Document:

Blueprint

 

 
Exhibit
10.1

 

 

SUBSCRIPTION AGREEMENT

 

MabVax
Therapeutics Holdings, Inc.

11535 Sorrento Valley Road, Suite 400

San Diego, CA 92121

 

Ladies
and Gentlemen:

 

The
undersigned (the “Investor”) hereby confirms and
agrees with you as follows:

 

1.
This
Subscription Agreement (this “Agreement ”) is made as of the
date set forth below between MabVax Therapeutics Holdings, Inc., a
Delaware corporation (the “Company”) and the
Investor.

 

2.
The
Company has authorized the sale and issuance of (i) up to 769,231
shares (the “Shares
” or the “Securities”) of the
Company’s common stock, $0.01 par value per share (the
“Common
Stock”) for a purchase price of $0.65 per Share (the
“Offering”).
The Offering and issuance of the Securities have been registered
under the Securities Act of 1933, as amended (the
“Securities
Act”), pursuant to the Company’s Registration
Statement on Form S-3 (No. 333-219291), including all amendments
thereto, the exhibits and any schedules thereto, the documents
otherwise deemed to be a part thereof or included therein by the
rules and regulations of the Securities and Exchange Commission
(the “Commission”) and any
registration statement relating to the Offering and filed pursuant
to Rule 462(b) under such rules and regulations (collectively, the
“Registration
Statement”).

 

3.
As of
the Closing (as defined below) and subject to the terms and
conditions hereof, the Company and the Investor agree that the
Investor will purchase from the Company and the Company will issue
and sell to the Investor such number of Shares as is set forth on
the signature page hereto. Certificates representing the Shares
purchased by the Investor will not be issued to the Investor;
instead, such Shares will be credited to the Investor using
customary procedures for book-entry transfer through the facilities
of The Depository Trust Company.

 

4.
The
completion of the purchase and sale of the Securities shall occur
on the second day following the date hereof on which The NASDAQ
Capital Market is open for trading, or such other time not later
than 2 business days after such date as shall be agreed upon by the
Company and the Investor (the “Closing ”). At the Closing, (a)
the Company shall cause its transfer agent to release to the
Investor the number of Shares being purchased by the Investor, and
(b) the aggregate purchase price for the Securities being purchased
by the Investor will be delivered by or on behalf of the Investor
to the Company. Settlement for the Shares shall occur via
Deposit/Withdrawal At Custodian. The provisions set forth in
Exhibit A hereto shall be incorporated herein by reference as if
set forth fully herein.

 

5.
The
Company has filed with the Commission a prospectus (the
“Base Prospectus
”) and will promptly file a final prospectus supplement
(collectively with the Base Prospectus, the “Prospectus”) with respect to the
Registration Statement in conformity with the Securities Act,
including Rule 424(b) thereunder. The Company will cause to be
delivered or made available a copy of the Prospectus to the
Investor prior to Closing and the Investor hereby consents to the
receipt of the Company’s Prospectus in portable document
format, or .pdf, via e-mail.

 

6.
The
Company hereby makes the following representations, warranties and
covenants to the Investor:

 

(a) The
Company has the requisite corporate power and authority to enter
into and to consummate the transactions contemplated by this
Agreement and otherwise to carry out its obligations hereunder. The
execution and delivery of this Agreement by the Company and the
consummation by it of the transactions contemplated hereunder have
been duly authorized by all necessary action on the part of the
Company. This Agreement has been duly executed by the Company and,
when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except as may be limited
by any bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally or by general
principles of equity.

 

 

 

 

 

 (b) The
Company shall (i) before 9:00 A.M., New York City time, on
October 11, 2017, issue a press release, disclosing all material
aspects of the transactions contemplated hereby, (ii) on
October 11, 2017, file with the Commission a Current Report on Form
8-K, disclosing the material terms and conditions of the
transactions contemplated hereby and (ii) make such other
filings and notices in the manner and time required by the
Commission with respect to the transactions contemplated
hereby.

 

(c) The
Company shall not sell, offer for sale or solicit offers to buy any
security (as defined in Section 2 of the Securities Act) in a
transaction that would be (i) integrated with the offer or
sale of the Securities for purposes of the rules and regulations of
The NASDAQ Capital Market and (ii) would require approval of
the Company’s stockholders prior to the closing of such other
transaction, unless such stockholder approval is obtained before
the closing of such other transaction.

 

(d) If
the Company applies to have the Common Stock traded on any trading
market other than The NASDAQ Capital Market, it will then include
in such application all of the Shares, and will take such other
action as is reasonably necessary to cause all of the Common Stock
to be listed or quoted on such other trading market as promptly as
possible.

 

7.
The
obligations of the Company and the Investor to complete the
transactions contemplated by this Agreement shall be subject to the
following:

 

(a) The
Company’s obligation to issue and sell the Securities to the
Investor shall be subject to: (i) the receipt by the Company
of the purchase price for the Shares being purchased hereunder as
set forth on the signature page hereto and (ii) the accuracy
of the representations and warranties made by the Investor and the
fulfillment of those undertakings of the Investor to be fulfilled
prior to the Closing Date.

 

(b) The
Investor’s obligation to purchase the Securities shall be
subject to the accuracy of the representations and warranties made
by the Company and the fulfillment of those undertakings of the
Company to be fulfilled prior to the Closing Date.

 

8.
The
Investor hereby makes the following representations, warranties and
covenants to the Company:

 

(a) The
Investor represents that it has received or had full access to the
Base Prospectus as well as the Company’s periodic reports and
other information incorporated by reference therein, prior to or in
connection with its receipt of this Agreement.

 

(b) The
Investor has the requisite power and authority to enter into this
Agreement and to consummate the transactions contemplated hereby.
The execution and delivery of this Agreement by the Investor and
the consummation by it of the transactions contemplated hereunder
have been duly authorized by all necessary action on the part of
the Investor. This Agreement has been executed by the Investor and,
when delivered in accordance with the terms hereof, will constitute
a valid and binding obligation of the Investor enforceable against
the Investor in accordance with its terms.

 

(c) The
Investor understands that nothing in this Agreement or any other
materials presented to the Investor in connection with the purchase
and sale of the Securities constitutes legal, tax or investment
advice. The Investor has consulted such legal, tax and investment
advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of
Securities.

 

(d) The
making, execution and performance of this Agreement by the Investor
and the consummation of the transactions contemplated herein will
not conflict with or result in a breach or violation of any of the
terms and provisions of, or constitute a default under,
(i) the charter, bylaws or other organizational documents of
such Investor, as applicable, or (ii) any law, order, rule,
regulation, writ, injunction, judgment or decree of any court,
administrative agency, regulatory body, government or governmental
agency or body, domestic or foreign, having jurisdiction over such
Investor or its properties, except for any conflict, breach,
violation or default which is not reasonably likely to have a
material adverse effect on such Investor’s performance of its
obligations hereunder or the consummation of the transactions
contemplated hereby.

 

(e) The
Investor acknowledges that the Company will have the authority to
issue shares of Common Stock, in excess of those being issued in
connection with the Offering, and that the Company may issue
additional shares of Common Stock from time to time. The issuance
of additional shares of Common Stock may cause dilution of the
existing shares of Common Stock and a decrease in the market price
of such existing shares.

 

 

 

 

 

(f) If
the Investor is a retirement plan or is investing on behalf of a
retirement plan, the Investor acknowledges that an investment in
the Securities poses additional risks, including the inability to
use losses generated by an investment in the Securities to offset
taxable income.

 

(g) The
Investor acknowledges that no action had been or will be taken in
any jurisdiction outside the United States by the Company that
would permit an offering of the Securities, or possession or
distribution of offering materials in connection with the issue of
the Securities, in any jurisdiction outside the United States where
action for that purpose is required. Each Investor outside the
United States will comply with all applicable laws and regulations
in each foreign jurisdiction in which it purchases, offers, sells
or delivers Securities or has in its possession or distributes any
offering material, in all cases at its own expense.

 

(h) The
Investor acknowledges that the Company and others will rely upon
the truth and accuracy of the foregoing representations,
acknowledgements and agreements and agrees that if any of the
representations, warranties and acknowledgements deemed to have
been made by it by its purchase of the Securities is no longer
accurate, the Investor shall promptly notify the Company. If the
Investor is acquiring Securities as a fiduciary or agent for one or
more investor accounts, it represents that is has sole investment
discretion with respect to each such account and it has full power
to make the foregoing representations, warranties, acknowledgements
and agreements on behalf of such account.

 

10.
Notwithstanding
any investigation made by any party to this Agreement, all
covenants, agreements, representations and warranties made by the
Company and the Investor herein will survive the execution of this
Agreement, the delivery to the Investor of the Securities being
purchased and the payment therefor.

 

11.
This
Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the
Investor.

 

12.
The
headings of the various sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed
to be part of this Agreement.

 

13.
In
case any provision contained in this Agreement should be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein will
not in any way be affected or impaired thereby.

 

14.
This
Agreement will be governed by, and construed in accordance with,
the internal laws of the State of New York, without giving effect
to the principles of conflicts of law that would require the
application of the laws of any other jurisdiction.

 

15.
This
Agreement may be executed in counterparts, each of which will
constitute an original, but all of which, when taken together, will
constitute but one instrument, and will become effective when
counterparts have been signed by each party hereto and delivered to
the other party.

 

16.
The
Investor acknowledges and agrees that such Investor’s receipt
of the Company’s counterpart to this Agreement shall
constitute written confirmation of the Company’s agreement to
sell Securities to such Investor. No federal or state agency or
authority has made any finding or determination as to the accuracy
or adequacy of the Registration Statement or as to the fairness of
the terms of the Offering nor any recommendation or endorsement of
the Securities. Any representation to the contrary is a criminal
offense. In making an investment decision, Investors must rely on
their own examination of the Company and the terms of the Offering,
including the merits and risks involved.

 

 

 

 

 

INVESTOR SIGNATURE PAGE

 

Number
of Shares:

 

Purchase
Price Per Share: $0.65

 

Aggregate
Purchase Price:

 

Please
confirm that the foregoing correctly sets forth the agreement
between us by signing in the space provided below for that
purpose.

 

Dated
as of: October 10, 2017

 

__________________________________

INVESTOR

By:                            
                                         
                  

Print Name:
                                      
                                

Title:
                          
                                         
                

Name in
which Securities are to be registered:

 

Mailing
Address:

 

Taxpayer
Identification Number:

 

Agreed
and Accepted this         
day of         ,
2017:

 

MABVAX
THERAPEUTICS HOLDINGS, INC.

 

By:
                           
                                         
                    

  Title:                        
                                         
                 

 

 

 

 

 

 

EXHIBIT
A

 

TO BE COMPLETED BY INVESTOR

DWAC SETTLEMENT

 

Delivery
by electronic book-entry at The Depository Trust Company
(“DTC”),
registered in the Investor’s name and address as set forth on
the signature page of the Agreement to which this Exhibit A is attached, and
released by Computershare Trust Company, N.A., the Company’s
transfer agent (the “Transfer Agent”), to the Investor
at the Closing.

 

	
 

	
 

	
 

	

Name of
DTC Participant (broker-dealer at which the account or accounts to
be credited with the Shares are maintained):

	
 

	
 

	
 

	
 

	

DTC
Participant Number:

	
 

	
 

	
 

	
 

	

Name of
Account at DTC Participant being credited with the
Shares:

	
 

	
 

	
 

	
 

	

Account
Number at DTC Participant being credited with the
Shares:

	
 

	
 

 

NO LATER THAN ONE (1) BUSINESS DAY AFTER THE EXECUTION OF THE
AGREEMENT TO WHICH THIS EXHIBIT A
IS ATTACHED BY THE INVESTOR AND THE
COMPANY, THE INVESTOR SHALL:

 

	
 

	
 

	
 

	
 

	
 

	

(I)

	
 

	

DIRECT THE BROKER-DEALER AT WHICH THE ACCOUNT OR ACCOUNTS TO BE
CREDITED WITH THE SHARES ARE MAINTAINED TO SET UP A
DEPOSIT/WITHDRAWAL AT CUSTODIAN (“DWAC”) ON THE CLOSING
DATE INSTRUCTING THE TRANSFER AGENT TO CREDIT SUCH ACCOUNT OR
ACCOUNTS WITH THE SHARES, AND

	
 

	
 

	

(II)

	
 

	

REMIT BY WIRE TRANSFER THE AMOUNT OF FUNDS EQUAL TO THE AGGREGATE
PURCHASE PRICE FOR THE SECURITIES BEING PURCHASED BY THE INVESTOR
TO THE FOLLOWING ACCOUNT:arec_ex41.htm

EXHIBIT 4.1
  
  	 
	 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR ANY STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT.
	 

	 
	 
	 

	 
	 IN ADDITION, A LOAN AND SECURITY AGREEMENT DATED AS OF OCTOBER 4, 2017 (THE “LOAN AGREEMENT”) CONTAINS CERTAIN ADDITIONAL TERMS AND AGREEMENTS BETWEEN THE PARTIES WITH RESPECT TO THIS WARRANT.
	 

 ___________________________________________ 
      
 
 
COMMON STOCK PURCHASE WARRANT “B-4”
  
  	 Name of Holder:
	 Golden Properties Ltd.
	
			 

	 Number of Shares:
	 3,417,006
	
			 

	 Original Issue Date:
	 October 4, 2017
	
			 

	 Expiration Date:
	 October 4, 2020
	
			 

	 Exercise Price per Share:
	 $0.01
	

  
 American Resources Corporation, a company organized and existing under the laws of the State of Florida (the “Company”), hereby certifies that, for value received, Golden Properties Ltd., or its registered assigns (the “Warrant Holder”), is entitled, subject to the terms set forth below, to purchase from the Company up to Three Million Four Hundred Seventeen Thousand Six (3,417,006) shares (as adjusted from time to time as provided in Section 7, the “Warrant Shares”) of common stock, $.001 par value, of the Company (the “Common Stock”) at a price of One Cent ($0.01) per Warrant Share (as adjusted from time to time as provided in Section 7, the “Exercise Price”), at any time and from time to time from and after the date thereof and through and including 5:00 p.m. Indianapolis, Indiana time on October 02, 2020 (the “Expiration Date”), and subject to the following terms and conditions:
  
 1. Registration of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Warrant Holder hereof from time to time. The Company may deem and treat the registered Warrant Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Warrant Holder, and for all other purposes, and the Company shall not be affected by notice to the contrary.
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 1 OF 8 
  	 
	 
	 
 
	 

  
 2. Investment Representation. The Warrant Holder by accepting this Warrant represents that the Warrant Holder is acquiring this Warrant for its own account or the account of an affiliate for investment purposes and not with the view to any offering or distribution and that the Warrant Holder will not sell or otherwise dispose of this Warrant or the underlying Warrant Shares in violation of applicable securities laws. The Warrant Holder acknowledges that the certificates representing any Warrant Shares will bear a legend indicating that they have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”) and may not be sold by the Warrant Holder except pursuant to an effective registration statement or pursuant to an exemption from registration requirements of the 1933 Act and in accordance with federal and state securities laws. If this Warrant was acquired by the Warrant Holder pursuant to the exemption from the registration requirements of the 1933 Act afforded by Regulation S thereunder, the Warrant Holder acknowledges and covenants that this Warrant may not be exercised by or on behalf of a Person during the one year distribution compliance period (as defined in Regulation S) following the date hereof. “Person” means an individual, partnership, firm, limited liability company, trust, joint venture, association, corporation, or any other legal entity.
  
 3. Validity of Warrant and Issue of Shares. The Company represents and warrants that this Warrant has been duly authorized and validly issued and warrants and agrees that all of Common Stock that may be issued upon the exercise of the rights represented by this Warrant will, when issued upon such exercise, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof. The Company further warrants and agrees that during the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized and reserved a sufficient number of Common Stock to provide for the exercise of the rights represented by this Warrant.
  
 4. Registration of Transfers and Exchange of Warrants.
  
 a. Subject to compliance with the legend set forth on the face of this Warrant, the Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of this Warrant with the Form of Assignment attached hereto duly completed and signed, to the Company at the office specified in or pursuant to Section 13. Upon any such registration or transfer, a new warrant to purchase Common Stock, in substantially the form of this Warrant (any such new warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the transferring Warrant Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance of such transferee of all of the rights and obligations of a Warrant Holder of a Warrant.
  
 b. This Warrant is exchangeable, upon the surrender hereof by the Warrant Holder to the office of the Company specified in or pursuant to Section 13 for one or more New Warrants, evidencing in the aggregate the right to purchase the number of Warrant Shares which may then be purchased hereunder. Any such New Warrant will be dated the date of such exchange.
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 2 OF 8
  	 
	 
	 
 
	 

  
 5. Exercise of Warrants.
  
 a. Upon surrender of this Warrant with the Form of Election to Purchase attached hereto duly completed and signed to the Company, at its address set forth in Section 13, and upon payment and delivery of the Exercise Price per Warrant Share multiplied by the number of Warrant Shares that the Warrant Holder intends to purchase hereunder, in lawful money of the United States of America, in cash or by certified or official bank check or checks, to the Company, all as specified by the Warrant Holder in the Form of Election to Purchase, the Company shall promptly (but in no event later than 7 business days after the Date of Exercise (as defined herein)) issue or cause to be issued and cause to be delivered to or upon the written order of the Warrant Holder and in such name or names as the Warrant Holder may designate (subject to the restrictions on transfer described in the legend set forth on the face of this Warrant), a certificate for the Warrant Shares issuable upon such exercise, with such restrictive legend as required by the 1933 Act. Any person so designated by the Warrant Holder to receive Warrant Shares shall be deemed to have become holder of record of such Warrant Shares as of the Date of Exercise of this Warrant.
  
 b. A “Date of Exercise” means the date on which the Company shall have received (i) this Warrant (or any New Warrant, as applicable), with the Form of Election to Purchase attached hereto (or attached to such New Warrant) appropriately completed and duly signed, and (ii) payment of the Exercise Price for the number of Warrant Shares so indicated by the Warrant Holder to be purchased.
  
 c. This Warrant shall be exercisable at any time and from time to time for such number of Warrant Shares as is indicated in the attached Form of Election to Purchase. If less than all of the Warrant Shares which may be purchased under this Warrant are exercised at any time, the Company shall issue or cause to be issued, at its expense, a New Warrant evidencing the right to purchase the remaining number of Warrant Shares for which no exercise has been evidenced by this Warrant.
  
 d. Notwithstanding anything contained herein to the contrary the Warrant Holder may, at its election exercised in its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”):
  
 Net Number = (A x (B - C))/B
  
 For purposes of the foregoing formula: 
  
 A= the total number shares with respect to which this Warrant is then being exercised.
  
 B= the last reported sale price (as reported by Bloomberg) of the Common Stock on the trading day immediately preceding the date of the Exercise Notice. 
  
 C= the Warrant Exercise Price then in effect at the time of such exercise.
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 3 OF 8
  	 
	 
	 
 
	 

  
 6. Maximum Exercise. The Warrant Holder shall not be entitled to exercise this Warrant on a Date of Exercise in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Warrant Holder and its affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by the Warrant Holder and its affiliates of more than 9.99% of the outstanding shares of Common Stock on such date, unless otherwise mutually agreed to in writing between the Company and the Warrant Holder.
  
 7. Adjustment of Exercise Price and Number of Shares. The character of the shares of stock or other securities at the time issuable upon exercise of this Warrant and the Exercise Price therefore, are subject to adjustment upon the occurrence of the following events, and all such adjustments shall be cumulative:
  
 a. Adjustment for Stock Splits, Stock Dividends, Recapitalizations, Etc. The Exercise Price of this Warrant and the number of shares of Common Stock or other securities at the time issuable upon exercise of this Warrant shall be appropriately adjusted to reflect any stock dividend, stock split, combination of shares, reclassification, recapitalization or other similar event affecting the number of outstanding shares of stock or securities.
  
 b. Adjustment for Reorganization, Consolidation, Merger, Etc. In case of any consolidation or merger of the Company with or into any other corporation, entity or person, or any other corporate reorganization, in which the Company shall not be the continuing or surviving entity of such consolidation, merger or reorganization (any such transaction being hereinafter referred to as a "Reorganization"), then, in each case, the holder of this Warrant, on exercise hereof at any time after the consummation or effective date of such Reorganization (the "Effective Date"), shall receive, in lieu of the shares of stock or other securities at any time issuable upon the exercise of the Warrant issuable on such exercise prior to the Effective Date, the stock and other securities and property (including cash) to which such holder would have been entitled upon the Effective Date if such holder had exercised this Warrant immediately prior thereto (all subject to further adjustment as provided in this Warrant).
  
 c. Certificate as to Adjustments. In case of any adjustment or readjustment in the price or kind of securities issuable on the exercise of this Warrant, the Company will promptly give written notice thereof to the holder of this Warrant in the form of a certificate, certified and confirmed by the Board of Directors of the Company, setting forth such adjustment or readjustment and showing in reasonable detail the facts upon which such adjustment or readjustment is based.
  
 d. Adjustment for Loan Prepayment. In the event that the Company repays the Loan (as described in the Loan Agreement), plus any accrued interest, on or before the Determination Date (as defined in the Loan Agreement), the number of Warrant Shares under this Warrant shall be immediately reduced to up to a maximum of Two Million Eight Hundred Ten Thousand Five Hundred Seventeen (2,810,517) common shares, as adjusted from time to time as provided in other provisions of this Section 7.
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 4 OF 8
  	 
	 
	 
 
	 

  
 8. Fractional Shares. The Company shall not be required to issue or cause to be issued fractional Warrant Shares on the exercise of this Warrant. The number of full Warrant Shares that shall be issuable upon the exercise of this Warrant shall be computed on the basis of the aggregate number of Warrants Shares purchasable on exercise of this Warrant so presented. If any fraction of a Warrant Share would, except for the provisions of this Section 8, be issuable on the exercise of this Warrant, the Company shall, at its option, (i) pay an amount in cash equal to the Exercise Price multiplied by such fraction or (ii) round the number of Warrant Shares issuable, up to the next whole number.
  
 9. Sale or Merger of the Company. Upon a Change in Control, the restriction contained in Section 6 shall immediately be released and the Warrant Holder will have the right to exercise this Warrant concurrently with such Change in Control event. For purposes of this Warrant, the term “Change in Control” shall mean a consolidation or merger of the Company with or into another company or entity in which the Company is not the surviving entity or the sale of all or substantially all of the assets of the Company to another company or entity not controlled by the then existing stockholders of the Company in a transaction or series of transactions.
  
 10. Notice of Intent to Sell or Merge the Company. The Company will give Warrant Holder Five (5) business days notice before the event of a sale of all or substantially all of the assets of the Company or the merger or consolidation of the Company in a transaction in which the Company is not the surviving entity.
  
 11. Issuance of Substitute Warrant. In the event of a merger, consolidation, recapitalization or reorganization of the Company or a reclassification of Company shares of stock, which results in an adjustment to the number of shares subject to this Warrant and/or the Exercise Price hereunder, the Company agrees to issue to the Warrant Holder a substitute Warrant reflecting the adjusted number of shares and/or Exercise Price upon the surrender of this Warrant to the Company.
  
 12. Notice. All notices and other communications hereunder shall be in writing and shall be deemed to have been given (i) on the date they are delivered if delivered in person; (ii) on the date initially received if delivered by facsimile transmission followed by registered or certified mail confirmation; (iii) on the date delivered by an overnight courier service; or (iv) on the third business day after it is mailed by registered or certified mail, return receipt requested with postage and other fees prepaid as follows:
  
 If to the Company:
  
 American Resources Corporation
 PO Box: 606
 Fishers, IN 46038
 Attention: Kirk Taylor
   
 If to the Warrant Holder:
  
 Golden Properties Ltd.
 1177 West Hastings Street, Suite 500
 Vancouver, British Columbia V6E 2K3
 Canada
 Attention: Simon Royle
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 5 OF 8
  	 
	 
	 
 
	 

  
 13. Miscellaneous.
  
 a. This Warrant shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Warrant may be amended only by a writing signed by the Company and the Warrant Holder.
  
 b. Nothing in this Warrant shall be construed to give to any person or corporation other than the Company and the Warrant Holder any legal or equitable right, remedy or cause of action under this Warrant; this Warrant shall be for the sole and exclusive benefit of the Company and the Warrant Holder.
  
 c. This Warrant shall be governed by, construed and enforced in accordance with the internal laws of the State of Indiana without regard to the principles of conflicts of law thereof.
  
 d. The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit or affect any of the provisions hereof.
  
 e. In case any one or more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceablilty of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonably substitute therefore, and upon so agreeing, shall incorporate such substitute provision in this Warrant.
  
 f. The Warrant Holder shall not, by virtue hereof, be entitled to any voting or other rights of a shareholder of the Company, either at law or equity, and the rights of the Warrant Holder are limited to those expressed in this Warrant.
  
 [SIGNATURES ON FOLLOWING PAGE]
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 6 OF 8
  	 
	 
	 
 
	 

  
 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by the authorized officer as of the date first above stated.
  
  	American Resources Corporation	
	   	 	 
	By:		
	 Name:
	Thomas M. Sauve	 
	Its:	President	 

  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 7 OF 8 
  	 
	 
	 
 
	 

  
 FORM OF ELECTION TO PURCHASE
  
 (To be executed by the Warrant Holder to exercise the right to purchase shares of Common Stock under the foregoing Warrant)
  
 To: American Resources Corporation:
  
 In accordance with the Warrant enclosed with this Form of Election to Purchase, the undersigned hereby irrevocably elects to purchase ______________ shares of Common Stock (“Common Stock”), $.0001 par value, of American Resources Corporation and encloses the warrant and $0.01 for each Warrant Share being purchased or an aggregate of $________________ in cash or certified or official bank check or checks, which sum represents the aggregate Exercise Price (as defined in the Warrant) together with any applicable taxes payable by the undersigned pursuant to the Warrant.
  
 The undersigned requests that certificates for the shares of Common Stock issuable upon this exercise be issued in the name of:
  
 __________________________________________________
  
 __________________________________________________
  
 __________________________________________________
 (Please print name and address)
  
 __________________________________________________
 (Please insert Social Security or Tax Identification Number)
  
 If the number of shares of Common Stock issuable upon this exercise shall not be all of the shares of Common Stock which the undersigned is entitled to purchase in accordance with the enclosed Warrant, the undersigned requests that a New Warrant (as defined in the Warrant) evidencing the right to purchase the shares of Common Stock not issuable pursuant to the exercise evidenced hereby be issued in the name of and delivered to:
  
 __________________________________________________
  
 __________________________________________________
  
 __________________________________________________
 (Please print name and address)
  
 Dated: _____________________
  
 Name of Warrant Holder:
  
 (Print) _______________________________________
 (By:) ________________________________________
 (Name:) ______________________________________
 (Title:) _______________________________________
  
 Signature must conform in all respects to name of Warrant Holder as specified on the face of the Warrant
  
 WARRANT AGREEMENT BETWEEN COMPANY AND HOLDER
 PAGE 8 OF 8

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