EXHIBIT 10.16
THE
SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED. SUCH SECURITIES MAY NOT BE
SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
APPLICABLE STATE SECURITIES LAWS, OR THE ISSUER RECEIVES AN OPINION
OF COUNSEL, IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER, TIIAT THE
SECURITIES EVIDENCED HEREBY MAY BE SOLD IN ACCORDANCE WITH AN
EXEMPTION THEREUNDER.
March 20, 2009
Void after 6:00 p.m. Eastern Time
on the Expiration Date
WARRANT TO PURCHASE
SHARES
OF
PERF GO-GREEN HOLDINGS,
INC.
This Is To Certify That, FOR VALUE RECEIVED,
Star Funding, Inc., a Delaware corporation, and its successors and
assigns (collectively, “ Holder ”), is entitled
to purchase, subject to the provisions of this Warrant (“
Warrant ”) from PERF Go-Green Holdings, Inc., a
Delaware corporation (the “ Company ”), Eight
Hundred Thousand (800,000) fully paid, validly issued and
non-assessable shares of Common Stock, par value $0.0001
per share, of the Company
(“ Common Stock ”), at an exercise price of$1
.00 per share, at any time or from time to time to time during the
period (the “Exercise Period”) beginning on the date of
this Warrant, and ending 6:00 p.m. Eastern Standard Time five
(5) years thereafter (the “Expiration Date”).
The number of shares of Common Stock to be received upon the
exercise of this Warrant may be adjusted from time to time as
hereinafter set forth. The shares of Common Stock that may be
purchased pursuant to this Warrant, as adjusted from time to time,
are hereinafter sometimes referred to as “ Warrant
Shares ” and the exercise price of the Warrant Shares in
effect at any time and as adjusted from time to time is hereinafter
sometimes referred to as the “ Exercise Price
.”
(I) EXERCISE
OF WARRANT. (a) Method. This Warrant may be exercised in
whole or in part at any time or from time to time during the
Exercise Period on any day on which banking institutions in the
State of New York are not authorized by law to close. This Warrant
may be exercised by presentation and surrender of this Warrant to
the Company at its principal office or to the Company’s
warrant agent, if any has been appointed, with the Exercise Form
annexed hereto (the “ Exercise Form ”) duly
executed and accompanied by payment of the Exercise Price, in cash
or by certified or bank cashier’s check, for the number of
Warrant Shares specified in such form. As soon as practicable after
each such exercise of the Warrant, the Company shall issue or cause
to be issued and delivered to the Holder a certificate or
certificates for the Warrant Shares issuable upon such exercise,
registered in the name of the Holder as more particularly set forth
in Section 2 hereof. The Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date of
any such exercise, provided such exercise is in accordance with the
provisions set forth herein. If this Warrant should be exercised in
part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the
rights of the Holder thereof to purchase the balance of the Warrant
Shares purchasable thereunder. Upon receipt by the Company of this
Warrant at its office in proper form for exercise, the Holder shall
be deemed to be the holder of record of the Common Stock issuable
upon such exercise, notwithstanding that the stock transfer books
of the Company shall then be closed or that certificates
representing such Common Stock shall not then be physically
delivered to the Holder.
(b)
Cashless Exercise. Notwithstanding any provisions herein to
the contrary and commencing on the date hereof if all of the
Warrant Shares are not registered for resale under an effective
registration statement under the Securities Act by the six-month
anniversary date of the issuance of this Warrant, unless the
registration statement is not effective due to any factors
primarily within the control of the Holder (such event, an “
Excluded Event ”), in lieu of exercising this Warrant
by payment of cash, the Holder may exercise this Warrant by a
cashless exercise and shall receive the number of shares of Common
Stock equal to an amount (as determined below) by surrender of this
Warrant at the principal office of the Company together with the
properly endorsed Exercise Form, in which event the Company shall
issue to the Holder a number of shares of Common Stock computed
using the following formula:
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the
number of shares of Common Stock to be issued to the
Holder.
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the number of
shares of Common Stock purchasable upon exercise of all of the
Warrant or, if only a portion of the Warrant is being exercised,
the portion of the Warrant being exercised.
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B
= the
Market Value of one Warrant Share.
(2) RESERVATION
OF SHARES. The Company shall at all times reserve for issuance
and/or delivery upon exercise of this Warrant such number of shares
of Common Stock as shall be required for issuance and delivery upon
exercise of the Warrants.
(a)
Issuance. In the event of any exercise of this Warrant in
accordance with and subject to the terms and conditions hereof,
certificates for the Warrant Shares so purchased shall be dated the
date of such exercise and delivered to the Holder hereof within a
reasonable time, not exceeding three (3) Trading Days after such
exercise (the “ Delivery Date ”) or, at the
request of the Holder (provided that a registration statement under
the Securities Act providing for the resale of the Warrant Shares
is then in effect), issued and delivered to the Depository Trust
Company (“DTC”) account on the Holder’s
behalf via the Deposit Withdrawal Agent Commission System (“
DWAC ”) within a reasonable time, not exceeding three
(3) Trading Days after such exercise, and the Holder hereof shall
be deemed for all purposes to be the holder of the Warrant Shares
so purchased as of the date of such exercise. Notwithstanding the
foregoing, the Company or its transfer agent shall only be
obligated to issue and deliver the shares to the DTC on a
holder’s behalf via DWAC if such exercise is in connection
with a sale and the Company and its transfer agent are
participating in DTC through the DWAC system. The Holder shall
deliver this original Warrant, or an indemnification undertaking
with respect to such Warrant in the case of its loss, theft or
destruction, at such time that this Warrant is hilly exercised.
With respect to partial exercises of this Warrant, the Company
shall keep written records for the Holder of the number of Warrant
Shares exercised as of each date of exercise.
(b)
Compensation for Buy-In. In addition to any other rights
available to the Holder, if the Company fails to cause its transfer
agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to an exercise on or
before the Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction
or otherwise) shares of Common Stock to deliver in satisfaction of
a sale by the Holder of the Warrant Shares which the Holder
anticipated receiving upon such exercise (a “ Buy-In
”), then the Company shall (1) pay in cash to the Holder the
amount by which (x) the Holder’s total purchase price
(including brokerage commissions, if any) for the shares of Common
Stock so purchased exceeds (y) the amount obtained by multiplying
(A) the number of shares of Warrant Shares that the Company was
required to deliver to the Holder in connection with the exercise
at issue times (B) the price at which the sell order giving rise to
such purchase obligation was executed, and (2) at the option of the
Holder, either reinstate the portion of the Warrant and equivalent
number of shares of Warrant Shares for which such exercise was not
honored or deliver to the Holder the number of shares of Common
Stock that would have been issued had the Company timely complied
with its exercise and delivery obligations hereunder. For example,
if the Holder purchases Common Stock having a total purchase price
of $l1,000 to cover a Buy-In with respect to an attempted exercise
of shares of Common Stock with an aggregate sale price giving rise
to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written
notice indicating the amounts payable to the Holder in respect of
the Buy-In, together with applicable confirmations and other
evidence reasonably requested by the Company. Nothing herein shall
limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation,
a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver
certificates representing shares of Common Stock upon exercise of
this Warrant as required pursuant to the terms hereof.
(3) FRACTIONAL
SHARES. No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant. If more
than one Warrant shall be exercised at one time by the Holder, the
number of full shares of Common Stock which shall be issuable upon
exercise thereof shall be computed on the basis of the aggregate
number of hill shares issuable upon such exercise. No adjustment
shall be made in respect of cash dividends on Warrant Shares
delivered upon exercise of any Warrant. With respect to any
fraction of a share called for upon exercise hereof, the Company
shall pay to the Holder an amount in cash equal to such fraction
multiplied by the average bid and asked prices of the Common Stock
on the last available date for which quotations are available
immediately preceding the date of exercise of this Warrant, if the
bid and asked prices are not so reported, then the current market
value shall be an amount, not less than the book value thereof as
at the end of the most recent fiscal year of the Company ending
prior to the date of the exercise of the Warrant, determined in
such reasonable manner as may be prescribed by the Board of
Directors of the Company.
(4) EXCHANGE
OR LOSS OF WARRANT. This Warrant is exchangeable, without expense,
at the option of the Holder, upon presentation and surrender hereof
to the Company for other Warrants of different denominations
entitling the holder thereof to purchase in the aggregate the same
number of shares of Common Stock purchasable hereunder. This
Warrant may be divided or combined with other Warrants which carry
the same rights upon presentation hereof at the principal office of
the Company with a written notice specifying the denominations in
which new Warrants are to be issued and signed by the Holder
hereof. The term “ Warrant ” as used herein
includes any Warrants into which this Warrant may be divided or
exchanged. Upon receipt by the Company or its warrant agent, if
any, of evidence satisfactory to it of the loss, theft, destruction
or mutilation of this Warrant, and (in the case of loss, theft or
destruction) of reasonably satisfactory indemnification, and upon
surrender and cancellation of this Warrant, if mutilated, the
Company will execute and deliver a new Warrant of like tenor and
date.
(5) RIGHTS
OF THE HOLDER. The Holder shall not, by virtue hereof, be entitled
to any rights of a stockholder in the Company, either at law or
equity, and the rights of the Holder are limited to those expressed
in the Warrant and are not enforceable against the Company except
to the extent set forth herein and in any warrant agreement entered
into by and between the Company and a warrant agent with respect to
the Warrants. In the event the Company enters into a warrant
agreement with a warrant agent, the terms of the Warrant shall be
embodied in the warrant agreement; and the acceptance of this
Warrant by the Holder shall be deemed consent by the Holder for the
Company to enter into any such warrant agreement, upon such terms
and conditions mutually agreeable between the Company and any such
warrant agent, provided such warrant agreement does not adversely
affect any of the rights of the Holder, as set forth in this
Warrant.
(6) ANTI-DILUTION
PROVISIONS.
(a)
Stock Dividends, Splits, Combinations, etc. In case the
Company shall at any time after the date of this Warrant (i)
declare a dividend, or make a distribution, on the outstanding
Common Stock, (ii) subdivide the outstanding Common Stock, (iii)
combine the outstanding Common Stock into a smaller number of
shares of Common Stock, or (iv) issue any shares of Common Stock by
reclassification (including any such reclassification in connection
with a consolidation or merger in which the Company is the
continuing corporation), then in each case, the number and kind of
shares of Common Stock receivable upon exercise of this Warrant, in
effect at the time of the record date for such dividend or
distribution or of the effec
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