Document:

zurvita_8k-ex1003.htm

    Exhibit
10.3

     

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF
THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR
OTHER LOAN SECURED BY SUCH SECURITIES.

    

    Series
B Warrant Certificate No. 1

     

    SERIES
B COMMON STOCK PURCHASE WARRANT

    

    To
Purchase 8,000,000 Shares of Common Stock of

     

    ZURVITA
HOLDINGS, INC.

     

    Initial
Exercise Date:   October __, 2009

     

    THIS SERIES B COMMON STOCK PURCHASE
WARRANT (the “Warrant”) certifies
that, for value received, VICIS CAPITAL MASTER FUND (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
seventh  (7th) anniversary of the Initial Exercise Date (the “Termination Date”)
but not thereafter, to subscribe for and purchase from Zurvita Holdings, Inc. a
Delaware Corporation (the “Company”), up to
8,000,000 shares (the “Warrant Shares”) of
Common Stock, par value $.0001 per share, 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
2(b).

     

    Section
1.         Definitions.   Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in
that certain Securities Purchase Agreement (the “Purchase Agreement”),
dated October ___, 2009, among the Company and the Holder.

     

    Section
2.          Exercise.

     

    a)   Exercise of
Warrant.  Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the
Initial Exercise Date and on or before the Termination Date by delivery to the
Company of a duly executed facsimile copy of the Notice of Exercise form annexed
hereto (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 such Holder appearing on the books of the Company);
and, within three (3) Trading Days of the date said Notice of Exercise is
delivered to the Company, the Company shall have received payment of the
aggregate Exercise Price of the shares thereby purchased by wire transfer or
cashier’s check drawn on a United States bank.  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 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 within two (2) Trading Days 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.

     

    
      
        
        

      

      
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    b)   Exercise
Price.  The exercise price per share of the Common Stock under
this Warrant shall be $0.25 subject to adjustment hereunder (the “Exercise
Price”).

     

    c)   Exercise
Limitations.

     

    d)   Holder’s
Restrictions.  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 2 or
otherwise, to the extent that after giving effect to such issuance after
exercise as set forth on the applicable Notice of Exercise, such Holder
(together with such Holder’s Affiliates, and any other person or entity acting
as a group together with such Holder or any of such Holder’s Affiliates), as set
forth on the applicable Notice of Exercise, would beneficially own in excess of
the Beneficial Ownership Limitation (as defined below).  For purposes
of the foregoing sentence, the number of shares of Common Stock beneficially
owned by such Holder and its Affiliates shall include the number of shares of
Common Stock issuable upon exercise of this Warrant with respect to which such
determination is being made, but shall exclude the number of shares of Common
Stock which would be issuable upon (A) exercise of the remaining, nonexercised
portion of this Warrant beneficially owned by such Holder or any of its
Affiliates and (B) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation,
any other preferred stock or Warrants) subject to a limitation on conversion or
exercise analogous to the limitation contained herein beneficially owned by such
Holder or any of its Affiliates.  Except as set forth in the preceding
sentence, for purposes of this Section 2(c)(i),
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 a Holder that the Company is not representing to such Holder
that such calculation is in compliance with Section 13(d) of the Exchange Act
and such Holder is solely responsible for any schedules required to be filed in
accordance therewith.   To the extent that the limitation
contained in this Section 2(c)(i)
applies, the determination of whether this Warrant is exercisable (in relation
to other securities owned by such Holder together with any Affiliates) and of
which a portion of this Warrant is exercisable shall be in the sole discretion
of a Holder, and the submission of a Notice of Exercise shall be deemed to be
each Holder’s determination of whether this Warrant is exercisable (in relation
to other securities owned by such Holder together with any Affiliates) and of
which portion of this Warrant is exercisable, in each case subject to such
aggregate percentage limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination.   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(c), in
determining the number of outstanding shares of Common Stock, a Holder may rely
on the number of outstanding shares of Common Stock as reflected in (X) the
Company’s most recent Form 10-Q or Form 10-K, as the case may be, (Y) a more
recent public announcement by the Company or (Z) any other notice by the Company
or the Company’s transfer agent setting forth the number of shares of Common
Stock outstanding.  Upon the written or oral request of a Holder, the
Company shall within two (2) Trading Days confirm orally and in writing to such
Holder the number of shares of Common Stock then outstanding.  In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Warrant, by such Holder or its Affiliates since the date as of
which such number of outstanding shares of Common Stock was
reported.  The “Beneficial Ownership
Limitation” shall be 4.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant.  The Beneficial
Ownership Limitation provisions of this Section 2(c)(i) may
be waived by such Holder, at the election of such Holder, upon not less than 61
days’ prior notice to the Company to change the Beneficial Ownership Limitation
to 9.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to the issuance of shares of Common Stock upon exercise of
this Warrant, and the provisions of this Section 2(c)(i) shall
continue to apply.  Upon such a change by a Holder of the Beneficial
Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
Beneficial Ownership Limitation may not be further waived by such
Holder.  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(c)(i) 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.

     

    
      
        
        

      

      
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    e)   Mechanics of
Exercise.

     

    i. 
Authorization of Warrant
Shares.  The Company covenants that all Warrant Shares which
may be issued upon the exercise of the purchase rights represented by this
Warrant will, upon exercise of the purchase rights represented by this Warrant,
be duly authorized, validly issued, fully paid and nonassessable and free from
all taxes, liens and charges created by the Company in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

     

    ii. Delivery of Certificates
Upon Exercise.  Certificates for Warrant Shares purchased
hereunder shall be transmitted by the transfer agent of the Company to the
Holder by crediting the account of the Holder’s prime broker with the Depository
Trust Company through its Deposit/Withdrawal at Custodian (“DWAC”) system if the
Company is a participant in such system, and otherwise by delivery to the
address specified by the Holder in the Notice of Exercise, within five (5)
Trading Days from the delivery to the Company of the Notice of Exercise form,
surrender of this Warrant (if required) and payment of the aggregate Exercise
Price as set forth above (“Warrant Share Delivery
Date”).  This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company.  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
by payment to the Company of the Exercise Price (or by cashless exercise, if
permitted) and all taxes required to be paid by the Holder, if any, pursuant to
Section
2(d)(vii) prior to the issuance of such shares, have been
paid.

     

    iii. 
Delivery of New Warrants
Upon Exercise.  If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this
Warrant certificate, at the time of delivery of the certificate or certificates
representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of 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.

     

    iv. 
Rescission
Rights.  If the Company fails to cause its transfer agent to
transmit to the Holder a certificate or certificates representing the Warrant
Shares pursuant to Section 2(d)(ii)
above by the Warrant Share Delivery Date, then the Holder will have the right to
rescind such exercise.

     

    v. 
Obligation
Absolute;  Damages. The Corporation’s obligations to issue and
deliver the certificates representing the Warrant Shares upon exercise of the
Warrant in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the same, any
waiver or consent with respect to any provision hereof, the recovery of any
judgment against any Person or any action to enforce the same, or any setoff,
counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Corporation or
any violation or alleged violation of law by the Holder or any other person, and
irrespective of any other circumstance which might otherwise limit such
obligation of the Corporation to the Holder in connection with the issuance of
such certificates representing the Warrant Shares.  The Corporation
shall issue the certificates representing the Warrant Shares or, if applicable,
cash, upon a properly noticed exercise. If the Corporation fails to deliver to
the Holder such certificate or certificates pursuant to Section 2(d) within
five (5) Trading Days of the Warrant Share Delivery Date applicable to such
exercise, the Corporation shall pay to such Holder, in cash, as liquidated
damages and not as a penalty, for each $1,000 of VWAP of the Common Stock, $10
per Trading Day (increasing to $20 per Trading Day after ten (10) Trading Days
after the Warrant Share Delivery Date) for each Trading Day after the Warrant
Share Delivery Date until such certificates are delivered.

     

    
      
        
        

      

      
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    vi. 
No Fractional Shares or
Scrip.  No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant.  As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied
by the Exercise Price or round up to the next whole share.

     

    vii. 
Charges, Taxes and
Expenses.  Issuance of certificates for Warrant Shares shall be
made without charge to the Holder or other incidental expense in respect of the
issuance of such certificate, and such certificates shall be issued in the name
of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the
event certificates for Warrant Shares are to be issued in a name other than the
name of the Holder, this Warrant when surrendered for exercise shall be
accompanied by the Assignment Form attached hereto duly executed by the Holder;
the assignment shall be subject to Section 4 below, and
the Company may require, as a condition thereto, the payment of a sum sufficient
to reimburse it for any transfer tax incidental thereto.

     

    viii. 
Closing of
Books.  The Company will not close its stockholder books or
records in any manner which prevents the timely exercise of this Warrant,
pursuant to the terms hereof.

     

    f)   Cashless Exercise if no
Registration Statement.  If at any time after six months from
the date of issuance of this Warrant 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 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.

    

    

    Section
3.          Certain
Adjustments.

     

    a)   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.  Any
adjustment made pursuant to this Section 3(a) 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.

     

    
      
        
        

      

      
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    b)   Subsequent Equity
Sales. If the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, sells, grants or otherwise issues (or
announces any sale, grant or other issuance related to the foregoing) any Common
Stock or Common Stock Equivalents entitling any Person to acquire shares of
Common Stock, at an effective price per share less than the then Exercise Price
(such lower price, the “Base Share Price” and
such issuances collectively, a “Dilutive Issuance”)
(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 which 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), then the Exercise Price shall be reduced and only reduced to
equal the Base Share Price.  Such adjustment to the Exercise Price
shall be made whenever such Common Stock or Common Stock Equivalents are issued.
As a point of clarification, upon a Dilutive Issuance, the number of Warrant
Shares issuable hereunder shall not be increased.  Notwithstanding the
foregoing, no adjustments shall be made, paid or issued under this Section 3(b) in
respect of an Exempt Issuance or issuances subject to Section 3(a)
above.  The Company shall notify the Holder in writing, no later than
the third (3rd)
Trading Day following the issuance of any Common Stock or Common Stock
Equivalents subject to this section, indicating therein the applicable issuance
price, or applicable reset price, exchange price, conversion price and other
pricing terms (such notice the “Dilutive Issuance
Notice”).  For purposes of clarification, whether or not the
Company provides a Dilutive Issuance Notice pursuant to this Section 3(b), upon
the occurrence of any Dilutive Issuance, after the date of such 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.

     

    c)   Subsequent Rights
Offerings.  If the Company, at any time while this Warrant is
outstanding, shall issue rights, options or warrants to all holders of Common
Stock (and not to Holders) entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the VWAP as of the record date
mentioned below, then the Exercise Price shall be multiplied by a fraction, of
which the denominator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights or warrants plus the number
of additional shares of Common Stock offered for subscription or purchase, and
of which the numerator shall be the number of shares of the Common Stock
outstanding on the date of issuance of such rights, options or warrants plus the
number of shares which the aggregate offering price of the total number of
shares so offered (assuming receipt by the Company in full of all consideration
payable upon exercise of such rights, options or warrants) would purchase at
such VWAP.  Such adjustment shall be made whenever such rights,
options or warrants are issued, and shall become effective immediately after the
record date for the determination of stockholders entitled to receive such
rights, options or warrants.

     

    d)   Pro Rata
Distributions.  If the Company, at any time prior to the
Termination Date, shall distribute to all holders of Common Stock (and not to
Holders of the Warrants) 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 (which shall be subject to Section 3(c)), 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 as of 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 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.

     

    
      
        
        

      

      
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    e)   Fundamental
Transaction. If, at any time while this Warrant is outstanding, (i) the
Company effects any merger or consolidation of the Company with or into another
Person, (ii) the Company effects any sale of all or substantially all of its
assets in one or a series of related transactions, (iii) any tender offer or
exchange offer (whether by the Company or another Person) is completed pursuant
to which holders of Common Stock are permitted to tender or exchange their
shares for other securities, cash or property, or (iv) the Company effects any
reclassification of the Common Stock or any compulsory share exchange pursuant
to which the Common Stock is effectively converted into or exchanged for other
securities, cash or property (in any such case, a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have
been issuable upon such exercise immediately prior to the occurrence of such
Fundamental Transaction, at the option of the Holder, (a) upon exercise of this
Warrant, the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any
additional consideration (the “Alternate
Consideration”) receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a Holder of
the number of shares of Common Stock for which this Warrant is exercisable
immediately prior to such event or (b) if the Company is acquired in an all cash
transaction, cash equal to the value of this Warrant as determined in accordance
with the Black-Scholes option pricing formula.  For purposes of any
such exercise, the determination of the Exercise Price shall be appropriately
adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Stock in such
Fundamental Transaction, and the Company shall apportion the Exercise Price
among the Alternate Consideration in a reasonable manner reflecting the relative
value of any different components of the Alternate Consideration.  If
holders of Common Stock are given any choice as to the securities, cash or
property to be received in a Fundamental Transaction, then the Holder shall be
given the same choice as to the Alternate Consideration it receives upon any
exercise of this Warrant following such Fundamental Transaction.  To
the extent necessary to effectuate the foregoing provisions, any successor to
the Company or surviving entity in such Fundamental Transaction shall issue to
the Holder a new warrant consistent with the foregoing provisions and evidencing
the Holder’s right to exercise such warrant into Alternate Consideration. The
terms of any agreement pursuant to which a Fundamental Transaction is effected
shall include terms requiring any such successor or surviving entity to comply
with the provisions of this Section 3(e) and
insuring that this Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental
Transaction.

     

    f)   Calculations. All
calculations under this Section 3 shall be
made to the nearest cent or the nearest 1/100th of a share, as the case may be.
For purposes of this Section 3, the number
of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury
shares, if any) issued and outstanding.

     

    g)   Voluntary Adjustment By
Company. The Company may at any time during the term of this Warrant
reduce the then current Exercise Price to any amount and for any period of time
deemed appropriate by the Board of Directors of the Company.

     

    h)   Notice to
Holders.

     

    i. 
Adjustment to Exercise
Price. Whenever the Exercise Price is adjusted pursuant to any provision
of this Section
3, the Company shall promptly mail to each Holder a notice setting forth
the Exercise Price after such adjustment and setting forth a brief statement of
the facts requiring such adjustment.

     

    
      
        
        

      

      
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    ii. 
Notice to Allow Exercise by
Holder. If (A) the Company shall declare a dividend (or any other
distribution in whatever form) on the Common Stock; (B) the Company shall
declare a special nonrecurring cash dividend on or a redemption of the Common
Stock; (C) the Company shall authorize the granting to all holders of the Common
Stock rights or warrants to subscribe for or purchase any shares of capital
stock of any class or of any rights; (D) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, of any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; (E) the Company shall authorize the voluntary or
involuntary dissolution, liquidation or winding up of the affairs of the
Company; then, in each case, the Company shall cause to be mailed to the Holder
at its last address as it shall appear upon the Warrant Register of the Company,
at least ten (10) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (X) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or
warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions,
redemption, rights or warrants are to be determined or (Y) the date on which
such reclassification, consolidation, merger, sale, transfer or share exchange
is expected to become effective or close, and the date as of which it is
expected that holders of the Common Stock of record shall be entitled to
exchange their shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided that the failure to mail such notice or any defect
therein or in the mailing thereof shall not affect the validity of the corporate
action required to be specified in such notice.  The Holder is
entitled to exercise this Warrant during the ten (10) day period commencing on
the date of such notice to the effective date of the event triggering such
notice.

     

    Section
4.          Transfer of
Warrant.

     

    a)   Transferability.  Subject
to compliance with any applicable securities laws and the conditions set forth
in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation,
any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent,
together with a written assignment of this Warrant substantially in the form
attached hereto duly executed by the Holder or its agent or attorney and funds
sufficient to pay any transfer taxes payable upon the making of such
transfer.  Upon such surrender and, if required, such payment, the
Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees 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 this Warrant shall
promptly be cancelled.  A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

     

    b)   New Warrants. This
Warrant may be divided or combined with other Warrants upon presentation hereof
at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued,
signed by the Holder or its agent or attorney.  Subject to compliance
with Section
4(a), as to any transfer which may be involved in such division or
combination, the Company shall execute and deliver a new Warrant or Warrants in
exchange for the Warrant or Warrants to be divided or combined in accordance
with such notice.

     

    c)   Warrant Register. 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 Holder hereof from time to time.  The
Company may deem and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any distribution to the
Holder, and for all other purposes, absent actual notice to the
contrary.

     

    
      
        
        

      

      
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    d)   Transfer
Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall
not be registered pursuant to an effective registration statement under the
Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder
or transferee execute and deliver to the Company an investment letter in form
and substance acceptable to the Company and (iii) that the transferee be an
“accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a “qualified institutional buyer”
as defined in Rule 144A(a) under the Securities Act.

     

    
      
        	
              	
                Section
      5.

              	
                Miscellaneous.

              

      

    

     

    a)   No Rights as Shareholder
Until Exercise.  This Warrant does not entitle the Holder to
any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof as set forth in Section
2.

     

    b)   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.

     

    c)   Saturdays, Sundays,
Holidays, etc.  If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not
be a Business Day, then such action may be taken or such right may be exercised
on the next succeeding Business Day.

     

    d)   Authorized
Shares.  The Company covenants that, during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock a sufficient number of shares to provide for the issuance of the Warrant
Shares upon the exercise of any purchase rights under this
Warrant.  The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant.  The Company will take all such reasonable action
as may be necessary to assure that such Warrant Shares may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Trading Market upon which the Common Stock may be
listed.

     

    Before
taking any action which would result in an adjustment in the number of Warrant
Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

     

    e)   Jurisdiction. All
questions concerning the construction, validity, enforcement, venue,
jurisdiction, and interpretation of this Warrant shall be determined in
accordance with the provisions of the Purchase Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    f)   Restrictions.  The
Holder acknowledges that the Warrant Shares acquired upon the exercise of this
Warrant, if not registered, will have restrictions upon resale imposed by state
and federal securities laws.

     

    g)   Nonwaiver and
Expenses.  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 Holder’s rights, powers or remedies,
notwithstanding the fact that all rights hereunder terminate on the Termination
Date.  If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any
amounts due pursuant hereto or in otherwise enforcing any of its rights, powers
or remedies hereunder.

     

    h)   Notices.  Any
notice, request or other document required or permitted to be given or delivered
to the Holder by the Company shall be delivered in accordance with the notice
provisions of the Purchase Agreement.

     

    i)   Limitation of
Liability.  No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of 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.

     

    j)   Remedies.  Holder,
in addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Warrant.  The Company agrees that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by it
of the provisions of this Warrant and hereby agrees to waive and not to assert
the defense in any action for specific performance that a remedy at law would be
adequate.

     

    k)   Successors and
Assigns.  Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of
and be binding upon the successors of the Company and the successors and
permitted assigns of Holder.  The provisions of this Warrant are
intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant
Shares.

     

    l)   Amendment.  This
Warrant may be modified or amended or the provisions hereof waived only with the
written consent of the Company and the Holder.

     

    m)   Severability.  Wherever
possible, each provision of this Warrant shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this
Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of
this Warrant.

     

    n)   Headings.  The
headings used in this Warrant are for the convenience of reference only and
shall not, for any purpose, be deemed a part of this Warrant.

     

    ********************

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

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

     

     

     

    
      
        	 	ZURVITA
      HOLDINGS, INC.	 
	 	 	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/
      Jay Shafer 	 
	 	 	Name:  Jay
      Shafer	 
	 	 	Title:   
      Co-Chief Executive Officer	 
	 	 	 	 

      

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    NOTICE
OF EXERCISE

    

    TO:           ZURVITA
HOLDINGS, INC. (THE “COMPANY”)

     

    (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
will be made in lawful money of the United States.

     

    (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 or by
physical delivery of a certificate to:

     

     _______________________________

     

    _______________________________

     

    _______________________________

     

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

    

    [SIGNATURE
OF HOLDER]

    

    Name of
Investing
Entity:______________________________________________________________________________________________________________

    Signature of Authorized Signatory of
Investing
Entity:________________________________________________________________________________________

    Name of
Authorized
Signatory:__________________________________________________________________________________________________________

    Title of
Authorized
Signatory:___________________________________________________________________________________________________________

    Date:______________________________________________________________________________________________________________________________

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    ASSIGNMENT
FORM

    

    (To
assign the foregoing warrant, execute

    this form
and supply required information.

    Do not
use this form to exercise the warrant.)

    

    

    

    FOR VALUE
RECEIVED, _______ shares of the foregoing Warrant and all rights evidenced
thereby are hereby assigned to _______________________whose address is
________________________________________________________________________________________________________________.

     

     

    
      	 	Dated:  ________________,
      _______ 
	 	 
	Holder’s
      Signature:   	______________________________ 
	 	 
	Holder’s
      Address:      	______________________________ 
	 	 
	 	______________________________ 

    

     

    

    Signature
Guaranteed:  ___________________________________________

    

    

    NOTE:  The
signature to this Assignment Form must correspond with the name as it appears on
the face of the Warrant, without alteration or enlargement or any change
whatsoever, and must be guaranteed by a bank or trust
company.  Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign
the foregoing Warrant.

     

     

    
      
        
        

      

      
        12altair_8k-ex1001.htm

    Exhibit 10.1

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 2 of
16

     

    Section B
- Supplies or Services and Prices

    
    

     

    
      	
              ITEM
      NO 

              0001

            	SUPPLIES/SERVICES 	
              UNIT

              Dollars,

              U.S.

            	
              AMOUNT

              $1,749,965.00

            

    

     

    CONTRACT
AWARD (COST)

    "Developing
Sensitive and Selective Nanosensors: A Single Molecule - Multiple Excitation
Source Approach"

    FOB:
Destination

    PURCHASE
REQUEST NUMBER: 55328CH09192

     

    
      	
              ACRN
      AA

              CIN:
      55328CH091920001

            	
              ESTIMATED
      COST

            	
              $1,749,965.00

              $1,749,965.00

            

    

     

    These
funds are made available from Fiscal Year 2008 Defense Basic Research
Appropriations and are subject to the reimbursement
limit of indirect costs set forth in Section 8115 of the Department of Defense
Appropriations Act, 2008  (P.L.
110-116).

     

    
      	
            	
              B.1

            	
              The
      type of contract is Cost
Reimbursement.

            

    

     

    
      	
            	
              B.2

            	
              This
      contract is fully funded pursuant to the Limitation of Cost clause, FAR
      52.232-20.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 3 of
16

     

    Section C
- Descriptions and Specifications

     

    
      	
            	
              C.1

            	
              The
      Contractor shall furnish all necessary personnel, materials, facilities,
      and other services as may be
      required to perform CLIN 0001 in accordance with details in the
      Contractor's proposal and modifications thereto, if any, described below.
      The below titled proposal is incorporated herein by reference and is on
      file at the U.S. Army Research Office
(ARO).

            

    

     

    
      Proposal
Title: "Developing Sensitive and Selective Nanosensors: A Single Molecule —
Multiple Excitation Source Approach"

      ARO
Proposal No.: 55328-CH

      Proposal/Modification
Date(s): 24 November 2008

      31 August
2009, Revised Cost Proposal

       

      Principal
Investigator: Dr. Bruce Sabacky, Phone 775-858-3766

      E-mail
bsabacky@altaimano.com

    

     

    
      	
            	
              C.2

            	
              In
      the event of an inconsistency between the provisions of this contract and
      the Contractor's proposal,
      the inconsistency shall be resolved by giving precedence in the following
      order: (1) the contract; (2) other attachments to the contract; and (3)
      the technical proposal.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911
NF-09-C-0135

     

    Page 4 of
16

     

    Section D
- Packaging and Marking

     

    
      	
            	
              D.1

            	
              Deliverables
      shall be afforded the degree of packaging (preservation and packing)
      required to prevent
      damages due to the hazards of shipment and
  handling.

            

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page.5
of 16

     

    Section E
- Inspection and Acceptance

     

    
      	
            	
              E.1

            	
              The
      ARO Contracting Officer's Representative identified in Section G shall
      inspect and accept all deliverables
      under this contract.

            

    

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 6 of
16

     

    Section F
- Deliveries or Performance

     

    
      	
            	
              F.1

            	
              Research
      called for by this contract (CLIN 0001) shall be performed during the
      period 3
      September 2009 — 2 September 2010.

            

    

     

    
      	
            	
              F.2

            	
              Reporting
      Requirements

            

    

     

    The
Contractor shall comply with the requirements of ARO Form 18, Army Research
Office Reporting Instructions, located at www.aro.army.mil/forms/forms2.htm.
ARO Form 18 provides specific submission instructions and due dates for reports
required under this contract including annual Interim Progress and Final
Progress Reports. The Forecast Expenditure Report is not required for this
contract. On-line submission is required for the Interim and Final Progress
Reports and encouraged for the other reports. Submissions require Adobe PDF
forms. The electronic forms SF298 and SF298 Continuation Sheet may be downloaded
from the ARO home page at www.aro.army.mil/forms/forms2.httn. The Contractor
shall submit a copy of each report cover page or transmittal sheet to the
Defense Contract Management Agency (DCMA) identified in Section
G.1.

     

    
      	
            	
              F.3

            	
              The
      Contractor shall submit DD Form 882, Report of Inventions and
      Subcontracts, within three months
      after completion of the contracted work, pursuant to DFARS clause
      252.227-7039, Patents—Reporting of Subject
  Inventions.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

    Page 7 of
16

    Section G
- Contract Administration Data

     

    ACCOUNTING
AND APPROPRIATION DATA

     

    AA:
978040026201000B61D253999BD27139000S49012 

    AMOUNT:
$1,749,965.00

    CIN
55328CH091920001 $1,749,965.00

     

    
      	
            	
              G.1

            	
              Delegation
      of Administration Functions: Contract administration functions are hereby
      delegated to the
      Defense Contract Management Agency (DCMA) specified below and in block 6
      of the Standard Form (SF) 26:

            

    

     

    Defense
Contracts Management Agency 

    DCMA
Northern California (S0507A)

    P.O. Box
232

    700 East
Roth Road, Bldg. 330 (Lathrop, CA) 

    French
Camp, CA 95231-0232

    Phone:
(209) 941-7002

    FAX:
(209) 941-7091

    Email:
dcmanocaliforniacasd@dcma.mill

     

    
      	
            	
              G.2

            	
              Audit
      Functions: Audit functions will be conducted by the Defense Contract Audit
      Agency (DCAA)
      specified below:

            

    

     

    Defense
Contract Audit Agency 

    Sierra
Branch Office (HAA054) 

    391 S.
Lexington Drive, Suite 150 

    Folsom,
CA 95630-6898

    Phone:
(916) 983-2851

    FAX:
(916) 984-7411

    Email:
dcaa-fao4371@dcaa.mil

     

    
      	
            	
              G.3

            	
              Vouchers
      for payment shall be submitted electronically through Wide Area Workflow
      (WAWF) in accordance
      with DFARS clause 252.232-7003, Electronic Submission of Payment Requests.
      Information on WAWF is available on the Internet at https;//wawf.eb.mil/.

            

    

     

    
      	
            	
              G.4

            	
              The
      Contractor shall submit all interim cost vouchers to DCAA Sierra Branch
      Office (HAA054). The
      final cost voucher shall be submitted to DCMA Northern California
      (S0507A).

            

    

     

    
      	
            	
              G.5

            	
              The
      Contractor is permitted to submit payment requests every two weeks in
      accordance with FAR clause
      52.216-7, Allowable Cost and
Payment.

            

    

     

    
      	
            	
              G.6

            	
              As
      consideration for the proper performance of the work and services required
      under this contract, the
      Contractor shall be paid as follows: Costs, as provided for under FAR
      clause 52.216-7, Allowable Cost and Payment, not to exceed the amount set
      forth as "Estimated Cost" in Section B, and subject to FAR clause
      52.232-20, Limitation of Cost.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 8 of
16

     

    
      	
            	
              G.7

            	
              Payment
      of vouchers will be made by the DFAS-Columbus Center specified below and
      in block 12 of the SF 26:

            

    

     

    DFAS
Columbus Center

    DFAS-CO/West
Entitlement Operations (HQ0339) 

    P.O. Box
182381

    Columbus,
OH 43218-2381

     

    
      	
            	
              G.8

            	
              Payment
      Information and Inquiries: The Contractor should contact the DFAS-Columbus
      Center for
      information or inquiries regarding payments on this contract. Telephonic
      inquiries may be made on 1-800-756-4571 or (614) 693-8507. Inquiries may
      also be made electronically at https://myinvoice.csd.disa.mil//index,html.

            

    

     

    
      	
            	
              G.9

            	
              Ceiling
      Rates: The following indirect rate ceilings are established for this
      contract:

            

    

     

    Fringe
Benefits — 40% applied to direct labor dollars

    Overhead
— 45% applied to direct labor dollars

    G&A —
83.5% applied to TO minus overhead and subcontractors

     

    The
Government will not be obligated to pay any additional amount should the final
rates exceed these ceiling rates.

     

    
      	
            	
              G.10

            	
              An
      accounting system review is required three months after contract award to
      ensure the accounting
      system is operating properly.

            

    

     

    
      	
            	
              G.11

            	
              Payment
      Instructions for Multiple Accounting Classification Citations: Payments
      are to be made from
      the earliest available fiscal year funding source across accounting
      classification citations assigned to the line
  item.

            

    

     

    
      	
            	
              G.12

            	
              The
      Contracting Officer's Representative for this contract is as
      follows:

            

    

     

    Dr.
Jennifer Becker

    US Army
Research Office

    ATTN:
AMSRD-ARL-RO-PC

    P.O. Box
12211

    Research
Triangle Park, NC 27709-2211 

    Phone:
(919) 549-4224

    Email:
jennifer.j.becker@us.army.mil

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W91
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    Page 9 of
16

     

    Section
1-1 - Special Contract Requirements

     

    
      	
            	
              H.1 

            	
              Publications

            

    

     

    Publication
of results of the research project in appropriate professional journals is
encouraged as an important method of recording and reporting scientific
information. One copy of each manuscript
submitted for publication in a journal shall be forwarded to the Army Research
Office at the same time it is submitted to the journal in accordance with the
reporting instructions in ARO Form 18, Following publication, copies of reprints
shall be submitted to the Army Research Office in accordance with the reporting
instructions in ARO Form 18. See Section F. The Contracting Officer may request
submission of publications to other addressees.

     

    
      	
            	
              H.2

            	
              Research
      Responsibility

            

    

     

    a. The
Contractor shall bear responsibility for the conduct of the research specified
in the Contractor's proposal identified in the contract. The Contractor will
exercise judgment in obtaining the stated research objectives within the limits
of the terms and conditions of the contract; provided, however, that the
Contractor will obtain the Contracting Officer's approval to change the
Statement of Work. Consistent with the foregoing the Contractor shall conduct
the work as set forth in his proposal and accepted by the contract
award.

     

    b. The
Principal Investigator identified in the proposal shall be continuously
responsible for the conduct of the research project, and shall be closely
involved with the research efforts.

     

    c. The
Contractor shall advise the Contracting Officer if the Principal Investigator
identified in the contract plans to devote less effort to the work than set
forth in the proposal.

     

    d. The
Contractor shall obtain the Contracting Officer's approval prior to changing the
named Principal Investigator.

     

    
      	
            	
              H.3

            	
              Restriction
      on Printing

            

    

     

    The
Government authorizes the reproduction of reports, data or other written
material, if required, provided the material produced does not exceed 5,000
production units of any page, and items consisting of multiple pages do not
exceed 25,000 production units in the aggregate. The Contractor shall obtain the
express prior written authorization of the Contracting Officer to reproduce
material in excess of the quantities cited above.

     

    
      	
            	
              H.4 

            	
              Security

            

    

     

    If in the
conduct of this research, the Contractor develops information, which in the
Contractor's opinion might have an adverse effect on the national security if it
were disclosed, the Contractor should promptly notify the Contracting Officer's
Representative and should not disclose the information without the prior
concurrence of the Contracting Officer's Representative.

     

    
      	
            	
              H.5

            	
              Limitation
      of Payments for Indirect Cost from Defense Appropriation
    2008

            

    

     

    Pursuant
to Section 8115 of the Defense Appropriations Act 2008, no funds made available
under that act may be used to pay indirect costs that exceed thirty-five percent
of the total amount of the contract for basic research. Any funds provided under
that Act for this contract are identified herein. Indirect costs exceeding
thirty-five percent of the total amount to be reimbursed from that appropriation
will be considered unallowable and will not be reimbursed. If subsequent
audit

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      W911NF-09-C-0135

       

      Page 10
of 16

       

    

    indicates
indirect costs exceeding thirty-five percent of the total amount paid from this
appropriation have been disbursed, the Contractor will refund the amount over
the statutory limitation to the Government.

     

    
      	
            	
              H.6

            	
              Consent
      to Subcontract

            

    

     

    Inasmuch
as the Contractor does not have an approved purchasing system, consent to
subcontract is required from the cognizant administrative contracting officer
(ACO) in accordance with FAR Clause 52.244-2(c) for any subcontract that----(1)
Is of the cost-reimbursement, time-and-materials, or labor-hour type; or (2) Is
fixed-price and exceeds the greater of the simplified acquisition threshold or 5
percent of the total estimated cost of the contract.

     

    
      	
            	
              H.7

            	
              Contractor
      Acquired Property

            

    

     

    The
Contractor is authorized to purchase the equipment (CD Spectropolarometer)
identified in the cost proposal at Section C and be reimbursed under this
contract. Title to all property purchased by the Contractor for which the
Contractor is entitled to be reimbursed as a direct item of cost shall pass to
and vest in the Government upon the vendor's delivery of such property. Upon
completion of the contract, all Government property shall be returned to the
Government, or otherwise disposed of, as directed by the Government in
accordance with FAR 52.245-1.

     

    
      	
            	
              H.8

            	
              Contractor
      Representations and Certifications

            

    

     

    Contractor
certifications valid from 11/25/2008 to 11/25/2009 under ORCA are incorporated
by reference in this contract.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 11
of 16

     

    Section I
- Contract Clauses

     

    CLAUSES
INCORPORATED BY REFERENCE

     

    
      
        	52.202-1   	Definitions  	JUL
    2004 
	52.203-3 	Gratuities  	APR
    1984 
	52.203-5 	Covenant Against
      Contingent Fees  	APR
    1984 
	52.203-6  	Restrictions On
      Subcontractor Sales To The Government  	SEP
    2006 
	52.203-7 	Anti-Kickback
      Procedures  	JUL
    1995 
	
                52.203-8

              	Cancellation,
      Rescission, and Recovery of Funds for Illegal or Improper
      Activity	JAN
    1997 
	52.203-10  	Price Or Fee
      Adjustment For Illegal Or Improper Activity  	JAN
    1997 
	52.203-12 	Limitation On
      Payments To Influence Certain Federal
      Transactions    	SEP
    2007 
	52.204-4  	Printed or Copied
      Double-Sided on Recycled Paper 	AUG
    2000 
	52.204-7 	Central Contractor
      Registration  	APR
    2008 
	52.209-6 	
                
                  Protecting
      the Government's Interest When Subcontracting With
      Contractors Debarred, Suspended, or Proposed for Debarment

                

              	SEP
    2006 
	52.215-2 	Audit and
      Records--Negotiation  	MAR
    2009 
	52.215-8 	Order of
      Precedence--Uniform Contract Format 	OCT
    1997 
	52.215-10 	Price Reduction for
      Defective Cost or Pricing Data 	OCT
    1997 
	52.215-12 	Subcontractor Cost
      or Pricing Data  	OCT
    1997 
	52.215-14 	Integrity of Unit
      Prices  	OCT
    1997 
	52.215-15 	Pension Adjustments
      and Asset Reversions 	OCT
    2004 
	52.215-17 	Waiver of Facilities
      Capital Cost of Money 	OCT
    1997 
	52.215-18 	Reversion or
      Adjustment of Plans for Postretirement Benefits (PRB) Other than
      Pensions  	JUL
    2005 
	52.215-21 	Requirements for
      Cost or Pricing Data or Information Other Than Cost or Pricing
      Data--Modifications  	OCT
    1997 
	52.216-7 	Allowable Cost And
      Payment  	DEC
    2002 
	52.216-11 	Cost Contract--No
      Fee  	APR
    1984 
	52.219-4 	Notice of Price
      Evaluation Preference for HUBZone Small Business
      Concerns  	JUL
    2005 
	52.219-8 	Utilization of Small
      Business Concerns  	MAY
    2004 
	52.222-3 	Convict
      Labor  	JUN
    2003 
	52.222-21 	Prohibition Of
      Segregated Facilities  	FEB
    1999 
	52.222-26  	Equal
      Opportunity 	MAR
    2007 
	52.222-35 	
                Equal
      Opportunity For Special Disabled Veterans, Veterans ofthe Vietnam Era, and
      Other Eligible Veterans

              	SEP
    2006 
	52.222-36 	Affirmative Action
      For Workers With Disabilities 	JUN
    1998 
	
                52.222-37

              	
                Employment
      Reports On Special Disabled Veterans, Veterans Of The Vietnam Era, and
      Other Eligible Veterans 

              	SEP
    2006 
	52.222-50 	Combating
      Trafficking in Persons  	FEB
    2009 
	52.223-6 	Drug-Free
      Workplace  	MAY
    2001 
	52.223-14 	Toxic Chemical
      Release Reporting  	AUG
    2003 
	52.225-13 	Restrictions on
      Certain Foreign Purchases 	JUN
    2008 
	52.227-1 Alt
      I 	Authorization And
      Consent (Dec 2007) - Alternate 1  	APR
    1984 
	52.227-2 	Notice And
      Assistance Regarding Patent And Copyright Infringement	DEC
    2007 
	52.227-11 	Patent
      Rights--Ownership By The Contractor 	DEC
    2007 
	52.228-7 	Insurance--Liability
      To Third Persons  	MAR
    1996 
	52.232-9  	Limitation On
      Withholding Of Payments 	APR
    1984 

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      W911NF-09-C-0135 

       

      Page 12 of 16

       

      
        	52.232-17 	
                Interest

              	OCT
      2008  
	52.232-20 	
                Limitation
      Of Cost

              	APR
      1984  
	52.232-23 	
                Assignment
      Of Claims

              	JAN
      1986  
	51232-25  	
                Prompt
      Payment

              	OCT
      2008  
	52.232-33 	
                Payment
      by Electronic Funds Transfer--Central Contractor
      Registration 

              	OCT
    2003 
	
                52.233-1 

              	
                
                  Disputes

                

              	JUL 2002
  
	52.233-3 Alt
      I 	
                
                  
                    Protest After Award
      (Aug 1996) - Alternate I 

                  

                

              	JUN
      1985  
	
                52.233-4

              	
                Applicable Law for
      Breach of Contract Claim  

              	OCT 2004
  
	
                52.242-1

              	
                
                  Notice of Intent to
      Disallow Costs   

                

              	APR
      1984   
	
                52.242-3

              	
                
                  
                    Penalties for
      Unallowable Costs 

                  

                

              	MAY
      2001   
	
                52.242-4  

              	
                
                  
                    Certification of
      Final Indirect Costs 

                  

                

              	JAN
      1997  
	
                52.242-13 

              	
                
                  Bankruptcy 

                

              	JUL 1995
  
	52,242-15 Alt I
      	
                
                  
                    
                      Stop-Work Order (Aug
      1989) - Alternate I

                    

                  

                

              	APR
      1984   
	52.243-2 Alt
      V   	
                
                  Changes--Cost-Reimbursement
      (Aug 1987) - Alternate V 

                

              	APR 1984
  
	
                52.244-2

              	Subcontracts  	JUN
      2007  
	
                52.244-5

              	
                Competition
      In Subcontracting

              	DEC
      1996   
	
                52.244-6

              	
                Subcontracts
      for Commercial Items 

              	MAR 2009
  
	
                52.245-1

              	
                Government
      Property

              	JUN
      2007   
	52.245-9  	
                Use
      And Charges

              	JUN
      2007  
	
                52.246-9

              	
                Inspection
      Of Research And Development (Short
      Form)      

              	APR 1984
  
	
                52.246-25

              	
                Limitation
      Of Liability--Services

              	FEB 1997
  
	
                52.247-1

              	
                Commercial
      Bill Of Lading Notations 

              	FEB 2006
  
	
                52.247-34

              	F.O.B.
      Destination	NOV
      1991    
	
                52.247-63

              	
                Preference
      For U.S. Flag Air Carriers 

              	JUN 2003
  
	
                52.249-6

              	
                Termination
      (Cost Reimbursement)   

              	MAY
      2004  
	
                52.249-14

              	
                Excusable
      Delays

              	APR 1984
  
	
                52.253-1  

              	
                Computer
      Generated Forms  

              	JAN 1991
  
	
                252.201-7000

              	
                Contracting
      Officer's Representative

              	DEC
      1991  
	
                252.203-7000  

              	
                Requirements
      Relating to Compensation of Former DoD Officials

              	JAN
      2009     
	
                252.203-7001

              	
                Prohibition
      On Persons Convicted of Fraud or Other Defense­ Contract-Related
      Felonies

              	DEC
    2008 
	
                252.203.7002 

              	
                Requirement
      to Inform Employees of Whistleblower Rights 

              	JAN
      2009  
	252.204-7003	Control Of
      Government Personnel Work Product    	APR
      1992  
	252.209-7004 Alt
      A  	
                Central
      Contractor Registration (52.204-7) Alternate A 

              	SEP 2007
  
	252.204-7006 	
                Billing
      Instructions

              	OCT
      2005   
	252.204-7009	
                Requirements
      Regarding Potential Access to Export- Controlled Items

              	JUL
    2008 
	252.205-7000 	Provision Of
      Information To Cooperative Agreement Holders   	DEC
      1991  
	252.209-7004 	
                Subcontracting
      With Firms That Are Owned or Controlled By The Government of a Terrorist
      Country

              	DEC
    2006 
	
                252.215-7000 

              	
                Pricing
      Adjustments

              	DEC 1991
  
	
                252.215-7002
      

              	
                Cost
      Estimating System Requirements 

              	DEC 2006
  
	
                252.215-7004   

              	
                Excessive
      Pass-Through Charges 

              	MAY
      2008   
	
                252.223-7004
      

              	
                Drug
      Free Work Force

              	SEP 1988
  
	
                252.225-7012   

              	
                Preference
      For Certain Domestic Commodities 

              	DEC 2008
  
	
                252.227-7000 

              	
                Non-estoppel   

              	OCT
      1966   
	
                252,227-7013
      

              	
                Rights
      in Technical Data--Noncommercial Items

              	NOV 1995
  
	
                252.227-7014  

              	
                Rights
      in Noncommercial Computer Software and Noncommercial Computer Software
      Documentation

              	JUN
      1995    
	
                252.227-7016
      

              	Rights in Bid or
      Proposal Information  	JUN
      1995  
	
                252.227-7019 

              	
                Validation
      of Asserted Restrictions--Computer Software

              	JUN
      1995  
	252.227-7030  	Technical
      Data--Withholding Of Payment 	MAR
    2000 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      W911NF-09-C-0135

       

      Page 13
of 16

    

     

    
      	
              252.227-7037

            	
              Validation
      of Restrictive Markings on Technical Data

            	
              SEP
      1999

            
	
              252.227-7039

            	
              Patents--Reporting
      Of Subject Inventions

            	
              APR
      1990

            
	
              252.231-7000

            	
              Supplemental
      Cost Principles

            	
              DEC
      1991

            
	
              252.232-7003

            	
              Electronic
      Submission of Payment Requests and Receiving Reports

            	
              MAR
      2008

            
	
              252.232-7010

            	
              Levies
      on Contract Payments

            	
              DEC
      2006

            
	
              252.235-7011

            	
              Final
      Scientific or Technical Report

            	
              NOV
      2004

            
	
              252.243
      -7002

            	
              Requests
      for Equitable Adjustment

            	
              MAR
      1998

            
	
              252.244-7000

            	
              Subcontracts
      for Commercial Items and Commercial Components
      (DoD Contracts)

            	
              JAN
      2009

            
	
              252.247-7023

            	
              Transportation
      of Supplies by Sea

            	
              MAY
      2002

            
	
              252.247-7024

            	
              Notification
      Of Transportation Of Supplies By Sea

            	
              MAR
      2000

            

    

    

    CLAUSES
INCORPORATED BY FULL TEXT

     

    52.215-19  NOTIFICATION OF OWNERSHIP
CHANGES (OCT 1997)

     

    (a) The
Contractor shall make the following notifications in writing:

     

    (1) When the
Contractor becomes aware that a change in its ownership has occurred, or is certain to occur,
that could result in changes in the valuation of its capitalized assets in the
accounting records, the Contractor shall notify the Administrative Contracting
Officer (ACO) within 30 days.

     

    (2) The
Contractor shall also notify the ACO within 30 days whenever changes to asset
valuations or any other cost changes have occurred or are certain to occur as a
result of a change in ownership.

     

    (b) The
Contractor shall--

     

    (1) Maintain
current, accurate, and complete inventory records of assets and their
costs;

     

    (2) Provide
the ACO or designated representative ready access to the records upon
request;

     

    (3) Ensure
that all individual and grouped assets, their capitalized values, accumulated
depreciation or amortization, and remaining useful lives are identified
accurately before and after each of the Contractor's ownership changes;
and

     

    (4) Retain
and continue to maintain depreciation and amortization schedules based on the
asset records maintained before each Contractor ownership change.

     

    The
Contractor shall include the substance of this clause in all subcontracts under
this contract that meet the applicability requirement of FAR
15.408(k),

     

    (End of
clause)

     

     

    52.222-2  PAYMENT FOR OVERTIME
PREMIUMS (JUL 1990)

     

    (a) The
use of overtime is authorized under this contract if the overtime premium cost
does not exceed -0- or the overtime premium is paid for work --

     

    (1)
Necessary to cope with emergencies such as those resulting from accidents,
natural disasters, breakdowns of production equipment, or occasional production
bottlenecks of a sporadic nature;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 14
of 16

     

    (2) By
indirect-labor employees such as those performing duties in connection with
administration, protection, transportation, maintenance, standby plant
protection, operation of utilities, or accounting;

     

    (3) To
perform tests, industrial processes, laboratory procedures, loading or unloading
of transportation conveyances, and operations in flight or afloat that are
continuous in nature and cannot reasonably be interrupted or completed
otherwise; or

     

    (4) That
will result in lower overall costs to the Government.

     

    (b) Any
request for estimated overtime premiums that exceeds the amount specified above
shall include all estimated overtime for contract completion and
shall--

     

    (1) Identify
the work unit; e.g., department or section in which the requested overtime will
be used, together with present workload, staffing, and other data of the
affected unit sufficient to permit the Contracting Officer to evaluate the
necessity for the overtime;

     

    (2) Demonstrate
the effect that denial of the request will have on the contract delivery or
performance schedule;

     

    (3) Identify
the extent to which approval of overtime would affect the performance or
payments in connection with other Government contracts, together with
identification of each affected contract; and

     

    (4) Provide
reasons why the required work cannot be performed by using multishift operations
or by employing additional personnel.

     

    * Insert
either "zero" or the dollar amount agreed to during negotiations. The inserted
figure does not apply to the exceptions in paragraph (a)(1) through (a)(4) of
the clause.

     

    (End of
clause)

     

     

    52.222-39  NOTIFICATION OF EMPLOYEE
RIGHTS CONCERNING PAYMENT OF UNION DUES OR FEES (DEC 2004)

     

    (a) Definition,
As used in this clause--

     

    United
States means the 50 States, the District of Columbia, Puerto Rico, the Northern
Mariana Islands, American Samoa, Guam, the U.S. Virgin Islands, and Wake
Island.

     

    (b) Except as
provided in paragraph (e) of this clause, during the term of this contract, the
Contractor shall post a notice, in the form of a poster, informing employees of
their rights concerning union membership and payment of union dues and fees, in
conspicuous places in and about all its plants and offices, including all places
where notices to employees are customarily posted. The notice shall include the
following information (except that the information pertaining to National Labor
Relations Board shall not be included in notices posted in the plants or offices
of carriers subject to the Railway Labor Act, as amended (45 U.S.C.
151-188)).

     

    Notice to
Employees

     

    Under
Federal law, employees cannot be required to join a union or maintain membership
in a union in order to retain their jobs. Under certain conditions, the law
permits a union and an employer to enter into a union-security agreement
requiring employees to pay uniform periodic dues and initiation fees. However,
employees who are not union members can object to the use of their payments for
certain purposes and can only be required to pay their share of union costs
relating to collective bargaining, contract administration, and grievance
adjustment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    W911NF-09-C-0135

     

    Page 15
of 16

     

    If you do
not want to pay that portion of dues or fees used to support activities not
related to collective bargaining, contract administration, or grievance
adjustment, you are entitled to an appropriate reduction in your payment. If you
believe that you have been required to pay dues or fees used in part to support
activities not related to collective bargaining, contract administration, or
grievance adjustment, you may be entitled to a refund and to an appropriate
reduction in future payments.

     

    For
further information concerning your rights, you may wish to contact the National
Labor Relations Board (NLRB) either at one of its Regional offices or at the
following address or toll free number:

     

    National
Labor Relations Board

    Division
of Information 

    1099 14th
Street, N.W. 

    Washington,
DC 20570 

    1-866-667-6572

    1-866-316-6572
(TTY)

     

    To locate
the nearest NLRB office, see NLRB's website at http://www.nlrb.gov.

     

    (c) The
Contractor shall comply with all provisions of Executive Order 13201 of February
17, 2001, and related implementing regulations at 29 CFR part 470, and orders of
the Secretary of Labor.

     

    (d) In the
event that the Contractor does not comply with any of the requirements set forth
in paragraphs (b), (c), or (g), the Secretary may direct that this contract be
cancelled, terminated, or suspended in whole or in part, and declare the
Contractor ineligible for further Government contracts in accordance with
procedures at 29 CFR part 470, Subpart B--Compliance Evaluations, Complaint
Investigations and Enforcement Procedures. Such other sanctions or remedies may
be imposed as are provided by 29 CFR part 470, which implements Executive Order
13201, or as are otherwise provided by law.

     

    (e) The
requirement to post the employee notice in paragraph (b) does not apply to--

     

    (1)
Contractors and subcontractors that employ fewer than 15 persons;

     

    (2) Contractor
establishments or construction work sites where no union has been formally
recognized by the Contractor or certified as the exclusive bargaining
representative of the Contractor's employees;

     

    (3) Contractor
establishments or construction work sites located in a jurisdiction named in the
definition of the United States in which the law of that jurisdiction forbids
enforcement of union-security agreements;

     

    (4)
Contractor facilities where upon the written request of the Contractor, the
Department of Labor Deputy Assistant Secretary for Labor-Management Programs has
waived the posting requirements with respect to any of the Contractor's
facilities if the Deputy Assistant Secretary finds that the Contractor has
demonstrated that--

     

    (i) The
facility is in all respects separate and distinct from activities of the
Contractor related to the performance of a contract; and

     

    (ii) Such a
waiver will not interfere with or impede the effectuation of the Executive
order; or

     

    (5) Work
outside the United States that does not involve the recruitment or employment of
workers within the United States.

     

    (f) The
Department of Labor publishes the official employee notice in two variations;
one for contractors covered by the Railway Labor Act and a second for all other
contractors. The Contractor shall--

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      W911NF-09-C-0135

       

      Page 16
of 16

       

    

    (1) Obtain
the required employee notice poster from the Division of Interpretations and
Standards, Office of Labor- Management Standards, U.S. Department of Labor, 200
Constitution Avenue, NW, Room N-5605, Washington, DC 20210, or from any field
office of the Department's Office of Labor-Management Standards or Office of
Federal Contract Compliance Programs;

     

    (2) Download
a copy of the poster from the Office of Labor-Management Standards website at
http://www,olms.dol.gov;
or

     

    (3)
Reproduce and use exact duplicate copies of the Department of Labor's official
poster.

     

    (g) The
Contractor shall include the substance of this clause in every subcontract or
purchase order that exceeds the simplified acquisition threshold, entered into
in connection with this contract, unless exempted by the Department of Labor
Deputy Assistant Secretary for Labor-Management Programs on account of special
circumstances in the national interest under authority of 29 CFR 470.3(c), For
indefinite quantity subcontracts, the Contractor shall include the substance of
this clause if the value of orders in any calendar year of the subcontract is
expected to exceed the simplified acquisition threshold. Pursuant to 29 CFR part
470, Subpart B--Compliance Evaluations, Complaint Investigations and Enforcement
Procedures, the Secretary of Labor may direct the Contractor to take such action
in the enforcement of these regulations, including the imposition of sanctions
for noncompliance with respect to any such subcontract or purchase order. If the
Contractor becomes involved in litigation with a subcontractor or vendor, or is
threatened with such involvement, as a result of such direction, the Contractor
may request the United States, through the Secretaty of Labor, to enter into
such litigation to protect the interests of the United States.

     

    (End of
clause)

     

     

    52.252-2  CLAUSES INCORPORATED BY
REFERENCE (FEB 1998)

     

    This
contract incorporates one or more clauses by reference, with the same force and
effect as if they were given in full text. Upon request, the Contracting Officer
will make their full text available. Also, the full text of a clause may be
accessed electronically at this/these address(es):

     

    http://farsite.hill.af.mil
or http://acquisition.gov/far/index.html.

     

    (End of
clause)

     

    252.235-7010
Acknowledgment of Support and Disclaimer, (MAY 1995)

     

    (a) The
Contractor shall include an acknowledgment of the Government's support in the
publication of any material based on or developed under this contract, stated in
the following terms: This material is based upon work supported by the U.S. Army
Research Office and Defense Threat Reduction Agency under Contract No.
W911NF-09-C-0135.

     

    (b) All
material, except scientific articles or papers published in scientific journals,
must, in addition to any notices or disclaimers by the Contractor, also contain
the following disclaimer: Any opinions, findings and conclusions or
recommendations expressed in this material are those of the author(s) and do not
necessarily reflect the views of the U.S. Army Research Office and Defense
Threat Reduction Agency.

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