holder shall be entitled to receive from the Company a new Warrant in substantially identical form for the purchase of that number of Shares as to which this Warrant shall not have been exercised. Certificates for Shares purchased hereunder shall be delivered to the Holder within a reasonable time after the date on which this Warrant shall have been exercised as aforesaid.

 

  

  

  

 

2. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. With respect to any fraction of a share called for upon the exercise of this Warrant, an amount equal to such fraction multiplied by the then current fair market value at which each Share may be purchased hereunder shall be paid in cash to the Holder.

 

(a) For purposes of this Section 2, the fair market value of the Shares shall mean the  closing price of a share of the Company's Common Stock on the OTC Bulletin Board on which the Common Stock is listed at the time of exercise on the last business day prior to the date of exercise of this Warrant pursuant to Section l or, if the Company's Common Stock is not then listed or quoted on the OTC Bulletin Board, the closing price of the Company’s Common Stock as reported on the “Pink Sheets” published by the Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices) or in all other cases, the fair market value of the Common Stock (without regard to the restrictions on transfer or number of Shares) as determined in good faith by the Company's Board of Directors.

 

3. Charges, Taxes and Expenses. The Holder shall pay all issue and transfer taxes and other incidental expenses in respect of the issuance of certificates for Shares upon the exercise of this Warrant, and such certificates shall be issued in the name of the Holder of this Warrant.

 

4. No Rights as a Stockholder. This Warrant does not entitle the Holder to any voting rights or other rights as a stockholder of the Company prior to the exercise hereof.

 

5. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in case of loss, theft or destruction of this Warrant, upon delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, and upon reimbursement to the Company of all reasonable expenses incidental thereto, the Company will make and deliver to the Holder, in lieu thereof, a new Warrant in substantially identical form and dated as of such cancellation.

 

6. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday or a Sunday or shall be a legal holiday in the United States or the State of California, then such action may be taken or such right may be exercised on the next succeeding business.

 

7. Merger, Reclassification, etc.

 

(a) Merger, etc. If at any time the Company proposes (A) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger, consolidation or stock issuance) that results in the transfer of fifty percent (50%) or more of the then outstanding voting power of the Company; or (B) a sale of all or substantially all of the assets of the Company, then the Company shall give the Holder ten (10) days notice of the proposed effective date of the transaction. If, in the case of such acquisition of the Company, and the Warrant has not been exercised by the effective date of the transaction, this Warrant shall be exercisable into the kind and number of shares of stock or other securities or property of the Company or of the entity resulting from such merger or acquisition to which such Holder would have been entitled if immediately prior to such acquisition or merger, it had exercised this Warrant. The provisions of this Section 7(a) shall similarly apply to successive consolidations, mergers, sales or conveyances.

 

(b) Reclassification, etc. If the Company at any time shall, by subdivision, combination or reclassification of securities or otherwise, change any of the securities to which purchase rights under this Warrant exist into the same or a different number of securities of any class or classes, this Warrant shall thereafter be to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to such subdivision, combination, reclassification or other change. If the Shares are subdivided or combined into a greater or smaller number of Shares, the Exercise Price under this Warrant shall be proportionately reduced in case of subdivision of shares or proportionately increased in the case of combination of shares, in both cases by the ratio which the total number of Shares to be outstanding immediately after such event bears to the total number of Shares outstanding immediately prior to such event.

 

  

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(c) Cash Distributions. No adjustment on account of cash dividends or interest on the Shares or other securities purchasable hereunder will be made to the Exercise Price under this Warrant.

 

8. Restrictions on Transfer.

 

(a) Restrictions on Transfer of Shares. In no event will the Holder make a disposition of this Warrant or the Shares unless and until, if requested by the Company, it shall have furnished the Company with an opinion of counsel satisfactory to the Company and its counsel to the effect that appropriate action necessary for compliance with the Securities Act of 1933, as amended (the "Act") relating to sale of an unregistered security has been taken. Notwithstanding the foregoing, the restrictions imposed upon the transferability of the Shares shall terminate as to any particular Share when (i) such security shall have been sold without registration in compliance with Rule 144 under the Act, or (ii) a letter shall have been issued to the Holder at its request by the staff of the Securities and Exchange Commission or a ruling shall have been issued to the Holder at its request by such Commission stating that no action shall be recommended by such staff or taken by such Commission, as the case may be, if such security is transferred without registration under the Act in accordance with the conditions set forth in such letter or ruling and such letter or ruling specifies that no subsequent restrictions on transfer are required, or (iii) such security shall have been registered under the Act and sold by the Holder thereof in accordance with such registration.

 

(b) Subject to the provisions of Section 8(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment at the principal office of the Company.

 

(c) Restrictive Legends. The stock certificates representing the Shares and any securities of the Company issued with respect thereto shall be imprinted with legends restricting transfer except in compliance with the terms hereof and with applicable federal and state securities laws substantially as follows:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND MAY NOT BE SOLD, TRANSFERRED,/PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT”.

9. Miscellaneous.

 

(a) Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed wholly within such state.

 

(b) Restrictions. The Holder acknowledges that the Shares acquired upon the exercise of this Warrant may have restrictions upon its resale imposed by state and federal securities laws.

 

(c) Waivers Strictly Construed. With regard to any power, remedy or right provided herein or otherwise available to any party hereunder (i) no waiver or extension of time shall be effective unless expressly contained in a writing signed by the waiving party; and (ii) no alteration, modification or impairment shall be implied by reason of any previous waiver, extension of time, delay or omission in exercise, or other indulgence.

 

 

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(d) Modifications.  This Warrant may not be amended, altered or modified except by a writing signed by the Company and the Holder of this Warrant.

IN WITNESS WHEREOF, SAVE THE WORLD AIR, INC. has caused this Warrant to be executed by its duly authorized representative dated as of the date first set forth above.

 

	 	
SAVE THE WORLD AIR, INC.

735 State Street, Suite 500

Santa Barbara, California 93101

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	                  SPECIMEN                          	 
	 	Name:  	Cecil Bond Kyte	 
	 	Title: 	Chief Executive Officer	 

 

  

 

 

  

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          NOTICE OF EXERCISE

	
TO: 

	
SAVE THE WORLD AIR, INC., a Nevada corporation

(1)           The undersigned hereby elects to purchase ______________ shares of Common Stock (the "Shares") of Save the World Air, Inc. (“Issuer”) pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price in full, together with all applicable transfer taxes, if any.

 

(2)    Please issue a certificate or certificates representing the Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________________________

(Print Name)

Address:

_______________________________________________

_______________________________________________

_______________________________________________

(3)    The undersigned confirms that he is an “accredited investor” as defined by Rule 501(a) under the Securities Act of 1933, as amended, at the time of execution of this Notice.

 

(4)    The undersigned confirms that the Shares are being acquired for the account of the undersigned for investment only and not with a view to, or for resale in connection with, the distribution thereof and that the undersigned has no present intention of distributing or selling the Shares.

 

(5)    The undersigned accepts such Shares subject to the restrictions on transfer set forth in the attached Warrant.

 

(6)    The undersigned acknowledges that the Issuer has given it access to all information relating to the Issuer’s business that the undersigned has requested.  The undersigned has reviewed all materials relating to the Issuer’s business, financial condition and operations which it has requested and the undersigned has reviewed all of such materials as the undersigned, in the undersigned’s sole and absolute discretion has deemed necessary or desirable.  The undersigned has had an opportunity to discuss the business, management and financial affairs of the Issuer with the Issuer’s management.  Specifically but not by way of limitation, the undersigned acknowledges the Issuer’s publicly available filings made periodically with the SEC, which filings are available at www.sec.gov and which filings the undersigned acknowledges reviewing or having had the opportunity of reviewing.

 

  

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(7)    The undersigned acknowledges that it has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of (i) evaluating the merits and risks of an investment in the Shares and making an informed investment decision in connection therewith; (ii) protecting its own interest; and (iii) bearing the economic risk of such investment for an indefinite period of time for shares which are not transferable or freely tradable.  The undersigned hereby agrees to indemnify the Issuer and the officers, directors and employees thereof harmless against all liability, costs or expenses (including reasonable attorneys’ fees) arising by reason of or in connection with any misrepresentation or any breach of warranties or representations of the undersigned contained in this Notice, or arising as a result of the sale or distribution of the Shares issuable upon exercise of the Warrants.  The representations and warranties contained herein shall be binding upon the heirs, legal representatives, successors and assigns of the undersigned.

 

 

	_______________________ 	_____________________________________ 
	(Date) 	(Signature)
	 	 
	 	 
	 	_____________________________________ 
	 	(Print Name) 

 

 

 

 

 

 

 

 

6Exhibit 10.12

 

Consulting Contract

 

The following is agreed upon

 

between

 

CityDeal Europe GmbH

-  hereinafter called the “Company” -

 

and

 

Mr. Oliver Samwer

- hereinafter called the “Consultant” -

 

§ 1 Scope

 

(1)           The Consultant shall advise the Company and its subsidiaries regarding all goals and shall work for these, which these companies pursue according to their business objective.

 

(2)           The Consultant is free to determine his place of work and his work hours.  The Consultant undertakes to spend the predominant part of his work hours (at least 50%) on behalf of the Company.

 

(3)           The Consultant is not liable for damages in the fulfillment of his tasks, as long as he did not cause these deliberately or through gross negligence.

 

§ 2 Non-remuneration

 

(1)           The Consultant furnishes the advisory activities free of charge — based on his direct or indirect participation as a shareholder.

 

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§ 3 Reimbursement for Expenditures

 

(1)           The Company shall reimburse the Consultant for necessary and documented expenditures for travel, telephone and postage, incurred in performing his tasks in the context of the present Contract.

 

(2)          The necessity of larger expenditures must be agreed upon with the Company before they are advanced.

 

(3)          The Consultant shall account for his expenditures on a monthly basis.

 

§ 4 Term of the Contract

 

(1)          The Consultant shall start his advisory activities on 04/01/2010.

 

(2)          This Consulting Contract shall end 18 months after this agreement is signed, without this requiring any notice.

 

§ 5 Duty of Loyalty

 

The Consultant undertakes to maintain confidentiality during and after the end of the contractual relationship concerning all business and operating secrets of which he becomes aware in the course of his activities on behalf of the Company.

 

§ 6 Safekeeping and Return of Documents

 

(1)           The Consultant undertakes to properly preserve all documents made available to him, as well as all documents or other records he has prepared, including concepts, which are in his possession and which concern the affairs of the Company, and in particular to ensure that third parties cannot gain access thereto.

 

(2)           Documents and records per Para. 1 shall be returned to the Company upon request during the duration of the contractual relationship and immediately, without request, after the end of the contractual relationship.

 

2

 

§ 7 Miscellaneous

 

	
Changes and/or   additions to the present Contract must be in writing.
    
	
 
    	
 
    
	
Berlin, 05/12/2010
    	
 
    
	
Place, date
    	
 
    
	
 
    	
 
    
	
/s/ Arnt Jeschke
    	
 
    
	
CityDeal Europe   GmbH, represented by its managing director Arnt Jeschke
    
	
 
    	
 
    
	
 
    	
 
    
	
Place, date
    	
 
    
	
 
    	
 
    
	
/s/ Oliver Samwer
    	
 
    
	
Mr. Oliver Samwer
    	
 
    

 

3

 

Addendum to Consultancy Contract

 

between

 

Groupon Europe GmbH

 

- hereinafter “Company” -

 

and

 

Oliver Samwer

 

- hereinafter “Consultant” -.

 

Company and the Consultant are hereinafter referred to as “Parties”,  each a “Party”.

 

Preamble

 

(1)                    The Parties entered into a consultancy contract (Beratervertrag)  as of 19 May 2010 (“Consultancy Contract”).

 

(2)                    The Parties intend to amend the Consultancy Contract in order to stipulate a contractual penalty in case of a breach of the Consultancy Contract.

 

Now, therefore, the Parties agree to amend the Consultancy Contract as follows

 

§ 1 Contractual Penalty

 

(1)                    For each breach of the Consultant’s duties under Section 1 para (2) of the Consultancy Contract (except due to death or inability to work by reason of illness or permanent disability), that is continued despite a written warning sent by the Company to the Consultant (“Warning”) and after giving the Consultant a period of 14 days to cure any alleged breach (“Curing Period”),  the Consultant shall pay a contractual penalty of US$ 25,000 (in words: Dollar twenty five thousand) to the Company for each calendar day (after the Curing Period) as long as the violation is continued (“Contractual Penalty”).  After having received a Warning the Consultant shall notify the Company in writing if he cured the breached (“Cure Notification”).  If the Consultant has duly given a Cure Notification the breach shall be deemed cured and the Company shall be pre-cluded 

 

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from claiming any Contractual Penalty with respect to such cured breach unless the Company has given a written notice of objection to the Cure Notification within five days after receipt of the Cure Notification describing in reasonable detail the reason why the Company believes the breach was not. If a breach was cured in accordance with the aforesaid sentences, this § 1 shall apply again to any new breach.

 

(2)                    The Contractual Penalty shall in any case be credited against any damage claims the Company may raise vis-à-vis the Consultant in connection with a breach of the Consultant’s duties under the Consultancy Contract. Nothing contained in this Agreement shall limit or impair any rights or remedies of the Company with respect to any such breach, including, without limitation, any statutory, equitable or common law remedies to which the Company may be entitled.

 

§ 2 Miscellaneous

 

(1)                    This addendum agreement contains the entire agreement between the Parties with respect to the subject matter hereof.

 

(2)                    This agreement and/or the Consultancy Agreement may only be amended by written instrument executed by all Parties unless mandatory law requires more stringent form requirements.

 

(3)                    This addendum agreement and the Consultancy Agreement shall be subject to the laws of the Federal Republic of Germany, excluding their private international law provisions.

 

(4)                    Apart from the above stipulation, the Consultancy Contract remains in full force and effect.

 

 

	
Berlin, 18 Nov 2010
    	
 
    	
 
    
	
City, Date
    	
 
    	
City, Date
    
	
 
    	
 
    	
 
    
	
/s/ Arnt Jeschke
    	
 
    	
/s/ Oliver Samwer
    
	
Groupon Europe GmbH
    	
 
    	
Oliver Samwer
    

 

2

 

Addendum to Consultancy Contract

 

between

 

Groupon Europe GmbH

 

-                    hereinafter “Company” -

 

and

 

Oliver Samwer

 

-                    hereinafter “Consultant” -

 

Company and the Consultant are hereinafter referred to as “Parties,” each a “Party.”

 

Preamble

 

(1)          The Parties entered into a consultancy contract (Beratervertrag) as of May 19, 2010 (the “Consultancy Contract”) and an addendum thereto on November 18, 2010.

 

(2)          The Parties intend to amend the Consultancy Contract in order to extend its term.

 

Now, therefore, the Parties agree to amend the Consultancy Contract as follows:

 

Section (2) of § 4 Term of Contract of the Consultancy Contract shall be amended and restated in its entirety as follows:

 

“(2)                            The Consultancy Contract ends, without requiring termination, on October 19, 2012; provided, however, that after October 19, 2011, either Party may terminate the Consultancy Agreement at any time upon written notice to the other Party.”

 

Miscellaneous

 

(1)          This addendum agreement contains the entire agreement between the Parties with respect to the subject matter hereof.  For the avoidance of doubt, the Parties agree that the Indemnification Agreement between the Consultant and Groupon, Inc. dated 29 August 2011 shall remain unaffected.

 

(2)          This agreement and/or the Consultancy Agreement may only be amended by written instrument executed by all Parties unless mandatory law requires more stringent form requirements.

 

(3)          This addendum agreement and the Consultancy Agreement shall be subject to the laws of the Federal Republic of Germany, excluding their private international law provisions.

 

 

(4)          Apart from the above stipulation, the Consultancy Contract remains in full force and effect.

 

 

	
 
    	
 
    	
Munich,   6th October 2011
    
	
City,   Date
    	
 
    	
City,   Date
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Arnt Jeschke
    	
 
    	
/s/   Oliver Samwer
    
	
Groupon   Europe GmbH
    	
 
    	
Oliver   Samwer

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