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Exhibit 99.2
CIRTRAN CORPORATION
SUBSCRIPTION AGREEMENT
CirTran Corporation
0000 Xxxxx 0000 Xxxx
Xxxx Xxxxxx Xxxx, Xxxx 00000
Gentlemen:
The undersigned subscriber or subscribers (the "Purchaser") desires to
loan money to CirTran Corporation, a Nevada corporation (the "Company"),
pursuant to the terms and conditions of this Subscription Agreement (this
"Agreement").
1. Subscription. Purchaser hereby irrevocably subscribes for a
Promissory Note (the "Note") from the Company upon the terms and conditions of
this Subscription Agreement, in the amount of $_________________, in the form of
the consideration stated on the signature page hereof. Purchaser agrees that
this subscription shall be irrevocable.
2. Acceptance of Subscription. The Company shall have the right to
accept or reject this subscription in its sole discretion. This Subscription
Agreement shall be deemed null and void and of no further force or effect in the
event the Release is not executed and delivered by all parties thereto.
3. Representations, Warranties and Covenants of Purchaser. Purchaser
hereby represents and warrants to and covenants with the Company as follows:
(a) Purchaser is an "accredited investor" as such term is
defined in Rule 501(a) of Regulation D promulgated under the Securities
Act of 1933, as amended (the "Securities Act");
(b) Purchaser has examined the Company's Forms 10-Q, 10-K and
8-K filed with the Securities and Exchange Commission (the "SEC") (the
"SEC Documents"), has relied solely upon the SEC Documents and
investigations made by or on behalf of Purchaser or its representative
in evaluating the suitability of an investment in the Company, and
recognizes that an investment in the Company involves a high degree of
risk;
(c) Purchaser has been advised that (i) there may not be a
market for the Note; and (ii) it may not be possible to readily
liquidate the Note. Purchaser understands that it may not offer for
sale, sell, pledge, hypothecate or otherwise transfer or dispose of its
interest in the Note unless the Note is registered under the Securities
Act of 1933 and applicable state securities laws or the transfer is
exempt from such registration;
(d) Purchaser's overall commitment to investments which are
not readily marketable is not disproportionate to its net worth; its
investment in the Company will not cause such overall commitment to
become excessive; and it can afford to bear the loss of its entire
investment in the Company;
(e) Purchaser has adequate means of providing for its current
needs and personal contingencies and has no need for liquidity in his
investment in the Company;
(f) Purchaser satisfies any special suitability or other
applicable requirements of its state of residence and/or the state in
which the transaction by which the Notes are issued occurs;
(g) Purchaser has such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and
risks of an investment in the Company, or Purchaser has employed the
services of an independent investment advisor, attorney or accountant
to read all of the documents furnished or made available by the Company
to it and to evaluate the merits and risks of such an investment on
Purchaser's behalf;
(h) Purchaser acknowledges that the Company has made available
to Acquirer the opportunity to ask questions of, and receive answers
from, representatives of the Company concerning the acquisition of the
Note, the Company, and the activities of the Company, and otherwise to
obtain any additional information, to the extent that the Company
possesses such information or could acquire it without unreasonable
effort or expense, necessary to verify the accuracy of the information
contained in the SEC Documents. Purchaser understands that the Company
has been ready and willing to answer any questions of Acquirer, but
Purchaser does not require any additional information concerning the
foregoing;
(i) Purchaser hereby acknowledges that Purchaser has been
advised that the Note has not been registered with the SEC. Purchaser
represents that the Note is being acquired for Purchaser's own account,
for investment purposes only, and not with a view towards distribution
or resale to others. Purchaser agrees that Purchaser will not attempt
to sell, transfer, assign, pledge or otherwise dispose of all or any
portion of the Note unless it is registered under the Securities Act or
unless in the opinion of counsel satisfactory to the Company an
exemption from such registration is available. Purchaser understands
that the Note has not been registered under the Securities Act by
reason of a claimed exemption under the provisions of the Securities
Act which depends, in part, upon Purchaser's investment intention;
(j) Purchaser understands that no federal or state securities
administrator or agency has made any finding or determination relating
to the fairness of this investment and that no federal or state
securities administrator or agency has recommended or endorsed, or will
recommend or endorse, the offering of the Note;
(k) The execution, delivery and performance by Purchaser of
the Subscription Agreement are within the powers of Purchaser, have
been duly authorized and will not constitute or result in a breach or
default under, or conflict with, any order, ruling or regulation of any
court or other tribunal or of any governmental commission or agency, or
any agreement or other undertaking, to which Purchaser is a party or by
which Purchaser is bound; and, if Purchaser is not an individual, will
not violate any provision of the charter documents, by-laws, indenture
of trust, partnership agreement or similar documents, as applicable, of
Purchaser. The signatures on the Subscription Agreement are genuine;
and the signatory, if Purchaser is an individual, has legal competence
and capacity to execute the same, or, if Purchaser is not an
individual, the signatory has been duly authorized to execute the same;
and the Subscription Agreement constitutes the legal, valid and binding
obligation of Purchaser, enforceable in accordance with its terms;
(l) Purchaser acknowledges that no general solicitation or
general advertising (including communications published in any
newspaper, magazine or other broadcast) has been received by him and
that no public solicitation or advertisement with respect to the
offering of the Note has been made to him;
(m) Purchaser has relied solely upon the advice of his own tax
and legal advisors with respect to the tax and other legal aspects of
this investment;
(n) Purchaser acknowledges that the Note has not been
recommended by any Federal or state securities commission or regulatory
authority. 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. Furthermore, the foregoing
authorities have not confirmed the accuracy or determined the adequacy
of this document. Any representation to the contrary is a criminal
offense. This Note is subject to restrictions on transferability and
resale and may not be transferred or resold except as permitted under
the Securities Act, and the applicable state securities laws, pursuant
to registration or exemption therefrom. Investors should be aware that
they will be required to bear the financial risks of this investment
for an indefinite period of time;
The foregoing representations and warranties are true and accurate as
of the date hereof, shall be true and accurate as of the date of delivery of
this Subscription Agreement and accompanying documents to the Company and shall
survive the delivery of the Note. If, in any respect, those representations and
warranties shall not be true and accurate prior to acceptance or rejection of
this subscription by the Company pursuant to paragraph 2, the undersigned shall
immediately give written notice to the Company specifying which representations
and warranties are not true and accurate and the reason therefor. Purchaser
agrees that the foregoing representations and warranties may be used as a
defense in any actions relating to the Company, and that it is only on the basis
of such representations and warranties that the Company may be willing to accept
Purchaser's subscription for the Note.
4. Indemnification. Purchaser acknowledges that he understands the
meaning and legal consequences of the representations, warranties and covenants
in paragraph 3 hereof and that the Company has relied upon such representations,
warranties and covenants, and he hereby agrees to indemnify and hold harmless
the Company and any of its officers, directors, controlling persons, agents and
employees, who is or may be a party or is or may be threatened to be made a
party to any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by reason of or
arising from any actual or alleged misrepresentation or misstatement of facts or
omission to represent or state facts made or alleged to have been made by the
undersigned to the Company (or any agent or representative of the Company), or
omitted or alleged to have been omitted by the undersigned, concerning the
undersigned or the undersigned's authority to invest or financial position in
connection with the issuance of the Note, against losses, damages, liabilities
or expenses for which the Company or any officer, director or controlling person
of the Company has not otherwise been reimbursed (including attorney's fees,
judgments, fines and amounts paid in settlement) actually and reasonably
incurred by the Company or such officer, director or controlling person in
connection with such action, suit or proceeding. Notwithstanding the foregoing,
however, no representation, warranty, covenant, acknowledgment or agreement made
herein by Purchaser shall in any manner be deemed to constitute a waiver of any
rights granted to Purchaser under Federal or state securities laws. All
representations, warranties and covenants contained in this Subscription
Agreement and the indemnification contained in this paragraph 4 shall survive
the acceptance of this subscription.
5. Restrictions on Transfer. Purchaser understands and agrees that the
Note acquired pursuant to this subscription are being offered pursuant to
Section 4(2) of the Securities Act thereunder and that the Note and any
interests therein, may not be offered, sold, transferred, pledged or otherwise
disposed of except pursuant to (i) an effective registration statement under the
Securities Act and any applicable state securities laws or (ii) an exemption
from registration under such act and such laws which, in the opinion of counsel
for the holder of such a Note, which counsel and opinion are reasonably
satisfactory to counsel for the Company, is available. Purchaser also
understands and agrees that the following provision shall appear on the document
representing such Note:
Assignment. This Note inures to the benefit of Payee and binds
the Debtor and its heirs, successors, and assigns. This Note
shall not be transferable or assignable, by operation of law
or otherwise, by the Payee without the express written consent
of the Debtor.
6. Modification. Neither this Subscription Agreement nor any provision
hereof shall be waived, modified, changed, discharged or terminated except by an
instrument in writing signed by the party against whom any waiver, modification,
change, discharge or termination is sought.
7. Notices. All notices, requests, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly made when
delivered, or mailed by registered or certified mail, return receipt requested:
(a) If to Purchaser, to the address set forth on the signature
page of this Subscription Agreement; or
(b) If to the Company, to the address set forth on the first
page of this Subscription Agreement, or at such other address as
Purchaser or the Company may hereafter have advised the other.
8. Binding Effect. Except as otherwise provided herein, this
Subscription Agreement shall be binding upon and inure to the benefit of the
parties hereto and their heirs, executors, administrators, successors, legal
representatives and assigns. If Purchaser is more than one person, the
obligation of such Acquirer shall be joint and several and the agreements,
representations, warranties, covenants and acknowledgments herein contained
shall be deemed to be made by and be binding upon each such person and his
heirs, executors, administrators, successors, legal representatives and assigns.
9. Entire Agreement. This Subscription Agreement contains the entire
agreement of the parties with respect to the matters set forth herein and there
are no representations, covenants or other agreements except as stated or
referred to herein or as are embodied in the Agreement.
10. Assignability. This Subscription Agreement is not transferable or
assignable by the undersigned or any successor thereto.
11. Applicable Law. This Subscription Agreement shall be governed by
and construed in accordance with the laws of the State of Utah, without
reference to the principles thereof relating to conflicts of law.
IN WITNESS WHEREOF, the undersigned has executed this Agreement as of
the ____ day of ______________, 200__.
______________________________
(Signature of Acquirer)
______________________________
(Printed name of Acquirer)
_____________________________ ______________________________
Mailing Address Residence Address
(if not residence)
_____________________________ ______________________________
City, State and Zip Code City, State and Zip Code
_____________________________
Social Security Number
of Acquirer
Consideration Paid for Note :
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$_______________________ in the form of check(s).
Accepted as of the ________
day of __________, 200__
CIRTRAN CORPORATION
By:____________________________
Title:_________________________
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