Document:

mgbr_105.htm

EXHIBIT 10.5

 

MEGA BRIDGE, INC. TO BE KNOWN AS

 

HYPGEN INC.

 

CONSULTING AGREEMENT

 

THIS AGREEMENT, dated this 28th day of JUNE 2017, is made by and between MEGA BRIDGE INC., a Nevada Corporation with primary place of business at 501 Madison Avenue 14th Floor. New York, NY 10022 and its successors (the “Company”), and Apica Investments Limited, a BVI company (the “CONSULTANT”).

 

In consideration of the mutual covenants herein contained and of the mutual benefits herein provided, the Company and the CONSULTANT agree as follows:

 

1. Representations and Warranties.

 

The CONSULTANT represents and warrants to the Company that the CONSULTANT is not bound by any restrictive covenants and has no prior or other obligations or commitments of any kind that would in any way prevent, restrict, hinder or interfere with the CONSULTANT’s acceptance of continued engagement or the performance of all duties and services to the fullest extent of the CONSULTANT’s ability and knowledge.

 

2. Term of Consultancy.

 

The Company will engage the CONSULTANT for a term commencing on June 28, 2017 and continuing until the date which is 2 years after the date (the “$1M Financing Date”) which the Company has received a minimum of $1,000,000 in gross proceeds from equity financings (the “$1M Financing”) after the date hereof (the “Initial Term”), and the CONSULTANT accepts agreement by the Company on the terms and conditions set forth below.

 

3. Duties and Functions.

 

The Consultant agrees to provide the following services:

 

	
 
	·	Assist the Company with the introduction of value added investors, potential strategic and business development partners.
	
 
	
 
	
 

	
 
	·	Assist the Company in developing corporate structures, management strategies, business development and other services as mutually agreed to by the Company and Consultant.
	
 
	
 
	
 

	
 
	·	Other services as mutually agreed to by the Company and Consultant.

 

The CONSULTANT shall report directly to the Company’s CEO and /or Board of Directors (the “Board”). The CONSULTANT agrees to perform such modified, different or additional duties as may, from time to time, be assigned by the Board. At the CONSULTANT’s discretion, the CONSULTANT may perform its duties under this Agreement at an office provided by the Company or elsewhere.

 

	 
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4. Compensation.

 

(a) Fees: As compensation for its services, effective after the $1M Financing Date, the Company agrees to pay the CONSULTANT a base fee $21,600, payable on a monthly basis ($1,800 per month), initial first payment effective 30 days after the $1M Financing Date and thereafter every 15th day of every month. In the event the Company is unable to pay the CONSULTANT monthly, the fees shall accrue without interest.

 

(b) Bonus: The CONSULTANT’s monthly base fee shall immediately increase to $4,500 upon the Company’s successful completion of a capital raise of at least $5 million U.S. dollars ($5,000,000).

 

(c) Equity: Upon the commencement of its engagement with the Company, the CONSULTANT shall be granted either in its name or the CONSULTANT’s designated entity, trust and/or holding company shares of the Company that will equal 15,000,000, shares of the Company’s common stock. At all times during the term of this Agreement prior to the $5M Financing Date, except with respect to the Excepted Issuances (as defined below), if the Company issues any shares of Company common stock, the CONSULTANT shall be granted additional shares of the Company’s common stock in an amount equal to 10.6% of the amount of the shares of Company common stock issued by the Company. These additional shares shall be issued prior to end of each quarter. In addition, upon the Company’s successful completion of a capital raise of or exceeding 5 million U.S. dollars ($5,000,000) (the “$5M Financing Date”), then the CONSULTANT shall no longer be entitled to receive additional shares of the Company. The CONSULTANT shall not receive any additional shares of the Company’s common stock in the event of the Company’s issuance of the following securities (the “Excepted Issuances”): (i) shares of Company common stock in connection with a debt or equity financing; (ii) shares of common stock to be issued to Rich Pharmaceuticals, Inc.; or (iii) the shares to be issued upon exercise of the warrants and conversion of the convertible notes described in the Assignment Agreement dated June 28th, 2017 between the Company and Richard L. Chang’s Holdings, LLC.

 

In addition, the CONSULTANT shall be issued a warrant to acquire 10,000,000 shares of the Company at an exercise price of $0.25. The warrants shall have a five-year term and anti-dilution protection.

 

(d) Other Expenses: In addition to the compensation provided for above, the Company agrees to pay or to reimburse the CONSULTANT during its engagement for all travel, reasonable, ordinary and necessary, properly documented and client-related business or entertainment expenses incurred in the performance of its services hereunder in accordance with Company policy in effect, on a monthly basis; provided that all such expenses are pre-approved in writing by the Company’s CEO. The CONSULTANT shall submit invoices and receipts on a monthly basis for all expenses for which reimbursement is sought. The CONSULTANT shall be granted business class tickets for all flights to Europe, Asia or flights of over 5 hours flight time.

 

5. Indemnification, Legal Expenses.

 

The Company and CONSULTANT understand that the CONSULTANT and any and all costs, including legal fees, incurred by the CONSULTANT in its capacity as legally performing its duties as a consultant will be indemnified and reimbursed by the Company.

 

6. Termination.

 

(a) Voluntary Termination By CONSULTANT. Notwithstanding the foregoing, the CONSULTANT may terminate the relationship at any time for any reason by giving the Company at least sixty (60) days’ written notice. The Company, at its election, may (i) require the CONSULTANT to continue to perform its duties hereunder for the full notice period, or (ii) terminate the CONSULTANT at any time during such notice period, provided that any such termination shall not be deemed to be a Termination Without Cause of the CONSULTANT by the Company.

 

	 
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(b) Termination By Company For Cause. Notwithstanding the foregoing, the Company may terminate the CONSULTANT under this Agreement for cause at any time during the Agreement Term, upon providing the CONSULTANT with written notice of the Termination For Cause. If the CONSULTANT is terminated for cause, the CONSULTANT will not be entitled to and shall not receive any compensation or benefits of any type following the effective date of termination, although all compensation accrued prior thereto shall remain the CONSULTANT’s (including the shares granted in this Agreement). As used in this Agreement, the term “Cause” shall include, without limitation: dishonesty; fraud; serious dereliction of duty; criminal activity; acts of moral turpitude; conviction of a felony, plea of guilty or nolo contendere to a felony charge or any criminal act involving moral turpitude.

 

(c) Termination By Company Without Cause. Upon thirty (60) days’ written notice, the Company may terminate the CONSULTANT without cause. If the CONSULTANT’s engagement is terminated by the Company without cause at any time after the $1M Financing Date, the CONSULTANT shall continue to receive its base fee and any bonus payments for a period of six (6) months from the effective date of termination (the “Severance Period”).

 

The compensation to be paid or provided under this Section 5(c) are referred to herein as the “Termination Compensation.” The CONSULTANT shall not be entitled to any Termination Compensation unless: (i) the CONSULTANT complies with all surviving provisions of any non- competition agreement, non-solicitation agreement, confidentiality agreement or inventions assignment agreement that it signed, and (ii) the CONSULTANT executes and delivers to the Company after a notice of termination a release in form and substance acceptable to the Company, by which the CONSULTANT releases the Company from any obligations and liabilities of any type whatsoever under this Agreement, except for the Company’s obligations with respect to the Termination Compensation, and that release shall not affect the CONSULTANT’s right to indemnification, if any, for actions taken within the scope of its engagement. Notwithstanding anything herein, no Termination Compensation shall be paid or otherwise provided until all applicable revocation periods have fully expired, and the mutual release becomes fully and finally enforceable. The parties hereto acknowledge that the Termination Compensation to be provided under this Section 5(c) is in consideration for CONSULTANT’s release.

 

(d) Expiration of the Agreement and its Effect on Termination Compensation. If the Agreement expires at the end of the Initial Term or any renewal term after proper advance notice by either party of its intent not to renew, the Agreement shall expire, and the CONSULTANT shall not be entitled to any Termination Compensation of any kind, except as required by law.

 

7. Company Property.

 

All correspondence, records, documents, software, promotional materials, and other Company property, including all copies, which come into the CONSULTANT’s possession by, through or in the course its engagement, regardless of the source and whether created by the CONSULTANT, are the sole and exclusive property of the Company, and immediately upon the termination of the CONSULTANT’s engagement, with or without cause, or at any time on the Company’s request, the CONSULTANT shall return to the Company all such property of the Company, without retaining any copies, summaries or excerpts of any kind or in any format whatsoever.

 

	 
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8. Non-Competition/Non-Solicitation:

 

(a) The CONSULTANT agrees and acknowledges that, in connection with its engagement with the Company, it will be provided with access to and become familiar with confidential and proprietary information and trade secrets belonging to the Company. In consideration of its engagement with the Company pursuant to this Agreement and for other good and valuable consideration, the receipt of which is hereby acknowledged, the CONSULTANT agrees that, while it is engaged by the Company and for a one (1) year period after the termination of its engagement, with or without cause, it shall not, either on its own behalf or on behalf of any third party, except on behalf of the Company, directly or indirectly, engage in any of the following activities.

 

(1) Other than through its ownership of stock of the Company, directly or indirectly, own, manage, operate, join, control, or participate in the ownership, management, operation control, or be connected as proprietor, partners, stockholder, officer, director, principal, agent, representative, joint venturer, investor, lender, consultant or otherwise with, or use or permit its name to be used in connection with, any business or enterprise engaged directly or indirectly in competition with the business conducted by the Company, at any time during such period, The foregoing restriction shall not be construed to prohibit the CONSULTANT’s ownership of not more than one percent (1%) of any class of securities of any corporation that is engaged in any of the foregoing businesses having a class of securities registered pursuant to the Securities Exchange Act of 1934, as amended; or

 

(2) Attempt in any manner to solicit from any client or customer of the Company at the time of the CONSULTANT’s termination, business of the type performed by the Company or to persuade any client of the Company to cease to do business or to reduce the amount of business which any such client has customarily done or actively contemplates doing with the Company; or

 

(3) Recruit, solicit or induce, or attempt to induce, any employee or employees of the Company or its affiliates to terminate their employment with, or otherwise cease their relationship with the Company or its affiliates.

 

(b) The parties acknowledge and agree that the restrictions placed upon the CONSULTANT herein are reasonable and necessary to protect the Company’s legitimate interests.

 

(c) If any restriction set forth in this Section 7 is found by any court of competent jurisdiction to be unenforceable as overbroad, it shall be reformed and interpreted to extend over the maximum period of time, range of activities or geographic areas as to which it may be enforceable.

 

(d) The provisions of this Section 7 shall survive termination or expiration of this Agreement.

 

9. Protection of Confidential Information.

 

The CONSULTANT agrees that all information, whether or not in writing, relating to the business, technical or financial affairs of the Company and that is generally understood in the industry as being confidential and/or proprietary information is the sole and exclusive property of the Company. The CONSULTANT agrees to hold in a fiduciary capacity for the sole benefit of the Company all secret, confidential or proprietary information, knowledge, data, or trade secret (“Confidential Information”) relating to the Company or any of its affiliates or their respective clients, which Confidential Information shall have been obtained during its engagement with the Company. This Confidential Information shall include, but not be limited to, information regarding the Company’s trade secrets, inventions, patent, trademark and copyright applications, cost and pricing data, customer and supplier lists, specifications, financial data, schematics and prototypes. The CONSULTANT agrees that it will not, at any time, either during the Term of this Agreement or after its termination, disclose to anyone any Confidential Information, or utilize such Confidential Information for its own benefit, or for the benefit of third parties without written approval by an officer of the Company. The CONSULTANT further agrees that all memoranda, notes, records, data, schematics, sketches, computer programs, prototypes or written, photographic, magnetic or other documents or tangible objects compiled by him or made available to him during the Term of its engagement concerning the business of the Company and/or its clients, including any copies of such materials, shall be the sole and exclusive property of the Company and shall be delivered to the Company on the termination of its engagement, or at any other time upon the Company’s request.

 

	 
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10. Injunctive Relief.

 

The CONSULTANT understands that, in the event it breaches this Agreement, the Company may suffer irreparable harm and will, therefore, be entitled to injunctive relief without the posting of a bond or other guarantee, to enforce this Agreement. This provision is not a waiver of any other rights that the Company may have under this Agreement, including the right to recover attorneys’ fees and costs to cover the expenses it incurs in seeking to enforce this Agreement, as well as to any other remedies available to it, including money damages.

 

11. Binding Agreement.

 

This Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives, successors and assigns. In the event the Company is acquired, is a non-surviving party in a merger, or transfers substantially all of its assets, this Agreement shall not be terminated and the transferee or surviving company shall be bound by the provisions of this Agreement. The parties understand that the obligations of the CONSULTANT may not be assigned by it. This Agreement can only be modified if mutually agreeable and in writing executed by both parties.

 

12. Nonassignability.

 

This Agreement and all rights, liabilities and obligations hereunder will be binding upon and inure to the benefit of each party’s successors, but neither party will assign, transfer or subcontract this Agreement or any of its obligations hereunder without the other party’s express, prior written consent.

 

13. Severability.

 

In the event that any term or provision of this Agreement is held invalid, void or unenforceable, then the remainder of this Agreement will not be affected, impaired or invalidated, and each such term and provision of this Agreement will be valid and enforceable to the fullest extent permitted by law.

 

14. Governing Law.

 

Regardless of the place of execution or performance, this Agreement and any related indemnification and confidentiality agreements between the parties will be deemed made in California. All actions arising hereunder or in connection herewith will fall under the exclusive jurisdiction and venue of the American Arbitration Association located in Los Angeles, CA and each of the parties hereto hereby agrees to the personal jurisdiction and venue of said arbitrator. The parties hereto agree to service of process by certified mail or receipted courier. Any right to trial by jury with respect to any claim or proceeding related to or arising out of this engagement, or any transaction or conduct in connection herewith, is waived.

 

	 
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15. Advisory Services. Consultant is not a registered broker-dealer, attorney, accountant, negotiator, or financial advisor to the Company. Consultant will not make any recommendations about the Services and the Company will seek its own professional advice with respect to the Services. All payments made hereunder are nonrefundable.

 

16. Notices. All notices, requests and demands hereunder will be in writing and will be deemed to have been duly given (a) upon personal delivery, (b) five (5) days after being mailed by registered or certified mail, return receipt requested, (c) one (1) business day after being sent by email, or (c) one (1) business day after being sent by nationally recognized overnight courier.

 

17. Independent Contractor. The parties expressly intend and agree that Consultant is acting as an independent contractor of Company and is not providing the services under the direction or control of the Company. Nothing contained in this Agreement shall be deemed to create a partnership, joint venture or agency or employer/employee relationship between the parties, nor does it grant either party any authority to assume or create any obligation on behalf of or in the name of the other. The Consultant has no authority to obligate or bind the Company by contract or otherwise. The Consultant will not be eligible for any employee benefits, and the Company will not make deductions from the Consultant’s fees for taxes (except as otherwise required by applicable law or regulation). Any taxes imposed on the Consultant due to the services performed hereunder will be the sole responsibility of the Consultant. Consultant shall have the sole responsibility for ensuring that it complies with all laws in the performance of the services, and all tax payment and reporting obligations of the United States and the country, state and city in which Consultant is based.

 

[Signature Page Follows]

 

	 
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IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	
CONSULTANT

Apica Investments Limited
	
	 	 	 	 
		By:		
	
 
	
Name:
	CHEW Chuan Tin	 
	 	Title:	Director	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MEGA BRIDGE, INC. (to be known as HYPGEN INC.)
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	

	
 

	
 
	
Name: 
	
ANTONIO TREMINIO
	
 

	
 
	
Title:
	
CEO
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MEGA BRIDGE, INC. (to be known as HYPGEN INC.)
	
 

	
 
	
 
	
 
	
 

	
 
	

	
 

	
 
	
David E. Price, Secretary, Corp
	
 

	
 
	
MEGA BRIDGE, Inc. (to be known as HYPGEN INC.)
	
 

 

 

	7mgbr_106.htm

EXHIBIT 10.6

 

THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT OR APPLICABLE EXEMPTION OR SAFE HARBOR PROVISION.

 

COMMON STOCK PURCHASE WARRANT

 

MEGA BRIDGE INC. TO BE KNOWN AS

 

HYPGEN INC.

 

	
Warrant Shares: 10,000,000
	
Initial Issue Date: June 28th, 2017

	
Aggregate Exercise Amount: $0.25 * 10,000,000 = $250,000.00
	
 

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, Apica Investments Limited, a BVI company or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the “Initial Exercise Date”) and on or prior to the close of business on the five (5) year anniversary of the Initial Exercise Date (as subject to adjustment hereunder, the “Termination Date”), to subscribe for and purchase from Mega Bridge, Inc. to be known as Hypgen, Inc., a Nevada corporation (the “Company”), up to 10,000,000 shares (as subject to adjustment herein, the “Warrant Shares”) of common stock of the Company (the “Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 1.2.

 

ARTICLE 1 EXERCISE RIGHTS

 

The Holder will have the right to exercise this Warrant to purchase shares of Common Stock as set forth below.

 

1.1 Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, from and after the Initial Exercise Date, and then at any time, by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile or emailed copy of the Notice of Exercise form annexed hereto. Within three (3) business days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or check drawn on a United States bank unless the cashless exercise procedure specified in Section 1.3 below is specified in the applicable Notice of Exercise. 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 the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise form within 24 hours of receipt of such notice. 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.

 

1.2 Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $0.25 per share, subject to adjustment hereunder (the “Exercise Price”). The aggregate exercise price is $250,000.

 

 

	 
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1.3 Cashless Exercise. If at any time after the earlier of (i) the six (6) month anniversary of the date of the Agreement and (ii) the completion of the then-applicable holding period required by Rule 144, or any successor provision then in effect, there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a 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 on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;
	
 
	
 
	
 
	
 

	
 
	(B)	
=
	the Exercise Price of this Warrant, as adjusted hereunder; and
	
 
	
 
	
 
	
 

	
 
	(X)	
=
	the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

1.4 Delivery of Warrant Shares. Warrant Shares purchased hereunder will be delivered to Holder by 2:30 pm EST within two (2) business days of Notice of Exercise by “DWAC/FAST” electronic transfer (such date, the “Warrant Share Delivery Date”). For example, if Holder delivers a Notice of Exercise to the Company at 5:15 pm eastern time on Monday January 1st, the Company’s transfer agent must deliver shares to Holder’s broker via “DWAC/FAST” electronic transfer by no later than 2:30 pm eastern time on Wednesday January 3rd. 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 of delivery of the Notice of Exercise. Holder may assess penalties or liquidated damages (both referred to herein as “penalties”) as follows. For each exercise, in the event that shares are not delivered by the third business day (inclusive of the day of exercise), the Company shall pay the Holder in cash a penalty of $2,000 per day for each day after the third business day (inclusive of the day of exercise) until share delivery is made. The Company will not be subject to any penalties once its transfer agent correctly processes the shares to the DWAC system. The Company will make its best efforts to deliver the Warrant Shares to the Holder the same day or next day.

 

1.5 Delivery of Warrant. The Holder shall not be required to physically surrender this Warrant to the Company. If the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, this Warrant shall automatically be cancelled without the need to surrender the Warrant to the Company for cancellation. If this Warrant shall have been exercised in part, the Company shall, at the request of Holder and upon surrender of this Warrant, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant and, for purposes of Rule 144, shall tack back to the original date of this Warrant.

 

1.6 Warrant Exercise Rescission Rights. For any reason in Holder’s sole discretion, including if the Warrant Shares are not delivered by DWAC/FAST electronic transfer or in accordance with the timeframe stated in Section 1.4, or for any other reason, Holder may, at any time prior to selling those Warrant Shares rescind such exercise, in whole or in part, in which case the Company must, within three (3) days of receipt of notice from the Holder, repay to the Holder the portion of the exercise price so rescinded and reinstate the portion of the Warrant and equivalent number of Warrant Shares for which the exercise was rescinded and, for purposes of Rule 144, such reinstated portion of the Warrant and the Warrant Shares shall tack back to the original date of this Warrant. If Warrant Shares were issued to Holder prior to Holder’s rescission notice, upon return of payment from the Company, Holder will, within three (3) days of receipt of payment, commence procedures to return the Warrant Shares to the Company.

 

 

	 
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1.7 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 its transfer agent to transmit to the Holder the Warrant Shares 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, shares of Common Stock 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 (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions and other fees, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either (x) reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded), (y) deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder, or (z) pay in cash to the Holder the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss.

 

1.8 Make-Whole for Market Loss after Exercise. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the Warrant Shares by DWAC/FAST electronic transfer (such as by delivering a physical certificate) and if the Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Company must make the Holder whole as follows:

 

Market Price Loss = [(High trade price on the day of exercise) x (Number of Warrant Shares)] – [(Sales price realized by Holder) x (Number of Warrant Shares)]

 

The Company must pay the Market Price Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

 

1.9 Make-Whole for Failure to Deliver Loss. At the Holder’s election, if the Company fails for any reason to deliver to the Holder the Warrant Shares by the Warrant Share Delivery Date and if the Holder incurs a Failure to Deliver Loss, then at any time the Holder may provide the Company written notice indicating the amounts payable to the Holder in respect of the Failure to Deliver Loss and the Company must make the Holder whole as follows:

 

Failure to Deliver Loss = [(High trade price at any time on or after the day of exercise) x (Number of Warrant Shares)]

 

The Company must pay the Failure to Deliver Loss by cash payment, and any such cash payment must be made by the third business day from the time of the Holder’s written notice to the Company.

 

1.10 Choice of Remedies. Nothing herein, including, but not limited to, Holder’s electing to pursue its rights under Sections 1.8 or 1.9 of this Warrant, 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 Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

1.11 Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder. The Company shall pay all transfer agent fees required for same-day processing of any Notice of Exercise.

 

 

	 
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ARTICLE 2 ADJUSTMENTS

 

2.1 Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 2.1 shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

2.2 Subsequent Equity Sales. Except with respect to any Excepted Issuances (as defined in the Consulting Agreement dated June 28, 2017 between the Company and Holder), if the Company or any Subsidiary thereof, as applicable, at any time while this Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or any security entitling the holder thereof (including sales or grants to the Holder) to acquire Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock (a “Common Stock Equivalent”), at an effective price per share less than the Exercise Price then in effect (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (it being understood and agreed that if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price on such date of the Dilutive Issuance at such effective price regardless of whether such holder has received or ever receives shares at such effective price), then simultaneously with the consummation of each Dilutive Issuance the Exercise Price shall be reduced and only reduced to equal the Base Share Price and consequently the number of Warrant Shares issuable hereunder shall be increased such that the Aggregate Exercise Amount hereunder, after taking into account the decrease in the Exercise Price, shall be equal to the Aggregate Exercise Amount prior to such adjustment. Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. The Company shall notify the Holder, in writing, no later than the business day following the issuance or deemed issuance of any Common Stock or Common Stock Equivalents subject to this Section 2.2, indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). In addition, the Company shall provide the Holder, whenever the Holder requests at any time while this Warrant is outstanding, a schedule of all issuances of Common Stock or Common Stock Equivalents since the date of the Agreement, including the applicable issuance price, or applicable reset price, exchange price, conversion price, exercise price and other pricing terms. The term issuances shall also include all agreements to issue, or prospectively issue Common Stock or Common Stock Equivalents, regardless of whether the issuance contemplated by such agreement is consummated. The Company shall notify the Holder in writing of any issuances within twenty-four (24) hours of such issuance. For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 2.2, upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Warrant Shares based upon the Base Share Price regardless of whether the Holder accurately refers to the Base Share Price in the Notice of Exercise. If the Company enters into a Variable Rate Transaction, the Company shall be deemed to have issued Common Stock or Common Stock Equivalents at the lowest possible conversion or exercise price at which such securities may be converted or exercised. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may sell securities at a future determined price.

 

  

	 
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 2.3 Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock, then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness or rights or warrants so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 

2.4 Notice to Holder. Whenever the Exercise Price is adjusted pursuant to any provision of this Article 2, the Company shall promptly notify the Holder (by written notice) setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ARTICLE 3 COMPANY COVENANTS

 

3.1 Reservation of Shares. As of the issuance date of this Warrant and for the remaining period during which the Warrant is exercisable, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of Warrant Shares upon the full exercise of this Warrant. The Company represents that upon issuance, such Warrant Shares will be duly and validly issued, fully paid and non-assessable. The Company agrees that its issuance of this Warrant constitutes full authority to its officers, agents and transfer agents who are charged with the duty of executing and issuing shares to execute and issue the necessary Warrant Shares upon the exercise of this Warrant. No further approval or authority of the stockholders of the Board of Directors of the Company is required for the issuance of the Warrant Shares.

 

3.2 No Adverse Actions. Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary 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 Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

ARTICLE 4 MISCELLANEOUS

 

4.1 Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

  

	 
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4.2 Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, by a written assignment of this Warrant duly executed by the Holder or its agent or attorney. If necessary to obtain a new warrant for any assignee, the Company, upon surrender of this Warrant, shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and such new Warrants, for purposes of Rule 144, shall tack back to the original date of this Warrant. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

4.3 Assignability. The Company may not assign this Warrant. This Warrant will be binding upon the Company and its successors, and will inure to the benefit of the Holder and its successors and assigns, and may be assigned by the Holder to anyone of its choosing without the Company’s approval.

 

4.4 Notices. Any notice required or permitted hereunder must be in writing and either personally served, sent by facsimile or email transmission, or sent by overnight courier. Notices will be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

 

4.5 Governing Law. This Warrant will be governed by, and construed and enforced in accordance with, the laws of the State of Nevada, without regard to the conflict of laws principles thereof. Any action brought by either party against the other concerning the transactions contemplated by this Warrant shall be brought only in the state courts of Nevada or in the federal courts located in the State of Nevada. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

 

4.6 Delivery of Process by Holder to the Company. In the event of any action or proceeding by Holder against the Company, and only by Holder against the Company, service of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made by Holder via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Company at its last known address or to its last known attorney set forth in its most recent SEC filing.

 

4.7 No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section

1.1. So long as this Warrant is unexercised, this Warrant carries no voting rights and does not convey to the Holder any “control” over the Company, as such term may be interpreted by the SEC under the Securities Act or the Exchange Act, regardless of whether the price of the Company’s Common Stock exceeds the Exercise Price.

 

4.8 Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

4.9 Attorney Fees. In the event any attorney is employed by either party to this Warrant with regard to any legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Warrant or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Warrant, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.

 

4.10 Opinion of Counsel. In the event that an opinion of counsel is needed for any matter related to this Warrant, Holder has the right to have any such opinion provided by its counsel. Holder also has the right to have any such opinion provided by the Company’s counsel.

 

  

	 
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4.11 Nonwaiver. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies.

 

4.12 Amendment Provision. The term “Warrant” and all references thereto, as used throughout this instrument, means this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

 4.13 No Shorting. Holder agrees that so long as this Warrant remains unexercised in whole or in part, Holder will not enter into or effect any “short sale” of the common stock or hedging transaction which establishes a net short position with respect to the common stock of the Company. The Company acknowledges and agrees that as of the date of delivery to the Company of a fully and accurately completed Notice of Exercise, Holder immediately owns the common shares described in the Notice of Exercise and any sale of those shares issuable under such Notice of Exercise would not be considered short sales.

 

* * *

 

 

	 
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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	 	
MEGA BRIDGE INC. TO BE KNOWN AS

 

HYPGEN INC.
	
	 	 	 	 
		By:	

	
	
 
	
Name: 
	Antonio Treminio	 
	 	Title:	CEO	 
	 	 	 	 
	
 
	
 
	
 
	
 

	
 
	
HOLDER:
	
 

	
 
	
 
	
 
	
 

	
 
	
Apica Investments Limited.
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	

	
 

	
 
	
Name:
	
CHEW Chuan Tin
	
 

	
 
	
Title:
	
Director
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
MEGA BRIDGE, INC. (to be known as HYPGEN INC.)
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
David E. Price, Secretary, Corp
	
 

	
 
	
MEGA BRIDGE, Inc. (to be known as HYPGEN INC.)
	
 

 

	 
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NOTICE OF EXERCISE

 

TO: MEGA BRIDGE INC TO BE KNOWN AS HYPGEN INC.

 

(1) The undersigned hereby elects to purchase ___________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2) Payment shall take the form of (check applicable box):

 

o in lawful money of the United States; or

 

o the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in Section 1.3, to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in Section 1.3.

 

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

 

______________________________________

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

______________________________________

 

______________________________________

 

______________________________________

 

(4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

 

Name: ____________________________________________

Date:  ____________________________________________

 

 

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