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Exhibit 10.3
TRADEON, INC.
REGULATION S SUBSCRIPTION AGREEMENT
AND INVESTMENT REPRESENTATION
SECTION 1.
1.1 Subscription.
(a) The undersigned, intending to be legally bound, hereby
irrevocably
subscribes for and agrees to purchase ______ shares (the
"Shares") of the common
stock (the "Common Stock") of TradeOn, Inc, a Nevada corporation
(the "Company")
in a transaction exempt from the registration requirements of
the Securities Act
of 1933, as amended (the "Securities Act"). The undersigned
understands that the
Shares are being sold in connection with an offering by the
Company of an
aggregate of up to 3,600,000 shares of Common Stock for total
proceeds of up to
$90,000.00
1.2 Purchase of Shares.
The undersigned understands and acknowledges that the purchase
price to be
remitted to the Company in exchange for the Shares shall be
________________
dollars ($_______) or $0.025 per Share. The Company shall
deliver the Shares to
the undersigned promptly after the acceptance of this
Subscription Agreement by
the Company.
1.3 Acceptance or Rejection.
(a) The undersigned understands and agrees that the Company
reserves the
right to reject this subscription for the Shares if, in its
reasonable judgment,
it deems such action in the best interest of the Company, at any
time prior to
the Closing, notwithstanding prior receipt by the undersigned of
notice of
acceptance of the undersigned's subscription.
(b) The undersigned understands and agrees that its subscription
for the
Shares is irrevocable.
(c) In the event the sale of the Shares subscribed for by the
undersigned
is not consummated by the Company for any reason (in which event
this
Subscription Agreement shall be deemed to be rejected), this
Subscription
Agreement and any other agreement entered into between the
undersigned and the
Company relating to this subscription shall thereafter have no
force or effect
and the Company shall promptly return or cause to be returned to
the undersigned
the purchase price remitted to the Company by the undersigned,
without interest
thereon or deduction therefrom, in exchange for the Shares.
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SECTION 2.
2.1 Closing. The closing (the "Closing") of the purchase and
sale of the Shares,
shall occur simultaneously with the acceptance by the Company of
the
undersigned's subscription, as evidenced by the Company's
execution of this
Subscription Agreement.
SECTION 3.
3.1 Investor Representations and Warranties. The undersigned
hereby
acknowledges, represents and warrants to, and agrees with, the
Company and its
affiliates as follows:
(a) Investment Purposes. The undersigned is acquiring the Shares
for his
own account as principal, not as a nominee or agent, for
investment purposes
only, and not with a view to, or for, resale, distribution or
fractionalization
thereof in whole or in part and no other person has a direct or
indirect
beneficial interest in such Shares or any portion thereof.
Further, the
undersigned does not have any contract, undertaking, agreement
or arrangement
with any person to sell, transfer or grant participations to
such person or to
any third person, with respect to the Shares for which the
undersigned is
subscribing or any part of the Shares.
(b) Authority. The undersigned has full power and authority to
enter into
this Agreement, the execution and delivery of this Agreement has
been duly
authorized, if applicable, and this Agreement constitutes a
valid and legally
binding obligation of the undersigned.
(c) No General Solicitation. The undersigned is not subscribing
for the
Shares as a result of or subsequent to any advertisement,
article, notice or
other communication published in any newspaper, magazine or
similar media or
broadcast over television or radio, or presented at any seminar
or meeting, or
any solicitation of a subscription by person previously not
known to the
undersigned in connection with investment securities
generally.
(d) No Obligation to Register Shares. The undersigned
understands that the
Company is under no obligation to register the Shares under the
Securities Act,
or to assist the undersigned in complying with the Securities
Act or the
securities laws of any state of the United States or of any
foreign
jurisdiction.
(e) Investment Experience. The undersigned is (i) experienced in
making
investments of the kind described in this Agreement, (ii) able,
by reason of the
business and financial experience of its officers (if an entity)
and
professional advisors (who are not affiliated with or
compensated in any way by
the Company or any of its affiliates or selling agents), to
protect its own
interests in connection with the transactions described in this
Agreement, and
(iii) able to afford the entire loss of its investment in the
Shares.
(f) Exemption from Registration. The undersigned acknowledges
his
understanding that the offering and sale of the Shares is
intended to be exempt
from registration under the Securities Act. In furtherance
thereof, in addition
to the other representations and warranties of the undersigned
made herein, the
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undersigned further represents and warrants to and agrees with
the Company and
its affiliates as follows:
(1) The undersigned realizes that the basis for the exemption
may not
be present if, notwithstanding such representations, the
undersigned has in mind
merely acquiring the Shares for a fixed or determinable period
in the future, or
for a market rise, or for sale if the market does not rise. The
undersigned does
not have any such intention;
(2) The undersigned has the financial ability to bear the
economic
risk of his investment, has adequate means for providing for his
current needs
and personal contingencies and has no need for liquidity with
respect to his
investment in the Company; and
(3) The undersigned has such knowledge and experience in
financial and
business matters as to be capable of evaluating the merits and
risks of the
prospective investment in the Shares. The undersigned also
represents it has not
been organized for the purpose of acquiring the Shares; and
(4) The undersigned has been provided an opportunity for a
reasonable
period of time prior to the date hereof to obtain additional
information
concerning the offering of the Shares, the Company and all other
information to
the extent the Company possesses such information or can acquire
it without
unreasonable effort or expense.
(g) Economic Considerations. The undersigned is not relying on
the Company,
or its affiliates or agents with respect to economic
considerations involved in
this investment. The undersigned has relied solely on its own
advisors.
(h) No Other Company Representations. No representations or
warranties have
been made to the undersigned by the Company, or any officer,
employee, agent,
affiliate or subsidiary of the Company, other than the
representations of the
Company contained herein, and in subscribing for Shares the
undersigned is not
relying upon any representations other than those contained
herein.
(i) Compliance with Laws. Any resale of the Shares during the
`distribution
compliance period' as defined in Rule 902(f) to Regulation S
shall only be made
in compliance with exemptions from registration afforded by
Regulation S.
Further, any such sale of the Shares in any jurisdiction outside
of the United
States will be made in compliance with the securities laws of
such jurisdiction.
The Investor will not offer to sell or sell the Shares in any
jurisdiction
unless the Investor obtains all required consents, if any.
(j) Regulation S Exemption. The undersigned understands that the
Shares are
being offered and sold to him in reliance on an exemption from
the registration
requirements of United States federal and state securities laws
under Regulation
S promulgated under the Securities Act and that the Company is
relying upon the
truth and accuracy of the representations, warranties,
agreements,
acknowledgments and understandings of the Investor set forth
herein in order to
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determine the applicability of such exemptions and the
suitability of the
Investor to acquire the Shares. In this regard, the undersigned
represents,
warrants and agrees that:
(1) The undersigned is not a U.S. Person (as defined below) and
is not
an affiliate (as defined in Rule 501(b) under the Securities
Act) of the Company
and is not acquiring the Shares for the account or benefit of a
U.S. Person. A
U.S. Person means any one of the following:
(A) any natural person resident in the United States of
America;
(B) any partnership or corporation organized or incorporated
under the laws of the
United States of America;
(C) any estate of which any executor or administrator is a
U.S.
person;
(D) any trust of which any trustee is a U.S. person;
(E) any agency or branch of a foreign entity located in the
United States of
America;
(F) any non-discretionary account or similar account (other
than
an estate or trust) held by a dealer or other fiduciary for the
benefit or
account of a U.S.
person;
(G) any discretionary account or similar account (other than
an
estate or trust) held by a dealer or other fiduciary organized,
incorporated or
(if an individual) resident in the United States of America;
and
(H) any partnership or corporation if:
(i) organized or incorporated under the laws of any foreign
jurisdiction; and
(ii) formed by a U.S. person principally for the purpose of
investing in securities not registered under the Securities Act,
unless it is
organized or incorporated, and owned, by accredited investors
(as defined in
Rule 501(a) under the Securities Act) who are not natural
persons, estates or
trusts.
(2) At the time of the origination of contact concerning
this
Agreement and the date of the execution and delivery of this
Agreement, the
undersigned was outside of the United States.
(3) The undersigned will not, during the period commencing on
the date
of issuance of the Shares and ending on the first anniversary of
such date, or
such shorter period as may be permitted by Regulation S or other
applicable
securities law (the "Restricted Period"), offer, sell, pledge or
otherwise
transfer the Shares in the United States, or to a U.S. Person
for the account or
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for the benefit of a U.S. Person, or otherwise in a manner that
is not in
compliance with Regulation S.
(4) The undersigned will, after expiration of the Restricted
Period,
offer, sell, pledge or otherwise transfer the Shares only
pursuant to
registration under the Securities Act or an available exemption
therefrom and,
in accordance with all applicable state and foreign securities
laws.
(5) The undersigned was not in the United States, engaged in,
and
prior to the expiration of the Restricted Period will not engage
in, any s
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