EXHIBIT 3.7
CLASS B REDEEMABLE WARRANT AGREEMENT
DATE: _________, 2007
PARTIES:
Greater Asia Realty Holdings, Ltd.
Attn: ▇▇. ▇▇▇ ▇▇▇▇▇ ▇▇▇▇, Pres.
▇-▇-▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ Stock Transfer, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
RECITALS:
Greater Asia Realty Holdings, Ltd., a Delaware corporation (the "Company"),
proposes to issue 2,000,000 Class B Redeemable Warrants ("Warrants") evidencing
the right to purchase an aggregate of up to 2,000,000 authorized but previously
unissued shares of Common Stock, par value $0.0001 per share, of the Company
(the "Common Stock").
The Company desires ▇▇▇▇▇▇▇▇ Stock Transfer, Inc. (the "Warrant Agent") to act
on behalf of the Company, and the Warrant Agent desires so to act, in
connection with the issuance, registration, transfer, exchange and exercise of
the Warrants.
AGREEMENT:
The Company and the Warrant Agent therefore agree as follows:
Section 1. Appointment of Warrant Agent; Issuance, Form and Execution of
Warrant Certificates.
(a) Appointment of Warrant Agent. The Company hereby appoints the Warrant Agent
to act as agent for the Company, and the Warrant Agent hereby accepts the
agency established herein and agrees to perform its agency duties in accordance
with the terms and conditions of this Warrant Agreement.
(b) Warrant Certificates. The Company shall execute and deliver to the Warrant
Agent certificates which the Company has authorized to represent the Warrants
("Warrant Certificates"). The Warrant Certificates shall be substantially as
set forth in Exhibit A and may have such legends, summaries or endorsements
printed, lithographed or engraved thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Warrant Agreement, or
as may be required to comply with any law or with any rule or regulation
relating to listing of the Warrants on the NASDAQ system, including the Nasdaq
National Market, or on any stock exchange or to conform to usage. The Warrant
Certificates shall be dated the date of their issuance.
(c) Execution of Warrant Certificates. The Warrant Certificates shall be
executed on behalf of the Company by a duly authorized officer of the Company,
either manually or by facsimile signature printed thereon. The Warrant
Certificates shall be manually countersigned by the Warrant Agent and shall not
be valid for any purpose unless so countersigned. Any Warrant Certificate may
be signed on behalf of the Company by the person who at the actual date of the
signing of such Warrant Certificate shall have been the proper officer of the
Company, although at the date of issuance of such Warrant Certificate any such
person has ceased to be such officer of the Company.
Section 2. Exercise of Warrants.
(a) Exercise. Any or all of the Warrants represented by each Warrant
Certificate may be exercised by the holder thereof on or before 5:00 PM EST, on
________, 2009, unless extended by the Company, by surrender of the Warrant
Certificate with the Purchase Form, which is printed on the reverse thereof (or
a reasonable facsimile thereof), duly executed by such holder, to the Warrant
Agent at its principal office in Scottsdale, Arizona accompanied by payment, in
cash or by certified or official bank check payable to the order of the
Company, in an amount equal to the product of the number of shares of Common
Stock issuable upon exercise of the Warrant represented by such Warrant
Certificate, as adjusted pursuant to the provisions of Section 3 hereof,
multiplied by the exercise price of $0.75, as adjusted pursuant to the
provisions of Section 3 hereof (the applicable price as so adjusted from time
to time being herein called the "Purchase Price"), and such holder shall be
entitled to receive such number of fully paid and nonassessable shares of
Common Stock, as so adjusted, at the time of such exercise.
(b) Time of Exercise. Each exercise of Warrants shall be deemed to have been
effective immediately prior to the close of business on the business day on
which the Warrant Certificate relating to such Warrants shall have been
surrendered to the Warrant Agent as provided in Section 2(a), and at such time
the person or persons in whose name or names any certificate or certificates
for shares of Common Stock shall be issuable upon such exercise as provided in
Section 2(c) shall be deemed to have become the holder or holders of record
thereof.
(c) Issuance of Shares of Common Stock; No Fractional Shares. As soon as
practicable after the exercise of any Warrant, and in any event within ten (10)
days after receipt by the Company of the notice of exercise under Section 2(a),
the Company at its expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the holder
thereof or as such holder (upon payment by such holder of any applicable
transfer taxes) may direct, (a) a certificate or certificates for the number of
fully paid and nonassessable shares of Common Stock to which such holder shall
be entitled upon such exercise plus, in lieu of any fractional share to which
such holder would otherwise be entitled, an amount in cash equal to such
fraction multiplied by the then current value of a share of Common Stock, such
current value to be determined as follows: (i) if the Common Stock shall be
listed or admitted to unlisted trading privileges on any single national
securities exchange, then such current value shall be computed on the basis of
the last reported sale price of the Common Stock on such exchange on the last
business day prior to the date of the exercise of such Warrant upon which a
sale shall have been effected; or (ii) if the Common Stock shall not be so
listed or admitted to unlisted trading privileges and bid and asked prices
therefor in the over-the-counter market shall be reported by NASDAQ, including
the Nasdaq National Market, then such current value shall be computed on the
basis of the Last Reported Sale Valuation Method or, in the event such method
is not then used by NASDAQ, the average of the closing bid and asked prices on
the last business day prior to the date of the exercise of such Warrant as so
reported; or (iii) if the Common Stock shall be listed or admitted to unlisted
trading privileges on more than one national securities exchange or one or more
national securities exchanges and in the over-the-counter market, then such
current value shall, if different as a result of calculation under the
applicable method(s) described above in this Section, be deemed to be the
higher number calculated in connection therewith; or (iv) if the shares of
Common Stock are traded over the counter but not on any national securities
exchange and not in the NASDAQ National Market System, the average of the mean
bid and asked prices per share, as reported by The National Quotation Bureau,
Inc., or an equivalent generally accepted reporting service, or (v) if the
Common Stock shall not be so listed, admitted to unlisted trading privileges,
or traded over the counter and such bid and asked prices shall not be so
reported, then such current value shall be computed on the basis of the book
value of Common Stock as of the close of business on the last day of the month
immediately preceding the date upon which such Warrant was exercised, as
determined by the Company; and (b) in case such exercise includes only part of
the Warrants represented by any Warrant Certificate, a new Warrant Certificate
or Warrant Certificates of like tenor, calling in the aggregate on the face or
faces thereof for the number of shares of Common Stock equal (without giving
effect to any adjustment therein) to the number of such shares called for on
the face of such Warrant Certificate minus the number of such shares designated
by the holder for such exercise as provided in Section 2(a). Warrants
represented by a properly assigned Warrant Certificate may be exercised by a
new holder without first having a new Warrant Certificate issued.
(d) Extension of Exercise Period; Change of Exercise Price. The Company may,
upon notice given to the Warrant Agent, and without the consent of the holders
of the Warrant Certificates, (a) reduce the Purchase Price during all or any
portion of the originally stated exercise period or (b) extend the period over
which the Warrants are exercisable beyond ________, 2009, and increase or
decrease the Purchase Price for any period the Warrant exercise period is
extended. In the case of the extension of the exercise period or a change in
the Purchase Price, the Company must provide the Warrant Agent and the
Warrantholders of record notice of such extension of the exercise period,
specifying, as the case may be, the time to which such exercise period is
extended, or specifying the new Purchase Price and the periods for which such
new Purchase Price is in effect, a reasonable time prior to the date such
extension or new Purchase Price is to take effect, such reasonable time to be
commercially reasonable and consistent with applicable securities laws and
regulations.
Section 3 Antidilution Provisions.
(a)(i) Adjustment of Purchase Price. In the event that: (i) any dividends on
any class of stock of the Company payable in Common Stock or securities
convertible into Common Stock shall be paid by the Company; (ii) the Company
shall subdivide its then outstanding shares of Common Stock into a greater
number of shares; or (iii) the Company shall combine outstanding shares of
Common Stock, by reclassification or otherwise; then, in any such event, the
Purchase Price in effect immediately prior to such event shall (until adjusted
again pursuant hereto) be adjusted immediately after such event to a price
(calculated to the nearest full cent) determined by dividing (A) the number of
shares of Common Stock outstanding immediately prior to such event, multiplied
by the then existing Purchase Price, by (B) the total number of shares of
Common Stock outstanding immediately after such event (including in each case
the maximum number of shares of Common Stock issuable in respect of any
securities convertible into Common Stock), and the resulting quotient shall be
the adjusted Purchase Price per share.
(a)(ii) No adjustment of the Purchase Price shall be made if the amount of such
adjustments shall be less than $0.05 per share, but in such case any adjustment
that would otherwise be required then to be made shall be carried forward and
shall be made at the time and together with the next subsequent adjustment
which, together with any adjustment or adjustments so carried forward, shall
amount to not less than $0.05 per share.
(b) Adjustment of Number of Shares Purchasable On Exercise of Warrants. Upon
each adjustment of the Purchase Price pursuant to Section 3(a) above, the
registered holder of each Warrant shall thereafter (until another such
adjustment) be entitled to purchase at the adjusted Purchase Price the number
of shares, calculated to the nearest full share, obtained by multiplying the
number of shares specified in such Warrant (as adjusted as a result of all
adjustments in the Purchase Price in effect prior to such adjustment) by the
Purchase Price in effect prior to such adjustment and dividing the product so
obtained by the adjusted Purchase Price.
(c) Notice as to Adjustment. Upon any adjustment of the Purchase Price and an
increase or decrease in the number of shares of Common Stock purchasable upon
the exercise of the Warrants, then, and in each such case, the Company shall
within ten (10) days after the effective date of such adjustment give written
notice thereof, by first class mail, postage prepaid, addressed to each
registered Warrantholder at the address of such Warrantholder as shown on the
books of the Company, which notice shall state the adjusted Purchase Price and
the increased or decreased number of shares purchasable upon the exercise of
the Warrants, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.
(d) Effect of Reorganization, Reclassification, Merger, Etc. If at any time
while any Warrant is outstanding there should be any capital reorganization or
reclassification of the capital stock of the Company (other than the issue of
any shares of Common Stock in subdivision of outstanding shares of Common Stock
by reclassification or otherwise and other than a combination of shares
provided for in Section 3(a) hereof) or any consolidation or merger of the
Company with another corporation or any sale, conveyance, lease or other
transfer by the Company of all or substantially all of its property to any
other corporation, the holder of any Warrant shall, during the remainder of the
period such Warrant is exercisable, be entitled to receive, upon payment of the
Purchase Price, the number of shares of stock or other securities or property
of the Company, or of the successor corporation resulting from such
consolidation or merger, or of the corporation to which the property of the
Company has been sold, conveyed, leased or otherwise transferred, as the case
may be, to which the Common Stock (and any other securities and property) of
the Company, deliverable upon the exercise of such Warrant, would have been
entitled upon such capital reorganization, reclassification of capital stock,
consolidation, merger, sale, conveyance, lease or other transfer if such
Warrant had been exercised immediately prior to such capital reorganization,
reclassification of capital stock, consolidation, merger, sale, conveyance,
lease or other transfer; and, in any such case, appropriate adjustment (as
determined by the Board of Directors of the Company) shall be made in the
application of the provisions set forth in this Warrant Agreement with respect
to the rights and interests thereafter of the Warrantholders to the end that
the provisions set forth in this Warrant Agreement (including the adjustment of
the Purchase Price and the number of shares issuable upon the exercise of the
Warrants) shall thereafter be applicable, as near as may be reasonably
practicable, in relation to any shares or other property thereafter deliverable
upon the exercise of the Warrants as if the Warrants had been exercised
immediately prior to such capital reorganization, reclassification of capital
stock, consolidation, merger, sale, conveyance, lease or other transfer and the
Warrantholders had carried out the terms of the exchange as provided for by
such capital reorganization, reclassification, consolidation or merger. The
Company shall not effect any such capital reorganization, consolidation, merger
or transfer unless, upon or prior to the consummation thereof, the successor
corporation or the corporation to which the property of the Company has been
sold, conveyed, leased or otherwise transferred shall assume by written
instrument the obligation to deliver to the holder of each Warrant such shares
of stock, securities, cash or property as in accordance with the foregoing
provisions such holder shall be entitled to purchase.
(e) Prior Notice as to Certain Events. In case at any time: the Company shall
pay any dividend upon its Common Stock payable in stock or make any
distribution (other than cash dividends) to the holders of its Common Stock; or
the Company shall offer for subscription pro rata to the holders of its Common
Stock any additional shares of stock of any class or any other rights; or there
shall be any capital reorganization or reclassification of the capital stock of
the Company, or consolidation or merger of the Company with, or sale,
conveyance, lease or other transfer of all or substantially all of its assets
to, another corporation; or there shall be a voluntary or involuntary
dissolution, liquidation or winding up of the Company; then in any one or more
of such cases, the Company shall give prior written notice, by first class
mail, postage prepaid, addressed to each registered Warrantholder at the
address of such Warrantholder as shown on the books of the Company, of the date
on which (x) the books of the Company shall close or a record shall be taken
for such stock dividend, distribution or subscription rights or (y) such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding up shall take place, as the case may be. Such notice
shall also specify the date as of which the holders of the Common Stock of
record shall participate in such dividend, distribution or subscription rights
or shall be entitled to exchange their Common Stock for securities or other
property deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, or winding up, as the case may be. Such
written notice shall be given at least twenty (20) days prior to the action in
question and not less than twenty (20) days prior to the record date or the
date on which the Company's transfer books are closed in respect thereto.
(f) Certain Obligations of the Company. The Company will not, by amendment of
its articles of incorporation or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of
any of the terms of this Warrant Agreement or the Warrant Certificate, but will
at all times in good faith assist in the carrying out of all such terms.
Without limiting the generality of the foregoing, the Company (a) will take all
such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of such stock
upon the exercise of all Warrants from time to time outstanding, and (b) will
not (i) transfer all or substantially all of its properties and assets to any
other person or entity, or (ii) consolidate with or merge into any other entity
where the Company is not the continuing or surviving entity, or (iii) permit
any other entity to consolidate with or merge into the Company where the
Company is the continuing or surviving entity but, in connection with such
consolidation or merger, the Common Stock then issuable upon the exercise of
the Warrants shall be changed into or exchanged for shares or other securities
or property of any other entity unless, in any such case, the other entity
acquiring such properties and assets, continuing or surviving after such
consolidation or merger or issuing or distributing such shares or other
securities or property, as the case may be, shall expressly assume in writing
and be bound by all the terms of this Warrant Agreement and the Warrant
Certificates.
(g) Reservation and Listing of Common Stock. The Company will at all times
reserve and keep available, solely for issuance and delivery upon the exercise
of the Warrants, all shares of Common Stock from time to time issuable upon
such exercise. All such shares shall be authorized and, when issued upon such
exercise, shall be validly issued, fully paid and nonassessable with no
liability on the part of the holder thereof. The Company, at its expense, will
list on the NASDAQ system, including the Nasdaq National Market, if applicable,
and on each national securities exchange on which any Common Stock may at any
time be listed, subject to official notice of issuance, and will maintain such
listing of, the shares of Common Stock from time to time issuable upon the
exercise of the Warrants.
(h) Registration or Exemption for Common Stock. The Company will use its best
efforts (a) at all times the Warrants are exercisable to maintain an effective
registration statement under the Securities Act of 1933, as amended (the
"Act"), covering Common Stock issuable upon exercise of the Warrants, (b) from
time to time to amend or supplement the prospectus contained in such
registration statement to the extent necessary in order to comply with
applicable law, (c) to qualify for exemption from the registration requirements
of the Act the Common Stock issuable upon exercise of the Warrants, and (d) to
maintain exemptions or qualifications, in those jurisdictions in which the
original registration statement relating to the Warrants was initially
qualified, to permit the exercise of the Warrants and the issuance of the
Common Stock pursuant to such exercise. The Warrant Agent shall have no
responsibility for the maintenance of such exemptions or qualifications or for
liabilities arising from the exercise or attempted exercise of Warrants in
jurisdictions where exemptions or qualifications have not been maintained or
are otherwise unavailable.
Section 4 Redemption of Warrants.
(a) Redemption Price. The Warrants may be redeemed at the option of the Company
in whole, at any time on or after issuance, and on or before ________, 2009,
upon notice as set forth in Section 4(b), and at a redemption price equal to
$0.01 per Warrant, provided that (a) the last reported sale price of the Common
Stock on a national securities exchange, if the Common Stock shall be listed or
admitted to unlisted trading privileges on a national securities exchange, or
(b) the closing bid price of the Common Stock on the NASDAQ system, if the
Common Stock is not so listed or admitted to unlisted trading privileges, or
(c) the average of the mean of the bid and asked prices as reported by The
National Quotation Bureau, or another generally accepted quotation service, has
been at least 200% of the then the effective Purchase Price on each of the 20
consecutive trading days ending on the third day before notice of redemption is
given.
(b) Notice of Redemption. In the case of any redemption of Warrants, the
Company or, at its request, the Warrant Agent in the name of and at the expense
of the Company, shall give notice of such redemption to the holders of the
Warrants to be redeemed as hereinafter provided in this Section 4(b). Notice of
redemption to the holders of Warrants shall be given by mailing by first-class
mail a notice of such redemption not less than 30 days prior to the date fixed
for redemption. Any notice which is given in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the holder
receives the notice. In any case, failure duly to give such notice, or any
defect in such notice, to the holder of any Warrant Certificate shall not
affect the validity of the proceedings for the redemption of Warrants
represented by any other Warrant Certificate. Each such notice shall specify
the date fixed for redemption, the place of redemption and the redemption price
of $0.01 at which each Warrant is to be redeemed, and shall state that payment
of the redemption price of the Warrants will be made on surrender of the
Warrants at such place of redemption, and that if not exercised by the close of
business on the date fixed for redemption, the exercise rights of the Warrants
identified for redemption shall expire unless extended by the Company. Such
notice shall also state the current Purchase Price and the date on which the
right to exercise the Warrants will expire unless extended by the Company.
(c) Payment of Warrants on Redemption; Deposit of Redemption Price. If notice
of redemption shall have been given as provided in Section 4(b), the redemption
price of $0.01 per Warrant shall, unless the Warrant is theretofore exercised
pursuant to the terms hereof, become due and payable on the date and at the
place stated in such notice. On and after such date of redemption, provided
that cash sufficient for the redemption thereof shall then be deposited by the
Company with the Warrant Agent for that purpose, the exercise rights of the
Warrants identified for redemption shall expire. On presentation and surrender
of Warrant Certificates at such place of payment specified in such notice, the
Warrants identified for redemption shall be paid and redeemed at the redemption
price of $0.01 per Warrant. Prior to the date fixed for redemption, the Company
shall deposit with the Warrant Agent an amount of money sufficient to pay the
redemption price of all the Warrants identified for redemption. Any monies
which shall have been deposited with the Warrant Agent for redemption of
Warrants and which are not required for that purpose by reason of exercise of
Warrants shall be repaid to the Company upon delivery to the Warrant Agent of
evidence satisfactory to it of such exercise.
Section 5 Certain Other Provisions Relating to Rights of Holders of Warrant
Certificates.
(a) No Rights of Shareholders. The Warrant Certificates shall be issued in
registered form only. No Warrant Certificate shall entitle the holder thereof
to any of the rights of a holder of shares of Common Stock of the Company,
including, without limitation, the right to vote, to receive dividends and
other distributions, or to receive any notice of, or to attend, meetings of
holders of Common Stock or any other proceedings of the Company.
(b) Loss, Theft, Destruction or Mutilation of Warrant Certificates. Upon
receipt by the Warrant Agent of evidence reasonably satisfactory to the Warrant
Agent of the loss, theft, destruction or mutilation of any Warrant Certificate,
and (a) in the case of any such loss, theft, or destruction, upon delivery to
the Warrant Agent of an indemnity bond in form and amount, and issued by a
bonding company, reasonably satisfactory to the Company, or (b) in the case of
any such mutilation, upon surrender to and cancellation by the Warrant Agent of
such Warrant Certificate, the Company at its expense will execute and cause the
Warrant Agent to countersign and deliver, in lieu thereof, a new Warrant
Certificate of like tenor.
(c) Transfer Agent; Cancellation of Warrant Certificates; Unexercised Warrants.
▇▇▇▇▇▇▇▇ Stock Transfer, Inc. (and any successor), as transfer agent (the
"Transfer Agent"), is hereby irrevocably authorized and directed at all times
to reserve such number of authorized and unissued shares of Common Stock as
shall be sufficient to permit the exercise in full of all Warrants from time to
time outstanding. The Company will keep a copy of this Agreement on file with
the Transfer Agent. The Warrant Agent, and any successor thereto, is hereby
irrevocably authorized to requisition from time to time from the Transfer Agent
certificates for shares of Common Stock required for exercise of Warrants. The
Company will supply the Transfer Agent with duly executed certificates for
shares of Common Stock for such purpose and will make available any cash
required in settlement of fractional share interests. All Warrant Certificates
surrendered upon the exercise or redemption of Warrants shall be canceled by
the Warrant Agent and shall thereafter be delivered to the Company; such
cancelled Warrant Certificates, with the Purchase Form on the reverse thereof
duly filled in and signed, shall constitute conclusive evidence as between the
parties hereto of the numbers of shares of Common Stock which shall have been
issued upon exercises of Warrants. Promptly after the last day on which the
Warrants are exercisable (set forth in Section 2(a) above), the Warrant Agent
shall certify to the Company the aggregate number of Warrants then outstanding
and unexercised. No shares of Common Stock shall be subject to reservation with
respect to Warrants not exercised prior to the time and date identified in
Section 2(a) above as the last time and date at which Warrants may be
exercised.
Section 6 Transfer and Exchange of Warrant Certificates.
(a) Warrant Register; Transfer or Exchange of Warrant Certificates. The Warrant
Agent shall cause to be kept at the principal office of the Warrant Agent a
register (the "Warrant Register") in which, subject to such reasonable
regulations as the Company may prescribe, provisions shall be made for the
registration of transfers and exchanges of Warrant Certificates. Upon surrender
for transfer or exchange of any Warrant Certificates, properly endorsed, to the
Warrant Agent, the Warrant Agent at the Company's expense will issue and
deliver to or upon the order of the holder thereof a new Warrant Certificate or
Warrant Certificates of like tenor, in the name of such holder or as such
holder (upon payment by such holder of any applicable transfer taxes) may
direct, calling in the aggregate on the face or faces thereof for the number of
shares of Common Stock called for on the face of the Warrant Certificate so
surrendered. Any Warrant Certificate surrendered for transfer or exchange shall
be cancelled by the Warrant Agent and shall thereafter be delivered to the
Company.
(b) Identity of Warrantholders. Until a Warrant Certificate is transferred in
the Warrant Register, the Company and the Warrant Agent may treat the person in
whose name the Warrant Certificate is registered as the absolute owner thereof
and of the Warrants represented thereby for all purposes, notwithstanding any
notice to the contrary, except that, if and when any Warrant Certificate is
properly assigned in blank, the Company and the Warrant Agent may (but shall
not be obligated to) treat the bearer thereof as the absolute owner of the
Warrant Certificate and of the Warrants represented thereby for all purposes,
notwithstanding any notice to the contrary.
Section 7 Concerning the Warrant Agent
(a) Taxes. The Company will, from time to time, promptly pay to the Warrant
Agent, or make provision satisfactory to the Warrant Agent for the payment of,
all taxes and charges that may be imposed by the United States or any State
upon the Company or the Warrant Agent upon the transfer or delivery of shares
of Common Stock upon the exercise of Warrants, but the Company shall not be
obligated to pay any tax imposed in connection with any transfer involved in
the delivery of certificate for shares of Common Stock in any name other than
that of the registered holder of the Warrant Certificate surrendered in
connection with the purchase thereof.
(b) Replacement of Warrant Agent in Certain Circumstances. The Warrant Agent
may resign its duties and be discharged from all further duties and liabilities
hereunder after giving thirty (30) days notice in writing to the Company,
except that such shorter notice may be given as the Company shall, in writing,
accept as sufficient. The Company may discharge the Warrant Agent at any time
with or without reason, effective upon thirty (30) days written notice to the
Warrant Agent or 10 such shorter period as the Warrant Agent shall, in writing,
accept as sufficient. If the office of Warrant Agent becomes vacant by
resignation, discharge, incapacity to act or otherwise, the Company shall
appoint in writing a new Warrant Agent, the principal office of which shall be
in Arizona. If the Company shall fail to make such appointment within a period
of thirty (30) days after it has been notified in writing of such resignation
or incapacity by the resigning or incapacitated Warrant Agent or by the holder
of a Warrant Certificate, then the holder of any Warrant Certificate may apply
to any court of competent jurisdiction for the appointment of a new Warrant
Agent. Any new Warrant Agent, whether appointed by the Company or by such a
court, shall be a corporation organized and doing business under the laws of
the United States or a State thereof, of good standing, and having an office in
Arizona, which is authorized under such laws to exercise corporate trust powers
and is subject to supervision or examination by Federal or State authority. Any
new Warrant Agent appointed hereunder shall execute, acknowledge and deliver to
the Company an instrument accepting such appointment hereunder and thereupon
such new Warrant Agent without any further act or deed shall become vested with
all the rights, powers, duties and responsibilities of the Warrant Agent
hereunder with like effect as if it had been named as the Warrant Agent; but if
for any reason it becomes necessary or expedient to have the former Warrant
Agent execute and deliver any further assurance, conveyance, act or deed, the
same shall be done and shall be legally and validly executed and delivered by
the former Warrant Agent. Not later than the effective date of any such
appointment the Company shall file notice thereof with the former Warrant
Agent. The Company shall promptly give notice of any such appointment to the
holders of the Warrant Certificates by mail to their addresses as shown in the
Warrant Register. Failure to file or give such notice, or any defect therein,
shall not affect the legality or validity of the appointment of the successor
Warrant Agent.
(c) Successor Warrant Agent. Any company into which the Warrant Agent or any
new Warrant Agent may be merged or converted or with which it may be
consolidated or any company resulting from any merger, conversion or
consolidation to which the Warrant Agent or any new Warrant Agent shall be a
party shall be the successor Warrant Agent under this Warrant Agreement without
any further act; provided that if such company would not be eligible for
appointment as a successor Warrant Agent under the provisions of paragraph of
this Section 7(b) the Company shall forthwith appoint a new Warrant Agent in
accordance with such provisions. Any such successor Warrant Agent may adopt the
prior countersignature of any predecessor Warrant Agent and deliver Warrant
Certificates countersigned and not delivered by such predecessor Warrant Agent
or may countersign Warrant Certificates either in the name of any predecessor
Warrant Agent or the name of the successor Warrant Agent.
(d)(i) Remuneration of Warrant Agent. The Company will pay the Warrant Agent
reasonable remuneration for its services as Warrant Agent hereunder and will
reimburse the Warrant Agent upon demand for all expenditures that the Warrant
Agent may reasonably incur in the execution of its duties hereunder.
(d)(ii) Further Assurances. The Company will perform, exercise, acknowledge and
deliver or cause to be performed, executed, acknowledged and delivered all such
further and other acts, instruments and assurances as may reasonably be
required by the Warrant Agent for the carrying out or performing by the Warrant
Agent of the provisions of this Warrant Agreement.
(e)(i) Limitations on Liabilities of the Warrant Agent. The Warrant Agent may
consult with legal counsel (who may be legal counsel for the Company), and the
opinion of such counsel shall be full and complete authorization and protection
of the Warrant Agent as to any action taken or omitted by it in good faith and
in accordance with such opinion. Whenever, in the performance of its duties
under this Warrant Agreement, the Warrant Agent shall deem it necessary or
desirable that any matter be proved or established, or that any instructions
with respect to the performance of its duties hereunder be given, by the
Company prior to taking or suffering any action hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may be
deemed to be conclusively proved and established, or such instructions may be
given, by a certificate or instrument signed by an officer of the Company and
delivered to the Warrant Agent; and such certificate or instrument shall be
full authorization to the Warrant Agent for any action taken or suffered in
good faith by it under the provisions of this Warrant Agreement in reliance
upon such certificate or instrument; but in its discretion the Warrant Agent
may in lieu thereof accept other evidence of such matter or may require such
further or additional evidence as it may deem reasonable.
(ii) The Warrant Agent shall be liable hereunder only for its own negligence or
willful misconduct. The Warrant Agent shall act hereunder solely as agent, and
its duties shall be determined solely by the provisions hereof. The Company
agrees to indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and counsel fees, for anything done or
omitted by the Warrant Agent in the execution of this Warrant Agreement except
as a result of the Warrant Agent's negligence or willful misconduct.
(iii) The Warrant Agent shall not be liable for or by reason of any of the
statements of fact or recitals contained in this Warrant Agreement or in the
Warrant Certificates (except its countersignature thereof) or be required to
verify the same, but all such statements and recitals are and shall be deemed
to have been made by the Company only.
(iv) The Warrant Agent shall not be under any responsibility in respect to the
validity or execution of any Warrant Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Warrant Agreement or in any Warrant
Certificate; nor shall it be responsible for the making of any adjustment in
the Purchase Price, or number of shares issuable upon exercise of the Warrant
Certificates or responsible for the manner, method or amount of any such
adjustment or the facts that would require any such adjustment; nor shall it by
any act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock to be issued
pursuant to this Warrant Agreement or any Warrant Certificate or as to whether
any shares of Common Stock or other securities are or will be validly
authorized and issued and fully paid and nonassessable.
(v) Amendment and Modification. The Warrant Agent may, without the consent or
concurrence of the holders of the Warrant Certificates, by supplemental
agreement or otherwise, join with the Company in making any changes or
corrections in this Warrant Agreement that they shall have been advised by
counsel (a) are required to cure any ambiguity or to correct any defective or
inconsistent provision or clerical omission or mistake or manifest error herein
contained, (b) add to the obligations of the Company in this Warrant Agreement
further obligations thereafter to be observed by it, or surrender any right or
power reserved to or conferred upon the Company in this Warrant Agreement, or
(c) do not or will not adversely affect, alter or change the rights, privileges
or immunities of the holders of Warrant Certificates not provided for under
this Warrant Agreement; provided, however, that any term of this Warrant
Agreement or any Warrant Certificate may be changed, waived, discharged or
terminated by an instrument in writing signed by each party against which
enforcement of such change, waiver, discharge or termination is sought, or by
which the same is to be performed or observed.
Section 8 Other Matters.
(a) Successors and Assigns. All the covenants and provisions of this Warrant
Agreement by or for the benefit of the Company or the Warrant Agent shall bind
and inure to the benefit of their respective successors and assigns.
(b) Notices. Any notice or demand authorized by this Warrant Agreement to be
given or made by the Warrant Agent or by the holder of any Warrant Certificate
to or on the Company shall be sufficiently given or made if sent by first class
or registered mail, postage prepaid, addressed (until another address is filed
in writing by the Company with the Warrant Agent) as follows:
Greater Asia Realty Holdings, Ltd.
Attn: ▇▇. ▇▇▇ ▇▇▇▇▇ ▇▇▇▇, CFO
▇-▇-▇▇, ▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇
Any notice or demand authorized by this Warrant Agreement to be given or made
by the holder of any Warrant Certificate or by the Company to or on the Warrant
Agent shall be sufficiently given or made if sent by first class or registered
mail, postage prepaid, addressed (until another address is filed in writing by
the Warrant Agent with the Company) as follows:
▇▇▇▇▇▇▇▇ Stock Transfer, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
(c) Governing Law. This Warrant Agreement and the Warrant Certificates are
being delivered in the State of Delaware and shall be construed and enforced in
accordance with and governed by the laws of such State.
(d) No Benefits Conferred. Nothing in this Warrant Agreement expressed and
nothing that may be implied from any of the provisions hereof is intended, or
shall be construed, to confer upon, or give to, any person or corporation other
than the Company, the Warrant Agent, and the holders of the Warrant
Certificates, any right, remedy or claim under or by reason of this Agreement
or of any covenant, condition, stipulation, promise or agreement herein; and
all covenants, conditions, stipulations, promises and agreements in this
Warrant Agreement contained shall be for the sole and exclusive benefit of the
Company, the Warrant Agent, their respective successors and the holders of the
Warrant Certificates.
(e) Headings. The descriptive headings used in this Warrant Agreement are
inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.
IN WITNESS WHEREOF, this Warrant Agreement has been duly executed by the
parties hereto as of the day and year first above written.
Greater Asia Realty Holdings, Ltd.
By __________________________
Its _________________________
▇▇▇▇▇▇▇▇ Stock Transfer, Inc.
By ________________________________________
Its _______________________________________
Exhibit A
THIS CLASS B WARRANT CERTIFICATE MAY BE TRANSFERRED SEPARATELY FROM THE
COMMON STOCK CERTIFICATE WITH WHICH IT IS INITIALLY ISSUED EXERCISABLE
ON OR BEFORE, AND VOID AFTER, 5:00 PM EST, _______, 2009
GREATER ASIA REALTY HOLDINGS, LTD.
CLASS B WARRANTS TO PURCHASE COMMON STOCK
Number[ ] [ ] Warrants to purchase shares of common stock
CUSIP:
This certifies that
or assigns, is the owner of the number of Warrants set forth above, each of
which represents the right to purchase from Greater Asia Realty Holdings, Ltd.,
a Delaware corporation (the "Company"), at any time on or before 5:00 PM EST,
__________, 2009, upon compliance with and subject to the conditions set forth
herein, one share (subject to adjustments referred to below) of the Common
Stock of the Company (such shares or other securities or property purchasable
upon exercise of the Warrants being herein called the "Shares"), by
surrendering this Warrant Certificate, with the Purchase Form on the reverse
side duly executed, at the principal office of the Company, and by paying in
full, in cash or by certified or official bank check payable to the order of
the Company, the purchase price of $0.75 per share.
Upon any exercise of less than all the Warrants evidenced by this
Warrant Certificate, there shall be issued to the holder a new Warrant
Certificate in respect of the Warrants as to which this Warrant Certificate was
not exercised.
Upon the surrender for transfer or exchange hereof, properly
endorsed, to the Company, the Company at its expense will issue and deliver to
the order of the holder hereof a new Warrant Certificate or Warrant
Certificates of like tenor, in the name of such holder or as such holder (upon
payment by such holder of any applicable transfer taxes) may direct, calling in
the aggregate on the face or faces thereof for the number of shares of Common
Stock called for on the face hereof.
The Warrant Certificates are issued only as registered Warrant
Certificates. Until this Warrant Certificate is transferred in the Warrant
Register, the Company may treat the person in whose name this Warrant
Certificate is registered as the absolute owner hereof and of the Warrants
represented hereby for all purposes, notwithstanding any notice to the
contrary.
This Warrant Certificate is issued under the Warrant Agreement dated
as of __________, 2007, and is subject to the terms and provisions contained in
said Warrant Agreement, to all of which terms and provisions the registered
holder of this Warrant Certificate consents by acceptance hereof. Copies of
said Warrant Agreement are on file at the principal office of Company and may
be obtained by writing to the Company.
The number of Shares receivable upon the exercise of the Warrants
represented by this Warrant Certificate and the purchase price per share are
subject to adjustment upon the happening of certain events specified in the
Warrant Agreement (which provisions are contained in Section 3 of the Warrant
Agreement and are hereby incorporated by reference).
No fractional Shares of the Company's Common Stock will be issued
upon the exercise of Warrants. As to any final fraction of a share which a
holder of Warrants exercised in the same transaction would otherwise be
entitled to purchase on such exercise, the Company shall pay a cash adjustment
in lieu of any fractional Share determined as provided in the Warrant
Agreement.
The Warrants may be redeemed by the Company, in whole, at any time on
or after issuance, and on or before ___________, 2009, at a redemption price of
$0.01 per Warrant, upon notice of such redemption as set forth below, provided
that (a) the last reported sale price of the Common Stock on a national
securities exchange, if the Common Stock shall be listed or admitted to
unlisted trading privileges on a national securities exchange, or (b) the
closing bid price of the Common Stock on the NASDAQ system, if the Common Stock
is not so listed or admitted to unlisted trading privileges, or (c) if the
Common Stock trades over the counter but is not reported in the NASDAQ National
Market System or traded on any national securities exchange, the average of the
mean bid and asked prices per share, as reported by The National Quotation
Bureau, Inc. or other generally accepted quotation service, has been at least
200% of the then effective Purchase Price on each of the 20 consecutive trading
days ending on the third day before notice of redemption is given. Notice of
redemption shall be mailed not less than thirty (30) days prior to the date
fixed for redemption to the holders of Warrants at their last registered
addresses. If notice of redemption shall have been given as provided in the
Warrant Agreement and cash sufficient for the redemption be deposited by the
Company for that purpose, the exercise rights of the Warrants identified for
redemption shall expire at the close of business on such date of redemption
unless extended by the Company.
This Warrant Certificate shall not entitle the holder hereof to any
of the rights of a holder of Common Stock of the Company, including, without
limitation, the right to vote, to receive dividends and other distributions, to
exercise any preemptive right, or to receive any notice of, or to attend
meetings of holders of Common Stock or any other proceedings of the Company.
This Warrant Certificate shall be void and the Warrants and any
rights represented hereby shall cease unless exercised on or before 5:00 PM
EST, on __________, 2009, unless extended by the Company.
Dated: ____________, 2007
Greater Asia Realty Holdings, Ltd.
Corporate Seal
Delaware
[Reverse of Warrant Certificate] The Articles of Incorporation of the Company
grants to the Board of Directors the power to issue one or more Series or
Classes of Preferred Stock and to Fix the Designation and Powers, Preferences,
Rights, Qualifications, Limitations, and Restrictions Relating to Shares of
each such Series or Class. The Company will furnish to any Shareholder upon
request and without charge a full statement of the Designation and Powers,
Preferences, Rights, Qualifications, Limitations, and Restrictions of each
Class or Series Authorized to be Issued, so far as they have been determined,
and the Authority of the Board to determine the Designation and Powers,
Preferences, Rights, Qualifications, Limitations, and Restrictions of
Subsequent Classes or Series.
The Holder of this Warrant Certificate will be able to exercise the Warrants
only if a current Prospectus relating to the Shares underlying the Warrants is
then in effect and only if such Shares are Qualified for Sale or exempt from
Qualification under the applicable Securities Laws of the states in which the
Holder of this Warrant Certificate resides. Although the Company will use its
best efforts to maintain the effectiveness of a current Prospectus covering the
Shares underlying the Warrants, there can be no assurance that the Company will
be able to do so, or to get any required Amendments declared effective by
Federal or State authorities in a timely manner. The Company will be unable to
issue Shares to those persons desiring to exercise their Warrants If a current
Prospectus covering the Shares issuable upon the exercise of the Warrants is
not kept effective or if such Shares are not qualified nor exempt from
qualification in the states in which the Holders of the Warrants ▇▇▇▇▇▇.▇▇:
Greater Asia Realty Holdings, Ltd.
TO: Greater Asia Realty Holdings, Ltd.
PURCHASE FORM
(To be Executed by the Registered Holder in Order to Exercise
Warrant Certificates)
The undersigned hereby irrevocably elects to exercise _____________* of the
Warrants represented by the Warrant Certificate and to purchase for cash the
Shares issuable upon the exercise of said Warrants, and herewith makes payment
of $__________ therefor, and requests that certificates for such Shares shall
be issued in the name of
______________________________________________________________________________
(Please insert social security number orother identifying number of assignee)
Print name: ___________________________________________
Address: ______________________________________________
Date(s): ______________________________________________
Signature(s): _________________________________________
* Insert here the number of Warrants evidenced on the face of this Warrant
Certificate (or, in the case of a partial exercise, the portion thereof being
exercised), in either case without making any adjustment for additional Common
Stock or any other securities or property or cash which, pursuant to the
adjustment provisions referred to in this Warrant Certificate, may be
deliverable upon exercise.
ASSIGNMENT FORM
(To be Executed by the Registered Holder in Order to Transfer
Warrant Certificates)
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers
___________** of the Warrants represented by this Warrant Certificate unto
______________________________________________________________________________
(Please insert social security number or other identifying number of assignee)
Print name: ___________________________________________
Address: ______________________________________________
and does hereby irrevocably constitute and appoint
___________________________________________________________________
Attorney to transfer this Warrant Certificate on the records of the
Company with full power of substitution in the premises.
Date(s): ______________________________________________
Signature(s): _________________________________________
** Insert here the number of Warrants evidenced on the face of this Warrant
Certificate (or, in the case of a partial assignment, the portion thereof being
assigned), in either case without making any adjustment for additional Common
Stock or any other securities or property or cash which, pursuant to the
adjustment provisions referred to in this Warrant Certificate, may be
deliverable upon exercise.
NOTICE: The signature(s) to this assignment must correspond with the name(s) as
written upon the face of the certificate without alteration or any change
whatever.
The signature(s) should be guaranteed by an eligible guarantor institution
(banks, stockbrokers, savings and loan associations and credit unions with
membership in an approved signature guarantee medallion program), pursuant to
SEC Rule 17Ad-15.
Signature(s) guaranteed by:
____________________________________