Document:

ex4-1.htm

Exhibit 4.1

 

CONVERTIBLE PROMISSORY NOTE

 

GOODINTENT HOLDING LIMITED

 

	
$_____

	
December 17, 2009

	  	  

FOR VALUE RECEIVED, GOODINTEND HOLDING LIMITED, a company organized under the laws of the British Virgin Islands (the “Maker”), with offices at c/o China Golf Group, Room 213, Tower Crest, 3 Maizidian West Road, Chaoyang District, Beijing China 100125, hereby promises to pay to _______ (the “Holder”), at _________ (or such other address as the Holder may designate), in lawful money of the United States of America in immediately available funds, the aggregate principal sum of _________ ($_________), on or before March 31, 2010 (the “Maturity Date”), by delivering written notice thereof to Maker; provided, however, that upon conversion of the principal due under this convertible promissory note (this “Note”) into shares of common stock of the Shell (the “Conversion Shares”) pursuant to Section 1 hereof, such conversion shall constitute the full discharge of this Note.  This Note has been executed and delivered pursuant to the Note Purchase Agreement dated as of December 17, 2009 (the "Purchase Agreement”) by and between the Maker and the Holder.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth for such terms in the Purchase Agreement

 

1.           Conversion.

 

1.1           Automatic Conversion.  Upon the closing of the Share Exchange (the “Closing Date”), the entire outstanding principal amount of this Note shall automatically be converted into a number of fully paid and nonassessable shares of common stock of the Shell by dividing (i) the outstanding principal amount under the Note as of the Closing Date by (ii) $0.20 (the “Conversion Price”), subject to certain adjustments set forth herein.  The Maker shall cause the Shell to issue the Conversion Shares to the Holder upon the conversion of this Note pursuant to this Section 1.1.

 

1.2           Conversion Mechanics. Conversion shall be effected by Holder’s surrender and delivery of this Note to Maker at its principal place of business.  In the event of any such conversion, this Note shall be automatically canceled and shall cease to be outstanding for any purpose.

 

1.3           Adjustments for Stock Splits and Combinations.  If the Shell shall at any time or from time to time after the date hereof, effect a stock split of the outstanding shares of the Shell’s common stock, the applicable Conversion Price in effect immediately prior to the stock split shall be proportionately decreased.  If the Share shall at any time or from time to time after the date hereof, combine the outstanding shares of the Shell’s common stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately increased.  Any adjustments under this Section 1.3 shall be effective at the close of business on the date the stock split or combination occurs.

 

 

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1.4           Adjustment for Issuance of Additional Shares.  In the event that (i) the Maker shall at any time issue or sell any shares of the Maker’s capital stock or (ii) the Shell shall issue or sell any shares of the Shell’s common stock in a private placement transaction which occurs simultaneously with, or promptly following, the Share Exchange, each at a price per share less than the Conversion Price then in effect or without consideration, then the Conversion Price upon each such issuance shall be reduced to a price equal to the consideration per share paid for such shares.

 

1.5           Certain Issues Excepted.  Anything herein to the contrary notwithstanding, the Maker shall not be required to make any adjustment to the Conversion Price in connection with (i) securities issued in connection with bona fide strategic license agreements or other partnering arrangements, so long as such issuances are not made to an affiliate of, or related party to, the Company or made to any person for the purpose of raising capital or (ii) any warrants issued to a placement agent or its designees in connection with the Share Exchange.

 

2.           Events of Default; Acceleration.  If Maker fails to pay in full the principal amount outstanding on this Note on the Maturity Date (such event, an “Event of Default”), then to the extent permitted by law, the Maker shall pay interest to the Holder, payable on demand, on the outstanding principal balance of the Note from the date of the Event of Default until such Event of Default is cured or waived at the rate of the lesser of fifteen percent (15%) per annum and the maximum applicable legal rate per annum.

 

3.           Representations of the Holder.  The Holder hereby represents and warrants to Maker as follows:

 

3.1           Disclosure.  The Holder hereby confirms to Maker that it has been granted the opportunity to ask Maker questions concerning the issuance of this Note and the Conversion Shares and to obtain any additional information which it deems necessary to make an informed investment decision with respect to the Note and the Conversion Shares.

 

3.2           Accredited Investor.  The Holder is an “accredited investor” as such term is defined in Rule 501 of the U.S. Securities Act of 1933, as amended (the “Act”).  The Holder has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its acquisition of this Note, and, upon conversion, if any, the Conversion Shares.

 

3.3           High Risk.  The Holder acknowledges that:

 

(a)           this Note and the Conversion Shares involve a high degree of risk, including the risk of loss of the Holder’s entire principal amount, and that this Note and the Conversion Shares are highly speculative investments;

 

(b)           the investment in this Note and the Conversion Shares is presently an illiquid investment and the Holder may be required to bear the economic risk of investment in this Note and the Conversion Shares for a substantial period of time;

 

(c)           there is no established market for either this Note or the Conversion Shares, and no assurance has been provided that any public market will develop; and

 

 

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(d)           the Holder can bear the economic risk of an investment in this Note and the Conversion Shares.

 

3.4           Certain Representations.

 

(a)           The Holder is acquiring this Note and, upon conversion, if any, the Conversion Shares without being furnished any offering memorandum or prospectus, and the Holder has not been given any oral or other written representations or assurances by Maker or any representative of Maker in connection with the issuance by Maker of this Note to the Holder except for those representations contained herein.  The Holder acknowledges that no person has been authorized to give any information or make any representation other than as contained herein, and, if given or made, such information or representation must not be relied upon as having been authorized by Maker or any person acting on its behalf.

 

(b)           The Holder is acquiring this Note and the Conversion Shares for investment purposes only, for its own account and not with a view to, or for resale in connection with, the distribution or other disposition thereof in contravention of the Act or any U.S. state securities law, without prejudice, however, to the Holder’s right at all times to sell or otherwise dispose of all or any part of such securities pursuant to an effective registration statement under the Act and applicable U.S. state securities laws, or under an exemption from such registration available under the Act and other applicable U.S. state securities laws.

 

3.5           Restrictive Legend.  The Holder understands that the Conversion Shares may not be sold, transferred, encumbered or otherwise disposed of (any such action, a “Transfer”) without registration under the Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Conversion Shares or an available exemption from registration under the Act, the Conversion Shares must be held indefinitely.  In particular, the Holder is aware that the Conversion Shares may not be sold pursuant to Rule 144 promulgated under the Act unless all of the conditions of such rule are met.  Among the conditions for use of Rule 144 may be the availability of current information to the public about Maker or its successor.  Such information is not now available and Maker has no present plans to make such information available.  The Conversion Shares may not be Transferred unless, in connection with any such Transfer, the Holder first provides Maker with an opinion of counsel satisfactory to Maker to the effect that such Transfer will be exempt from the registration requirements of the Act and the registration or qualification requirements of any applicable U.S. state securities laws.

 

4.           Representations of Maker.

 

4.1           Organization and Authority.  Maker is a company duly organized, validly existing and in good standing under the laws of the British Virgin Islands and has the requisite corporate power and authority to own, lease and operate its assets, properties and business and to carry on its business as it is now being conducted.  Maker has all requisite legal and corporate power and authority to execute and deliver this Note.

 

4.2           Binding Obligation.  This Note, when executed and delivered by Maker against receipt of the principal amount hereof, will constitute a valid and legally binding obligation of Maker, enforceable against Maker in accordance with its terms, subject to (i) laws of general application relating to bankruptcy, insolvency, and the relief of debtors, and (ii) rules of law governing specific performance, injunctive relief, or other equitable remedies.

 

 

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4.3           No Conflicts.  The execution and delivery of this Note by Maker will not result in a violation of Maker’s articles of association or memorandum of association or conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a material default) under any material agreement, indenture or instrument to which Maker is a party.  Except as required under the Act, Maker is not required to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental agency in order for it to execute and deliver this Note.

 

4.4           Capitalization.  As of the date hereof, 23,500 of the Company’s ordinary shares are issued and outstanding.

 

5.           Security.

 

5.1           To secure the Maker’s obligations under this Note, the Maker, on its own behalf and on behalf of each of its subsidiaries, hereby grants the Holder a security interest in all the Collateral (as defined below), and hereby agrees to take all action, and to cause its subsidiaries to take all action, requested by the Holder to perfect and to continue the perfection of the security interest so granted.

 

5.2           As used in this Note, the term “Collateral” means all golf club memberships that the Company or any of its subsidiaries shall pre-sell or sell following the date hereof, including corporate, individual and social memberships, with respect to any of the golf courses currently operated, or to be operated following the date hereof, by the Company or any of its subsidiaries.

 

5.3           The Maker hereby represents and warrants to the Holder that each of the Maker’s subsidiaries has authorized the Maker to act as its agent and representative pursuant to this Section 5.3.

 

6.           Registration Rights.  Following the Share Exchange, on the first occasion on which the Company shall file with the U.S. Securities and Exchange Commission a resale registration statement under the Act of any of its equity securities, the Company shall use its commercially reasonable efforts to cause the registration under the Act of all the Conversion Shares; provided, however, that the Company shall not be required to register any Conversion Shares pursuant to this Section 6 that are eligible for sale without restriction pursuant to Rule 144 promulgated under the Act.

 

7.           Notices.  All notices and other communications hereunder shall be in writing and shall be mailed by first-class mail, postage prepaid, addressed (i) if to the Holder, at the Holder’s address as set forth above, or at such other address as the Holder shall have furnished to Maker in writing, or (ii) if to Maker, at Maker’s address as set forth above, or at such other address as such Maker shall have furnished to the Holder in writing.  All notices shall be deemed to have been delivered five days after being deposited in the mail.

 

 

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8.           Miscellaneous.  No modification, rescission, waiver, forbearance, release or amendment of any provision of this Note will be effective unless the same is in writing.  Any provision hereof which may prove unenforceable under any law shall not affect the validity of any other provision hereof.

 

9.           Governing Law.  This Note will be governed by, and construed in accordance with, the laws of the State of New York without giving effect to the conflict of laws principles thereof.

 

[Signatures on next page.]

 

 

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IN WITNESS WHEREOF, each of the undersigned has caused this note to be duly executed as of the date first above written.

 

GOODINTEND HOLDING LIMITED

By:_______________________________

     Name:

     Title:

Accepted and agreed,

HOLDER:

Name:

Signature: ___________________________

 

Address:

 

Social Security or Tax ID Number:

 

____________________________________

 

 

-6-ex4-2.htm

Exhibit 4.2

 

THIS WARRANT AND THE ORDINARY SHARES 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.

 

WARRANT TO PURCHASE

 

SHARES OF COMMON STOCK

 

OF

 

ALPINE ALPHA 2, LTD.

 

Expires July 6, 2015

	
No.: 

	
Number of Shares:_____________

	
Date of Issuance: July 6, 2010

	  

 

FOR VALUE RECEIVED, the undersigned, Alpine Alpha 2, Ltd.,  a company organized under the laws of Delaware (together with its successors and assigns, the “Issuer”), hereby certifies that _____________  (the “Holder”) or its registered assigns is entitled to subscribe for and purchase, during the Term (as hereinafter defined), _____________ (_______) shares (subject to adjustment as hereinafter provided) of the duly authorized, validly issued, fully paid and non-assessable Warrant 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 9 hereof.

 

1.   Term. The term of this Warrant shall commence on July 6, 2010 and shall expire at 6:00 p.m., Eastern Time, on July 6, 2015 (such period being the “Term” and such date, the “Termination Date”).

 

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 for such number of shares of Warrant Stock set forth above. 

 

            (b)   Method of Exercise. The Holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the exercise form attached hereto duly executed (“Notice of Exercise”)) at the principal office of the Issuer, and by the payment to the Issuer 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 at such Holder’s election (i) by certified or official bank check or by wire transfer to an account designated by the Issuer, (ii) by “cashless exercise” in accordance with the provisions of subsection (c) of this Section 2, or (iii) by a combination of the foregoing methods of payment selected by the Holder of this Warrant.

 

(c)   Cashless Exercise. Notwithstanding any provision herein to the contrary, if the Per Share Market Value of one ordinary share of the Issuer is greater than the Warrant Price (at the date of calculation as set forth below), in lieu of exercising this Warrant by payment of cash, the Holder may elect to exercise this Warrant by a cashless exercise and shall receive the number of shares of Warrant Stock equal to an amount (as determined below) by surrender of this Warrant at the principal office of the Issuer together with the properly endorsed Notice of Exercise in which event the Issuer shall issue to the Holder a number of shares of Warrant Stock computed using the following formula:

 

 

 

 

	  	  
	  	
X = Y - (A)(Y)

	
  

	
B

	  	  	  
	
  Where

	
X =

	
the number of shares of Warrant Stock to be issued to the Holder.

	  	  	  
	  	
Y =

	
the number of shares of Warrant Stock issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

	  	  	  
	  	
A =

	
the Warrant Price.

	  	  	  
	  	
B =

	
the Per Share Market Value of one ordinary share of the Issuer on the Trading Day immediately preceding the date of such election.

(d)   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 hereof 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 resale of 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 a sale or other exemption from registration by which the shares may be issued without a restrictive legend. The Holder shall deliver this original Warrant, or an indemnification undertaking with respect to such Warrant in the case of its loss, theft or destruction, at such time that this Warrant is fully exercised. With respect to partial exercises of this Warrant, the Issuer shall keep written records for the Holder of the number of shares of Warrant Stock exercised as of each date of exercise.

 

(e)   Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder, if the Issuer fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Stock pursuant to an exercise on or before the Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Stock which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Issuer shall: (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the Warrant Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of shares of Warrant Stock that the Issuer was required to deliver to the Holder in connection with the exercise at issue times (B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of shares of Warrant Stock for which such exercise was not honored or deliver to the Holder the number of shares of Warrant Stock that would have been issued had the Issuer timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Warrant Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of the Warrant with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Issuer shall be required to pay the Holder $1,000. The Holder shall provide the Issuer written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Issuer. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Issuer’s failure to timely deliver certificates representing ordinary shares upon exercise of this Warrant as required pursuant to the terms hereof.

 

 

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(f)   Transferability of Warrant. Subject to Section 2(h) hereof, this Warrant may be transferred by a Holder, in whole or in part, to an “accredited investor” as defined in Regulation D under the Securities Act 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 hereof in person or by duly authorized attorney, upon surrender of this Warrant at the principal office of the Issuer, 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 at the principal office of the Issuer 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. 

 

(g)   Continuing Rights of Holder. The Issuer will, 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.

(h)   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 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.

 

(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. Such proposed transfer will not be effected until: (a) either (i) the Issuer has received an unqualified 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, (ii) a registration statement under the Securities Act covering such proposed disposition has been filed by the Issuer with the United States Securities and Exchange Commission and has become effective under the Securities Act, or (iii) the Issuer has received other evidence reasonably satisfactory to the Issuer that such registration and qualification under the Securities Act and state securities laws are not required; and (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 will respond to any such notice from a holder within five (5) Trading Days. In the case of any proposed transfer under this Section 2(h), the Issuer will 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. The restrictions on transfer contained in this Section 2(h) shall be in addition to, and not by way of limitation of, any other restrictions on transfer contained in any other section of this Warrant. 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 or the Stock Purchase Agreement).

 

 

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(i)   Accredited Investor Status. In no event may the Holder exercise this Warrant in whole or in part unless the Holder is an “accredited investor” as defined in Regulation D under the Securities Act.

 

3.   Stock Fully Paid; Reservation and Listing of Shares; Covenants.

 

(a)   Stock Fully Paid. The Issuer represents, warrants, covenants and agrees that all shares of Warrant Stock which may be issued upon the exercise of this Warrant or otherwise hereunder will, when issued in accordance with the terms of this Warrant, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by or through the Issuer. The Issuer further covenants and agrees that during the period within which this Warrant may be exercised, the Issuer will at all times have authorized and reserved for the purpose of the issuance upon exercise of this Warrant a number of authorized but unissued ordinary shares equal to at least the number of ordinary shares issuable upon exercise of this Warrant without regard to any limitations on exercise.

 

(b)   Listing. If the Issuer shall list any shares of Common Stock on any securities exchange or market it will, at its expense, list thereon, and maintain and increase when necessary such listing, of, all shares of Warrant Stock from time to time issued upon exercise of this Warrant or as otherwise provided hereunder (provided that such Warrant Stock has been registered pursuant to a registration statement under the Securities Act then in effect), and, to the extent permissible under the applicable securities exchange rules, all unissued shares of Warrant Stock which are at any time issuable hereunder, so long as any shares of Common Stock shall be so listed. The Issuer will also so list on each securities exchange or market, and will maintain such listing of, any other securities which the Holder of this Warrant shall be entitled to receive upon the exercise of this Warrant if at the time any securities of the same class shall be listed on such securities exchange or market by the Issuer.

 

(c)   Covenants. The Issuer shall not by any action including, without limitation, amending the Certificate of Incorporation or the by-laws of the Issuer, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of the Holder hereof against dilution (to the extent specifically provided herein) or impairment. Without limiting the generality of the foregoing, the Issuer will (i) not permit the par value, if any, of its ordinary shares to exceed the then effective Warrant Price, (ii) not amend or modify any provision of the Certificate of Incorporation or by-laws of the Issuer in any manner that would adversely affect the rights of the Holders of the Warrants, (iii) take all such action as may be reasonably necessary in order that the Issuer may validly and legally issue fully paid and nonassessable shares of Common Stock, free and clear of any liens, claims, encumbrances and restrictions (other than as provided herein) upon the exercise of this Warrant, and (iv) use its best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof as may be reasonably necessary to enable the Issuer to perform its obligations under this Warrant.

 

(d)   Loss, Theft, Destruction of Warrants. Upon receipt of evidence satisfactory to the Issuer of the ownership of and the loss, theft, destruction or mutilation of any Warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity or security satisfactory to the Issuer or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Issuer will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same number of shares of Warrant Stock.

 

 

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(e)   Payment of Taxes. The Issuer will pay any documentary stamp taxes attributable to the initial issuance of the Warrant Stock issuable upon exercise of this Warrant; provided, however, that the Issuer shall not be required to pay any tax or taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificates representing Warrant Stock in a name other than that of the Holder in respect to which such shares are issued.

 

4.   Adjustment of Warrant Price. The price at which such shares of Warrant Stock may be purchased upon exercise of this Warrant shall be subject to adjustment from time to time as set forth in this Section 4. The Issuer shall give the Holder notice of any event described below which requires an adjustment pursuant to this Section 4 in accordance with the notice provisions set forth in Section 5.

 

(a)   Recapitalization, Reorganization, Reclassification, Consolidation, Merger or Sale, Qualifying reverse Merger.

 

(i)   In case the Issuer after the Original Issue Date shall do any of the following (each, a “Triggering Event”): (a) consolidate or merge with or into any other Person and the Issuer shall not be the continuing or surviving corporation of such consolidation or merger, or (b) permit any other Person to consolidate with or merge into the Issuer and the Issuer shall be the continuing or surviving Person but, in connection with such consolidation or merger, any Capital Stock of the Issuer shall be changed into or exchanged for Securities of any other Person or cash or any other property, or (c) transfer all or substantially all of its properties or assets to any other Person, or (d) effect a capital reorganization or reclassification of its Capital Stock or (e) consummate a Qualifying Reverse Merger, then, and in the case of each such Triggering Event, proper provision shall be made to the Warrant Price and the type and number of shares of Warrant Stock that may be purchased upon exercise of this Warrant so that, upon the basis and the terms and in the manner provided in this Warrant, the Holder of this Warrant shall be entitled upon the exercise hereof at any time after the consummation of such Triggering Event, to the extent this Warrant is not exercised prior to such Triggering Event, to receive at the Warrant Price in effect at the time immediately prior to the consummation of such Triggering Event, in lieu of the Warrant Stock issuable upon such exercise of this Warrant prior to such Triggering Event, the Securities, cash and property to which such Holder would have been entitled upon the consummation of such Triggering Event if such Holder had exercised the rights represented by this Warrant immediately prior thereto (including the right of a shareholder to elect the type of consideration it will receive upon a Triggering Event and assuming, in the case of a Qualifying Reverse Merger, that the Holder elected to participate in such transaction), subject to adjustments (subsequent to such corporate action) as nearly equivalent as possible to the adjustments provided for elsewhere in this Section 4.  Immediately upon the occurrence of a Triggering Event, the Issuer shall notify the Holder in writing of such Triggering Event and provide the calculations in determining the number and type of shares of Warrant Stock issuable upon exercise of the new warrant and the adjusted Warrant Price. Upon the Holder’s request, the continuing or surviving corporation (or the new parent company of the Issuer in the case of a Qualifying Reverse Merger) as a result of such Triggering Event shall issue to the Holder a new warrant of like tenor evidencing the right to purchase the adjusted number of shares and type of Warrant Stock and the adjusted Warrant Price pursuant to the terms and provisions of this Section 4(a)(i).   

(ii)   In the event that the Holder has elected not to exercise this Warrant prior to the consummation of a Triggering Event, so long as the surviving entity pursuant to any Triggering Event is a company that has a class of equity securities registered pursuant to the Exchange Act and its common stock is listed or quoted on a national securities exchange, national automated quotation system or the OTC Bulletin Board, the surviving entity and/or each Person (other than the Issuer) which may be required to deliver any Securities, cash or property upon the exercise of this Warrant as provided herein shall assume, by written instrument delivered to, and reasonably satisfactory to, the Holder of this Warrant, (A) the obligations of the Issuer under this Warrant (and if the Issuer shall survive the consummation of such Triggering Event, such assumption shall be in addition to, and shall not release the Issuer from, any continuing obligations of the Issuer under this Warrant) and (B) the obligation to deliver to such Holder such Securities, cash or property as, in accordance with the foregoing provisions of this subsection (a), such Holder shall be entitled to receive, and the surviving entity and/or each such Person shall have similarly delivered to such Holder an opinion of counsel for the surviving entity and/or each such Person, which counsel shall be reasonably satisfactory to such Holder, or in the alternative, a written acknowledgement executed by the President or Chief Financial Officer of the Issuer, stating that this Warrant shall thereafter continue in full force and effect and the terms hereof (including, without limitation, all of the provisions of this subsection (a)) shall be applicable to the Securities, cash or property which the surviving entity and/or each such Person may be required to deliver upon any exercise of this Warrant or the exercise of any rights pursuant hereto.

 

 

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(b)   Stock Dividends, Subdivisions and Combinations. If at any time the Issuer shall:

 

(i)   make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive a dividend payable in, or other distribution of, shares of Common Stock,

 

(ii)   subdivide its outstanding shares of Common Stock into a larger number of shares of Common Stock, or

 

(iii)   combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock,

 

then (1) the number of ordinary shares for which this Warrant is exercisable immediately after the occurrence of any such event shall be adjusted to equal the number of ordinary shares which a record holder of the same number of ordinary shares 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 (2) 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 ordinary shares for which this Warrant is exercisable immediately after such adjustment.

 

(c)   Certain Other Distributions. If at any time the Issuer shall make or issue or set a record date for the holders of the Common Stock for the purpose of entitling them to receive any dividend or other distribution of:

 

(i)   cash,

 

(ii)   any evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common Stock), or

 

(iii)   any warrants or other rights to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property of any nature whatsoever (other than cash, Common Stock Equivalents or Additional Shares of Common Stock),

 

then (1) the number of shares of Common Stock for which this Warrant is exercisable shall be adjusted to equal the product of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such adjustment multiplied by a fraction (A) the numerator of which shall be the Per Share Market Value of an ordinary share at the date of taking such record and (B) the denominator of which shall be such Per Share Market Value minus the amount allocable to one share of Common Stock of any such cash so distributable and of the fair value (as determined in good faith by the Board of Directors of the Issuer and supported by an opinion from an investment banking firm mutually agreed upon by the Issuer and the Holder) of any and all such evidences of indebtedness, shares of stock, other securities or property or warrants or other subscription or purchase rights so distributable, and (2) 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. A reclassification of the ordinary shares (other than a change in par value, or from par value to no par value or from no par value to par value) into ordinary shares and shares of any other class of stock shall be deemed a distribution by the Issuer to the holders of its ordinary shares of such shares of such other class of stock within the meaning of this Section 4(c) and, if the outstanding ordinary shares shall be changed into a larger or smaller number of ordinary shares as a part of such reclassification, such change shall be deemed a subdivision or combination, as the case may be, of the outstanding ordinary shares within the meaning of Section 4(b).

 

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(d)   Issuance of Additional Shares of Common Stock.

 

(i)      During the Term, in the event the Issuer shall issue any Additional Shares of Common Stock (otherwise than as provided in the foregoing subsections (a) through (c) of this Section 4), at a price per share less than the Warrant Price then in effect or without consideration, then the Warrant Price upon each such issuance shall be reduced (calculated to the nearest cent), as of the close of business on the date of the issuance or sale, to the amount obtained by multiplying the Warrant Price by a fraction, (1) the numerator of which shall be the sum of (A) the number of Common Stock Equivalents Outstanding immediately prior to the issuance or sale of Additional Shares of Common Stock, plus (B) the quotient obtained by dividing the Aggregate Consideration Received (as defined in Section 4(d)(ii)) by the Issuer for the total number of Additional Shares of Common Stock so issued and/or sold (and/or deemed so issued and sold) by the Warrant Price in effect immediately prior to the issuance or sale, and (2) the denominator of which shall be the sum of (A) the number of Common Stock Equivalents Outstanding immediately prior to the issuance or sale (or deemed issuance or sale), plus (B) the number of Additional Shares of Common Stock so issued or sold (and/or deemed so issued and sold).

 

(ii)   The “Aggregate Consideration Received” by the Issuer for any issuance or sale (or deemed issuance or sale) of securities shall (i) to the extent it consists of cash, be computed at the gross amount of cash received by the Issuer (before deduction of any underwriting or similar commission, compensation or concessions paid or allowed by the Issuer in connection with the issuance or sale and without deduction of any expenses payable by the Issuer), (ii) to the extent it consists of property other than cash, be computed at the fair market value of that property as determined in good faith by the Board, and (c) if Additional Shares of Common Stock, Convertible Securities or Rights or Options to purchase either Additional Shares of Common Stock or Convertible Securities are issued or sold together with other stock or securities or other assets of the Issuer for a consideration which covers both, be computed as the portion of the consideration so received that may be reasonably determined in good faith by the Board to be allocable to such Additional Shares of Common Stock, Convertible Securities or Rights or Options, respectively.

 

No adjustment of the number of shares of Common Stock for which this Warrant shall be exercisable shall be made pursuant to this Section 4(d) upon the issuance of any Additional Shares of Common Stock which are issued pursuant to the exercise of any Common Stock Equivalents, if any such adjustment shall previously have been made upon the issuance of such Common Stock Equivalents (or upon the issuance of any warrant or other rights therefor) pursuant to Section 4(e).

 

(e)   Issuance of Common Stock Equivalents. In the event the Issuer shall take a record of the holders of its ordinary shares for the purpose of entitling them to receive a distribution of, or shall in any manner (whether directly or by assumption in a merger in which the Issuer is the surviving corporation) issue or sell, any Common Stock Equivalents, whether or not the rights to exchange or convert thereunder are immediately exercisable, and the price per share for which ordinary shares is issuable upon such conversion or exchange shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, or if, after any such issuance of Common Stock Equivalents, the price per share for which Additional Shares of Common Stock may be issuable thereafter is amended or adjusted, and such price as so amended shall be less than the Warrant Price in effect at the time of such amendment or adjustment, then the Warrant Price then in effect shall be adjusted as provided in Section 4(d). No further adjustments of the number of ordinary shares for which this Warrant is exercisable and the Warrant Price then in effect shall be made upon the actual issue of such ordinary shares upon conversion or exchange of such Common Stock Equivalents.

 

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(f)   Superseding Adjustment. If, at any time after any adjustment of the Warrant Price then in effect shall have been made pursuant to Section 4(e) as the result of any issuance of Common Stock Equivalents, and such Common Stock Equivalents, or the right of conversion or exchange in such Common Stock Equivalents, shall expire, and all of such or the right of conversion or exchange with respect to all of such Common Stock Equivalents shall not have been converted or exercised, then, on the date that such right of conversion or exchange of the Common Stock Equivalents shall be set to expire, such previous adjustment shall be rescinded and annulled and the Warrant Price then in effect shall be adjusted to the Warrant Price in effect immediately prior to the issuance of such Common Stock Equivalents, subject to any further adjustments pursuant to this Section 4.

 

(g)   Other Provisions Applicable to Adjustments under this Section. The following provisions shall be applicable to the making of adjustments of the number of ordinary shares for which this Warrant is exercisable and the Warrant Price then in effect provided for in this Section 4:

 

(i)   When Adjustments to Be Made. The adjustments required by this Section 4 shall be made whenever and as often as any specified event requiring an adjustment shall occur, except that any adjustment of the number of ordinary shares for which this Warrant is exercisable that would otherwise be required may be postponed (except in the case of a subdivision or combination of ordinary shares, as provided for in Section 4(b)) up to, but not beyond the date of exercise if such adjustment either by itself or with other adjustments not previously made adds or subtracts less than one percent (1%) of the ordinary shares for which this Warrant is exercisable immediately prior to the making of such adjustment. Any adjustment representing a change of less than such minimum amount (except as aforesaid) which is postponed shall be carried forward and made as soon as such adjustment, together with other adjustments required by this Section 4 and not previously made, would result in a minimum adjustment or on the date of exercise. For the purpose of any adjustment, any specified event shall be deemed to have occurred at the close of business on the date of its occurrence.

 

(ii)   Fractional Interests. In computing adjustments under this Section 4, fractional interests in ordinary shares shall be taken into account to the nearest one one-hundredth (1/100th) of a share.

 

(iii)   When Adjustment Not Required. If the Issuer shall take a record of the holders of its ordinary shares for the purpose of entitling them to receive a dividend or distribution or subscription or purchase rights and shall, thereafter and before the distribution to stockholders thereof, legally abandon its plan to pay or deliver such dividend, distribution, subscription or purchase rights, then thereafter no adjustment shall be required by reason of the taking of such record and any such adjustment previously made in respect thereof shall be rescinded and annulled.

 

(h)   Form of Warrant after Adjustments. The form of this Warrant need not be changed because of any adjustments in the Warrant Price or the number and kind of Securities purchasable upon the exercise of this Warrant.

 

5.   Notice of Adjustments. Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant to Section 4 hereof (for purposes of this Section 5, each an “adjustment”), the Issuer shall cause its Chief Financial Officer or other authorized officer, as the case may be, to prepare and execute a certificate setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated (including a description of the basis on which the Board made any determination hereunder), and the Warrant Price and Warrant Share Number after giving effect to such adjustment, and shall cause copies of such certificate to be delivered to the Holder of this Warrant promptly after each adjustment. Any dispute between the Issuer and the Holder of this Warrant with respect to the matters set forth in such certificate may at the option of the Holder of this Warrant be submitted to an Independent Appraiser, provided that the Issuer shall have ten (10) days after receipt of notice from such Holder of its selection of such firm to object thereto, in which case such Holder shall select another such firm and the Issuer shall have no such right of objection. The Independent Appraiser selected by the Holder of this Warrant as provided in the preceding sentence shall be instructed to deliver a written opinion as to such matters to the Issuer and such Holder within thirty (30) days after submission to it of such dispute. Such opinion shall be final and binding on the parties hereto. The reasonable costs and expenses of the Independent Appraiser in making such determination shall be paid by the Issuer, in the event the Holder's calculation was correct, or by the Holder, in the event the Issuer’s calculation was correct, or equally by the Issuer and the Holder in the event that neither the Issuer's or the Holder's calculation was correct.

 

 

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6.   Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereof, but in lieu of such fractional shares, the Issuer shall, at its option, (a) pay an amount in cash equal to the Warrant Price multiplied by such fraction or (b) round the number of shares to be issued upon exercise up to the nearest whole number of shares.

 

7.   Ownership Cap and Exercise Restriction. Notwithstanding anything to the contrary set forth in this Warrant, at no time may the Holder exercise this Warrant 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 at such time to exceed, when aggregated with all other shares of Common Stock owned by the Holder and its affiliates at such time, the number of shares of Common Stock which would result in the Holder, its affiliates, any investment manager having discretionary investment authority over the accounts or assets of the Holder and its affiliates, or any other persons whose beneficial ownership of Common Stock would be aggregated for purposes of Section 13(d) and Section 16 of the Exchange Act, beneficially owning (as determined in accordance with Section 13(d) of the Exchange Act and the rules thereunder) in excess of 4.9% of the then issued and outstanding shares of Common Stock; provided, however, that upon the Holder providing the Issuer with sixty-one (61) days notice (pursuant to this certificate) (the “Waiver Notice”) that the Holder would like to waive this Section 7 with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this Section 7 shall be of no force or effect with regard to those shares of Common Stock referenced in the Waiver Notice; provided, further, that during the sixty-one (61) day period prior to the Termination Date, the Holder may waive this Section 7 by providing a Waiver Notice at any time during such sixty-one (61) day period; provided, further, that any Waiver Notice provided during the sixty-one (61) day period prior to the Termination Date will not be effective until the Termination Date.

 

8.   Registration Rights. If any common stock issuable upon exercise of this Warrant or as otherwise provided hereunder require registration or qualification with any Governmental Authority under any federal or state law before such shares may be resold, the Issuer will in good faith use its best efforts as expeditiously as possible at its sole expense to cause such shares to be duly registered or qualified for resale to the same extent as such rights have been granted to any other holder of securities of the Issuer and if different rights have been granted to holders of the Issuer’s securities, then the rights granted to the Holder hereunder shall be  deemed to be to the same extent as the most favorable rights granted to any holder of the Issuer’s securities. For such purpose, the determination of which rights are most favorable shall be made by the Holder in its sole discretion. 

 

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

 

“Additional Shares of Common Stock” means all shares of common stock issued by the Issuer after the Original Issue Date, and all shares of Other Common, if any, issued by the Issuer after the Original Issue Date, except: (i) securities issued pursuant to the conversion or exercise of convertible or exercisable securities issued or outstanding on or prior to the Original Issue Date (so long as the conversion or exercise price in such securities are not amended to lower such price and/or adversely affect the Holder) which have previously been disclosed to the Holder, (ii) the Warrant Stock, (iii) securities issued to employees, officers or directors of, or contractors, consultants or advisers to, the Issuer pursuant to the any stock option plan, stock purchase right or arrangement approved by the Board that do not exceed in the aggregate 10% of the Issuer’s ordinary shares at the time of issuance, (iv) securities issued in connection with the acquisition of another unrelated corporation or entity with an enterprise value of at least $1,000,000 by the Issuer by consolidation, merger, purchase of all or substantially all of the assets, or other reorganization approved unanimously by the Board, and (v) securities issued to non-affiliated parties in connection with services rendered or to be rendered to the Issuer that do not exceed in the aggregate in any period of 24 months 2% of the Issuer’s Common Stock at the time of the Original Issue Date.

 

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

 

 

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 “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.

  

“Common Stock Equivalent” means the number of ordinary shares that is equal to the sum of (a) all shares of Common Stock that are outstanding at the time in question, plus (b) all shares of Common Stock that are issuable upon conversion of all Convertible Securities and Rights or Options that are outstanding at the time in question.

“Convertible Securities” means evidences of Indebtedness, shares of Capital Stock or other Securities which are or may be at any time convertible into or exchangeable for Additional Shares of Common Stock. The term “Convertible Security” means one of the Convertible Securities.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute then in effect.

“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.

“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.

 

“Issuer” means Alpine Alpha 2, Ltd., a company organized under the laws of Delaware, and its successors.

 

“Majority Holders” means at any time the Holders of Warrants exercisable for a majority of the shares of Warrant Stock issuable under the Warrants at the time outstanding.

 

“Original Issue Date” means July 6, 2010.

“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 ordinary shares) 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 ordinary shares, assuming full exercise, conversion or exchange (as applicable) of all options, warrants and other Securities which are convertible into or exercisable or exchangeable for, and any right to subscribe for, ordinary shares that are outstanding at such time.

 

“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.

 

 

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“Per Share Market Value” means on any particular date (a) the last closing price per share of the ordinary shares on such date on the Trading Market or another registered national stock exchange on which the ordinary shares is then listed, or if there is no closing price on such date, then the closing bid price on such date, or if there is no closing bid price on such date, then the closing price on such exchange or quotation system on the date nearest preceding such date, or (b) if the ordinary shares is not listed then on a Trading Market or any registered national stock exchange, the last closing price for a share of ordinary shares in the over-the-counter market, as reported by the Trading Market or any registered national stock exchange or in the National Quotation Bureau Incorporated or similar organization or agency succeeding to its functions of reporting prices) at the close of business on such date, or if there is no closing price on such date, then the closing bid price on such date, or (c) if the ordinary shares is not then reported by the Trading Market or any registered national stock exchange or in the National Quotation Bureau Incorporated (or similar organization or agency succeeding to its functions of reporting prices), then the average of the “Pink Sheet” quotes for the five (5) Trading Days preceding such date of determination, or (d) if the ordinary shares is not then publicly traded the fair market value of an ordinary share or as determined by an Independent Appraiser selected in good faith by the Majority Holders; provided, however, that the Issuer, after receipt of the determination by such Independent Appraiser, shall have the right to select an additional Independent Appraiser, in which case, the fair market value shall be equal to the average of the determinations by each such Independent Appraiser; and provided, further, that all determinations of the Per Share Market Value shall be appropriately adjusted for any stock dividends, stock splits or other similar transactions during such period. The determination of fair market value by an Independent Appraiser shall be based upon the fair market value of the Issuer determined on a going concern basis as between a willing buyer and a willing seller and taking into account all relevant factors determinative of value, and shall be final and binding on all parties. In determining the fair market value of any ordinary shares, no consideration shall be given to any restrictions on transfer of the ordinary shares imposed by agreement or by federal or state securities laws, or to the existence or absence of, or any limitations on, voting rights.

“Qualifying Reverse Merger” means a share exchange in which the Issuer becomes a Subsidiary of another Person.

 

“Rights or Options” means warrants, options or other rights to purchase or acquire shares of Common Stock or Convertible Securities. 

 

“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, or any similar federal statute then in effect.

 

“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 ordinary shares of the Issuer are traded on a Trading Market, or (b) if ordinary shares are not traded on a Trading Market, a day on which ordinary shares are quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding its functions of reporting prices); provided , however, that in the event that ordinary shares are 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.

 

“Trading Market” means the following markets or exchanges on which the ordinary shares of the Issuer are listed or quoted for trading on the date in question: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board.

 

“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 of Directors (or other governing body) of such corporation, other than Capital Stock having such power only by reason of the happening of a contingency.

 

 

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“Warrants” means this Warrant, and any other warrants of like tenor issued in substitution or exchange for any thereof.

 

“Warrant Price” initially means the purchase price per share of Capital Stock in the first offering of the Securities conducted by the Issuer after the Qualifying Reverse Merger. In the event of an offering of Convertible Securities, Warrant Price shall mean the conversion price of such Convertible Securities. The Warrant Price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 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 this Warrant, after giving effect to all prior adjustments and increases to such number made or required to be made under the terms hereof.

“Warrant Stock” means shares of common stock the Issuer, par value $0.001 per share, issuable upon exercise of any Warrant or Warrants or otherwise issuable pursuant to any Warrant or Warrants.

 

10.   Other Notices. In case at any time:

 

(a)   the Issuer shall make any distributions to the holders of ordinary shares or

 

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

 

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

 

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

 

(e)   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

 

(f)   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.

 

11.   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 the Issuer and the Majority Holders; 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 11 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.

 

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12.   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, 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 via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Warrant and agree that such service shall constitute good and sufficient service of process and notice thereof. Nothing in this Section 12 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 or the Stock Purchase Agreement, 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.

 

13.   Notices. Any notice, demand, request, waiver or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) immediately upon hand delivery, telecopy or facsimile at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

	
If to the Issuer:

 

	
Alpine Alpha 2, Ltd.

Attn: Ye Bi

China Merchants Tower, Suite 1503

161 Lujiazui East Road,

Shanghai  PRC 20001

 

Phone:    011-86-21 5876 5017

Fax:        011-86-21-5876-5085

 

	
If to the Holder:

	
__________________________

 

Any party hereto may from time to time change its address for notices by giving at least ten (10) days written notice of such changed address to the other party hereto.

 

14.   Warrant Agent. The Issuer may, by written notice to the 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 subsection (d) of Section 3 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.

 

15.   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.

 

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16.   Remedies. The Issuer stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Issuer in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate and that, to the fullest extent permitted by law, such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

17.   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.

 

18.   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.

19.    No Rights as Stockholders. Prior to the exercise of this Warrant, the Holder shall not have or exercise any rights as a stockholder of the Issuer by virtue of its ownership of this Warrant.

 

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

14

 

 

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

 

	 	
 

ALPINE ALPHA 2, LTD.

 

 

By:   ______________________________

         Name: Ye Bi

         Title:  Chief Executive Officer

 

 

	 	  

 

15

 

EXERCISE FORM

WARRANT

 

ALPINE ALPHA 2, LTD.

 

The undersigned ___________________, pursuant to the provisions of the within Warrant, hereby elects to purchase ________________shares of Warrant Stock covered by the within Warrant.

 

	
Dated:

	  	  	
Signature

	  
	  	  	  	  	  
	  	  	  	
Address

	  
	  	  	  	  	  
	  	  	  	  	  

 

Number of ordinary shares 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.

 

The undersigned intends that payment of the Warrant Price shall be made as (check one):

 

Cash Exercise_______

 

Cashless Exercise_______

 

If the Holder has elected 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.

 

If the Holder has elected a Cashless Exercise, a certificate shall be issued to the Holder for the number of shares equal to the whole number portion of the product of the calculation set forth below, which is ___________. The Issuer shall pay a cash adjustment in respect of the fractional portion of the product of the calculation set forth below in an amount equal to the product of the fractional portion of such product and the Per Share Market Value on the date of exercise, which product is ____________.

 

	  	
X = Y - (A)(Y)

	
  

	
B

 

Where:

 

The number of ordinary shares to be issued to the Holder __________________(“X”).

 

The number of ordinary shares purchasable upon exercise of all of the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised ___________________________ (“Y”).

 

The Warrant Price ______________ (“A”).

 

The Per Share Market Value of one ordinary share_______________________ (“B”).

 

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ASSIGNMENT

 

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

 

	
Dated:

	  	  	
Signature

	  
	  	  	  	  	  
	  	  	  	
Address

	  
	  	  	  	  	  
	  	  	  	  	  

 

PARTIAL ASSIGNMENT

 

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

 

	
Dated:

	  	  	
Signature

	  
	  	  	  	  	  
	  	  	  	
Address

	  
	  	  	  	  	  
	  	  	  	  	  

 

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 _______________.

 

 

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