Exhibit 4.2
NEITHER THE
WARRANTS REPRESENTED BY THIS CERTIFICATE NOR THE SHARES OF COMMON
STOCK TO BE ISSUED ON EXERCISE HEREOF HAVE BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY STATE SECURITIES LAWS AND NEITHER THE WARRANT
NOR THE 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.
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SKYPEOPLE FRUIT JUICE,
INC.
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COMMON STOCK PURCHASE
WARRANT
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Number of
Shares: 970,588
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Original
Issue Date: June 2, 2009
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Expiration Date: February 24,
2013
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Exercise Price
per Share: (a) $1.70, if exercised prior to the later of (i) 120
days after the Original Issue Date or (ii) 30 days after the
Securities and Exchange Commission declares effective a
registration statement covering the resale of the Warrant Shares
(such later date, the “Initial Exercise Deadline”), and
(b) $3.00, if exercised after the Initial Exercise
Deadline
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SKYPEOPLE
FRUIT JUICE, INC. , a
Florida 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 Nine Hundred
Seventy Thousand Five Hundred Eighty-Eight (970,588) shares (as
adjusted from time to time as provided in Section 7 of this
Warrant, the “ Warrant Shares ”) of
common stock, $0.001par value (the “ Common
Stock ”), of the Company at a price per share of :
(a) $1.70, if this Warrant is exercised prior to the later of (i)
120 days after the Original Issue Date or (ii) 30 days after the
Securities and Exchange Commission declares effective a
registration statement covering the resale of the Warrant Shares
(such later date, the Initial Exercise Deadline
”), and (b) $3.00, if exercised after the Initial Exercise
Deadline. Each of the foregoing exercise prices (the “
Exercise Price ”) shall be adjusted from time
to time as provided in Section 7. This Warrant may be exercised at
any time and from time to time from the date hereof and through and
including 5:00 p.m. New York City time on February 24, 2013 (the
“ Expiration Date ”), subject to the
following additional 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,” as defined under Regulation D
promulgated under the 1933 Act (an “ Accredited
Investor ”), which has been identified to
and approved by the Company (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
shares (the “ 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 (as defined below) 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 the 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 Warrant 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 13. Upon any such registration
or transfer, a new warrant to purchase Common Stock, in
substantially the form of this Warrant (any such new warrant, a
“ New Warrant ”), evidencing the portion
of this Warrant so transferred shall be issued to the transferee
and a New Warrant evidencing the remaining portion of this Warrant
not so transferred, if any, shall be issued to the transferring
Warrant Holder. The acceptance of the New Warrant by the transferee
thereof shall be deemed the acceptance of such transferee of all of
the rights and obligations of a Warrant Holder of a
Warrant.
b. This Warrant is exchangeable, upon the
surrender hereof by the Warrant Holder to the office of the Company
specified in or pursuant to Section 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 .
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, at any time after the Initial Exercise
Deadline, 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:
A= the total
number shares with respect to which this Warrant is then being
exercised.
B= the last
reported sale price (as reported by Bloomberg) of the Common Stock
on the trading day immediately preceding the date of the Exercise
Notice.
C= the Warrant
Exercise Price then in effect at the time of such
exercise.
e. The holder of this Warrant may not make
a Cashless Exercise (i) at any time prior to the Initial Exercise
Deadline and (ii) on or after the Initial Exercise Deadline if the
resale of the Warrant Shares by the Holder of the Warrant Shares is
covered by an effective registration statement.
f. Notwithstanding
anything to the contrary contained herein, the holder of this
Warrant may not exercise this Warrant or any part hereof prior to
the Initial Exercise Deadline if all or any portion of the Warrant
to Purchase 5,338,236 shares of Common Stock issued to Barron
Partners LP on the Original Issuance Date shall then remain
unexercised.
6. Maximum Exercise . The
Warrant Holder shall not be entitled to exercise this
Warrant on a Date of Exercise in connection with that number of
shares of Common Stock which would be in excess of the sum of (i)
the number of shares of Common Stock beneficially owned by the
Warrant Holder and its affiliates on the Date of Exercise, and (ii)
the number of shares of Common Stock issuable upon the exercise of
this Warrant with respect to which the determination of this
limitation is being made on the Date of Exercise, which would
result in beneficial ownership by the Warrant Holder and its
affiliates of more than 4.9% of the outstanding shares of Common
Stock on such date. This Section 6 may be waived or amended only
with the consent of the Holder and the consent of holders of a
majority of the shares of outstanding Common Stock of the Company
who are not Affiliates. For the purposes of the immediately
preceding sentence, the term “Affiliate” shall mean any
person: (a) that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common
control with, the Company; or (b) who beneficially owns (i) any
shares of the Company’s Series B Stock, or (ii) this Warrant.
As used in this Warrant, beneficial ownership shall be determined
in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “ Exchange Act ”), and
Regulation 13d-3 thereunder.
7. Adjustment of Exercise Price and
Number of Shares . The character of the shares of stock or
other
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