Document:

ex10-2.htm

EXHIBIT 10.2

 

EXHIBIT A

 

NEITHER THIS WARRANT NOR ANY OF THE SECURITIES ISSUABLE UPON ITS EXERCISE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND SUCH SECURITIES MAY NOT BE TRANSFERRED UNLESS COVERED BY AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

 

	
Warrant No.

	
CS-___

	
Number of Shares: __________

	
Warrant Date:

	
December 16, 2013

	  

PEDEVCO CORP.

WARRANT

FOR THE PURCHASE OF

COMMON STOCK

 

1.           Issuance.  For value received, the receipt of which is hereby acknowledged by PEDEVCO Corp., a Texas corporation (the “Company”), _______________, or registered assigns (the “Holder”), is hereby granted the right to purchase, at any time until the close of business on DECEMBER 16, 2017 (the “Expiration Date”), _______________ (_________) fully paid and nonassessable shares of the Company’s Common Stock, par value US$0.001 per share (the “Common Stock”), at an exercise price of US$2.34 per share (the “Exercise Price”).

 

2.           Procedure for Exercise.  Upon surrender of this Warrant with the annexed Notice of Exercise Form duly executed, together with payment of the Exercise Price for the shares of Common Stock purchased, the Holder shall be entitled to receive a certificate or certificates for the shares of Common Stock so purchased.  This Warrant may be exercised in whole or in part.

 

(a)           Net Issues Exercise.  Notwithstanding any provisions herein to the contrary, if the fair market value of one share of Common Stock is greater than the Exercise Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the Holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Notice of Exercise Form and notice of such election in which event the Company shall issue to the Holder a number of shares of Common Stock computed using the following formula:

 

	
X =

	
Y (A-B)

	
A

	
  

	
Where

	
X =

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

 

	
  

	
Y =

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

 

	
  

	
A =

	
the fair market value of one share of the Company’s Common Stock (at the date of such calculation)

 

	
  

	
B =

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

  

  

  

 

For purposes of the above calculation, fair market value of one share of Common Stock shall be equal to the last closing trade price for such security on the Principal Market (as defined below) as reported by Bloomberg Financial Markets (“Bloomberg”), or, if the Principal Market begins to operate on an extended hours basis and does not designate the closing trade price, then the last trade price at 4:00 p.m., New York City Time (or such other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg, or, if the foregoing do not apply, the last closing trade price of such security in the over-the-counter market on the electronic bulletin board for such security as reported by Bloomberg, or, if no closing trade price is reported for such security by Bloomberg, the last closing ask price for such security as reported by Bloomberg, or, if no last closing ask price is reported for such security by Bloomberg, the average of the highest bid price and the lowest ask price of any market makers for such security.  If the fair market value cannot be calculated for that security on that date on any of the foregoing bases, or if the security is not publicly traded and is not listed on a Principal Market, the fair market value of such security on such date shall be determined by the Company’s Board of Directors in good faith.  “Principal Market” for purposes of this Warrant means any national U.S. stock exchange (including any market that is part of the Nasdaq Stock Market), the OTC Bulletin Board, and/or on the OTCQX or OTCQB levels of the OTC Markets Group.

 

3.           Reservation of Shares.  The Company hereby agrees that at all times during the term of this Warrant there shall be reserved for issuance upon exercise of this Warrant such number of shares of Common Stock as shall be required for issuance upon exercise hereof (the “Warrant Shares”).  Any shares issuable upon exercise of this Warrant will be duly and validly issued, fully paid and free of all liens and charges and not subject to any preemptive rights.

 

4.           Mutilation or Loss of Warrant.  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and (in the case of loss, theft or destruction) receipt of reasonably satisfactory indemnification, and (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will execute and deliver a new warrant of like tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall thereupon become void.

 

5.           No Rights as Shareholder.  The Holder shall not, by virtue hereof, be entitled to any rights of a shareholder of the Company, either at law or in equity, and the rights of the Holder are limited to those expressed in this Warrant and are not enforceable against the Company except to the extent set forth herein.

 

6.           Effect of Certain Transactions

 

6.1           Adjustments for Stock Splits, Stock Dividends Etc.  If the number of outstanding shares of Common Stock of the Company are increased or decreased by a stock split, reverse stock split, stock dividend, stock combination, recapitalization or the like, the Exercise Price and the number of shares purchasable pursuant to this Warrant shall be adjusted proportionately so that the ratio of (i) the aggregate number of shares purchasable by exercise of this Warrant to (ii) the total number of shares outstanding immediately following such stock split, reverse stock split, stock dividend, stock combination, recapitalization or the like shall remain unchanged, and the aggregate purchase price of shares issuable pursuant to this Warrant shall remain unchanged.

 

6.2           Expiration Upon Certain Transactions.  If at any time the Company plans to sell all or substantially all of its assets or engage in a merger or consolidation of the Company in which the Company will not survive and in which holders of the Common Stock will receive consideration at or above the Exercise Price, as adjusted (other than a merger or consolidation with or into a wholly- or partially-owned subsidiary of the Company), the Company will give the Holder of this Warrant advance written notice.  Upon the occurrence of any such event, this Warrant shall automatically be deemed to be exercised in full without any action required on the part of the Holder.

 

  

  

  

6.3           Adjustments for Reorganization, Mergers, Consolidations or Sales of Assets.  If at any time there is a capital reorganization of the Common Stock (other than a recapitalization, combination, or the like provided for elsewhere in this Section 6) or merger or consolidation of the Company with another corporation (other than one covered by Section 6.2), or the sale of all or substantially all of the Company’s properties and assets to any other person, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant (and only to the extent this Warrant is exercised), the number of shares of stock or other securities or property of the Company, or of the successor corporation resulting from such merger or consolidation or sale, to which a holder of Common Stock, or other securities, deliverable upon the exercise of this Warrant would otherwise have been entitled on such capital reorganization, merger, consolidation or sale.  In any such case, appropriate adjustments shall be made in the application of the provisions of this Section 6 (including adjustment of the Exercise Price then in effect and number of Warrant Shares purchasable upon exercise of this Warrant) which shall be applicable after such events.

 

7.           Transfer to Comply with the Securities Act.  This Warrant has not been registered under the Securities Act of 1933, as amended, (the “Securities Act”) and has been issued to the Holder for investment and not with a view to the distribution of either this Warrant or the Warrant Shares.  Neither this Warrant nor any of the Warrant Shares or any other security issued or upon exercise of this Warrant may be sold, transferred, pledged or hypothecated in the absence of an effective registration statement under the Act relating to such security or an opinion of counsel satisfactory to the Company that registration is not required under the Act.  Each certificate for this Warrant, the Warrant Shares and any other security issued or issuable upon exercise of this Warrant shall contain a legend in form and substance satisfactory to counsel for the Company, setting forth the restrictions on transfer contained in this Section.

 

8.           Notices.  Any notice or other communication required or permitted hereunder shall be in writing and shall be delivered personally or sent by certified, registered or express mail, postage pre-paid.  Any such notice shall be deemed given when so delivered personally, or if mailed, two days after the date of deposit in the United States mails, as follows:

 

If to the Company, to:

 

PEDEVCO Corp.

4125 Blackhawk  Plaza Circle, Suite 201

Danville, CA 94506

Attention:  Chief Executive Officer and General Counsel

 

With a copy to:

 

The Loev Law Firm, PC

6300 West Loop South, Suite 280

Bellaire, Texas 77401

Attention:  David M. Loev

 

If to the Holder, to his address appearing on the Company’ records.

 

Any party may designate another address or person for receipt of notices hereunder by notice given to the other parties in accordance with this Section.

 

  

  

  

9.           Supplements and Amendments; Whole Agreement.  This Warrant may be amended or supplemented only by an instrument in writing signed by the parties hereto.  This Warrant contains the full understanding of the parties hereto with respect to the subject matter hereof, and there are no representations, warranties, agreements or understandings other than expressly contained herein.

 

10.           Governing Law.  This Warrant shall be deemed to be a contract made under the laws of the State of California and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State.

 

11.           Counterparts.  This Warrant may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

12.           Descriptive Headings.  Descriptive headings of the several Sections of this Warrant are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

 

13.           Assignability.  This Warrant or any part hereof may only be hereafter assigned by the Holder to an affiliate thereof executing documents reasonably required by the Company.  Any such assignment shall be binding on the Company and shall inure to the benefit of any such assignee.

 

IN WITNESS WHEREOF, the parties hereto have executed this Warrant as of the Warrant Date set forth above.

 

	  	
PEDEVCO CORP.

 

 

By:                                                                    

Name: Frank C. Ingriselli

Title:   President and Chief Executive Officer

 

 

	  	
HOLDER:

_____________________________

 

By:                                                                    

Name:

Title:

  

  

  

NOTICE OF EXERCISE OF WARRANT

 

The undersigned hereby irrevocably elects to exercise the right, represented by the Warrant dated as of December 16, 2013, to purchase _____________ shares of the Common Stock of PEDEVCO Corp., and (x) tenders herewith payment in accordance with the first paragraph of Section 2 of the Warrant or (y) elects to exercise the Warrant for the purchase of _______ shares of Common Stock, pursuant to the provisions of Section 2(a) of the Warrant.

 

Please deliver the stock certificate to:

 

______________________________________

 

______________________________________

 

______________________________________

 

Dated: ____________________

By:_______________________Exhibits 10.1

SHARE EXCHANGE AGREEMENT

by and between

Kleangas Energy Technologies, Inc.
and Green Day Technologies Inc.

 

This Amendment to the SHARE EXCHANGE AGREEMENT dated as of November
25, 2013 (this “Agreement”), is replaces and supersedes the Agreement between Kleangas Energy Technologies Inc. (KET),
a Delaware corporation, and Green Day Technologies Inc. a Florida Corporation (GDT).

 

WITNESSETH:

 

WHEREAS Kleangas Energy Technologies desires to acquire Green Day
Technologies, Inc. (GDT) as a subsidiary of Kleangas Energy Technologies Inc. (KET) in a share exchange as follows:

 

WHEREAS, KET desires to exchange its shares for the shares of GDT
both common and preferred stock at the exchange rate of one (1) share of GDT common stock in exchange for seventeen (17) shares
of KET common stock and one share of KET preferred stock for one share of GDT preferred stock:

 

WHEREAS, the Board of Directors of KET and the Board of Directors
of GDT deem it advisable and in the best interests of KET and GDT to consummate the transactions contemplated by this Agreement
upon the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the mutual promises, covenants
and agreements set forth herein and in reliance upon the undertakings, representations, warranties and indemnities contained herein,
KET and GDT hereby agree as follows:

 

ARTICLE 1

EXCHANGE OF SHARES; CLOSING

 

	Section 1.1		Exchanged Shares.  Subject to the terms and conditions herein stated, GDT
shareholders agree at the Closing to exchange with full title guarantee, transfer, assign and deliver to KET their shares of common
stock of GDT, and KET agrees to issue to the GDT shareholders its shares free and clear of any and all liens to acquire from the
GDT Shareholders the shares of GDT.

 

	Section 1.2		Consideration.  In consideration for its acquisition of the shares of GDT,
KET agrees at the Closing to issue and deliver an aggregate of seventeen (17) shares of KET common stock for one (1) share of
GDT common stock issued to GDT Shareholders. KET will also issue one share of either its Preferred Series A, B, C and D shares
as per the Certificate of Designation for one share of corresponding preferred shares of GDT for each of the GDT preferred stockholders.

 

	Section 1.3		Closing.  The closing of the transactions contemplated by this Agreement
(the “Closing”) shall take place within 10 days of this agreement simultaneously with the execution and delivery hereof
the shares of GDT to the offices of KET and the delivery of the KET shares to the Shareholders of GDT or to such other place as
the parties may agree.

 

	Section 1.4		Deliveries at Closing by KET.  At the Closing, KET shall deliver to the
Shareholders of GDT

 

	(i)		stock certificates registered in the name of the GDT Shareholders or the Shareholder’s
designee, representing the new shares of both preferred and common stock;

    	 	 	 

    	 

    

	(ii)		resolutions of KET’s board of directors authorizing this Agreement and the transactions
contemplated hereby;

 

	(iii)		Certificate of Designation for the Series of all classes of Preferred Stock issued
by KET.

 

	Section 1.5		Deliveries at Closing by GDT. At the Closing GDT shall deliver to KET:

 

	(i)		resolutions of GDT's board of directors and shareholders holding a majority of the
total issued and outstanding shares of GDT authorizing and approving this Agreement and the transactions contemplated hereby;

 

	(ii)		GDT will deliver to KET all the issued and outstanding shares of common stock of GDT
of its shareholders of record together with corresponding stock powers, signed by the individual shareholder, which shall transfer
to KET good title to the shares of common stock free and clear of all liens.

 

	(iii)		GDT will deliver to KET all the issued and outstanding shares of preferred stock of
GDT of its preferred shareholders of record together with corresponding stock powers signed by the individual shareholder, which
shall transfer to KET good title to the preferred shares free and clear of all liens.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF GDT 

 

GDT represents and warrant to KET as of
the date hereof as follows:

 

	Section 2.1		Ownership of Common Stock: The GDT shareholders of common stock are the sole record
and beneficial owner of the shares of common stock as evidenced by the shareholders list dated of current date.  The
GDT shareholders have good and marketable title to the shares and the absolute right to deliver the common shares in accordance
with the terms of this Agreement, free and clear of all Liens.  The transfer of the common shares to KET in accordance
with the terms of this Agreement transfers good and marketable title to the common shares to KET free and clear of all liens,
restrictions, rights, options and claims of every kind.

 

	Section 2.2		Ownership of Preferred Stock. The GDT shareholders of preferred stock are the sole
record and beneficial owner of the shares of preferred stock as evidenced by the shareholders list dated of current date. The
GDT shareholders have good and marketable title to the shares of preferred stock and the absolute right to deliver the preferred
shares in accordance with the terms of this Agreement free and clear of all liens. The transfer of the shares to KET in accordance
with the terms of this Agreement transfers good and marketable title to the preferred shares to KET free and clear of all liens,
restrictions, rights, options and claims of every kind.

 

	Section 2.3		No Other Representations or Warranties.  Except as set forth above in this
Section 2, no other representations or warranties of any kind, express or implied, are made in this Agreement by GDT to KET.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF KET

 

KET represents and warrants to the GDT
as of the date hereof as follows:

 

	Section 3.1		Organization.  KET is a corporation duly organized, validly existing and
in good standing under the laws of Delaware and has all requisite corporate power and authority to own its properties and carry
on its business as now being conducted.

    	 	 	 

    	 

    

	Section 3.2		Capitalization.  As of the date of this Agreement, the authorized capital
stock of KET consists of 3,000,000,000 shares of Stock, $.001 par value per share,   of which are issued and outstanding
and 10,000,000 shares of preferred stock of which 8,000,000 shares are outstanding.

 

	Section 3.3		Authority; Enforceability.  KET has the requisite corporate power and authority
to execute and deliver this Agreement and to carry out its obligations hereunder.  The execution, delivery and performance
of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate
action on the part of KET and no other corporate proceedings on the part of KET are necessary to authorize this Agreement or to
consummate the transactions so contemplated.  This Agreement has been duly executed and delivered by KET and constitutes
a valid and binding obligation of KET, enforceable against KET in accordance with its terms, except as (a) enforceability may
be limited by applicable bankruptcy, insolvency, fraudulent transfer, moratorium or similar laws from time to time in effect affecting
creditors’ rights generally and (b) the availability of equitable remedies may be limited by equitable principles of general
applicability.

 

	Section 3.4		Third Party Consents.  No consent, authorization, order or approval of,
or filing or registration with, any governmental authority or other person is required for the execution and delivery of this
Agreement or the consummation by KET of any of the transactions contemplated hereby.

 

	Section 3.5		All shares of KET to be issued pursuant to this Agreement will be, when issued, duly
authorized, validly issued, fully paid and non-assessable.

 

	Section 3.6		No Other Representations or Warranties.  Except as set forth above in this
Section 3, no other representations or warranties, express or implied, are made in this Agreement by KET to the Shareholder.

 

MISCELLANEOUS

 

	Section 4.1		Survival of Representations, Warranties and Agreements. The representations, warranties,
covenants and agreements in this Agreement or in any instrument delivered pursuant to this Agreement shall survive the Closing
and shall not be limited or affected by any investigation by or on behalf of any party hereto.

 

	Section 4.2		Further Assurances.  Each of KET, and the Shareholder will use its, his
or her, as the case may be, best efforts to take all action and to do all things necessary, proper or advisable on order to consummate
and make effective the transactions contemplated by this Agreement.

 

	Section 4.3		Entire Agreement; No Third Party Beneficiaries.  This Agreement (including
the documents, exhibits and instruments referred to herein) (a) constitutes the entire agreement and supersedes all prior agreements,
and understandings and communications, both written and oral, among the parties with respect to the subject matter hereof, and
(b) is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.

 

	Section 4.4		Governing Law.  This Agreement shall be governed and construed in accordance
with the laws of the State of Delaware without regard to any applicable principles of conflicts of law.

 

	Section 4.5		Counterparts.  This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which taken together shall constitute one and the same document.

 

	Section 4.6		Amendment and Modification.  This Agreement may not be amended or modified
except by an instrument in writing signed by each of the parties hereto.

    	 	 	 

    	 

    

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be signed themselves or by their respective duly authorized officers as of the
date first written above.

 

	Kleangas Energy Technologies, Inc.	 	Green Day Technologies Inc.
	 	 	 	 	 
	 	 	 	 	 
	By: 
	/s/ William Wylie	 	By:	/s/ Bo Linton
	Name:	William Wylie	 	Name:	Bo Linton
	Title:	President	 	Title:	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]