SUBSCRIPTION
AGREEMENT
SUBSCRIPTION
AGREEMENT (this “Agreement”) made as of the last date
set forth on the signature page hereof between Sunovia Energy
Technologies, Inc. a Nevada corporation (the
“Company”), and the undersigned (the
“Subscriber”).
W I T N E S S E T H:
WHEREAS, the
Company is conducting a private offering (the
“Offering”) consisting of up to 30,000,000 shares (the
“Shares”) of common stock, $0.001 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 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 $0.05 per Share. The purchase price
is payable by wire transfer of immediately available funds or check
payable to the Company to the Company pursuant to the wire
instructions set forth on Schedule 1.1 or directly to EPIR
Technologies, Inc. (“EPIR”), who has agreed to accept
payment and apply it to amounts owed by the company to EPIR
.
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 has 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; 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 VI 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 the National Association of Securities Dealers,
Inc. (the “NASD”) automated quotation system
(“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,
all documents filed by the Company with the Securities and Exchange
Commission, 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 quoted on the OTC Bulletin
Board and that there is a limited 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 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 and any shares of common stock
issuable upon conversion of the Common Stock that such securities
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 HEREBY HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”) OR ANY STATE SECURITIES OR “BLUE SKY
LAWS,” AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED ABSENT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH
ACT, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL,
REASONABLY SATISFACTORY TO THE COMPANY AND ITS 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 he, she or it are not Registered Representative
of an NASD or FINRA member firm or an NASD or FINRA
firm.
1.17 The Subscriber
acknowledges that at such time, if ever, as the Shares are
registered, 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.
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 VI 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 Nevada 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
Company’s reports filed with the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934 (the
“34 Act Reports”) and all issued and outstanding shares
of the Company are validly issued, fully paid and
nonassessable.
2.3 Authorization;
Enforceability . The Company has all corporate
right, power and authority to enter into this Agreement and to
consummate the transactions contemplated hereby. All
corporate action on the part of the Company, its directors and
stockholders necessary for the (a) authorization execution,
delivery and performance of this Agreement by the Company; and (b)
authorization, sale, issuance and delivery of the Shares
contemplated hereby and the performance of the Company’s
obligations hereunder has been taken. This Agreement has
been duly executed and delivered by the Company and constitutes a
legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to laws
of general application relating to bankruptcy, insolvency and the
relief of debtors and rules of law governing specific performance,
injunctive relief or other equitable remedies, and to limitations
of public policy. The Shares, when issued and fully paid
for in accordance with the terms of this Agreement,