Exhibit 10.2
NEITHER THE
WARRANTS REPRESENTED BY THIS CERTIFICATE NOR THE SHARES OF COMMON
STOCK HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “1933 ACT”), OR ANY STATE SECURITIES LAWS
AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY BE OFFERED,
SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A
REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE
1933 ACT, OR (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND THE
COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL ACCEPTABLE TO THE
COMPANY AS TO SUCH EXEMPTION.
IN ADDITION,
A SECURITIES PURCHASE AGREEMENT DATED AS OF SEPTEMBER 29, 2009,
(THE “PURCHASE AGREEMENT”), A COPY OF WHICH MAY BE
OBTAINED FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICE,
CONTAINS CERTAIN ADDITIONAL AGREEMENTS BETWEEN THE PARTIES WITH
RESPECT TO THIS WARRANT.
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XODTEC GROUP USA,
INC.
COMMON STOCK PURCHASE WARRANT
“B”
Number of
Shares: 1,000,000
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Holder: Barron
Partners LP
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c/o Barron Capital Advisors
LLC
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Original Issue
Date: September 29, 2009
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Attn: Andrew
Barron Worden
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730 Fifth
Avenue, 25th Floor
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Expiration
Date: September 29, 2012
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Exercise Price
per Share: $1.50
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XODTEC GROUP
USA, Inc., a Nevada corporation (the “ Company
”), hereby certifies that, for value received, BARRON
PARTNERS LP, or registered assigns (the “ Warrant
Holder ”), is entitled, subject to the terms set
forth below, to purchase from the Company up to 1,000,000 shares
(as adjusted from time to time as provided in Section 7 of this
Warrant, the “ Warrant Shares ”) of
common stock, $.001 par value (the “ Common
Stock ”), of the Company at a price of $1.50 per
Warrant Share (as adjusted from time to time as provided in Section
7, the “ Exercise Price ”), at any time
and from time to time from and after the date thereof and through
September 25, 2012 (the “Expiration Date”), and subject
to the following terms and conditions:
1.
Registration of Warrant . The Company
shall register this Warrant upon records to be maintained by the
Company for that purpose (the “ Warrant
Register ”), in the name of the record Warrant Holder
hereof from time to time. The Company may deem and treat
the registered Warrant Holder of this Warrant as the absolute owner
hereof for the purpose of any exercise hereof or any distribution
to the Warrant Holder, and for all other purposes, and the Company
shall not be affected by notice to the contrary.
2.
Investment Representation
. The Warrant Holder by accepting this Warrant
represents that the Warrant Holder is acquiring this Warrant for
its own account or the account of an affiliate that is an
accredited investor which has been identified to and approved by
(such approval not to be unreasonably withheld or delayed) for
investment purposes and not with the view to any offering or
distribution and that the Warrant Holder will not sell or otherwise
dispose of this Warrant or the underlying Warrant Shares in
violation of applicable securities laws. The Warrant
Holder acknowledges that the certificates representing any Warrant
Shares will bear a legend indicating that they have not been
registered under the 1933 Act, and may not be sold by the Warrant
Holder except pursuant to an effective registration statement or
pursuant to an exemption from registration requirements of the 1933
Act and in accordance with federal and state securities
laws. If this Warrant was acquired by the Warrant Holder
pursuant to the exemption from the registration requirements of the
1933 Act afforded by Regulation S thereunder, the Warrant Holder
acknowledges and covenants that this Warrant may not be exercised
by or on behalf of a Person during the one year distribution
compliance period (as defined in Regulation S) following the date
hereof. “ Person ” means an
individual, partnership, firm, limited liability company, trust,
joint venture, association, corporation, or any other legal
entity.
3.
Validity of Warrant and Issue of
Shares . The Company represents and warrants
that this Warrant has been duly authorized and validly issued and
warrants and agrees that all of Common Stock that may be issued
upon the exercise of the rights represented by this Warrant will,
when issued upon such exercise, be duly authorized, validly issued,
fully paid and nonassessable and free from all taxes, liens and
charges with respect to the issue thereof other than those incurred
by the Holder. The Company further warrants and agrees
that during the Exercise Period, the Company will at all times have
authorized and reserved a sufficient number of Common Stock to
provide for the exercise of the rights represented by this
Warrant.
4.
Registration of
Transfers and Exchange of Warrants .
a.
Subject
to compliance with the federal and state securities laws, the
Company shall register the transfer of any portion of this Warrant
in the Warrant Register, upon surrender of this Warrant with the
Form of Assignment attached hereto duly completed and signed, to
the Company at the office specified in or pursuant to Section
12. Upon any such registration or transfer, a new
warrant to purchase Common Stock, in substantially the form of this
Warrant (any such new warrant, a “ New Warrant
”), evidencing the portion of this Warrant so transferred
shall be issued to the transferee and a New Warrant evidencing the
remaining portion of this Warrant not so transferred, if any, shall
be issued to the transferring Warrant Holder. The
acceptance of the New Warrant by the transferee thereof shall be
deemed the acceptance of such transferee of all of the rights and
obligations of a Warrant Holder of a Warrant.
b.
This Warrant is exchangeable, upon the surrender
hereof by the Warrant Holder to the office of the Company specified
in or pursuant to Section 9 for one or more New Warrants,
evidencing in the aggregate the right to purchase the number of
Warrant Shares which may then be purchased
hereunder. Any such New Warrant will be dated the date
of such exchange.
5.
Exercise of Warrants
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a.
Upon surrender of this Warrant with the Form of
Election to Purchase attached hereto duly completed and signed to
the Company, at its address set forth in Section 13, and upon
payment and delivery of the Exercise Price per Warrant Share
multiplied by the number of Warrant Shares that the Warrant Holder
intends to purchase hereunder, in lawful money of the United States
of America, by wire transfer or by certified or official bank check
or checks, to the Company, all as specified by the Warrant Holder
in the Form of Election to Purchase, the Company shall promptly
(but in no event later than 7 business days after the Date of
Exercise (as defined herein)) issue or cause to be
issued and cause to be delivered to or upon the written
order of the Warrant Holder and in such name or names as the
Warrant Holder may designate (subject to the restrictions on
transfer described in the legend set forth on the face of this
Warrant), a certificate for the Warrant Shares issuable upon such
exercise, with such restrictive legend as required by the 1933
Act. Any person so designated by the Warrant Holder to
receive Warrant Shares shall be deemed to have become holder of
record of such Warrant Shares as of the Date of Exercise of this
Warrant.
b.
A “Date of
Exercise” means the date on which the Company shall have
received (i) this Warrant (or any New Warrant, as applicable), with
the Form of Election to Purchase attached hereto (or attached to
such New Warrant) appropriately completed and duly signed, and (ii)
payment of the Exercise Price for the number of Warrant Shares so
indicated by the Warrant Holder to be purchased.
c.
This Warrant shall be exercisable at any
time and from time to time during the Exercise Period for such
number of Warrant Shares as is indicated in the attached Form of
Election To Purchase. If less than all of the Warrant
Shares which may be purchased under this Warrant are exercised at
any time, the Company shall issue or cause to be issued, at its
expense, a New Warrant evidencing the right to purchase the
remaining number of Warrant Shares for which no exercise has been
evidenced by this Warrant.
d.
(i) Notwithstanding anything
contained herein to the contrary, but subject to Section 5(e) and
Section 6, the holder of this Warrant may, at its election
exercised in its sole discretion, exercise this Warrant in whole or
in part and, in lieu of making the cash payment otherwise
contemplated to be made to the Company upon such exercise in
payment of the Aggregate Exercise Price, elect instead to receive
upon such exercise the “ Net Number ” of shares
of Common Stock determined according to the following formula (a
“ Cashless Exercise ”):
Net Number = (A x (B -
C))/B
(ii)
For purposes of the foregoing
formula:
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