GOLF TWO,
INC.
Securities Purchase Agreement
Common Stock
CONFIDENTIAL
NOTICE TO
OFFEREES
THE
SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR REGISTERED OR QUALIFIED
UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. THIS SECURITIES PURCHASE AGREEMENT DOES NOT
CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY THE
SECURITIES IN ANY JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION
WOULD BE UNLAWFUL. THERE IS NO ESTABLISHED MARKET FOR THE
SECURITIES AND THERE CAN BE NO ASSURANCE THAT SUCH A MARKET WILL
EVER DEVELOP OR, IF IT DOES, THAT IT WILL
CONTINUE.
THE
SECURITIES ARE BEING SOLD FOR INVESTMENT PURPOSES ONLY, WITHOUT A
VIEW TO RESALE OR DISTRIBUTION THEREOF, AND MAY NOT BE TRANSFERRED,
RESOLD OR OFFERED FOR RESALE EXCEPT PURSUANT TO REGISTRATION UNDER
THE SECURITIES ACT AND REGISTRATION OR QUALIFICATION UNDER THE
APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, OR
PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION OR
QUALIFICATION.
NEITHER
THE SECURITIES AND EXCHANGE COMMISSION NOR THE SECURITIES
COMMISSION OR OTHER REGULATORY AUTHORITY OF ANY STATE OR OTHER
JURISDICTION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR
PASSED UPON THE ADEQUACY OR ACCURACY OF THIS SECURITIES PURCHASE
AGREEMENT OR ANY OF THE OTHER OFFERING DOCUMENTS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
INVESTORS MUST COMPLY WITH ALL APPLICABLE LAWS
AND REGULATIONS IN FORCE IN ANY JURISDICTION IN WHICH THEY
PURCHASE, OFFER OR SELL THE SECURITIES AND MUST OBTAIN ANY CONSENT,
APPROVAL OR PERMISSION REQUIRED FOR THE PURCHASE, OFFER OR SALE BY
IT OF THE SECURITIES UNDER THE LAWS AND REGULATIONS IN FORCE IN ANY
JURISDICTION TO WHICH IT IS SUBJECT OR IN WHICH IT MAKES SUCH
PURCHASES, OFFERS OR SALES. THE COMPANY SHALL NOT HAVE ANY
RESPONSIBILITY WITH RESPECT TO INVESTOR COMPLIANCE
THEREWITH.
THE
DESCRIPTION OF THE COMPANY AND THE OFFERING CONTAINED IN THIS
SECURITIES PURCHASE AGREEMENT AND THE EXHIBITS HERETO, INCLUDING
THE SUMMARY INVESTMENT MEMORANDUM ATTACHED HERETO AS EXHIBIT A
(COLLECTIVELY, THE “OFFERING MATERIALS”) HAVE BEEN
PREPARED BY THE COMPANY SOLELY FOR THE PURPOSE OF DESCRIBING THE
SECURITIES. THE OFFERING MATERIALS CONTAIN SUBSTANTIAL INFORMATION
CONCERNING THE SECURITIES AND THE COMPANY, AND INVESTORS INTERESTED
IN PURCHASING THE SECURITIES ARE URGED TO REVIEW THE OFFERING
MATERIALS IN THEIR ENTIRETY.
THE
INFORMATION CONTAINED IN THE OFFERING MATERIALS IS ACCURATE ONLY AS
OF OCTOBER 6, 2005. THE DELIVERY OF THE OFFERING MATERIALS
SUBSEQUENT TO THAT DATE DOES NOT IMPLY THAT INFORMATION CONTAINED
THEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THAT DATE. NO
PERSON HAS BEEN AUTHORIZED TO PROVIDE ANY INFORMATION OR TO MAKE
ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THE OFFERING
MATERIALS AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON.
THE
OFFERING MATERIALS CONTAIN SUMMARIES OF CERTAIN PROVISIONS OF
DOCUMENTS RELATING TO THE PURCHASE OF THE SECURITIES AS WELL AS
SUMMARIES OF VARIOUS PROVISIONS OF RELEVANT STATUTES AND
REGULATIONS. THOSE SUMMARIES DO NOT PURPORT TO BE COMPLETE AND ARE
QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE TEXTS OF THE
ORIGINAL DOCUMENTS, STATUTES, AND REGULATIONS, A COPY OF EACH OF
WHICH IS AVAILABLE ON REQUEST.
THIS
OFFERING IS MADE SUBJECT TO WITHDRAWAL, CANCELLATION OR
MODIFICATION BY THE COMPANY WITHOUT NOTICE AND IS SPECIFICALLY MADE
SUBJECT TO THE TERMS DESCRIBED IN THE OFFERING MATERIALS. THE
COMPANY RESERVES THE RIGHT TO REJECT ANY SUBSCRIPTION IN WHOLE OR
IN PART OR TO ALLOT TO ANY INVESTOR LESS SECURITIES THEN ORIGINALLY
SUBSCRIBED FOR BY SUCH INVESTOR.
INVESTORS ARE EXPECTED TO CONDUCT AN INDEPENDENT
INVESTIGATION OF THE RISKS POSED BY AN INVESTMENT IN THE
SECURITIES. AN OFFICER OF THE COMPANY IS AVAILABLE TO ANSWER
QUESTIONS CONCERNING THE COMPANY AND WILL, UPON REQUEST, MAKE
AVAILABLE SUCH OTHER INFORMATION AS QUALIFIED, POTENTIAL INVESTORS
MAY REASONABLY REQUEST AND THAT CAN BE PROVIDED BY THE COMPANY
WITHOUT UNREASONABLE EFFORT OR EXPENSE.
INVESTORS ARE EXPECTED TO CONSULT THEIR OWN
INVESTMENT, LEGAL, TAX AND ACCOUNTING ADVISORS TO DETERMINE WHETHER
THE SECURITIES CONSTITUTE APPROPRIATE INVESTMENTS FOR THEM AND THE
APPLICABLE LEGAL, TAX, REGULATORY AND ACCOUNTING TREATMENT OF THE
SECURITIES. IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY
ON THEIR OWN EXAMINATION OF THE COMPANY AND THE TERMS OF THE
OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. INVESTORS SHOULD
BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF
THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME.
SOME OF
THE INFORMATION AND OBLIGATIONS OF THE PARTIES REFERENCED HEREIN
ARE SET FORTH IN AND WILL BE GOVERNED BY CERTAIN DOCUMENTS
DESCRIBED HEREIN OR ATTACHED HERETO, AND ALL OF SUCH INFORMATION
AND OBLIGATIONS ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO
SUCH DOCUMENTS.
CONFIDENTIALITY
By receiving
the Offering Materials, each investor acknowledges and agrees that
all of the information contained herein is of a confidential nature
and may be regarded as material non-public information under
Regulation FD under the Securities Exchange Act of 1934, as
amended, and that the Offering Materials have been furnished to the
investor by the Company solely for the purpose of enabling the
investor to consider and evaluate an investment in the Company.
Each investor further agrees that he, she or it will treat such
information in a confidential manner, will not use such information
for any purpose other than evaluating an investment in the Company,
and will not, directly or indirectly, disclose or permit his, her
or its agents or affiliates to disclose any of such information
without the prior written consent of the Company. Each investor
also agrees to make his, her or its representatives aware of the
terms of this paragraph and to be responsible for any breach of
this agreement by such representatives. Likewise, without the prior
written consent of the Company, no investor will, directly or
indirectly, make any statements, any public announcements, or any
release to any trade publication or to the press with respect to
the subject matter of the Offering Materials. If the investor
decides to not pursue further investigation of the Company or to
not participate in the Offering, the investor agrees to promptly
return the Offering Materials and any accompanying documentation to
the Company. Each investor understands that the United States
securities laws provide severe civil and criminal penalties for
those persons trading in securities of the Company while in
possession of material non-public information.
SECURITIES PURCHASE
AGREEMENT
THIS SECURITIES PURCHASE AGREEMENT (this
"Agreement"), entered into as of the date indicated on the
signature page hereof, by and between GOLF TWO, INC., a Delaware
corporation (the "Company"), and the purchaser or purchasers
identified on the signature page hereof ("Purchaser").
R E C I T A L S:
WHEREAS, Purchaser desires to purchase and the
Company desires to sell shares of common stock on the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the premises
hereof and the agreements set forth herein below, the parties
hereto hereby agree as follows:
Private Offering . The securities offered by this Agreement are
being offered in a private offering (the "Offering") of up to
2,400,000 shares (“Shares”) of common stock, $.001 par
value per share (“Common Stock”); provided, however,
that in the event of any over-allotments of Shares during the
offering period, the Company reserves the right to sell in excess
of 2,400,000 Shares to cover such over-allotments. The Shares will
be sold on a reasonable “best efforts” basis at a
purchase price of $.44 per Share (“Purchase Price”)
pursuant to Rule 506 of Regulation D and Regulation S (to non-U.S.
persons), each under the Securities Act of 1933, as amended (the
“Securities Act”). The Shares are being offered solely
to a limited number of “accredited investors”
(including certain non-U.S. persons) as that term is defined in
Rule 501(a) of the Securities Act during an offering period that
will terminate at the sole discretion of the Company. The Shares
are sometimes referred to herein as the “Securities.”
The business of the Company and certain material risk factors
applicable to the Company, its business and this Offering are
described in the Summary Investment Memorandum attached hereto and
made a part hereof as Exhibit A.
Use of Proceeds . Assuming all 2,400,000 Shares are sold, the
net proceeds to the Company are estimated to be approximately
$1,000,000 (after deducting offering expenses payable by the
Company estimated at $3,200 and assuming payment of the maximum
amount of fees to brokers and dealers of up to $52,800). The
Company intends to use the net proceeds for general working capital
purposes and other general corporate purposes, including acquiring
a company operating in the logistics business.
Placement and Finder’s Fees
. The Company reserves the right to
pay fees to brokers and dealers in connection with the sale of the
Securities in an amount equal to up to five percent (5%) of the
Purchase Price of such Securities.
Sale and Purchase of Securities
. Subject to the terms and
conditions hereof, the Company agrees to sell, and Purchaser agrees
to purchase, the number of Shares specified on the signature page
of this Agreement at a purchase price of $.44 per Share. The
aggregate purchase price for the Shares shall be as set forth on
the signature page hereto (the "Purchase Price") and shall be
payable upon execution hereof by check or wire transfer of
immediately available funds. All funds representing the Purchase
Price will be held in a segregated account on behalf of the Company
(and not available for general application) until all closing
conditions are satisfied. The closing conditions consist of: (i)
the Company’s acceptance of an executed Agreement; and (ii)
the occurrence of the “Change of Control Transactions”
referred to within the Summary Investment Memorandum attached
hereto and made a part hereof as Exhibit A. This Offering will
automatically terminate if the closing conditions do not occur by
November 1, 2005. Thereafter, any funds being held on behalf of the
Company representing the Purchase Price will be returned to all
Purchasers.
Subscription Procedure . In order to purchase Securities, Purchaser
shall deliver to the Company, at its principal executive office
identified in Section 16 hereof: (i) one completed and duly
executed copy of this Agreement; and (ii) immediately available
funds in an amount equal to the Purchase Price. Execution and
delivery of this Agreement shall constitute an irrevocable
subscription for that number of Securities set forth on the
signature page hereto. Payment for the Securities may be made by
wire transfer to an account designated by the Company or on behalf
of the Company or by check made payable to: Golf Two, Inc., 1604
Locust Street, Third Floor, Philadelphia, PA 19103. The minimum
purchase that may be made by a Purchaser is 113,636 Shares for a
purchase price of $50,000, although the Company may, in its sole
discretion, accept Agreements for a lesser number of Shares. This
Agreement may be rejected by the Company, in whole or in part, in
its sole discretion, in which event the Purchase Price will be
returned (by mail) to Purchaser within ten (10) business days
thereafter. Unless the Offering is otherwise terminated by the
Company, as soon as possible after the receipt and acceptance by
the Company of this Agreement and collection of the funds paid
therefor, the Company will issue certificates for the Shares to
Purchaser.
Representations and Warranties of
Purchaser . Purchaser
represents and warrants to the Company as follows:
Organization and Qualification
. If Purchaser is an entity,
Purchaser is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization, with the
corporate or other entity power and authority to own and operate
its business as presently conducted, except where the failure to be
or have any of the foregoing would not have a material adverse
effect on Purchaser, and Purchaser is duly qualified as a foreign
corporation or other entity to do business and is in good standing
in each jurisdiction where the character of its properties owned or
held under lease or the nature of their activities makes such
qualification necessary, except for such failures to be so
qualified or in good standing as would not have a material adverse
effect on it.
If Purchaser is an entity, the address of its
principal place of business is as set forth on the signature page
hereto, and if Purchaser is an individual, the address of its
principal residence is as set forth on the signature page
hereto.
Authority; Validity and Effect of
Agreement . If Purchaser
is an entity, Purchaser has the requisite corporate or other entity
power and authority to execute and deliver this Agreement and
perform its obligations under this Agreement. The execution and
delivery of this Agreement by Purchaser, the performance by
Purchaser of its obligations hereunder and all other necessary
corporate or other entity action on the part of Purchaser have been
duly authorized by its board of directors or similar governing
body, and no other corporate or other entity proceedings on the
part of Purchaser is necessary for Purchaser to execute and deliver
this Agreement and perform its obligations hereunder.
This Agreement has been duly and validly
authorized, executed and delivered by Purchaser and, assuming it
has been duly and validly executed and delivered by the Company,
constitutes a legal, valid and binding obligation of Purchaser, in
accordance with its terms.
No Conflict; Required Filings and
Consents . Neither the
execution and delivery of this Agreement by Purchaser nor the
performance by Purchaser of its obligations hereunder will: (i) if
Purchaser is an entity, conflict with Purchaser’s articles of
incorporation or bylaws, or other similar organizational documents;
(ii) violate any statute, law, ordinance, rule or regulation,
applicable to Purchaser or any of the properties or assets of
Purchaser; or (iii) violate, breach, be in conflict with or
constitute a default (or an event which, with notice or lapse of
time or both, would constitute a default) under, or permit the
termination of any provision of, or result in the termination of,
the acceleration of the maturity of, or the acceleration of the
performance of any obligation of Purchaser under, or result in the
creation or imposition of any lien upon any properties, assets or
business of Purchaser under, any material contract or any order,
judgment or decree to which Purchaser is a party or by which it or
any of its assets or properties is bound or encumbered except, in
the case of clauses (ii) and (iii), for such violations, breaches,
conflicts, defaults or other occurrences which, individually or in
the aggregate, would not have a material adverse effect on its
obligation to perform its covenants under this
Agreement.
Accredited Investor . Purchaser is an "accredited investor" as that
term is defined in Rule 501(a) of Regulation D under the Securities
Act. If Purchaser is an entity, Purchaser was not formed for the
specific purpose of acquiring the Securities, and, if it was, all
of Purchaser’s equity owners are “accredited
investors” as defined above.
No Government Review . Purchaser understands that neither the United
States Securities and Exchange Commission (“SEC”) nor
any securities commission or other governmental authority of any
state, country or other jurisdiction has approved the issuance of
the Securities or passed upon or endorsed the merits of the
Securities, this Agreement, the Summary Investment Memorandum or
any of the other documents relating to the proposed Offering
(collectively, the “Offering Documents”), or confirmed
the accuracy of, determined the adequacy of, or reviewed this
Agreement, the Summary Investment Memorandum or the other Offering
Documents.
Investment Intent . The Securities are being acquired for the
Purchaser’s own account for investment purposes only, not as
a nominee or agent and not with a view to the resale or
distribution of any part thereof, and Purchaser has no present
intention of selling, granting any participation in or otherwise
distributing the same. By executing this Agreement, Purchaser
further represents that Purchaser does not have any contract,
undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to such person or third person with
respect to any of the Securities.
Restrictions on Transfer . Purchaser understands that the Securities are
“restricted securities” as such term is defined in Rule
144 under the Securities Act and have not been registered under the
Securities Act or registered or qualified under any state
securities law, and may not be, directly or indirectly, sold,
transferred, offered for sale, pledged, hypothecated or otherwise
disposed of without registration under the Securities Act and
registration or qualification under applicable state securities
laws or the availability of an exemption therefrom. In any case
where such an exemption is relied upon by Purchaser from the
registration requirements of the Securities Act and the
registration or qualification requirements of such state securities
laws, Purchaser shall furnish the Company with an opinion of
counsel stating that the proposed sale or other disposition of such
securities may be effected without registration under the
Securities Act and will not result in any violation of any
applicable state securities laws relating to the registration or
qualification of securities for sale, such counsel and opinion to
be satisfactory to the Company. Purchaser acknowledges that it is
able to bear the economic risks of an investment in the Securities
for an indefinite period of time, and that its overall commitment
to investments that are not readily marketable is not
disproportionate to its net worth.
Investment Experience . Purchaser has such knowledge, sophistication
and experience in financial, tax and business matters in general,
and investments in securities in particular, that it is capable of
evaluating the merits and risks of this investment in the
Securities, and Purchaser has made such investigations in
connection herewith as it deemed necessary or desirable so as to
make an informed investment decision without relying upon the
Company for legal or tax advice related to this investment. In
making its decision to acquire the Securities, Purchaser has not
relied upon any information other than information provided to
Purchaser by the Company or its representatives and contained
herein and in the other Offering Documents.
Access to Information . Purchaser acknowledges that it has had access
to and has reviewed all documents and records relating to the
Company, including, but not limited to, the Company’s
Schedule 14f filed with the SEC on September 28, 2005, that it has
deemed necessary in order to make an informed investment decision
with respect to an investment in the Securities; that it has had
the opportunity to ask representatives of the Company certain
questions and request certain additional information regarding the
terms and conditions of such investment and
the finances, operations, business and prospects of the Company and
has had any and all such questions and requests
answered to its satisfaction; and that it
understands the risks and other considerations relating to such
investment.
Reliance on Representations
. Purchaser understands that the Securities are
being offered and sold to it in reliance on specific exemptions
from the registration requirements of the federal and state
securities laws and that the Company is relying in part upon the
truth and accuracy of, and such Purchaser’s compliance with,
the representations, warranties, agreements, acknowledgments and
understandings of such Purchaser set forth herein in order to
determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Securities. Purchaser represents
and warrants to the Company that any information that Purchaser has
heretofore furnished or furnishes herewith to the Company is
complete and accurate, and further represents and warrants that it
will notify and supply corrective information to the Company
immediately upon the occurrence of any change therein occurring
prior to the Company's issuance of the Securities. Within five (5)
days after receipt of a request from the Company, Purchaser will
provide such information and deliver such documents as may
reasonably be necessary to comply with any and all laws and
regulations to which the Company is subject.
No General Solicitation . Purchaser is unaware of, and in deciding to
participate in the Offering is in no way relying upon, and did not
become aware of the Offering through or as a result of, any form of
general solicitation or general advertising including, without
limitation, any article, notice, advertisement or other
communication published in any newspaper, magazine or similar
media, or broadcast over television or radio or the internet, in
connection with the Offering.
Placement and Finder’s Fees
. No agent, broker, investment banker, finder,
financial advisor or other person acting on behalf of Purchaser or
under its authority is or will be entitled to any broker’s or
finder’s fee or any other commission or similar fee, directly
or indirectly, in connection with the Offering, and no person is
entitled to any fee or commission or like payment in respect
thereof based in any way on agreements, arrangements or
understanding made by or on behalf of Purchaser.
Investment Risks . Purchaser understands that purchasing
Securities in the Offering will subject Purchaser to certain risks,
including, but not limited to, those set forth under the caption
“Risk Factors” in the Summary Investment
Memorandum.
Legends . (i) The certificates and agreements evidencing
the Securities shall have endorsed thereon the following legend
(and appropriate notations thereof will be made in the Company's
stock transfer books), and stop transfer instructions reflecting
these restrictions on transfer will be placed with the transfer
agent of the Securities:
“THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE. THE SECURITIES REPRESENTED HEREBY HAVE BEEN TAKEN BY THE
REGISTERED OWNER FOR INVESTMENT, AND WITHOUT A VIEW TO RESALE OR
DISTRIBUTION THEREOF, AND MAY NOT BE SOLD, TRANSFERRED OR DISPOSED
OF WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER THAT
SUCH TRANSFER OR DISPOSITION DOES NOT
VIOLATE THE SECURITIES ACT OF 1933, AS
AMENDED, THE RULES AND REGULATIONS THEREUNDER OR OTHER APPLICABLE
SECURITIES LAWS.”
(ii) With respect to Shares purchased under
Regulation S, I acknowledge that all certificates representing
Shares will be endorsed with the following legend in accordance
with Regulation S promulgated under the Securities
Act:
“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND HAVE
BEEN ISSUED IN RELIANCE ON AN EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED
UNDER THE ACT. THE SECURITIES MAY NOT BE REOFFERED FOR SALE OR
RESOLD OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF REGULATION S, PURSUANT TO AN EFFECTIVE
REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
ACT”
Shares Purchased by Non-U.S. Persons
(i) With respect to Shares purchased
under Regulation S, Purchaser agrees that the Company will refuse
to register any transfer of the Shares that is not made in
accordance with the provisions of Regulation S of the Act,
pursuant to registration under the Securities Act, or
pursuant to an available exemption from registration;(ii) With
respect to Shares purchased under Regulation S, Purchaser is not a
“U.S. Person” as defined by Regulation S
promulgated under the Securities Act and Purchaser is not acquiring
the Shares for the acc
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