SUBSCRIPTION
AGREEMENT
SUBSCRIPTION AGREEMENT (this
“Agreement”) made as of the last date set forth on the
signature page hereof between Protech Global Holdings Corp., a
Delaware corporation (the “Company”), and the
undersigned (the “Subscriber”).
WITNESSETH:
WHEREAS, the Company is conducting a private
offering (the “Offering”) consisting of up to 4,000,000
shares (the “Shares”) of common stock, $.0001 par value
per share (“Common Stock”), pursuant to Section 4(2) of
the Securities Act of 1933, as amended (the “Securities
Act”) and Rule 506 promulgated thereunder; and
WHEREAS, the Subscriber desires to purchase that
number of Shares set forth on the signature page hereof on the
terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the premises
and the mutual representations and covenants hereinafter set forth,
the parties hereto do hereby agree as follows:
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SUBSCRIPTION
FOR SHARES AND REPRESENTATIONS BY SUBSCRIBER
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1.1 Subject
to the terms and conditions hereinafter set forth and in the
Confidential Private Placement Memorandum dated November ___, 2008
(such memorandum, together with all amendments thereof and
supplements and exhibits thereto, the “Memorandum”),
the Subscriber hereby irrevocably subscribes for and agrees to
purchase from the Company such number of Shares, and the Company
agrees to sell to the Subscriber as is set forth on the signature
page hereof, at a per share price equal to $0.50 per
Share. The purchase price is payable by wire transfer of
immediately available funds to:
Wire instructions:
[INTENTIONALLY
OMITTED]
1.2 The
Subscriber recognizes that the purchase of the Shares involves a
high degree of risk including, but not limited to, the following:
(a) the Company remains a development stage business with limited
operating history and requires substantial funds in addition to the
proceeds of the Offering; (b) an investment in the Company is
highly speculative, and only investors who can afford the loss of
their entire investment should consider investing in the Company
and the Shares; (c) the Subscriber may not be able to liquidate its
investment; (d) transferability of the Shares is extremely limited;
(e) in the event of a disposition, the Subscriber could sustain the
loss of its entire investment; (f) the Company has not paid any
dividends since its inception and does not anticipate paying any
dividends in the foreseeable future; and (g) the Company may issue
additional securities in the future which have rights and
preferences that are senior to those of the Common
Stock. Without limiting the generality of the
representations set forth in Section 1.5 below, the Subscriber
represents that the Subscriber has carefully reviewed the section
of the Memorandum captioned “Risk Factors.”
1.3 The
Subscriber represents that the Subscriber is an “accredited
investor” as such term is defined in Rule 501 of Regulation D
(“Regulation D”) promulgated under the Securities Act,
as indicated by the Subscriber’s responses to the questions
contained in Article VII hereof, and that the Subscriber is able to
bear the economic risk of an investment in the Shares.
1.4 The
Subscriber hereby acknowledges and represents that (a) the
Subscriber has knowledge and experience in business and financial
matters, prior investment experience, including investment in
securities that are non-listed, unregistered and/or not traded on a
national securities exchange nor on NASDAQ, or the Subscriber has
employed the services of a “purchaser representative”
(as defined in Rule 501 of Regulation D), attorney and/or
accountant to read all of the documents furnished or made available
by the Company both to the Subscriber and to all other prospective
investors in the Shares to evaluate the merits and risks of such an
investment on the Subscriber’s behalf; (b) the Subscriber
recognizes the highly speculative nature of this investment; and
(c) the Subscriber is able to bear the economic risk that the
Subscriber hereby assumes.
1.5 The
Subscriber hereby acknowledges receipt and careful review of this
Agreement, the Memorandum (which includes the Risk Factors),
including all exhibits thereto, and any documents which may have
been made available upon request as reflected therein (collectively
referred to as the “Offering Materials”) and hereby
represents that the Subscriber has been furnished by the Company
during the course of the Offering with all information regarding
the Company, the terms and conditions of the Offering and any
additional information that the Subscriber has requested or desired
to know, and has been afforded the opportunity to ask questions of
and receive answers from duly authorized officers or other
representatives of the Company concerning the Company and the terms
and conditions of the Offering.
1.6 (a) In
making the decision to invest in the Shares the Subscriber has
relied solely upon the information provided by the Company in the
Offering Materials. To the extent necessary, the
Subscriber has retained, at its own expense, and relied upon
appropriate professional advice regarding the investment, tax and
legal merits and consequences of this Agreement and the purchase of
the Shares hereunder. The Subscriber disclaims reliance
on any statements made or information provided by any person or
entity in the course of Subscriber’s consideration of an
investment in the Shares other than the Offering
Materials.
(b) The
Subscriber represents that (i) the Subscriber was contacted
regarding the sale of the Shares by the Company (or an authorized
agent or representative thereof) with whom the Subscriber had a
prior substantial pre-existing relationship and (ii) no Shares were
offered or sold to it by means of any form of general solicitation
or general advertising, and in connection therewith, the Subscriber
did not (A) receive or review any advertisement, article, notice or
other communication published in a newspaper or magazine or similar
media or broadcast over television or radio, whether closed
circuit, or generally available; or (B) attend any seminar meeting
or industry investor conference whose attendees were invited by any
general solicitation or general advertising.
1.7 The
Subscriber hereby represents that the Subscriber, either by reason
of the Subscriber’s business or financial experience or the
business or financial experience of the Subscriber’s
professional advisors (who are unaffiliated with and not
compensated by the Company or any affiliate or selling agent of the
Company, directly or indirectly), has the capacity to protect the
Subscriber’s own interests in connection with the transaction
contemplated hereby.
1.8 The
Subscriber hereby acknowledges that the Offering has not been
reviewed by the United States Securities and Exchange Commission
(the “SEC”) nor any state regulatory authority since
the Offering is intended to be exempt from the registration
requirements of Section 5 of the Securities Act, pursuant to
Regulation D. The Subscriber understands that the Shares
have not been registered under the Securities Act or under any
state securities or “blue sky” laws and agrees not to
sell, pledge, assign or otherwise transfer or dispose of the Shares
unless they are registered under the Securities Act and under any
applicable state securities or “blue sky” laws or
unless an exemption from such registration is available.
1.9 The
Subscriber understands that the Shares have not been registered
under the Securities Act by reason of a claimed exemption under the
provisions of the Securities Act that depends, in part, upon the
Subscriber’s investment intention. In this
connection, the Subscriber hereby represents that the Subscriber is
purchasing the Shares for the Subscriber’s own account for
investment and not with a view toward the resale or distribution to
others. The Subscriber, if an entity, further represents
that it was not formed for the purpose of purchasing the
Shares.
1.10 The
Subscriber understands that the Common Stock is not currently
traded or quoted on any market and that there is no market for the
Common Stock. The Subscriber understands that even if a
public market develops for the Common Stock, Rule 144 (“Rule
144”) promulgated under the Securities Act requires for
non-affiliates, among other conditions, a six months holding period
prior to the resale (in limited amounts) of securities acquired in
a non-public offering without having to satisfy the registration
requirements under the Securities Act. The Subscriber
understands and hereby acknowledges that the Company is under no
obligation to register any of the Shares under the Securities Act
or any state securities or “blue sky” laws.
1.11 The
Subscriber consents to the placement of a legend on any certificate
or other document evidencing the Shares that such Shares have not
been registered under the Securities Act or any state securities or
“blue sky” laws and setting forth or referring to the
restrictions on transferability and sale thereof contained in this
Agreement. The Subscriber is aware that the Company will
make a notation in its appropriate records with respect to the
restrictions on the transferability of such Shares. The legend to
be placed on each certificate shall be in form substantially
similar to the following:
“The
securities represented by this certificate have not been registered
under the Securities Act of 1933, as amended and may not be sold,
transferred, pledged, hypothecated or otherwise disposed of in the
absence of (i) an effective registration statement for such
securities under said act or (ii) an opinion of company counsel
that such registration is not required.”
1.12 The
Subscriber understands that the Company will review this Agreement
and is hereby given authority by the Subscriber to call
Subscriber’s bank or place of employment or otherwise review
the financial standing of the Subscriber; and it is further agreed
that the Company, at its sole discretion, reserves the unrestricted
right, without further documentation or agreement on the part of
the Subscriber, to reject or limit any subscription, to accept
subscriptions for fractional Shares and to close the Offering to
the Subscriber at any time and that the Company will issue stop
transfer instructions to its transfer agent with respect to such
Shares.
1.13 The
Subscriber hereby represents that the address of the Subscriber
furnished by Subscriber on the signature page hereof is the
Subscriber’s principal residence if Subscriber is an
individual or its principal business address if it is a corporation
or other entity.
1.14 The
Subscriber represents that the Subscriber has full power and
authority (corporate, statutory and otherwise) to execute and
deliver this Agreement and to purchase the Shares. This
Agreement constitutes the legal, valid and binding obligation of
the Subscriber, enforceable against the Subscriber in accordance
with its terms.
1.15 If
the Subscriber is a corporation, partnership, limited liability
company, trust, employee benefit plan, individual retirement
account, Keogh Plan, or other tax-exempt entity, it is authorized
and qualified to invest in the Company and the person signing this
Agreement on behalf of such entity has been duly authorized by such
entity to do so.
1.16 The
Subscriber acknowledges that if he or she is a Registered
Representative of an FINRA member firm, he or she must give such
firm the notice required by the FINRA’s Rules of Fair
Practice, receipt of which must be acknowledged by such firm in
Section 7.4 below.
1.17 The
Subscriber acknowledges that at such time, if ever, as the Shares
are registered (as such term is defined in Article V hereof), sales
of the Shares will be subject to state securities laws.
1.18 (a) The
Subscriber agrees not to issue any public statement with respect to
the Subscriber’s investment or proposed investment in the
Company or the terms of any agreement or covenant between them and
the Company without the Company’s prior written consent,
except such disclosures as may be required under applicable law or
under any applicable order, rule or regulation.
(b) The
Company agrees not to disclose the names, addresses or any other
information about the Subscribers, except as required by law;
provided, that the Company may use the name of the Subscriber for
any offering or in any registration statement filed pursuant to
Article V in which the Subscriber’s shares are
included.
1.19 The
Subscriber agrees to hold the Company and its directors, officers,
employees, affiliates, controlling persons and agents and their
respective heirs, representatives, successors and assigns harmless
and to indemnify them against all liabilities, costs and expenses
incurred by them as a result of (a) any sale or distribution of the
Shares by the Subscriber in violation of the Securities Act or any
applicable state securities or “blue sky” laws; or (b)
any false representation or warranty or any breach or failure by
the Subscriber to comply with any covenant made by the Subscriber
in this Agreement (including the Confidential Investor
Questionnaire contained in Article VII herein) or any other
document furnished by the Subscriber to any of the foregoing in
connection with this transaction.
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REPRESENTATIONS BY AND COVENANTS OF THE
COMPANY
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The Company hereby represents and warrants to
the Subscriber that:
2.1
Organization, Good Standing and Qualification
. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of
California and has full corporate power and authority to conduct
its business.
2.2
Capitalization and Voting Rights . The
authorized, issued and outstanding capital stock of the Company is
as set forth in the Confidential Private Placement Memorandum
and all issued and outstanding shares of the Company
are validly issued, fu