ZST DIGITAL NETWORKS, INC.
COMMON STOCK PURCHASE AGREEMENT
THIS COMMON STOCK
PURCHASE AGREEMENT (the
“ Agreement ”) is made as of the 14
th day of January 2009, by and between ZST Digital
Networks, Inc., a Delaware corporation (the “ Company
”), and [__________] (“ Purchaser
”).
Whereas,
the Company desires to issue, and
Purchaser desires to acquire, stock of the Company as herein
described, on the terms and conditions hereinafter set
forth;
Now, Therefore, It Is
Agreed between the
parties as follows:
1.
Purchase and Sale of
Stock . Purchaser hereby agrees to acquire
from the Company, and the Company hereby agrees to sell to
Purchaser, an aggregate of [_________] ([_____]) shares of the
Common Stock of the Company, par value $0.001 per share (the
“ Securities ”), in consideration for $0.2806
per share.
2. The
closing hereunder, including payment for and delivery of the
Securities shall occur at the offices of the Company immediately
following the execution of this Agreement, or at such other time
and place as the parties may mutually agree, such monies to be
released subject to that certain Escrow Agreement dated January 9,
2009.
3.
Restrictive
Legends. All certificates representing the
Securities shall have endorsed thereon legends in substantially the
following forms (in addition to any other legend which may be
required by other agreements between the parties
hereto):
(a) “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 AS AMENDED. THEY MAY
NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES
UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY
THAT SUCH REGISTRATION IS NOT REQUIRED.”
(b) Any
legend required by appropriate blue sky officials.
4.
Investment
Representations. In connection with the
purchase of the Securities, Purchaser represents to the Company the
following:
(a) Purchaser
has such knowledge and experience in financial and business matters
that Purchaser is capable of evaluating the merits and risks of the
acquisition of the Securities and, by reason of Purchaser’s
financial and business experience (either alone or together with
any Purchaser representative), Purchaser has the capacity to
protect Purchaser’s interest in connection with the
acquisition of the Securities. Purchaser is financially
able to bear the economic risk of the investment, including the
total loss thereof. If Purchaser is a corporation,
partnership, trust or other entity, Purchaser was not organized for
the specific purpose of acquiring the Securities.
(b) Purchaser
has (i) a preexisting personal or business relationship with
the Company or one or more of its officers, directors, or control
persons or (ii) by reason of Purchaser’s business or
financial experience, or by reason of the business or financial
experience of Purchaser’s financial advisor who is
unaffiliated with and who is not compensated, directly or
indirectly, by the Company of any affiliate or selling agent of the
Company, Purchaser is capable of evaluating the risks and merits of
this investment and of protecting Purchaser’s own interests
in connection with this investment
(c) Purchaser
has received and reviewed all information Purchaser considers
necessary or appropriate for deciding whether to purchase the
Securities. Purchaser further represents that Purchaser
has had an opportunity to ask questions and receive answers from
the Company and its officers and employees regarding the terms and
conditions of purchase of the Securities and regarding the
business, financial affairs and other aspects of the Company and
has further had the opportunity to obtain any information (to the
extent the Company possesses or can acquire such information
without unreasonable effort or expense) which Purchaser deems
necessary to evaluate the investment and to verify the accuracy of
information otherwise provided to Purchaser.
(d) Purchaser
acknowledges that the Securities have not been registered under the
Securities Act of 1933, as amended (the “ Act
”), or qualified under any applicable blue sky laws in
reliance, in part, on the representations and warranties
herein. Such Securities are being acquired by Purchaser
for investment purposes for Purchaser’s own account only and
not for sale or with a view to distribution of all or any part of
such Securities. No other person will have any direct or
indirect beneficial interest in the Securities.
(e) Purchaser
understands that the Securities are “restricted
securities” under the federal securities laws in that such
securities will be acquired in a transaction not involving a public
offering, and that under such laws and applicable regulations such
securities may be resold without registration under the Act only in
certain limited circumstances an