Document:

Unassociated Document

 

NEITHER THIS SECURITY NOR ANY SECURITIES WHICH MAY BE ISSUED UPON EXERCISE OF THIS SECURITY HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY U.S. STATE OR OTHER JURISDICTION OR ANY EXCHANGE OR SELF-REGULATORY ORGANIZATION, IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND SUCH OTHER LAWS AND REQUIREMENTS, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR LISTING OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, SUCH REGISTRATION AND/OR LISTING REQUIREMENTS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH WILL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

AMERICAN SCIENTIFIC RESOURCES, INCORPORATED

 

COMMON STOCK WARRANT

 

	
No._____

	
March 24, 2011     

   

American Scientific Resources, Incorporated, a Nevada corporation (the “Company”), hereby certifies that Daniel Schreiber SEP IRA, its permissible transferees, designees, successors and assigns (collectively, the “Holder”), for value received, is entitled to purchase from the Company at any time and from time to time commencing on the date first appearing above (the “Issuance Date”), up to and through 12:01a.m. (EST) on the date seven (7) years from the Issuance Date (the “Termination Date”) up to 400,000 shares (each, a “Share” or “Warrant Share” and collectively the “Shares” or “Warrant Shares”) of the Company’s common stock, at an exercise price per Share equal to $0.0001 (the “Exercise Price”).  The number of Shares purchasable hereunder and the Exercise Price are subject to adjustment as provided in Section 4 hereof.

 

This Warrant is being issued by the Company in a private placement pursuant to the Securities Purchase Agreement by and between the Company and the Holder, dated the date hereof as amended and/or supplemented.

 

  

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1.           Method of Exercise; Payment.

 

(a)           Cash Exercise.  The purchase rights represented by this Warrant may be exercised by the Holder, in whole or in part, at any time, or from time to time, by the surrender of this Warrant (with the notice of exercise form (the "Notice of Exercise") attached hereto as Exhibit A duly executed) at the principal office of the Company, and by payment to the Company of an amount equal to the Exercise Price multiplied by the number of the Shares being purchased, which amount may be paid, at the election of the Holder, by wire transfer or certified check payable to the order of the Company. The person or persons in whose name(s) any certificate(s) representing Shares shall be issuable upon exercise of this Warrant shall be deemed to have become the holder(s) of record of, and shall be treated for all purposes as the record holder(s) of, the Shares represented thereby (and such Shares shall be deemed to have been issued) immediately prior to the close of business on the date or dates upon which this Warrant is exercised.

(b)           Cashless Exercise.

(i) This Warrant may also be exercised at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

   

	 	
(A) =

	
the VWAP on the Trading Day immediately preceding the date of such election;

	 	
(B) =

	
the Exercise Price of this Warrant, as adjusted; and

	
  

	
(X) =

	
the number of Warrant Shares 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.

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by the Trading Market (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b)  if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

  

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 (c)           Stock Certificates.  In the event of any exercise of the rights represented by this Warrant, as promptly as practicable after the Notice of Exercise is delivered to the Company and in any event within three (3) trading days after delivery to the Company of the Notice of Exercise (“Warrant Share Delivery Date”), the Company at its expense shall transmit by the Company’s Transfer Agent (“Transfer Agent”) to the Holder by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise.  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised.  In the event this Warrant is exercised in part and requested by the Holder, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the number of Shares for which this Warrant may then be exercised if requested by the Holder.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.   The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

  

  

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(d)           Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 1 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of Common Shares beneficially owned by the Holder and its affiliates shall include the number of Common Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Common Shares which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other  Common Share Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act of 1934 (“Exchange Act”) and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 1(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder.   The Holder shall certify in all Exercise Notices delivered pursuant to Section 1(d) hereof the aggregate number of shares of Common Stock beneficially owned by the Holder and the Holder's affiliates other than pursuant to this Warrant (excluding shares of Common Stock which would be issuable upon exercise or conversion of the unexercised or unconverted portion of any securities of the Company beneficially owned by the Holder and its affiliates (including, without limitation, any convertible notes or convertible preferred stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein).  In connection with any exercise of this Warrant, the Company shall be entitled to rely upon such certification by the Holder.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(e), in determining the number of outstanding Common Shares, a Holder may rely on the number of outstanding Common Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of Common Shares outstanding.  Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of Common Shares then outstanding.  In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding Common Shares was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of Common Shares outstanding immediately after giving effect to the issuance of Common Shares issuable upon exercise of this Warrant.  By written notice to the Company, the Holder may from time to time increase or decrease the Beneficial Ownership Limitation to any other percentage not in excess of 9.99% specified in such notice; provided that any such increase will not be effective until the sixty-first (61st) day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

(d)           Rescission Rights.  If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

  

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(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 Company fails to cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, Common Shares to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall within three (3) Trading Days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the "Buy-In Price"), at which point the Company's obligation to deliver such certificate (and to issue such Warrant Shares or credit such Holder's balance account with DTC) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares or credit such Holder's balance account with DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the VWAP on the date of exercise.

(e)           Taxes.  The issuance of the Shares upon the exercise of this Warrant, and the delivery of certificates or other instruments representing such Shares, shall be made without charge to the Holder for any tax or other charge in respect of such issuance.

2.           Warrant.

 

(a)       Exchange, Transfer and Replacement.  At any time prior to the exercise hereof, this Warrant may be exchanged upon presentation and surrender to the Company, alone or with other warrants of like tenor of different denominations registered in the name of the same Holder, for another warrant or warrants of like tenor in the name of such Holder exercisable for the aggregate number of Shares as the warrant or warrants surrendered.

 

(b)       Replacement of Warrant.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of any such loss, theft, or destruction, upon delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company, at its expense, will execute and deliver in lieu thereof, a new Warrant of like tenor.

 

(c)       Cancellation; Payment of Expenses.  Upon the surrender of this Warrant in connection with any transfer, exchange or replacement as provided in this Section 2, this Warrant shall be promptly canceled by the Company.  The Holder shall pay all taxes and all other expenses (including legal expenses, if any, incurred by the Holder or transferees) and charges payable in connection with the preparation, execution and delivery of Warrants pursuant to this Section 2.

 

  

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(d)      Warrant Register.  The Company shall maintain, at its principal executive offices (or at the offices of the transfer agent for the Warrant or such other office or agency of the Company as it may designate by notice to the holder hereof), a register for this Warrant (the “Warrant Register”), in which the Company shall record the name and address of the person in whose name this Warrant has been issued, as well as the name and address of each transferee and each prior owner of this Warrant.

 

3.           Rights and Obligations of Holders of this Warrant.  The Holder of this Warrant shall not, by virtue hereof, be entitled to any rights of a stockholder in the Company, either at law or in equity; provided, however, that in the event any certificate representing shares of Common Stock or other securities is issued to the holder hereof upon exercise of this Warrant, such holder shall, for all purposes, be deemed to have become the holder of record of such Common Stock on the date on which this Warrant, together with a duly executed Notice of Exercise, was surrendered and payment of the aggregate Exercise Price was made, irrespective of the date of delivery of such Common Stock certificate.

 

4.           Adjustments.

 

(a)           Stock Dividends, Reclassifications, Recapitalizations, Etc.  While this Warrant is outstanding, in the event the Company:  (i) pays a dividend in Common Stock or makes a distribution in Common Stock, (ii) subdivides its outstanding Common Stock into a greater number of shares, (iii) combines its outstanding Common Stock into a smaller number of shares or (iv) increases or decreases the number of shares of Common Stock outstanding by reclassification of its Common Stock (including a recapitalization in connection with a consolidation or merger in which the Company is the continuing corporation), then (1) the Exercise Price on the record date of such division or distribution or the effective date of such action shall be adjusted by multiplying such Exercise Price by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately before such event and the denominator of which is the number of shares of Common Stock outstanding immediately after such event, and (2) the number of shares of Common Stock for which this Warrant may be exercised immediately before such event shall be adjusted by multiplying such number by a fraction, the numerator of which is the Exercise Price immediately before such event and the denominator of which is the Exercise Price immediately after such event.

 

  

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 (b)           Combination: Liquidation.  While this Warrant is outstanding, (i) In the event of a Combination (as defined below), each Holder shall have the right to receive upon exercise of the Warrant the kind and amount of shares of capital stock or other securities or property which such Holder would have been entitled to receive upon or as a result of such Combination had such Warrant been exercised immediately prior to such event (subject to further adjustment in accordance with the terms hereof).  Unless paragraph (ii) is applicable to a Combination, the Company shall provide that the surviving or acquiring Person (as defined below) (the “Successor Company”) in such Combination will assume by written instrument the obligations under this Section 4 and the obligations to deliver to the Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, the Holder may be entitled to acquire. “Combination” means an event in which the Company consolidates with, mergers with or into, or sells all or substantially all of its assets to another Person, where “Person” means any individual, corporation, partnership, joint venture, limited liability company, association, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity; (ii) In the event of (x) a Combination where consideration to the holders of Common Stock in exchange for their shares is payable solely in cash or (y) the dissolution, liquidation or winding-up of the Company, the Holders shall be entitled to receive, upon surrender of their Warrant, distributions on an equal basis with the holders of Common Stock or other securities issuable upon exercise of the Warrant, as if the Warrant had been exercised immediately prior to such event, less the Exercise Price.  In case of any Combination described in this Section 4, the surviving or acquiring Person and, in the event of any dissolution, liquidation or winding-up of the Company, the Company, shall deposit promptly with an agent or trustee for the benefit of the Holders of the funds, if any, necessary to pay to the Holders the amounts to which they are entitled as described above.  After such funds and the surrendered Warrant are received, the Company is required to deliver a check in such amount as is appropriate (or, in the case or consideration other than cash, such other consideration as is appropriate) to such Person or Persons as it may be directed in writing by the Holders surrendering such Warrant.

 

 (c) Notice of Adjustment.  Whenever the Exercise Price or the number of shares of Common Stock and other property, if any, issuable upon exercise of the Warrant is adjusted, as provided in this Section 4, the Company shall deliver to the holders of the Warrant in accordance with Section 10 a certificate of the Company’s Chief Financial Officer setting forth, in reasonable detail, the event requiring the adjustment and the method by which such adjustment was calculated (including a description of the basis on which (i) the Board of Directors determined the fair value of any evidences of indebtedness, other securities or property or warrants, options or other subscription or purchase rights and (ii) the Current Market Value (as defined below) of the Common Stock was determined, if either of such determinations were required), and specifying the Exercise Price and number of shares of Common Stock issuable upon exercise of the Warrant after giving effect to such adjustment.

 

(e)  Notice of Certain Transactions.  While this Warrant is outstanding, in the event that the Company shall propose (a) to pay any dividend payable in securities of any class to the holders of its Common Stock or to make any other non-cash dividend or distribution to the holders of its Common Stock, (b) to offer the holders of its Common Stock rights to subscribe for or to purchase any securities convertible into shares of Common Stock or shares of stock of any class or any other securities, rights or options, (c) to effect any capital reorganization, reclassification, consolidation or merger affecting the class of Common Stock, as a whole, or (d) to effect the voluntary or involuntary dissolution, liquidation or winding-up of the Company, the Company shall, within the time limits specified below, send to each Holder a notice of such proposed action or offer.  Such notice shall be mailed to the Holders at their addresses as they appear in the Warrant Register, which shall specify the record date for the purposes of such dividend, distribution or rights, or the date such issuance or event is to take place and the date of participation therein by the holders of Common Stock, if any such date is to be fixed, and shall briefly indicate the effect of such action on the Common Stock and on the number and kind of any other shares of stock and on other property, if any, and the number of shares of Common Stock and other property, if any, issuable upon exercise of each Warrant and the Exercise Price after giving effect to any adjustment pursuant to Section 4 which will be required as a result of such action.  Such notice shall be given as promptly as possible and (x) in the case of any action covered by clause (a) or (b) above, at least ten (10) days prior to the record date for determining holders of the Common Stock for purposes of such action or (y) in the case of any other such action, at least twenty (20) days prior to the date of the taking of such proposed action or the date of participation therein by the holders of Common Stock, whichever shall be the earlier.

 

  

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(f)  Current Market Value.  The “Current Market Value” per share of Common Stock or any other security at any date means (i) if the security is not registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and/or traded on a national securities exchange, quotation system or bulletin board, (a) the value of the security, determined in good faith by the Board of Directors of the Company and certified in a board resolution, based on the most recently completed arm’s-length transaction between the Company and a Person other than an affiliate of the Company or between any two such Persons and the closing of which occurs on such date or shall have occurred within the six-month period preceding such date, or (b) if no such transaction shall have occurred within the six-month period, the value of the security as determined by an independent financial expert or an agreed upon financial valuation model or (ii) if the security is registered under the Exchange Act and/or traded on a national securities exchange, quotation system or bulletin board, the average of the daily closing bid prices (or  the equivalent in an over-the-counter market) for each day on which the Common Stock is traded for any period on the principal securities exchange or other securities market on which the common stock is being traded (each, a “Trading Day”) during the period commencing thirty (30) days before such date and ending on the date one (1) day prior to such date.

 

5.           RESERVED. 

 

6.           Fractional Shares.  In lieu of issuance of a fractional share upon any exercise hereunder, the Company will issue an additional whole share in lieu of that fractional share, calculated on the basis of the Exercise Price.

 

7.           Legends.  Subject to the terms of the Purchase Agreement, prior to issuance of the shares of Common Stock underlying this Warrant, all such certificates representing such shares shall bear a restrictive legend to the effect that the Shares represented by such certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and that the Shares may not be sold or transferred in the absence of such registration or an exemption therefrom, such legend to be substantially in the form of the bold-face language appearing at the top of Page 1 of this Warrant.

  

  

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8.           Disposition of Warrants or Shares.  The Holder of this Warrant, each transferee hereof and any holder and transferee of any Shares, by his or its acceptance thereof, agrees that no public distribution of Warrants or Shares will be made in violation of the provisions of the Securities Act.  Furthermore, it shall be a condition to the transfer of this Warrant that any transferee thereof deliver to the Company his or its written agreement to accept and be bound by all of the terms and conditions contained in this Warrant.

 

9.           Merger or Consolidation.  The Company will not merge or consolidate with or into any other corporation, or sell or otherwise transfer its property, assets and business substantially as an entirety to another corporation, unless the corporation resulting from such merger or consolidation (if not the Company), or such transferee corporation, as the case may be, shall expressly assume, by supplemental agreement reasonably satisfactory in form and substance to the Holder, the due and punctual performance and observance of each and every covenant and condition of this Warrant to be performed and observed by the Company.

 

10.           Notices.  Any notice, request of other document required or permitted to Except as otherwise specified herein to the contrary, all notices, requests, demands and other communications required or desired to be given hereunder shall only be effective if given in writing by certified or registered U.S. mail with return receipt requested and postage prepaid; by private overnight delivery service (e.g. Federal Express); by facsimile transmission (if no original documents or instruments must accompany the notice); or by personal delivery.  Any such notice shall be deemed to have been given (a) on the business day immediately following the mailing thereof, if mailed by certified or registered U.S. mail as specified above; (b) on the business day immediately following deposit with a private overnight delivery service if sent by said service; (c) upon receipt of confirmation of transmission if sent by facsimile transmission; or (d) upon personal delivery of the notice.  All such notices shall be sent to the following addresses (or to such other address or addresses as a party may have advised the other in the manner provided in this Section 10):

 

	
if to the Company:

	
American Scientific Resources, Incorporated

1112 Weston Road, Unit 278

Weston, Florida 33326

Attention: Christopher F. Tirotta, MD, MBA

CEO

Facsimile: (954) 665-2820

	
with copy to:

	
Sichenzia Ross Friedman Ference LLP

61 Broadway, 32nd Floor

New York, NY 10006

Attention:  David B. Manno, Esq.

Facsimile: (212) 930-9725

Notwithstanding the time of effectiveness of notices set forth in this Section 10, a Notice of Exercise shall not be deemed effectively given until it has been duly completed and submitted to the Company together with this original Warrant and payment of the Exercise Price in a manner set forth in this Section 10.

 

  

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12.           Governing Law and Jurisdiction.  This Warrant shall be governed by and construed solely and exclusively in accordance with and pursuant to the internal laws of the State of New York. Any action brought concerning the transactions contemplated by this Warrant shall be brought only in the civil or state courts of New York or in the federal courts located in the State of New York.

 

13.           Successors and Assigns.  This Warrant shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

14.           Headings.  The headings of various sections of this Warrant have been inserted for reference only and shall not affect the meaning or construction of any of the provisions hereof.

 

15.           Severability. If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant, and the balance hereof shall be interpreted as if such provision were so excluded.

 

16.           Modification and Waiver.  This Warrant and any provision hereof may be amended, waived, discharged or terminated only by an instrument in writing signed by the Company and the Holder.

 

17.           Specific Enforcement.  The Company and the Holder acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Warrant were not performed in accordance with their specific terms or were otherwise breached.  It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Warrant and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to which either of them may be entitled by law or equity.

 

18.           Assignment.  This Warrant may be transferred or assigned, in whole or in part, at any time and from time to time by the then Holder by submitting this Warrant to the Company together with a duly executed Assignment in substantially the form and substance of the Form of Assignment which accompanies this Warrant as Exhibit B hereto, and, upon the Company’s receipt thereof, and in any event, within five (5) business days thereafter, the Company shall issue a Warrant to the Holder to evidence that portion of this Warrant, if any as shall not have been so transferred or assigned.

 

19.           Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

(Signature Page Immediately Follows)

 

  

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, manually or by facsimile, by one of its officers thereunto duly authorized.

 

	  	
AMERICAN SCIENTIFIC RESOURCES, INC.

	  	  
	  	  
	
Date: March 24, 2011

	
By:

	/s/ Christopher F. Tirotta	  
	  	
Name: Christopher F. Tirotta

	  	
Title: CEO/Chairman

 

  

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EXHIBIT A

TO

WARRANT

 

NOTICE OF EXERCISE

 

To Be Executed by the Holder

in Order to Exercise the Warrant

 

The undersigned Holder hereby elects to purchase _______ Shares pursuant to the attached Warrant, and requests that certificates for securities be issued in the name of:

 

__________________________________________________________

(Please type or print name and address)

 

__________________________________________________________

__________________________________________________________

__________________________________________________________

(Social Security or Tax Identification Number)

 

and delivered

to:_________________________________________________________________

___________________________________________________________________.

 

(Please type or print name and address if different from above)

 

If such number of Shares being purchased hereby shall not be all the Shares that may be purchased pursuant to the attached Warrant, a new Warrant for the balance of such Shares shall be registered in the name of, and delivered to, the Holder at the address set forth below.

 

In full payment of the purchase price with respect to the Shares purchased and transfer taxes, if any, the undersigned hereby tenders payment of $__________ by check, money order or wire transfer payable in United States currency to the order of [________________].

 

	  	
HOLDER:

	  	  
	  	
By:

	  
	  	  	
Name:

	  	  	
Title:

	  	  	
Address:

	
Dated:_______________________

	  

 

  

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EXHIBIT B

TO

WARRANT

 

FORM OF ASSIGNMENT

(To be signed only on transfer of Warrant)

 

For value received, the undersigned hereby sells, assigns, and transfers unto _____________ the right represented by the within Warrant to purchase ______ shares of Common Stock of American Scientific Resources, Incorporated, a Nevada corporation, to which the within Warrant relates, and appoints ____________________ Attorney to transfer such right on the books of American Scientific Resources, Incorporated, a Nevada corporation, with full power of substitution of premises.

 

	
Dated:

	
By:

	  
	  	  	
Name:

	  	  	
Title:

	  	  	
(signature must conform to name of holder as specified on the fact of the Warrant)

	  	  
	  	
Address:

 

Signed in the presence of :

 

Dated:

 

  

-13-Unassociated Document

  

AGREEMENT TO AMEND EARN-IN AGREEMENT

 

This Agreement to Amend the Earn-In Agreement is made of March 29, 2011 (the “Effective Date”) between and among (i) the Seller and (ii) the Buyers.  Capitalized terms not otherwise defined herein shall have the same meanings assigned to them in the Earn-In Agreement (the “Original Earn-In Agreement”) executed by the Parties on June 29, 2010.

RECITALS

 

	
A.

	
The Parties have entered into the Original Earn-In Agreement on June 29, 2010, pursuant to which each Buyer will have the right to exercise a Call Option to his or her Proportionate share of 25% of the make-good shares of the Seller’s Shares upon the terms set forth therein.

	
B.

	
The Parties have agreed to make certain amendments to the Original Earn-In Agreement in the manner set forth in this Agreement.

 

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by the Parties, the Parties agree as follows:

 

ARTICLE I

 

AMENDMENTS TO THE ORIGINAL EARN-IN AGREEMENT

 

	
1.1

	
Each of Subsections 1.1(b), (c) and (d) of the Original Earn-In Agreement shall be amended by inserting the following new provision after the words "Seller's Shares.":

	
  

	
"For the purpose of determining the foregoing net income, the Parties agree that the non-cash expenses will be excluded."

	
1.2

	
Subsection 1.1(d) of the Original Earn-In Agreement shall be further amended by deleting the words "and a satisfactory audit report is issued according to US GAAP for 2010" and replacing them with the following words:

 

"according to the management prepared financial statements for 2010".

 

	
1.3

	
The amendments set forth in Sections 1.1 and 1.2 above shall take effect on the Effective Date.

  

1

  

  

ARTICLE II

 

CONTINUING OBLIGATIONS

Except as expressly modified by this Agreement, every term, provision and condition of the Original Earn-In Agreement shall remain in full force and effect.

ARTICLE III

 

INCORPORATION OF TERMS

Sections 5.1 to 5.13 of the Original Earn-In Agreement shall apply mutatis mutandis to this Agreement.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

  

2

  

   

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and delivered as of the date first set forth above.

 

	
“SELLER”

Meili Tsai, a Hong Kong individual

 

 

 

 

By:  /s/ Meili Tsai

Name: Meili Tsai  蔡美丽

	
ACKNOWLEDGED AND AGREED TO:

“COLLATERAL AGENT”

Guang Dong GuoXin Law Firm

 

 

By:  /s/ Yu Li

Name: Yu Li    李郁

 

	
“BUYER”

Yunlu Yin, an individual citizen of the People’s Republic of China

 

 

 

By:   /s/ Yunlu Yin  

Name: Yunlu Yin   殷允录

	
“BUYER”

Yanming Lv, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Yanming Lv

Name: Yanming Lv    吕延明

 

	
“BUYER”

Shouqiang Han, an individual citizen of the People’s Republic of China

 

 

 

By:   /s/ Shouqiang Han

Name: Shouqiang Han   韩寿强

	
“BUYER”

Shulan Li, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Shulan Li

Name: Shulan Li    李淑兰

 

	
“BUYER”

Qingdong Zeng, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Qingdong Zeng  

Name: Qingdong Zeng     曾庆东

	
“BUYER”

Junyan Su, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Junyan Su

Name: Junyan Su     苏俊岩

 

 

  

3

  

  

	
“BUYER”

Hong Zhang, an individual citizen of the People’s Republic

of China

 

 

By:    /s/ Hong Zhang

Name: Hong Zhang     张红

	
“BUYER”

Guojun Zhao, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Guojun Zhao

Name: Guojun Zhao     赵国军

 

	
“BUYER”

Feng Jin, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Feng Jin

Name: Feng Jin     金凤

	
“BUYER”

Dandan Wang, an individual citizen of the People’s Republic of China

 

 

By:    /s/ Dandan Wang

Name: Dandan Wang     王丹丹

 

	
“BUYER”

Boliang Zhu, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Boliang Zhu

Name: Boliang Zhu    朱伯良

	
“BUYER”

Zhihao Pan, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Zhihao Pan

Name: Zhihao Pan     盘志豪

	
“BUYER”

Zhengang Chi, an individual citizen of the People’s Republic

of China

 

 

 

By:   /s/ Zhengang Chi

Name: Zhengang Chi     迟振刚

	
“BUYER”

Zhen Cheng Huang, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Zhengcheng Huang

Name: Zhencheng Huang    黄振成

	
“BUYER”

Yiting Zhang, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Yiting Zhang

Name: Yiting Zhang    张易庭

	
“BUYER”

Yanliang Song, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Yanliang Song

Name: Yanliang Song    宋延亮

  

4

  

  

	
“BUYER”

Xueye Jing, an individual citizen of the People’s Republic

of China

 

 

By:   /s/  Xueye Jing

Name: Xueye Jing    景雪野

	
“BUYER”

Yan Zhang, an individual citizen of the  People’s Republic of China

 

 

By:   /s/ Yan Zhang

Name: Yan Zhang    张燕

 

	
“BUYER”

Xianming Zeng, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Xianming Zeng

Name: Xianming Zeng    曾宪明

	
“BUYER”

Shunli Wang, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Shunli Wang

Name: Shunli Wang   王顺利

	
“BUYER”

Renyuan Su, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Renyuan Su

Name: Renyuan Su    粟任元

	
“BUYER”

Qingwei Meng, an individual citizen of the People’s Republic of China

 

 

By:   /s/ Qingwei Meng

Name: Qingwei Meng    孟庆伟

 

	
“BUYER”

Nan Li, an individual citizen of the People’s Republic

of China

 

 

By:   /s/  Nan Li

Name: Nan Li     李楠

	
“BUYER”

Naihua Hu, an individual citizen of the People’s Republic

of China

 

 

By:   /s/  Naihua Hu

Name: Naihua Hu    胡乃华

 

	
“BUYER”

Li Li, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Li Li

Name: Li Li     李力

	
“BUYER”

Hong Li, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Hong Li

Name: Hong Li    李虹

 

  

5

  

  

	
“BUYER”

Hanjun Liu, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Hanjun Liu

Name: Hanjun Liu    刘汉军

	
“BUYER”

Fangyuan Song, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Fangyuan Song

Name: Fangyuan Song      宋放远

 

	
“BUYER”

Dan Li, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Dan Li

Name: Dan Li     李丹

	
“BUYER”

An Fu, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ An Fu

Name: An Fu      傅安

 

	
“BUYER”

Chaobo Song, an individual citizen of the People’s Republic

of China

 

 

By:   /s/  Chaobo Song

Name: Chaobo Song     宋朝波

 

	
“BUYER”

Yanmin Song, an individual citizen of the People’s Republic

of China

 

 

By:   /s/ Yanmin Song

Name: Yanmin Song     宋延敏

 

 

 

  

6

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