Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants that: (a) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect to the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securities.
Appears in 5 contracts
Sources: Subscription Agreement (FX Real Estate & Entertainment Inc.), Subscription Agreement (FX Real Estate & Entertainment Inc.), Subscription Agreement (FX Real Estate & Entertainment Inc.)
Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants to the Corporation that: :
a. No offer, offer to sell, offer for sale, or prospect of sale was made to the Subscriber by means of general solicitation or general advertising, and the Subscriber (ai) it has is familiar with the full legal right business and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning affairs of the Securities Act of 1933Corporation, as amended (ii) has not been furnished any offering literature or prospectus relating to the “Securities Act”), in violation offering of the Securities Act; providedStock, however, that by making other than the representations herein, Subscriber does not agree to hold any financial reports of the Securities for Corporation, and (iii) has been furnished with all information including an adequate opportunity to ask any minimum or other specific term and Subscriber reserves the right to dispose questions of officers of the Securities at Corporation concerning the Stock, the business and operations of the Corporation, the use of proceeds and any time in accordance with other matter necessary for the purpose of making an informed investment decision;
b. Subscriber, or pursuant to a registration statement the Subscriber's Representative or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representativesFinancial Advisor, has such knowledge, sophistication knowledge and experience in business, financial and business matters to evaluate the merits and risks of an investment matters that it is capable of in the Stock and to make an informed investment decision with respect thereto;
c. Subscriber understands and has conducted an independent review evaluating the merits and risks of an investment in the Securities, and has so evaluated Stock including the merits and risk potential tax consequences of such investment; (e) it understands that it must ;
d. Subscriber, or the Subscriber's Representative or Financial Advisor, has knowledge of finance, securities and investments generally, and experience and skill in investments and business matters of the sort encompassed by this transaction;
e. Subscriber is a person who is able to bear the economic risk of this an investment in the Securities indefinitelyCorporation, can afford to hold the Stock for an indefinite period and is able to bear such risk and is able to can afford a complete loss of such investment; the investment in the Corporation for which Subscriber is hereby subscribing;
f. Subscriber recognizes that it is a speculative venture;
g. Subscriber understands that (fi) it no state or federal government authority has received and reviewed made any finding or determination relating to the Offering Materials and has been afforded fairness for investment of the opportunity to ask questions ofStock, and receive answers from representatives (ii) no state or federal government authority has recommended or will recommend the investment;
h. The foregoing representations and warranties shall be true and accurate as of the Company concerning the terms date hereof and conditions as of the offering date of delivery of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect to the purchase Subscriber's payment of the Securities. The Subscriber further represents Stock and warrants that it has consulted with shall survive such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securitiesdelivery.
Appears in 5 contracts
Sources: Stock Purchase Subscription Agreement (Industrial Data Systems Corp), Stock Purchase Subscription Agreement (Industrial Data Systems Corp), Stock Purchase Subscription Agreement (Industrial Data Systems Corp)
Representations and Warranties of Subscriber. The (a) In order to induce the Company to accept Subscriber’s subscription, Subscriber hereby further represents and warrants that: (a) it has to the full legal right and power and all authority and approval required to executeCompany, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own accountAffiliates, for present investment and not with a view toward resale or other distribution within the meaning of as defined in the Securities Act of 1933, as amended 1933 (the “Securities Act”), in violation and counsel to the Company (the “Company’s Counsel”), and their respective agents and representatives as follows:
1. SUBSCRIBER HAS READ THE PRIVATE OFFERING MEMORANDUM AND EXAMINED THE RISK FACTORS SET FORTH THEREIN, AND UNDERSTANDS THE SPECULATIVE NATURE OF AND SUBSTANTIAL RISK INVOLVED IN INVESTMENT IN THE COMPANY.
2. If Subscriber has chosen to do so, Subscriber has been represented by such legal and tax counsel and other professionals, each of whom has been personally selected by Subscriber, as Subscriber has found necessary to consult concerning the purchase of the Securities Act; providedUnits, howeverand such representation has included an examination of all applicable documents and an analysis of all tax, that by making the representations hereinfinancial, and securities law aspects thereof deemed to be necessary. Subscriber, together with Subscriber’s counsel, Subscriber’s advisors, and such other persons, if any, with whom Subscriber does not agree has found it necessary or advisable to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) itconsult, either alone or together its representatives, has such knowledge, sophistication have sufficient knowledge and experience in business, business and financial matters to evaluate the information set forth in this Subscription Agreement and investment matters that it is capable of evaluating in the merits Offering Material and the risks of the investment and to make an informed investment in the Securitiesdecision with respect thereto. Further, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and Subscriber has been afforded given the opportunity for a reasonable time period prior to the date hereof to ask questions of, and receive answers from representatives of from, the Company or its representatives concerning the terms and conditions of the offering of Offering and other matters pertaining to this investment and has been given the Securities and opportunity for a reasonable time period prior to the merits and risks of investing in the Securities and to obtain any additional information necessary date hereof to verify the accuracy of the Company’s information.
3. With respect to the United States federal, state and foreign tax aspects of Subscriber’s investment, Subscriber is relying solely upon the advice of Subscriber’s own tax advisors, and/or upon Subscriber’s own knowledge with respect thereto.
4. Subscriber has not relied, and will not rely upon, any information with respect to this offering other than the information contained herein and in the Offering Material.
5. Subscriber understands that no person has been authorized to make representations or to give any information or literature with respect to this offering that is inconsistent with the information that is set forth herein and in the Offering Material.
6. Subscriber understands that, other than as provided herein and in the Offering Materials, no covenants, representations, or warranties have been authorized by or will be binding upon the Company, with regard to this Subscription Agreement, the performance of the Company or any expectation of investment returns, including any representations, warranties or agreements contained or made in any written document or oral communication received from or had with the Company, its Affiliates, Company Counsel or any of their respective representatives or agents. Subscriber has not relied upon any information or representation that may be or have been made or given except as permitted under this paragraph.
7. Subscriber understands that the Offering has not been, and it is not anticipated that the same will be, registered under the Securities Act, or pursuant to the provisions of the securities or other laws of any other applicable jurisdictions, but is being made in reliance upon the provisions of Section 4(2) and/or 4(6) of the Securities Act and/or Regulation D and the other rules and regulations promulgated thereunder, and/or upon such other exemption from the registration requirements of the Securities Act as may be available with respect to any or all of the investments in securities to be made hereunder. Subscriber is fully aware that the Units subscribed for by Subscriber are to be sold to Subscriber in reliance upon such safe harbor based upon Subscriber’s representations, warranties, and agreements as set forth herein. Subscriber is fully aware of the restrictions on sale, transferability and assignment of the Units (including the shares of Common Stock and the Warrants that comprise the Units, and the shares of Common Stock issuable upon exercise of such Warrants), and that Subscriber must bear the economic risk of Subscriber’s investment herein for an indefinite period of time because the offering has not been registered under the Securities Act and, therefore, the Securities cannot be offered or sold unless such offer is subsequently registered under the Securities Act or an exemption from such registration is available to Subscriber.
8. Subscriber is an “accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act).
9. Subscriber’s execution and delivery of this Subscription Agreement has been duly authorized by all necessary action and all necessary consents have been obtained. Subscriber has no present intention to sell, distribute, pledge, assign, or otherwise transfer the Units (including the shares of Common Stock and the Warrants that comprise the Units, and the shares of Common Stock issuable upon exercise of such Warrants), which Subscriber acquires pursuant to this offering. Subscriber is making the investment hereunder solely for Subscriber’s own account and not for the account of others and for investment purposes only and not with a view to or for the transfer, assignment, resale or distribution thereof, in whole or in part. Subscriber has no present plans to enter into any such contract, undertaking, agreement, or arrangement.
10. Subscriber agrees that Subscriber will not cancel, terminate or revoke this Subscription Agreement, which has been executed by Subscriber, and that this Subscription Agreement shall survive any sale, assignment or other transfer of control over, or of all or substantially all of Subscriber’s assets or business and Subscriber’s bankruptcy, except as otherwise provided pursuant to the laws of any applicable jurisdiction.
11. Subscriber has substantial investment experience and is familiar with investments of the type contemplated by this Subscription Agreement. Subscriber confirms that although one of Subscriber’s motivations for investing in the Company is to derive economic benefits therefrom, Subscriber is aware that purchase of the Units is a speculative investment involving a high degree of risk and there is no guarantee that Subscriber will realize any gain from Subscriber’s investment or realize any tax benefits therefrom and Subscriber is further aware that Subscriber may lose all or a substantial part of Subscriber’s investment. Subscriber understands that there are substantial restrictions on the transferability of, and there is no existing public market for, the Units (including the Warrants that are included in the Units) and it may not be possible to liquidate an investment in the Units (including the shares of Common Stock and the Warrants that comprise the Units, and the shares of Common Stock issuable upon exercise of such Warrants). Subscriber affirms that Subscriber acknowledges that this investment is highly speculative, involves a high degree of risk and, accordingly, Subscriber can afford to lose the entire investment.
12. The address set forth herein is Subscriber’s true and correct address and Subscriber has no present intention of becoming a resident of any other country, state, or jurisdiction prior to, or after, Subscriber’s purchase of the Units.
13. Subscriber understands the meaning and legal consequences of the foregoing representations and warranties, which are true and correct as of the date hereof and will be true and correct as of the date of Subscriber’s purchase of the Units subscribed for herein. Each such representation and warranty shall survive such purchase.
14. Subscriber acknowledges and agrees that it shall not be a defense to a suit for damages for any misrepresentation or breach of covenant or warranty made by Subscriber that the Company, its Affiliates, the Company’s Counsel and their respective agents or representatives knew or had reason to know that any such covenant, representation or warranty in this Subscription Agreement or furnished or to be furnished to the Company by Subscriber contained untrue statements. The foregoing shall survive any investigation of Subscriber’s representations and warranties in this Subscription Agreement made by the Company, its Affiliates, the Company’s Counsel and their respective agents or representatives.
15. No representation or warranty that Subscriber has made in this Subscription Agreement, or in a writing furnished or to be furnished pursuant to this Subscription Agreement, contains or shall contain any untrue statement of fact, or omits or shall omit to state any fact which is required to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading.
16. Subscriber has full right, power, and authority to execute and deliver this Subscription Agreement and to perform Subscriber’s obligations hereunder. This Subscription Agreement has been duly authorized, executed and delivered by or on behalf of Subscriber and is a valid, binding and enforceable obligation of Subscriber, enforceable against Subscriber in accordance with its terms subject to bankruptcy, insolvency, reorganization, moratorium or similar laws from time to time in effect and affecting creditors’ rights generally and to general equity principles.
17. The execution and delivery of this Subscription Agreement by Subscriber will not result in any violation of, or be in conflict with, or result in the default of, any term of any material agreement or instrument to which Subscriber is a party or by which Subscriber is bound, or of any law or governmental order, rule or regulation which is applicable to Subscriber.
18. Subscriber is duly and validly organized, validly existing and in general had access good tax and corporate standing as a corporation under the laws of the jurisdiction of its incorporation with full power and authority to purchase the Units to be purchased by it and to execute and deliver this Subscription Agreement.
19. To Subscriber’s knowledge, all information about negotiations relative to this Agreement and the transactions contemplated hereby have been carried out by Subscriber directly with the Company it deemed necessary without the intervention of any person or entity in such manner as to make give rise to any valid claim by any person or entity against Subscriber or the Company for a finder’s fee, brokerage commission or similar payment. To the extent Subscriber becomes aware of an informed investment decision additional claim to such fees, commission or payments, other than to a placement agent retained by the Company, Subscriber shall promptly provide the Company with respect notice of such claim. To the extent any person or entity claims to the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legalbe entitled to a finder’s fee, tax and investment advisors as itbrokerage commission, in its sole discretion, has deemed necessary or appropriate similar payment in connection with its purchase the transactions contemplated hereby, Subscriber shall be liable for all such fees and expenses related thereto to the extent any such claims relate to acts or omissions of Subscriber or to this transaction. In the Securitiesevent a payment is payable by the Company to any broker, finder, agent or other person, other than to a placement agent, in connection with Subscriber’s investment in the Company, such payment shall be deducted from the amount paid by Subscriber in connection with this Agreement.
Appears in 3 contracts
Sources: Subscription Agreement (Document Security Systems Inc), Subscription Agreement (Document Security Systems Inc), Subscription Agreement (Document Security Systems Inc)
Representations and Warranties of Subscriber. The In connection with the purchase of the Securities, Subscriber acknowledges, understands and agrees that Company will be relying on the information and on the representations set forth herein, and Subscriber hereby represents and warrants to Company that: :
(a) it Subscriber has sufficient knowledge and experience of financial and business matters so that Subscriber is able to evaluate the full legal right merits and power risks of purchasing the Securities and all authority has had substantial experience in previous private and approval required to execute, deliver and perform its obligations under this Agreement; public purchases of securities;
(b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “"accredited investor,” within the meaning of " as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities ActAct and Subscriber has no reason to anticipate any material change in Subscriber's financial condition for the foreseeable future;
(c) Subscriber's overall commitment to investments which are not readily marketable is not disproportionate to Subscriber's net worth and Subscriber's investment herein will not cause such overall commitment to become excessive. Subscriber does not require the funds being used to purchase the Securities for Subscriber's liquidity needs; (d) it, either alone or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating adequate means to provide for personal needs; possesses the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must ability to bear the economic risk of this investment in holding the Securities purchased hereunder indefinitely, ; and is able to bear such risk and is able to can afford a complete loss on the purchase of such investment; the Securities;
(fd) it During the transaction and prior to purchase, Subscriber has received and reviewed read the Offering Materials Subscription Documents and has been afforded the had full opportunity to ask questions of, of and receive answers from Company, its directors and officers and its authorized representatives of the Company concerning the terms and conditions of relating to Company, the offering of the Securities and the merits and risks of investing anything else set forth in the Securities Subscription Documents, and has had access to obtain any whatever additional information or documents concerning Company, Company's financial condition, business, prospects, management and other similar matters (to the extent that Company possessed such information or could acquire it without unreasonable effort or expense) that Subscriber desired or deemed necessary to verify the accuracy of any information provided by the Company, and in general furnished to Subscriber or to which Subscriber had access to access; Subscriber believes that it/he/she has received all information about Subscriber considers necessary or appropriate for deciding whether to purchase the Securities;
(e) Subscriber has not been given any oral representation or warranty concerning the Offering, Company it deemed necessary or any offering literature other than the Subscription Documents, including appendices thereto, the documents which are exhibits thereto and such other materials as Company has provided. Subscriber has relied only on: (i) the information contained in the Subscription Documents and such exhibits and the information furnished or made available by Company as described in subparagraph (d) above; and (ii) the results of independent investigations made by Subscriber or on Subscriber's behalf;
(f) Subscriber is acquiring the Securities for investment purposes only, for Subscriber's own account and not with a view to make an informed investment decision distribution or resale, nor with respect any present intent to sell, transfer or otherwise dispose of all or any part of the Securities;
(g) Subscriber has not received any general solicitation or general advertising regarding the purchase of the Securities. The ;
(h) Subscriber has full power and authority to enter into the Subscription Documents and, upon execution thereof by Subscriber (or on its behalf, if Subscriber is an entity), such documents will constitute valid and legally binding obligations of Subscriber;
(i) If Subscriber is an entity, it has not been organized for the specific purpose of acquiring the Securities or, if it has been organized for the specific purpose of acquiring the Securities, each of its beneficial owners is separately an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act, further, the person executing the Subscription Documents on its behalf, if Subscriber is a partnership, limited liability company, trust, corporation or other entity, has the full power and authority to execute and comply with the terms of the Subscription Documents on its behalf and to make the representations and warranties made herein on its behalf; and the investment in the Securities has been affirmatively authorized, if required, by Subscriber's governing board and is not prohibited by Subscriber's governing documents;
(j) Subscriber is not subject to "back-up withholding" pursuant to Section 3406 of the Internal Revenue Code of 1986, as amended, and Subscriber has provided Subscriber's correct tax identification number below and as required elsewhere for Subscriber's subscription;
(k) Subscriber agrees that Company does not assume any responsibility for the tax consequences to Subscriber resulting from Subscriber's investment in the Securities, and Subscriber further represents acknowledges that Subscriber has been advised to consult with Subscriber's own attorney regarding legal matters related to investing in the Securities and warrants that it has consulted to consult with such legala tax advisor regarding the tax consequences of investing in the Securities;
(l) If Subscriber is an individual, tax Subscriber is a bona-fide resident of the state or country set forth in Subscriber's address on the signature page below, or if Subscriber is an entity, its principal place of business and investment advisors as it, principal offices are located in the state set forth in its sole discretionaddress on the signature page below;
(m) Any information which Subscriber has heretofore or concurrently herewith furnished to Company with respect to Subscriber's financial position, has deemed necessary or appropriate in connection with its purchase business experience, and residence is correct and complete as of the Securitiesdate of this Note Purchase Agreement and if there should be any material change in such information prior to the acceptance by Company of this Note Purchase Agreement, Subscriber will immediately furnish such revised or corrected information to Company; and
(n) Subscriber has been advised by Company that the business activities of Company and an investment in the Securities are subject to substantial risks, including, but not limited to, the risks of investment set forth in Company's most recent Form 10-K filed with the Securities and Exchange Commission (the "SEC").
Appears in 3 contracts
Sources: Note Purchase Agreement (Baron Energy Inc.), Note Purchase Agreement (Baron Energy Inc.), Note Purchase Agreement (Baron Energy Inc.)
Representations and Warranties of Subscriber. The In connection with this subscription for Units, the Subscriber hereby represents and warrants to the Company as provided in this Section 3. It is understood that the Company will rely upon these representations and warranties in accepting this Agreement and that such representations and warranties will survive delivery and acceptance of this Agreement.
(a) The Subscriber has received copies of the Company's filings with the Securities and Exchange Commission (the "Commission") which outline the terms of the Common Stock underlying the Units, has reviewed the same and consents to all of the conditions and terms described therein.
(b) The Subscriber acknowledges that he has received copies of or has been afforded the opportunity to examine and copy all desired documents, books and records relating to the Company. The Subscriber acknowledges that: (ai) it he has received and read the full Company's Commission filings, (ii) he understands the information included therein, (iii) he is aware that there are economic variables and risks that could adversely affect an investment in the Units, (iv) he, or his business, tax and legal right advisers, if any, have reviewed the documents and power information relating to his subscription for the Units and they have advised him as to the merits of the Units, (v) he, or his advisers, have had ready access to any and all authority documents which the Subscriber or they deem relevant to the purchase of such Units and approval required no requested information, oral or written, has been withheld, (vi) the Company has made available to executethe Subscriber, deliver during the course of the transaction and perform prior to sale, the opportunity to ask questions of, and receive answers from, the Company or any person acting on its obligations behalf concerning the terms and conditions of this offering of Units and the Company, and to obtain any additional information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, (vii) he has relied primarily on independent analysis to make an investment decision with respect to the Units, and (viii) he has not relied on any representations or warranties other than as set forth herein or in the terms of the Units.
(c) The Subscriber understands that (i) in reliance upon the Subscriber's representations, neither the Units, nor the underlying shares of Common Stock, warrants, or shares of Common Stock issuable upon the exercise of such warrants have been registered under this Agreement; the Act or any state securities laws, (bii) it since the Units, the underlying shares of Common Stock, warrants, and shares of Common Stock issuable upon the exercise of such warrants have not been registered, the Subscriber must bear the economic risk of holding such shares of Common Stock until Rule 144 is available to Subscriber, (iii) the Company will note the restrictions on resale set forth above on its transfer records and any certificates of ownership or common stock purchase warrants, (iv) neither the Company nor anyone else has undertaken to register for resale any of the warrants or shares of Common Stock underlying the Units under the Act, and (v) there is no guarantee that a trading or resale market for the shares of Common Stock will exist in the future.
(d) The Subscriber is acquiring the Securities solely Units and the underlying shares of Common Stock and warrants for its his own account, for present investment only, and not with a view toward resale to or other for the sale, distribution within or fractionalization thereof.
(e) The Subscriber's overall commitment to investments which are not readily marketable is not disproportionate to his net worth, and his investment in the meaning Units will not cause such overall commitment to become excessive.
(f) The Subscriber has adequate means of providing for his current needs and personal contingencies, and has no need for current income or liquidity in his investment in the Securities Act Units.
(g) The Subscriber is able to bear the economic risks of 1933, as amended this investment in the Units and can afford a complete loss of such investment.
(the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, h) The Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication knowledge and experience in business, financial and investment business matters that it he is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated Units.
(i) The Subscriber received the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives terms of the Company concerning the terms Units and conditions first learned of the offering of the Securities and the merits and risks of investing Units in the Securities and to obtain any additional information necessary to verify State which is listed as the accuracy residence or principal office address of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with Subscriber below.
(j) With respect to the purchase legal aspects of the Securities. The investment, the Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase relied solely upon the advice of the SecuritiesSubscriber's own legal advisors.
Appears in 3 contracts
Sources: Subscription Agreement (Superconductive Components Inc), Subscription Agreement (Superconductive Components Inc), Subscription Agreement (Superconductive Components Inc)
Representations and Warranties of Subscriber. The To induce the company to accept this subscription, the Undersigned Subscriber hereby represents and warrants that: (a) it to the Company:
A. The Undersigned has had access to the full legal right books and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning records of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitelyCompany, and is able to bear such risk fully familiar with and is able to afford a complete loss of such investmentunderstands their contents; (f) it acknowledges that it has received and reviewed the Offering Materials and has been afforded had the opportunity to ask questions of, of and receive answers from the management and from the authorized representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities Company and to obtain any additional information necessary to verify the accuracy of any the information furnished; has read carefully this Subscription Agreement; and has based the Undersigned's investment decision on such information as is described above and supplied herein.
B. The Undersigned understands and acknowledges the following:
1. The Shares are being offered and sold under the applicable exemption from securities registration as provided by the states the securities are sold in.
2. The Undersigned also understands and agrees that stop transfer instructions relating to the securities will be placed in the Company's stock transfer ledger, and that the certificates evidencing the securities sold will bear the legend in general had access substantially the following form: "No sale, offer to all information about sell, or transfer of the Company it deemed necessary to make an informed investment decision shares represented by this certificate shall be made unless a registration statement under the Federal Securities Act of 1933, as amended, with respect to such shares is then in effect or an exemption from the registration requirements of said act is then in fact applicable to said shares."
C. The Undersigned recognizes any investment in the Company involves substantial risk factors.
D. The Undersigned has adequate financial means of providing for its current needs and financial contingencies without the need for liquidity in this investment and has the ability to bear the economic risk of this investment and can afford a complete loss of the purchase price; and the Undersigned has no reason to contemplate any change in the Undersigned's financial circumstances.
E. The Undersigned, through its management and advisors, is familiar with, and has the knowledge and expertise in, financial and business matters to evaluate the merits and the risks involved in the purchase of the SecuritiesShares.
F. The representations provided to the Company by the Undersigned are true and correct as of the date hereof and the Undersigned agrees to advise the Company prior to its acceptance of this Subscription of any material change in any of such information.
G. The Undersigned understands that no governmental agency has approved or disapproved the shares or passed upon or endorsed the merits of the sale or purchase thereof.
H. The Undersigned, if a corporation, is duly organized and existing and in good standing under the laws of the jurisdiction of its incorporation.
I. The Undersigned has full power, in accordance with law, to execute and perform this Agreement, and such execution and performance does not conflict with any applicable charter or bylaw provision or with any contract to which it is a party or to which it is subject. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase Board of Directors of the Securities.Undersigned has duly authorized this Agreement, the transactions contemplated herein, and their execution by the Undersigned
Appears in 2 contracts
Sources: Common Stock Subscription Agreement (Micro Interconnect Technology Inc), Common Stock Subscription Agreement (Micro Interconnect Technology Inc)
Representations and Warranties of Subscriber. 2.1 The Subscriber hereby represents and warrants that: (a) it has recognizes that the full legal right and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning purchase of the Securities Act involves a high degree of 1933risk including, as amended but not limited to, the following: (i) an investment in the “Securities Act”)Company is highly speculative, and only investors who can afford the loss of their entire investment should consider investing in violation the Company and the Securities; (ii) the Subscriber may not be able to liquidate his/its investment; (iii) transferability of the Securities Actis extremely limited; provided(iv) in the event of a disposition of the Securities, however, that by making the representations herein, Subscriber could sustain the loss of his/its entire investment and (v) the Company has not paid any dividends on its capital stock since inception and does not agree to hold any anticipate the payment of dividends in the Securities for any minimum or other specific term and foreseeable future.
2.2 The Subscriber reserves represents that the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it Subscriber is an “accredited investor,” within the meaning of as such term is defined in Rule 501(a) 501 of Regulation D promulgated under the Securities Act; (d) itAct and that the Subscriber is able to bear the economic risk of an investment in the Company. If the Subscriber is a natural person, either alone the Subscriber has reached the age of majority in the state or together its representativesother jurisdiction in which the Subscriber resides, has such knowledgeadequate means of providing for the Subscriber’s current financial needs and contingencies, sophistication and experience in business, financial and investment matters that it is capable of evaluating able to bear the merits and substantial economic risks of an investment in the SecuritiesSecurities for an indefinite period of time, and has so evaluated no need for liquidity in such investment and, at the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitelypresent time, and is able to bear such risk and is able to could afford a complete loss of such investment; (f) it .
2.3 The Subscriber acknowledges and represents that the Subscriber has received prior investment experience, including investment in securities which are non-listed, unregistered and/or not traded on the Nasdaq National or SmallCap Market or a national stock exchange, or the Subscriber has employed the services of an investment advisor, attorney and/or accountant to read all of the documents furnished or made available by the Company to the Subscriber and reviewed to all other prospective investors in the Securities and to evaluate the merits and risks of such an investment on the Subscriber’s behalf.
2.4 The Subscriber acknowledges receipt and careful review of this Agreement, the Note, the Warrant, the Offering Materials and Memo (collectively, the “Offering Documents”). Subscriber further represents that the Subscriber has been furnished by the Company during the course of this transaction with all information regarding the Company that the Subscriber, its investment advisor, attorney and/or accountant has requested or desired to know, has been afforded the opportunity to ask questions of, of and receive answers from duly authorized officers or other representatives of the Company concerning the terms and conditions of the offering Offering, and has received any additional information which the Subscriber has requested.
(a) The Subscriber has relied solely upon the information provided by the Company in making the decision to invest in the Securities. The Subscriber is familiar with and understands the terms of the Offering, including the rights to which the Subscriber is entitled under this Agreement. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (whether oral or written) from the Company, or any agent, employee or affiliate of the Company other than as set forth in the Offering Documents and the results of Subscriber’s own independent investigation. To the extent necessary, the Subscriber has retained, at his/its sole expense, and relied upon appropriate professional advice regarding the investment, tax and legal merits and consequences of this Agreement and its purchase of the Securities hereunder.
(b) The Subscriber represents that no Securities 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.
2.6 The Subscriber 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, has the capacity to protect the Subscriber’s own interests in connection with the transaction contemplated hereby.
2.7 The Subscriber acknowledges that the Offering has not been reviewed by the United States Securities and Exchange Commission (“SEC”) or any state securities regulatory authority or other governmental body or agency, since the Offering is intended to be exempt from the registration requirements of the Act pursuant to Regulation D promulgated under the Act. The Subscriber understands that if required by the laws or regulations or any applicable jurisdictions, the Offering contemplated hereby will be submitted to the appropriate authorities of such state(s) for registration of exemption therefrom.
2.8 The Subscriber understands that the Securities have not been registered under the Act or any state securities laws by reason of a claimed exemption under the provisions of the Act and such state securities laws which depends, in part, upon the Subscriber’s investment intention. In this connection, the Subscriber hereby represents that the Subscriber is purchasing the Securities for the Subscriber’s own account for investment purposes only and not with a view toward the resale or distribution to others and has no contract, undertaking, agreement or other arrangement, in existence or contemplated, to sell, pledge, assign or otherwise transfer the Securities to any other person. The Subscriber, if an entity, also represents that it was not formed for the purpose of purchasing the Securities.
2.9 The Subscriber understands that no public market now exists for any of the securities issued by the Company and that there is no assurance that a public market will ever exist for the Notes and the Warrants (or the Warrant Shares). The Subscriber understands and hereby acknowledges that the Company is under no obligation to register any of the Securities under the Act or any state securities or “blue sky” laws or assist the Subscriber in obtaining an exemption from various registration requirements. The Subscriber agrees to hold the Company, any placement agents and their directors, officers, employees, 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 (i) any misrepresentation made by the Subscriber contained in this Agreement, (ii) any sale or distribution by the Subscriber in violation of the Act or any applicable state securities or “blue sky” laws or (iii) any untrue statement made by the Subscriber and contained herein.
2.10 The Subscriber consents to the placement of a legend on any certificate or other document evidencing the Securities substantially as set forth below, that such Securities have not been registered under the 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 the Securities. THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
2.11 The Subscriber agrees to supply the Company, within five (5) days after the Subscriber receives the request therefor from the Company, with such additional information concerning the Subscriber as the Company deems necessary or advisable in order to establish or verify the Subscriber’s representations contained herein.
2.12 The Subscriber 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.
2.13 The Subscriber represents that the Subscriber has full power and authority (corporate, statutory and otherwise) to execute, deliver, and perform this Agreement and to purchase the Securities. This Agreement constitutes the legal, valid and binding obligation of the Subscriber, enforceable against the Subscriber in accordance with its terms.
2.14 If the Subscriber is a corporation, partnership, limited liability company, trust, employee benefit plan, individual retirement account, ▇▇▇▇▇ Plan, or other entity (a) it is authorized and qualified to become an investor in the Company and the person signing this Agreement on behalf of such entity has been duly authorized by such entity to do so and (b) it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.
2.15 The Subscriber acknowledges that if he or she is a Registered Representative of an NASD member firm, he or she must give such firm the notice required by the NASD Rules of Fair Practice, receipt of which must be acknowledged by such firm.
2.16 The Subscriber understands, acknowledges and agrees with the Company that this subscription may be rejected, in whole or in part, by the Company, in the sole and absolute discretion of the Company, at any time before the Closing Date notwithstanding prior receipt by the Subscriber of notice of acceptance of the Subscriber’s subscription.
2.17 The Subscriber understands, acknowledges and agrees with the Company that, except as otherwise set forth herein, the subscription hereunder is irrevocable by the Subscriber, that, except as required by law, the Subscriber is not entitled to cancel, terminate or revoke this Agreement or any agreements of the Subscriber hereunder and that this Agreement and such other agreements shall survive the death or disability of the Subscriber and shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors, legal representatives and permitted assigns. If the Subscriber is more than one person, the obligations of the Subscriber hereunder shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his/her heirs, executors, administrators, successors, legal representatives and permitted assigns.
2.18 The Subscriber understands, acknowledges and agrees with the Company that, the Offering is intended to be exempt from registration under the Act by virtue of the provisions of Regulation D thereunder, and/or the provisions of Regulation S which is in part dependent upon the truth, completeness and accuracy of the statements made by the Subscriber.
2.19 The Subscriber acknowledges that the information contained in the Offering Documents or otherwise made available to the Subscriber is confidential and non-public and agrees that all such information shall be kept in confidence by the Subscriber and neither used by the Subscriber for the Subscriber’s personal benefit (other than in connection with this Subscription) nor disclosed to any third party for any reason, notwithstanding that a Subscriber’s subscription may not be accepted by the Company; provided, however, that this obligation shall not apply to any such information that (i) is part of the public knowledge or literature and readily accessible at the date hereof, (ii) becomes part of the public knowledge or literature and readily accessible by publication (except as a result of a breach of this provision) or (iii) is received from third parties (except third parties who disclose such information in violation of any confidentiality agreements or obligations, including, without limitation, any subscription or other similar agreement entered into with the Company).
2.20 If the Subscriber is purchasing the Securities in a fiduciary capacity for another person or entity, including without limitation a corporation, partnership, trust or any other entity, the Subscriber has been duly authorized and empowered to execute this Agreement and all other subscription documents, and such other person fulfills all the requirements for purchase of the shares as such requirements are set forth herein, concurs in the purchase of the Securities and agrees to be bound by the merits obligations, representations, warranties and risks covenants contained herein. Upon request of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, the Subscriber will provide true, complete and current copies of all relevant documents creating the Subscriber, authorizing its investment in the Company and/or evidencing the satisfaction of the foregoing.
2.21 The Subscriber represents that no authorization, approval, consent or license of any person is required to be obtained for the purchase of the Securities by the Subscriber, other than as have been obtained and are in full force and effect. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated hereby will not, result in any violation of or constitute a default under any material agreement or other instrument to which the Subscriber is a party or by which the Subscriber or any of its properties are bound, or to the best of the Subscriber’s knowledge, any permit, franchise, judgment, order, decree, statute, rule or regulation to which the Subscriber or any of its businesses or properties is subject.
2.22 The Subscriber represents that the representations, warranties and agreements of the Subscriber contained herein and in general had access to any other writing delivered in connection with the transactions contemplated hereby shall be true and correct in all information about respects on the Company it deemed necessary to make an informed investment decision with respect to date hereof and as of the Closing Date as if made on and as of such date and shall survive the execution and delivery of this Agreement and the purchase of the Securities. The Subscriber further agrees that the Company shall be entitled to rely on the representations, warranties and agreements of the Subscriber contained herein.
2.23 The Subscriber (a) represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary retained no finder or appropriate broker in connection with the transactions contemplated by this Agreement, and (b) agrees to indemnify and to hold the Company and its purchase directors, officers, employees, controlling persons and agents and their respective heirs, representatives, successors and assigns, harmless of and from any liability for any commission or compensation in the Securitiesnature of a finder’s fee to any broker or other person or firm (and the costs and expenses of defending against such liability or asserted liability) for which the Subscriber or any of its employees or representatives are responsible.
Appears in 2 contracts
Sources: Note and Warrant Purchase Agreement (Innovive Pharmaceuticals, Inc.), Note and Warrant Purchase Agreement (Innovive Pharmaceuticals, Inc.)
Representations and Warranties of Subscriber. The Subscriber hereby represents acknowledges, agrees, covenants, represents, warrants and warrants thatcertifies, as appropriate:
3.1 Subscriber (and his or her purchaser representative(s), if any) has carefully read, reviewed and understands the Memorandum and all other documents provided by the Company in connection with an investment in the Shares and has carefully evaluated the merits and risks of investing in the Shares, and Subscriber is fully cognizant of and understands all of the risks related to a purchase of the Shares, including, but not limited to, those risk factors set forth under the caption “Risk Factors” in the Memorandum.
3.2 Subscriber: (ai) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (cii) it is an “accredited investor,” within willing and able to bear the meaning economic and other risks associated with the proposed investment, including, but not limited to, the risk of Rule 501(a) of Regulation D under the Securities Act; (d) itlosing his, either alone her or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an entire investment in the Securities, and has so evaluated the merits and risk of such investmentCompany; (eiii) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and hold the Shares for an indefinite period of time; (iv) is able presently to afford a complete loss of such his, her or its investment; (fv) it has received adequate net worth and reviewed means of providing for his, her or its current needs and possible personal or business contingencies; (vi) has no need for liquidity in the Offering Materials proposed investment; and (vii) believes his, her or its overall commitment to investments that are not readily marketable is reasonable in relation to his, her or its net worth.
3.3 Subscriber has been afforded sufficient knowledge and experience in financial and business matters, particularly in investments, to evaluate the opportunity merits and risks associated with an investment in the Company.
3.4 Subscriber and his or her advisor(s) have had a reasonable opportunity, at a reasonable time prior to the investment in the Company, to ask questions of, and receive answers from of representatives of the Company and to obtain additional information from the Company concerning the terms and conditions of the offering of the Securities Shares, the Company and its present and proposed operations or as otherwise necessary to (i) verify the information provided in the Memorandum, (ii) analyze the nature and consequences of an investment in the Company, and (iii) evaluate the merits and risks of investing the investment in the Shares. The Company has answered or responded to all such questions and requests for information to the full satisfaction of Subscriber. No representations, oral or written, have been made and no information, oral or written, has been furnished or made available to Subscriber or Subscriber’s advisor(s) that were in any way inconsistent with the information contained in the Memorandum.
3.5 Because the sale of the Shares has not been registered under the Securities Act and to obtain any additional information necessary to verify the accuracy state securities laws of any information provided by applicable states or other jurisdictions (the Company“State Acts”), the Shares may not be resold or otherwise transferred unless they are registered under the Securities Act and in general had access to all information about the appropriate State Acts, or unless exemptions from such registration requirements are available. Subscriber understands that the Company it deemed necessary has not agreed to make an informed investment decision with respect to register the purchase sale or distribution of the SecuritiesShares in accordance with the provisions of the Securities Act or any State Acts and that the Company has not agreed to comply with any exemption under the Securities Act or the State Acts for the resale of the Shares. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase Company is under no obligation to register the sale of the SecuritiesShares on behalf of Subscriber or to assist Subscriber in complying with any exemption from registration. Accordingly, a purchaser may be unable to liquidate an investment in the shares of common stock and should be prepared to bear the economic risk of an investment in the shares of common stock for an indefinite period.
Appears in 2 contracts
Sources: Subscription Agreement (Carroll Bancorp, Inc.), Subscription Agreement (Carroll Bancorp, Inc.)
Representations and Warranties of Subscriber. The Subscriber hereby represents acknowledges, represents, warrants and warrants that: agrees as follows:
(a) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations The Subscriber is an “accredited investor” as defined in Rule 501 under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, .
(b) The Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication knowledge and experience in businessfinancial, financial tax and investment business matters that it is capable of evaluating and, in particular, investments in securities (including significant prior experience in investments in restricted securities) so as to enable the Subscriber to evaluate the merits and risks of an investment in the Securities, Shares and the Company and to make an informed investment decision with respect thereto.
(c) The Subscriber is satisfied that the Subscriber has so evaluated received adequate information with respect to all matters which the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment Subscriber considers material to its decision to invest in the Securities indefinitely, Shares and is able to bear such risk and is able to afford a complete loss of such investmentthe Company; (f) it has received and reviewed provided that the Subscriber acknowledges that no tax advice was provided in connection with the Offering Materials and that the Subscriber has consulted its own tax advisors prior to deciding to subscribe for the Shares. The Subscriber has been afforded afforded, to its satisfaction, (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from from, representatives of the Company concerning the terms and conditions of the offering of the Securities Offering and the merits and risks of investing in the Company and the Shares; (ii) access to information about the Company, its financial condition, results of operations, business, properties, management and prospects sufficient to enable the Subscriber to evaluate its investment, including, but not limited to, the information contained in the Company’s Annual Report of Form 10-K filed with the Securities and Exchange Commission (the “SEC” or “Commission”) under the caption “Risk Factors” and other filings by the Company with the Securities and Exchange Commission (all such information filed or furnished with the SEC, "SEC Reports"); (iii) access to obtain any additional information about Coast necessary to verify evaluate the accuracy merits and risks of any an investment in the Company and the Shares in light of the proposed Coast Acquisition, including information provided with respect to Coast’s assets, financial conditions, results of operations, business, properties, management and prospects; (iv) copies of such analyses, models, reports and financial and other information relating to the Coast Acquisition prepared by the Company, including proforma financial information and information pertaining to the sources and uses for the Coast Acquisition and the proposed capitalization of, and proforma opening balance sheet of, the purchaser sufficient to enable the Subscriber to evaluate the merits and risks of the Coast Acquisition and its impact on the overall business and financial position of the Company.
(d) No representations or warranties have been made to the Subscriber 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 general had access subscribing for the Shares the Subscriber is not relying upon any representations other than those contained in this Agreement. In determining whether to all information about make this investment, the Subscriber has relied solely on the Subscriber’s own knowledge and understanding of the Company it deemed necessary and Coast and their respective businesses based upon the Subscriber’s own due diligence investigations, including, with respect to make an informed investment decision Coast, based on the information contained in the secure data site established by Coast and made available to the Subscriber by the Company, and, with respect to the Company, the information available in the SEC Reports available on the SEC’s internet web site. In evaluating the suitability of an investment in the Company, the Subscriber has not relied upon any representation or other information (oral or written) other than the representations of the Company in this Agreement. Without limiting the generality of the foregoing, the Subscriber expressly acknowledges that the Company makes no, and has not made any, representation or warranty as to: (i) the completeness or accuracy of any document or information contained in the Coast data site or otherwise provided by Coast to the Company or the Subscriber, (ii) with respect to Coast, its business, financial condition, results of operations, assets or prospects or (iii) the merits of, or benefits to the Company, if any, to be derived from, the Coast Acquisition.
(e) The Subscriber acknowledges that this Offering has not been reviewed or passed upon by and that no federal, state or foreign agency has recommended or endorsed the purchase of the SecuritiesShares.
(f) The Subscriber represents that the Shares are being acquired for the Subscriber’s own account, for investment and not with a view to resale or distribution to others in whole or in part. The Subscriber further has no agreement or arrangement, formal or informal, with any person to sell or transfer all or any part of the Shares; and the Subscriber has no plans to enter into any such agreement or arrangement.
(g) The address set forth on the signature page is the Subscriber’s true and correct address.
(h) The Subscriber is unaware of, is in no way relying on, and did not become aware of the Offering through, or as a result of, any form of general solicitation or advertising, including, without limitation, articles, notices, advertisements or other communications published in any newspaper, magazine or other similar media or broadcast over television or radio or any seminar or meeting where the attendees have been invited by any such means of general solicitation or advertising.
(i) The Subscriber:
(i) if a natural person represents that the Subscriber has reached the age of 21 and has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof;
(ii) if a corporation, partnership, limited liability company or partnership, association, joint stock company, trust, unincorporated organization or other entity, such entity was not formed for the specific purpose of acquiring the Shares, such entity is duly organized, validly existing and in good standing under the laws of the state of its organization, the consummation of the transactions contemplated hereby is authorized by, and will not result in a violation of, its charter or other organizational documents, such entity has full power and authority to execute and deliver this Agreement and all other related agreements or certificates and to carry out the provisions hereof and thereof and to purchase and hold the Shares, the execution and delivery of this Agreement has been duly authorized by all necessary action, this Agreement has been duly executed and delivered on behalf of such entity and is a legal, valid and binding obligation of such entity; and
(iii) if executing this Agreement in a representative or fiduciary capacity, it has full power and authority to execute and deliver this Agreement in such capacity and on behalf of the subscribing individual, ▇▇▇▇, partnership, trust, estate, corporation, limited liability company or partnership, or other entity for whom the Subscriber is executing this Agreement, and such individual, ▇▇▇▇, partnership, trust, estate, corporation, limited liability company or partnership, or other entity has full right and power to perform pursuant to this Agreement and purchase the Shares, and that this Agreement constitutes a legal, valid and binding obligation of such entity.
(j) There are no actions, suits, proceedings or investigations pending against Subscriber or Subscriber’s assets before any court or governmental agency (nor, to the Subscriber’s knowledge, is there any threat thereof) which would impair in any way the Subscriber’s ability to enter into and fully perform Subscriber’s commitments and obligations under this Agreement or the transactions contemplated hereby.
(k) The execution, delivery and performance of and compliance with this Agreement and the issuance of the Shares will not result in any violation of, or conflict with, or constitute a default under, any agreement to which Subscriber is a party or by which he/she/it is bound, nor result in the creation of any mortgage, pledge, lien, encumbrance or charge against any of the assets or properties of Subscriber or the Shares.
(l) Subscriber is aware that the Securities are and will be, when issued, “restricted securities” as that term is defined in Rule 144 of the general rules and regulations under the Act. The Subscriber must bear the substantial economic risks of the investment in Shares indefinitely because none of the Shares may be sold, hypothecated or otherwise disposed of unless subsequently registered under the Act and applicable state securities laws or an exemption from such registration is available. The Subscriber has adequate means of providing for the Subscriber’s current financial needs and foreseeable contingencies and has no need for liquidity of the investment in the Shares for an indefinite period of time.
(m) The Subscriber understands that any and all certificates representing the Shares and any and all securities issued in replacement thereof or in exchange therefor shall bear the following legend or one substantially similar thereto, which the Subscriber has read and understands: “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”
(n) In addition, the certificates representing the Shares, and any and all securities issued in replacement thereof or in exchange therefor, shall bear such legend as may be required by the securities laws of the jurisdiction in which Subscriber resides.
(o) The Subscriber acknowledges that if he or she is acting as a registered representative of a FINRA member firm in connection herewith, he or she must give such firm the notice required by the FINRA Rules of Fair Practice, receipt of which must be acknowledged by such firm.
(p) Subscriber represents and warrants that he/she/it has consulted complied with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase all applicable provisions of the SecuritiesAct, the rules and regulations promulgated by the SEC thereunder, including Regulation M and applicable state securities laws, and will comply at the time of sale pursuant to the Registration Statement.
Appears in 2 contracts
Sources: Subscription Agreement (Essex Rental Corp.), Subscription Agreement (Essex Rental Corp.)
Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants to the Company that: :
(a) it has Subscriber is aware that investment in the full legal right Company involves a high degree of risk and power should not be made unless the Subscriber is prepared to, and all authority and approval required to executecan afford to, deliver and perform lose its obligations under this Agreement; entire investment;
(b) Subscriber (i) has sufficient knowledge, sophistication and experience in business and finance to capably evaluate information concerning an investment in the Company, (ii) has had an opportunity to ask detailed questions and receive satisfactory answers from representatives of the Company, (iii) has had adequate opportunity to request and review any and all documents and other information relevant to Subscriber's consideration of investment in the Company, (iv) has obtained from the Company sufficient information, in Subscriber's sole determination, to fully evaluate the merits and risks of an investment in the Company, (v) has independently considered and discussed such prospective investment with the Subscriber’s business, legal, tax and financial advisers as to the suitability of such investment with respect to the Subscriber’s particular financial situation, and (vi) on the basis of the foregoing, the Subscriber has determined that investment in the Membership Interests is a suitable investment;
(c) The Subscriber acknowledges that (i) on prior notice to Subscriber, the Company may make additional offerings of Membership Interests in the future which may cause the Subscriber and other members of the Company to experience dilution of their respective percentage ownership of the Company, and any such Membership Interests subsequently offered may have rights, preferences or privileges senior to those of the Subscriber, (ii) on prior notice to Subscriber, the Company may determine that it is acquiring necessary to incur indebtedness to finance its operations, which could restrict the Company's operations, and (iii) there can be no assurance that any required additional equity or debt financing will be available on terms favorable to the Company, if at all;
(d) The Subscriber acknowledges that neither the U.S. Securities solely for its own account, for present investment and Exchange Commission (the "SEC") nor any state securities commission has approved the Membership Interests offered or passed upon or endorsed the merits of this offering; the Subscriber understands and agrees that the Membership Interests have not with a view toward resale or other distribution within the meaning of been registered (i) under the Securities Act of 1933, as amended (the “"Securities Act”"), with the SEC in violation reliance upon the exemption from such registration requirements afforded by Rule 701, or by Section 4(2) and Rule 506, of the Securities Act; provided, however, or (ii) with any state securities commission. Subscriber understands that by making Subscriber is subject to further restrictions imposed pursuant to the representations herein, Subscriber does not agree to hold any terms of the Securities for any minimum or other specific term and Company’s operating agreement (the “Operating Agreement”), which the Subscriber reserves will be required to execute as a condition to the right sale of Membership Interests. The Subscriber acknowledges that the Company has no obligation to dispose cause the registration of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; Membership Interests;
(e) it understands The Subscriber acknowledges that, in addition to the terms of the Operating Agreement, unless and until the Membership Interests are registered, there are substantial restrictions on the transferability of the Membership Interests; that it the Subscriber must bear the economic risk of this an investment in the Membership Interests, in each case because the Membership Interests have not been registered under the Securities indefinitelyAct or under the securities laws of certain states and, therefore, cannot be sold, transferred, assigned, hypothecated, pledged, or otherwise disposed of unless they are registered under the Securities Act and under the applicable securities laws of such states, or an exemption from such registration is available, and is able Subscriber further understands it has no right to bear such risk and is able to afford a complete loss of such investment; require that the Membership Interests be registered under the Securities Act;
(f) it The Membership Interests for which the Subscriber hereby subscribes are being acquired solely for its own account and for investment only; the Membership Interests are not being purchased with a view to or for the resale, distribution, subdivision or fractionalization thereof and the Subscriber has received no plans to enter into any contract, undertaking, agreement or arrangement for any such purpose;
(g) The Subscriber acknowledges that the Membership Interests, if certificated, will bear a restrictive legend prohibiting transfers thereof except in compliance with the Securities Act, other applicable state securities laws and reviewed the Offering Materials Operating Agreement and has been afforded will not be transferred of record except in compliance therewith or exemption therefrom;
(h) Subscriber represents to the opportunity to ask questions of, Company that Subscriber is an “accredited investor” as defined in Rule 501 under the Securities Act.
(i) The Subscriber’s address set forth on the signature page of this Subscription Agreement is the Subscriber's true and receive answers from representatives correct residence address; and
(j) The foregoing representations and warranties are true and accurate as of the Company concerning the terms date hereof, shall be true and conditions accurate as of the offering date of the Securities acceptance hereof by the Company and shall survive thereafter. If such representations and warranties shall not be true and accurate in any respect, the merits and risks of investing in the Securities and Subscriber will, prior to obtain any additional information necessary to verify the accuracy of any information provided such acceptance by the Company, and in general had access give written notice of such fact to all information about the Company it deemed necessary to make an informed investment decision with respect to specifying which representations and warranties are not true and accurate and the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securitiesreasons therefor.
Appears in 1 contract
Representations and Warranties of Subscriber. The To induce the Company to accept Subscriber’s Membership Interest under the Company’s subscription Offering as provided herein, the Subscriber hereby represents and warrants that: as follows:
(a) it has The undersigned understands the full legal right Offering and power and all authority and approval required sale of the Membership Interest is intended to execute, deliver and perform its obligations be exempt from registration under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), and, in violation accordance therewith and in furtherance thereof, the undersigned represents and warrants to and agrees with the Company as follows:
(i) The undersigned has been provided certain information from the Company regarding the Company, has carefully reviewed and understands the such information and has had the opportunity to show to and discuss with, his or her attorney, accountant and financial advisor, all such information;
(ii) The undersigned understands that all other documents, records and books pertaining to this investment have been made available for inspection by him or her, his or her attorney, his or her accountant and his or her financial advisor;
(iii) The undersigned and/or his or her advisor(s) have had a reasonable opportunity to ask questions of and receive information and answers from a person or persons acting on behalf of the Securities Act; provided, however, that by making Company concerning the representations herein, Subscriber does not agree to hold any Offering of the Securities Membership Interests; and all such questions have been answered and all such information has been provided to the full satisfaction of the undersigned;
(iv) The undersigned is not subscribing for Membership Interest as a result of or subsequent to any minimum advertisement, article, notice or other specific term and Subscriber reserves the right to dispose of the Securities communication published in any newspaper, magazine or similar media or broadcast over television or radio, or presented at any time seminar or meeting, or any solicitation of a subscription by a person not previously known to the undersigned in accordance connection with or pursuant to investments in securities generally;
(v) If the undersigned is a registration statement or an exemption under natural person, the Securities Act; (c) it is an “accredited investor,” within undersigned has reached the meaning age of Rule 501(a) of Regulation D under majority in the Securities Act; (d) it, either alone or together its representativesstate in which the undersigned resides, has adequate means of providing for the undersigned’s current needs and personal contingencies, is able to bear the substantial economic risks of an investment in the Membership Interest for an indefinite period of time, has no need for liquidity in such knowledge, sophistication investment and could afford a complete loss of such investment;
(vi) The undersigned has such knowledge and experience in businessfinancial, financial tax and investment business matters that it is capable so as to enable him or her to utilize the information made available to him or her in connection with the Offering of evaluating the Membership Interest in order to evaluate the merits and risks of an investment in the Securities, Membership Interest and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect thereto and, therefore, he or she is not relying upon the advice of a purchaser representative in making a final investment decision to purchase the Membership Interest;
(vii) The undersigned is not relying on the Company or the materials delivered to the undersigned with respect to the tax and other economic considerations of the undersigned relating to this investment. In regard to such considerations, the investor has relied on the advice of, or has consulted with, only his or her own professional advisors who are unaffiliated with and who are not directly or indirectly compensated by the Company;
(viii) The undersigned is acquiring the Membership Interest solely for his or her own account as principal, for investment purposes only and not with a view to the resale or distribution thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Membership Interest; and
(ix) The undersigned will not sell or otherwise transfer the Membership Interest without registration under the Securities Act or an exemption therefrom, and fully understands and agrees: that he or she must bear the economic risk of his or her purchase for an indefinite period of time because, among other reasons, the Membership Interest has not been registered under the Securities Act or under the securities laws of certain states; that the Membership Interest are subject to additional restrictions on transfer; and that the Company is not under any obligation to register the Membership Interest on his or her behalf or to assist the undersigned in complying with any exemption from registration.
(b) The Subscriber realizes that (i) the purchase of the Securities. Membership Interest is a speculative investment involving a high degree of risk; (ii) the economic benefits that may be derived therefrom are uncertain; and (iii) the total amount of the Subscriber’s investment could be lost.
(c) If the undersigned is a corporation, partnership, trust or other entity, it is authorized and qualified to subscribe to the Membership Interest, and the person signing this Subscription Agreement on behalf of such entity has been duly authorized by such entity to do so.
(d) If the undersigned is purchasing the Membership Interest subscribed for hereby in a representative or fiduciary capacity, the representations and warranties contained herein (and in any other written statement or document delivered to the Company in connection herewith) shall be deemed to have been made on behalf of the person or persons for whom such Membership Interest is being purchased.
(e) All information the undersigned has heretofore furnished and furnishes herewith to the Company and any other information with respect to his financial position and business experience is correct and complete as of the date of this Subscription Agreement, and if there should be any material change in such information prior to the Company’s acceptance or rejection of the Subscription, he or she will immediately furnish such revised or corrected information to the Company.
(f) The Subscriber further represents foregoing representations, warranties and warrants that it has consulted agreements, together with such legal, tax all other representations and investment advisors as it, warranties made or given by the undersigned to the Company in its sole discretion, has deemed necessary any other written statement or appropriate document delivered in connection with its purchase the Transactions contemplated hereby, shall be true and correct in all respects on and as of the Securitiesdate of the Company’s acceptance of this Subscription as if made on and as of such date and shall survive such date.
(g) The Subscriber acknowledges and understands that neither the United States Securities and Exchange Commission (the “SEC”) nor any securities administrator of any state has made any finding or determination relating to the fairness of an investment in the Membership Interest and that neither the SEC nor any securities administrator of any state has or will recommend or endorse any offering of securities.
Appears in 1 contract
Representations and Warranties of Subscriber. The Subscriber As an inducement to the Managing Member, acting on behalf of the Fund, to sell the undersigned the Interest for which the undersigned has subscribed, the undersigned hereby represents and warrants that: (a) it has to the full legal right Managing Member and power the Fund as follows:
a. If an individual, the Investor is over 21 years old and all authority and approval required is legally competent to execute, deliver and perform its obligations under execute this Agreement; if an entity, the Investor is duly authorized and qualified to become a member in the Fund (ba "Member") it is acquiring and the Securities solely for its own account, for present investment individual signing this Agreement has been duly authorized by the Investor to do so; and not with the Investor has received and carefully read a view toward resale or other distribution within the meaning copy of the Securities Act Confidential Private Offering Memorandum and Disclosure Document of 1933the Fund dated May 12, as amended 2005, including the Exhibits thereto and Risk Disclosure Statements (the “Securities Act”), in violation "Memorandum") relating to and describing the terms and conditions of the Securities Act; providedoffering of interests.
b. The Investor has a pre-existing business relationship with the Manager, howeverthe Investor's purchaser representative, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, authorized selling agent. The Investor has such knowledgeknowledge and expertise in financial, sophistication tax and experience in business, financial business matters and investment matters that it is capable of evaluating the merits and risks of an investment in the Securitiesinterests and of making an informed investment decision with respect thereto. The Investor and the Investor's purchaser representative, if any, have carefully reviewed and has so evaluated understand the merits and risk various risks of such investment; (e) it understands that it must bear the economic risk of this an investment in the Securities indefinitelyFund, including the risks summarized in the Memorandum under "Risk Factors;" and the Investor can afford to bear the risks of an investment in the Fund, including the risk of losing the Investor's entire investment.
c. The Investor understands that the Managing Member, selling agents and Investor's purchaser representative potentially have conflicts of interest with the Fund, and the Investor has carefully reviewed the various conflicts summarized under "Conflicts of Interest" in the Memorandum.
d. The Investor understands that the data in the performance tables in the Memorandum should be read only in conjunction with the notes to the tables and should not be interpreted to mean that the Fund will have similar results or will realize any profits whatsoever.
e. The Investor is able acquiring the Interest for which the Investor has subscribed for the Investor's own account, as principal, for investment and not with a view to bear such risk the resale or distribution of all or any part of the Interest. The Investor understands that the Interests have not been registered under the Securities Act of 1933 (the "Act"), or any similar state law and cannot be transferred or assigned except in certain limited circumstances set forth in the Fund's Limited Liability Company Operating Agreement (the "Operating Agreement"). The Investor understands that redemption of the interests is able to afford a complete loss restricted and that no market will exist for the resale of such investmentsecurities. The Investor understands that redemption of interests is restricted as summarized under "Redemptions, Assignments, and Distributions" in the Memorandum.
f. The Investor and the Investor's purchaser representative, if any, have been furnished with any materials relating to the Fund, its operation, the private placement of Interests, the commodity experience of the officers of the Managing Member and Sub-Advisor of the Fund (the "Sub-Advisor"), the performance record of the trading method to be utilized by the Managing Member and Sub-Advisor and any other matter relating to this private placement which they have requested; (f) it has the Investor and the Investor's purchaser representative, if any, have received answers to all inquiries put to the Managing Member and reviewed its principals; and the Offering Materials Investor and has the Investor's purchaser representative, if any, have been afforded the opportunity to ask questions of, and receive answers from representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any representation or information provided by set forth in the CompanyMemorandum.
g. The Investor has relied only on the information in the Memorandum and any information furnished or made available to the Investor pursuant to paragraph (f) above in determining to subscribe for an Interest.
h. The Investor is not required to be registered with the Commodity Futures Trading Commission ("CFTC") in any capacity under the Commodity Exchange Act, as amended (the "CEA"), and in general had access the CFTC's rules to all information about be so registered and the Company it deemed necessary to make an informed investment decision with respect Investor is not a commodity pool subject to the purchase disclosure requirements of Part 4 of the Securities. CFTC's rules; or, in the alternative, the Investor is properly registered with the CFTC in all capacities in which it is required to be registered under the CEA and the CFTC's rules.
i. All the information which the Investor has furnished to the Managing Member in the Purchaser Questionnaire, or which is set forth herein, is correct and complete as of the date of this Agreement, and if there should be any material change in such information prior to the Investor's admission as a Member the Investor will immediately furnish such revised or corrected information to the Managing Member or if there should be any material change in such information at any time while the Investor's is a Member the Investor will notify the Managing Member within 30 calendar days.
j. The Subscriber further represents Investor, if not a benefit plan investor as described in Section 3 below on the date this Subscription Agreement is signed, agrees to notify the Managing Member immediately if the Investor becomes a benefit plan investor.
k. The Investor agrees that the foregoing representations and warrants warranties may be used as a defense in any actions relating to the Fund or the offering of the Interests, and that it has consulted with is only on the basis of such legalrepresentations and warranties that the Managing Member may be willing to accept the Investor's subscription for Interests.
l. Under penalties of perjury, tax the Investor represents warrants and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase certifies that the Investor is not subject to "backup withholding" pursuant to Section 3406 of the SecuritiesInternal Revenue Code of 1986, as amended (the "Code"), and that the Investor has provided the Investor's correct tax identification number below.
m. The Investor acknowledges that the Investor has been advised to consult with the Investor's own attorney regarding legal matters concerning the Fund and to consult with the Investor's tax adviser regarding the tax consequences of participating in the Fund.
Appears in 1 contract
Sources: Subscription Agreement (Aspen Diversified Fund LLC)
Representations and Warranties of Subscriber. The In consideration of the Cooperative’s offer to sell the Shares, Subscriber hereby represents and warrants that: to the Cooperative as follows:
(a) it That Subscriber has received all requested information, has fully reviewed, and is familiar with the full legal right business and power financial condition of the Cooperative, and has also reviewed the Cooperative’s Offering Circular dated May 31, 2018 (the “Offering Circular”), and any and all authority exhibits attached thereto, as the same may have been amended by any supplemental disclosure statement made prior to the date hereof. Subscriber further acknowledges that Subscriber has had adequate time and approval required opportunity to executereview the Offering Circular individually and with Subscriber’s professional advisors, deliver and perform its obligations under this Agreement; if any;
(b) it That Subscriber believes that an investment in the Shares is acquiring suitable for the Securities solely for its own account, for present investment Subscriber and not with that the Subscriber is in a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree financial position to hold any the Shares for an indefinite period of time and is able to bear the Securities for any minimum or other specific term economic risk and Subscriber reserves withstand a complete loss of Subscriber’s investment in the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; Shares;
(c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) itThat Subscriber, either alone or together its representativeswith the assistance of Subscriber’s own professional advisors, has such knowledge, sophistication knowledge and experience in business, financial and investment business matters that it Subscriber is capable of reading and interpreting financial statements and evaluating the merits and risks of the prospective investment in the Shares;
(d) That Subscriber recognizes that an investment in the SecuritiesShares is highly speculative, illiquid and has so evaluated involves a high degree of risk, including, but not limited to, the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; Subscriber’s investment in the Shares;
(fe) it has received and reviewed That the Offering Materials and has been afforded Subscriber certifies, under penalties of perjury, that the opportunity undersigned is NOT subject to ask questions of, and receive answers from representatives the backup withholding provisions of Section 3406(a)(i)(C) of the Company concerning the terms and conditions Internal Revenue Code of the offering of the Securities and the merits and risks of investing in the Securities and 1986, as amended. (Note: You are subject to obtain any additional information necessary backup withholding if (i) you fail to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect to the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary furnish your Social Security number or appropriate in connection with its purchase of the Securities.taxpayer identification number herein;
Appears in 1 contract
Sources: Stock Purchase Agreement
Representations and Warranties of Subscriber. The Subscriber hereby represents undersigned represents, warrants, and warrants that: agrees as follows:
(a) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; This Subscription Agreement is irrevocable.
(b) They have carefully read and understand the terms of this Subscription Agreement. In addition, they have been given the opportunity to conduct a "due diligence" inquiry into the business of the Company, to ask questions of, and receive answers from, the Company and its management concerning the terms and conditions of the Offering and to obtain such additional written information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of same, as the undersigned desires in order to evaluate their investment.
(c) They are aware that the purchase of the Shares is acquiring a speculative investment, involving a high degree of risk and that there is no guarantee that they will realize any gain from this investment, and that their entire investment could be lost.
(d) They understand that no federal or state agency has made any finding or determination regarding the Securities solely fairness of this Offering or any recommendation or endorsement of the Offering.
(e) They are purchasing the Shares for its their own account, with the intention of holding the Shares indefinitely, with no present intention of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly, in a distribution of the Shares and shall not make any sale, transfer, or pledge thereof without registration under the 1933 Act and any applicable securities laws of any state or unless an exemption from registration is available under those laws.
(f) They, if an individual, has adequate means of providing for present their current needs and personal and family contingencies and has no need for liquidity in their investment in the Shares. They have no reason to anticipate any material change in their personal financial condition for the foreseeable future.
(g) The Subscriber is an "Accredited Investor" as that term is defined in Section 2(15) of the 1933 Act and not with Rule 501 of Regulation D promulgated thereunder. Specifically an Accredited Investor is:
(i) A bank defined in Section 3(a)(2) of the Act, or a view toward resale savings and loan association or other distribution institution as defined in Section 3(a)(5)(A) of the Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Act; an investment company registered under the Investment Company Act of 1940 (the "Investment Company Act") or a business development company as defined in Section 2(a)(48) of the Investment Company Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(3) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets greater than $5,000,000; an employee benefit plan within the meaning of the Securities Employee Retirement Income Security Act of 19331974 ("ERISA"), if the investment decision is made by a plan fiduciary, as amended defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or a registered investment advisor, or if the employee benefit plan has total assets greater than $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.
(ii) A private business development company as defined in Section 202(a)(22) of the “Securities Act”Investment Adviser Act of 1940.
(iii) An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets greater than $5 million.
(iv) a natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his or her purchase exceeds $1 million. (California and Massachusetts residents: please see Section 3(b) below.)
(v) A natural person who had an individual income greater than $200,000 in each of the two most recent years or joint income with that person's spouse greater than $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.
(vi) A trust, with total assets greater than $5 million not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in violation Rule 506(b)(2)(ii) (i.e., a person who has such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of the prospective investment.)
(vii) an entity in which all of the equity owners are accredited investors. (If this alternative is checked, the Subscriber must identify each equity owner and provide statements signed by each demonstrating how each is qualified as an accredited investor.)
(h) They are financially able to bear the economic risk of this investment, including the ability to hold the Shares indefinitely or to afford a complete loss of their investment in the Shares.
(i) Their overall commitment to investments which are not readily marketable is not disproportionate to their net worth, and the investment in the Shares will not cause such overall commitment to become excessive. The undersigned understands that the statutory basis on which the Shares are being sold to him and to others would not be available if the undersigned's present intention were to hold the Shares for a fixed period or until the occurrence of a certain event. The undersigned realizes that in the view of the Securities Actand Exchange Commission ("SEC"), a purchase now with a present intent to resell by reason of a foreseeable specific contingency or any anticipated change in the market value, or in the condition of the Company, or that of the industry in which the business of the Company is engaged or in connection with a contemplated liquidation, or settlement of any loan obtained by the undersigned for the acquisition of the Shares, and for which the Shares may be pledged as security or as donations to religious or charitable institutions for the purpose of securing a deduction on an income tax return, would, in fact, represent a purchase with an intent inconsistent with the undersigned's representations to the Company, and the SEC would then regard such sale as one for which no exemption from registration is available. The undersigned will not pledge, transfer or assign this Subscription Agreement.
(j) The funds provided for this investment are either separate property of the undersigned, community property over which the undersigned has the right of control, or are otherwise funds as to which the undersigned has the sole right of management.
(k) FOR PARTNERSHIPS, CORPORATIONS, TRUSTS, OR OTHER ENTITIES ONLY: If the undersigned is a partnership, corporation, trust or other entity, (i) the undersigned has enclosed with this Subscription Agreement appropriate evidence of the authority of the individual executing this Subscription Agreement to act on its behalf (e.g. if a trust, a certified copy of the trust agreement; providedif a corporation, howevera certified corporate resolution authorizing the signature and a certified copy of the articles of incorporation; or if a partnership, a certified copy of the partnership agreement), (ii) the undersigned represents and warrants that by making it was not organized or reorganized for the specific purpose of acquiring Shares and (iii) the undersigned has the full power and authority to execute this Subscription Agreement on behalf of such entity and to make the representations hereinand warranties made herein on its behalf, Subscriber does and (iv) this investment in the Company has been affirmatively authorized, if required, by the governing board of such entity and is not agree to hold any prohibited by the governing documents of the Securities for any minimum entity.
(l) The address shown under the undersigned's signature at the end of this Subscription Agreement is the undersigned's principal residence if they are an individual, or its principal business address if a corporation or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; entity.
(cm) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has They have such knowledge, sophistication knowledge and experience in business, financial and investment business matters that it is as to be capable of evaluating the merits and risks of an investment in the SecuritiesShares.
(n) They acknowledge that the certificate for the Shares will contain a legend substantially as follows: THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR UNDER THE PROVISIONS OF ANY APPLICABLE STATE SECURITIES LAWS, BUT HAS BEEN ACQUIRED BY THE REGISTERED HOLDER HEREOF FOR PURPOSES OF INVESTMENT AND IN RELIANCE ON STATUTORY EXEMPTIONS UNDER THE 1933 ACT, AND UNDER ANY APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED OR ASSIGNED EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER PROVISIONS OF THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT; AND IN THE CASE OF AN EXEMPTION, ONLY IF THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION OF THESE SECURITIES.
(o) They expressly acknowledge and has so evaluated understand that the merits and risk of such investment; (e) it understands that it must bear Company is relying upon the economic risk of this investment undersigned's representation contained in the Securities indefinitely, Subscription Agreement and is able to bear such risk Purchaser Questionnaire.
(p) They understand the meaning and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives legal consequences of the representations and warranties which are contained herein and hereby agrees to indemnify, save and hold the Company concerning the terms and conditions its officers, directors and counsel harmless from and against any and all claims or actions arising out of a breach of any representation, warranty or acknowledgment of the offering of undersigned contained in any Subscription Document. Such indemnification shall be deemed to include not only the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision specific liabilities or obligation with respect to the purchase which such indemnity is provided, but also all reasonable costs expenses, counsel fees and expenses of the Securities. The Subscriber further represents and warrants that it has consulted with settlement relating thereto, whether or not any such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary liability or appropriate in connection with its purchase of the Securitiesobligation shall have been reduced to judgment.
Appears in 1 contract
Representations and Warranties of Subscriber. The Knowing that the Company will rely on the following information to determine the applicability of various securities laws and for certain other purposes, Subscriber hereby represents, warrants, covenants, and agrees with and to the Company as follows:
(a) Subscriber has had the opportunity to ask questions of and to receive answers from the Company and its executive officers concerning the affairs and prospects of the Company in general and desires no further information pertaining to the Company. Subscriber will rely solely upon (i) such information and the Company’s Reports, (ii) investigations made by him or his representatives, and (iii) the representations and warranties made by the Company herein in making his investment decision.
(b) Subscriber represents and warrants thatthat it is an “accredited investor” as such term in defined in Rule 501 of Regulation D promulgated under the Act (“Accredited Investor”), and that it is able to bear the economic risk of an investment in the Shares. Subscriber further represents and warrants that the information furnished in the confidential investor questionnaire (the “Investor Questionnaire”) that it has delivered concurrently herewith to the Company, is accurate and complete in all respects. Subscriber’s overall commitment to investments that are not readily marketable is not disproportionate to Subscriber’s net worth, and Subscriber’s investment in the Shares will not cause such overall commitment to such investments to become excessive.
(c) Subscriber has, either alone or together with his purchaser representative, if any, such knowledge and experience in financial and business matters that Subscriber is capable of evaluating the merits and risks of this investment.
(d) Subscriber has adequate means of providing for his current needs and personal contingencies, and Subscriber has no need for liquidity in his investment in the Shares. Subscriber is financially responsible, able to meet his obligations hereunder, and acknowledges that this investment is long-term and speculative in nature.
(e) Subscriber’s personal financial circumstances, investment portfolio, and tax bracket are such that Subscriber and Subscriber’s purchaser representative, if any, believe the purchase contemplated herein to be a suitable investment. Subscriber is able to bear the economic risk of this investment.
(f) The address set forth below is that of the Subscriber’s true and correct residence.
(g) Subscriber acknowledges that if a purchaser representative has been utilized by him in evaluating the investment contemplated hereby, that Subscriber’s purchaser representative has advised him of the merits and risks of an investment in the Company and the suitability of the investment.
(h) Subscriber acknowledges that Catalyst Financial LLC is acting as the placement agent in connection with the offering of the Shares and will receive compensation as follows: (ai) it a sales commission in the amount of eight percent (8%) of the gross proceeds raised in the offering and (ii) a non-accountable expense allowance in the amount of two percent (2%) of the gross proceeds raised in the offering of the Shares, and (iii) warrants to purchase 60,000 shares of the Company’s Common Stock, with an exercise price of four dollars and sixty seven cents ($4.67) per share and an expiration date of five (5) years after the issuance of the Shares.
(i) Subscriber, and his purchaser representative, if any, have had sufficient access to information concerning the Company so that Subscriber was able, personally, or through his purchaser representative, if any, to make such appropriate independent investigation as Subscriber deemed necessary to prior to making the decision to purchase the Shares for which Subscriber is subscribing. Subscriber, or his purchaser representative, if any, has had a reasonable opportunity to ask questions of and receive answers from the full legal right and power Company, or a person or persons acting on its behalf, concerning the Company and all authority and approval required such questions have been answered to execute, deliver and perform its obligations under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale Subscriber’s full satisfaction. Subscriber acknowledges that any projections or other distribution within financial information provided by the meaning Company to Subscriber are a mere prediction of future events based upon assumptions, which may or may not be valid. Subscriber acknowledges that in evaluating this investment he has not relied exclusively upon these projections.
(j) Subscriber recognizes that an investment in the Company involves certain risks, and Subscriber has taken full cognizance of and understands all of the risk factors related to the purchase of the Shares. Consequently, Subscriber confirms that he is financially prepared to hold the Shares for a substantial period of time.
(k) Subscriber understands that the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities 1933 Act”), or under any state securities act in violation of the Securities Act; providedreliance on an exemption for private offerings, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves further acknowledges that he is purchasing the right Shares without being furnished any offering literature or prospectus.
(l) Subscriber acknowledges that the Company is not currently eligible to dispose of the Securities at any time in accordance with or pursuant to file a registration statement or an exemption on Form S-3 under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication 1933 Act covering reoffers and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives resales of the Company concerning Common Stock to be issued to Subscriber upon the terms and conditions conversion of the offering Shares or for the payment of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision distributions with respect to the Shares.
(m) The Shares for which the Subscriber is subscribing are being acquired solely for Subscriber’s own account, for investment purposes, and are not being purchased with a view to or for resale, distribution, subdivision, or fractionalization, and Subscriber has no plans to enter into any such contract, undertaking, agreement, or arrangement. Subscriber agrees that the Shares to be received will bear a restrictive legend limiting transfer.
(n) If Subscriber is a corporation, partnership, or trust, the undersigned is authorized and otherwise duly qualified to purchase and hold the Shares, and Subscriber has its principal place of business as set forth below and was not formed for the Securities. The Subscriber further represents and warrants that it has consulted with such legalspecific purpose of acquiring the Shares, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of unless otherwise specifically set forth on the Securitiessignature page hereof.
Appears in 1 contract
Sources: Accredited Investor Subscription Agreement (Amtech Systems Inc)
Representations and Warranties of Subscriber. 2.1 The Subscriber hereby agrees with and represents and warrants that: to the Company as follows:
(a) it the Subscriber recognizes that the purchase of Shares involves a high degree of risk in that the Company has only recently commenced its proposed business and will require substantial funds in addition to the full legal right and power and all authority and approval required to execute, deliver and perform its obligations under proceeds of this Agreement; subscription;
(b) it an investment in the Company is acquiring highly speculative and only investors who can afford the Securities solely for its own account, for present loss of their entire investment should consider investing in the Company and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; Shares;
(c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, Subscriber has such knowledge, sophistication knowledge and experience in businessfinance, financial securities, investments, including investment in non-listed and investment non registered securities, and other business matters that it is capable of evaluating so as to be able to evaluate the merits and risks of an investment in the Securities, Company’s common stock and has so evaluated to otherwise protect its interests in connection with this transaction;
(d) the merits Subscriber acknowledges that no market for the Shares presently exists and risk of such none may develop in the future and accordingly the Subscriber may not be able to liquidate its investment; ;
(e) it understands the Subscriber hereby acknowledges that it must bear this offering of Shares by the economic risk of this investment in Company has not been reviewed by the United States Securities indefinitely, and is able Exchange Commission ("SEC") and that the Shares are being issued by the Company pursuant to bear such risk and is able an exemption from registration provided by Section 4(2) to afford a complete loss of such investment; the United States Securities Act;
(f) it the Subscriber has received not purchased the Shares as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, television or other form of telecommunications, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
(g) the Subscriber understands that the Shares are “restricted securities” under applicable federal securities laws and reviewed that the Offering Materials Securities Act and has been afforded the opportunity to ask questions of, and receive answers from representatives rules of the Company concerning SEC provide in substance that the terms and conditions Subscriber may dispose of the offering Shares only pursuant to an effective registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act;
(h) If the Subscriber decides to offer, sell or otherwise transfer any of the Shares, it will not offer, sell or otherwise transfer any of such Shares directly or indirectly, unless:
(i) the sale is to the Company;
(ii) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the Securities Act and in compliance with applicable local laws and regulations;
(iii) the merits sale is made pursuant to the exemption from the registration requirements under the Securities Act provided by Rule 144 thereunder and risks in accordance with any applicable state securities or “blue sky” laws; or
(iv) the Shares are sold in a transaction that does not require registration under the Securities Act or any applicable state laws and regulations governing the offer and sale of investing securities, and, in the Securities cases of (iii) and (iv), it has prior to obtain any additional information necessary such sale furnished to verify the accuracy Company an opinion of counsel reasonably satisfactory to the Company.
(i) the Subscriber is acquiring the Shares subscribed to hereunder as an investment for Subscriber's own account, not as a nominee or agent, and not with a view toward the resale or distribution of any information provided by the Companypart thereof, and in general had access Subscriber has no present intention of selling, granting any participation in, or otherwise distributing the same;
(j) the Subscriber does not have any contract, undertaking, agreement or arrangement with any person to all information about the Company it deemed necessary sell, transfer or grant participation to make an informed investment decision such person, or to any third person, with respect to the purchase any of the Securities. The Shares sold hereby; and
(k) the Subscriber further represents has full power and warrants that it has consulted with such legalauthority to enter into this Agreement which constitutes a valid and legally binding obligation, tax and investment advisors as it, enforceable in its sole discretion, has deemed necessary or appropriate in connection accordance with its purchase of the Securitiesterms.
Appears in 1 contract
Sources: Subscription Agreement (Imvision Therapeutics Inc.)
Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants that: to Seller and each other person who is, or in the future becomes, a shareholder of Seller as follows:
(a) Subscriber is acquiring the Units for its own account, for investment and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act and applicable state securities laws;
(b) Subscriber understands that (i) the Units (A) have not been registered under the Securities Act or any state securities laws, (B) will be issued in reliance upon an exemption from the registration and prospectus delivery requirements of the Securities Act pursuant to Section 4(2) and/or Regulation D thereof, and (C) will be issued in reliance upon exemptions from the registration and prospectus delivery requirements of state securities laws which relate to private offerings, and (ii) Subscriber must therefore bear the economic risk of such investment indefinitely unless a subsequent disposition thereof is registered under the Securities Act and applicable state securities laws or is exempt therefrom under Rule 144 of the Securities Act. Subscriber further understands that such exemptions depend upon, among other things, the bona fide nature of the investment intent of Subscriber expressed herein.
(c) Seller has made available to Subscriber, and Subscriber has reviewed to the extent it deemed necessary, all information regarding the business and financial condition of Seller, its expected plans for future business activities, the status of its litigation, and the merits and risks of an investment in the Units, considered necessary or appropriate by it in order to make an informed investment decision regarding a purchase of the Units, including the following: its Articles of Incorporation and Bylaws, its tax returns for the last three calendar years, the description of its products and operations on the website of Seller at w▇▇.▇▇▇▇▇▇▇▇.▇▇▇ and in the Opportunity Summary prepared by Venture 2, and its trading information and capitalization at w▇▇.▇▇▇▇▇▇▇▇▇▇.▇▇▇, call letters IMMD (collectively, the “Disclosure Materials”), and Subscriber has had the opportunity to request and/or discuss with representatives of Seller any other information deemed necessary or appropriate by Subscriber in order to make an informed investment decision regarding the purchase of the Units at the Offering Price. Subscriber acknowledges that all documents, records or books of Seller have been made available for inspection by Subscriber or Subscriber’s attorney, accountant or other representative or agent; that Subscriber or Subscriber’s attorney, accountant or other representative or agent has for a reasonable amount of time had an opportunity to ask questions of and receive answers from Seller concerning its proposed business and prospects; and that all of such questions have been answered to the full satisfaction of Subscriber.
(d) Subscriber has knowledge, skill and experience in financial, business and investment matters relating to an investment of this type and is capable of evaluating the merits and risks of such investment and protecting its interest in connection with the acquisition of the Units. To the extent deemed necessary by Subscriber, Subscriber has retained, at its own expense, and relied upon, appropriate professional advice regarding the investment, tax and legal merits and consequences of purchasing and owning the Units and their suitability for Subscriber. Subscriber has the ability to bear the economic risks of its investment in Seller, including a complete loss of the investment, and has no need for liquidity in such investment. Subscriber understands that the acquisition of the Units is a speculative investment that involves substantial risks and that Subscriber could lose its entire investment in the Units. Subscriber has carefully read and considered particularly the following risks peculiar to Seller, which list does not purport to be complete:
(i) The Offering Price is not necessarily based on recent trading prices or any asset or earnings valuation per share of Seller’s Stock on the Warrant, but has been determined by the Board of Directors of Seller to represent the fair market value of a Unit.
(ii) Seller may issue additional shares of Stock at prices that management deems appropriate but may be less than the Offering Price per Unit paid by Subscribers. In addition, Seller may create and issue additional classes of capital stock with rights, priorities and liquidation premiums different or greater than those held by Subscribers. The issuance of additional shares of Stock may dilute the ownership interest of Subscribers in Seller.
(iii) The business of Seller is dependent on the services of Mr. M▇▇▇ ▇▇▇▇▇▇▇▇▇▇, its President, and Chief Executive Officer, and S▇▇▇ ▇▇▇▇▇▇▇, M.D., PhD, its Chief Medical Officer, each of whom possesses significant expertise and knowledge regarding the business of Seller. Seller does not have an employment agreement with either M▇. ▇▇▇▇▇▇▇▇▇▇ or Dr. D▇. ▇▇▇▇▇▇▇, nor does it carry key man life insurance on either of them. Any loss or interruption of the services of either of them could significantly reduce Seller’s ability to manage effectively its business, and an appropriate replacement may not be readily obtained should the need arise.
(iv) There is only a limited public market for the Stock, so there can be no assurance that Subscriber will be able to sell or dispose of the shares of Stock, or shares into which the Warrants are converted, at any time. Subscriber must hold the shares for at least six months, and any public disposition thereafter must be made in compliance with Rule 144 under the Securities Act of 1933. Seller is under no obligation to make the provisions of Rule 144 available to Subscriber; therefore a Subscriber must be able to bear the economic risk of the investment for an indefinite period of time.
(v) Although Seller recently completed successfully a major trial regarding the ownership of patents, the defendant has filed a notice of appeal. In addition, there can be no assurance that new litigation will not arise on related patent issues. Certain litigation involving S▇▇▇▇▇’s patents is still pending, although Seller had been advised by counsel that the outcome should have an immaterial effect on its business.
(vi) Many other companies offering nutritional supplements and skin car products are larger and have greater resources than Seller. These competitors are better able to withstand industry downturns, compete on the basis of price, market their products to a broader base and develop new products and technologies, all of which could affect our revenue and profitability.
(vii) Seller’s products are currently regulated by the Dietary Supplement Health and Education Act of 1994 which requires certain labeling but does not require FDA approval processes as for drugs. If regulations are extended to cover Seller’s products, the costs associated with marketing Seller’s products will increase.
(e) In making this investment decision, Subscriber is relying solely on the Disclosure Materials and investigations made by it and its representatives. The offer to purchase the Units was communicated to Subscriber in such a manner that it was able to ask questions of and receive answers from the management of Seller concerning the terms and conditions of the proposed transaction, and at no time was Subscriber presented with or solicited by or through any advertisement, article, leaflet, public promotional meeting, 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 other form of general or public advertising or solicitation.
(f) Subscriber acknowledges that it has been advised that the Units offered hereby have not been approved or disapproved by the SEC or any state securities commission, nor has the SEC or any state securities commission passed upon the accuracy or adequacy of any representations by Seller. The Units have not been recommended or endorsed by any federal or state securities commission or regulatory authority, nor have such authorities confirmed the accuracy or determined the adequacy of any representation.
(g) Subscriber acknowledges and is aware that there has never been any representation, guarantee or warranty made by Seller or any officer, director, employee, agent or representative of Seller, expressly or by implication, as to (i) the approximate or exact length of time that Subscriber will be required to remain a shareholder of Seller; (ii) the percentage of gain or loss to be realized, if any, as a result of this investment; (iii) when or if the price per share of Stock will make conversion of the Warrants economically feasible; or (iv) that the past performance or experience on the part of Seller, or any future expectations, will in any way indicate the predictable results of the ownership of Units or of the overall financial performance of Seller;
(h) Subscriber represents and warrants that it is an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and Subscriber has executed the Certificate of Accredited Investor Status, attached hereto as Exhibit A.
(i) Subscriber’s subscription and payment for, and its continued beneficial ownership of the Units, will not violate any applicable securities or other law, nor result in the breach of or constitute a default under any agreement, instrument, law or court decree to which Subscriber is a party or by which it is bound.
(j) If Subscriber is a natural person, Subscriber has reached the age of majority in the state in which Subscriber resides, maintains his or her domicile at the address shown on the signature page hereof, and the funds provided for acquiring the Units are either separate property or community property over which Subscriber has the right of control or are otherwise funds as to which it has the sole right of management.
(k) If this Agreement is executed and delivered on behalf of a partnership, corporation, trust, estate or other entity (an “Entity”): (i) such Entity has the full legal right and power and all authority and approval required to executeexecute and deliver, deliver or authorize execution and perform its obligations under delivery of, this Agreement; (b) it is acquiring Agreement and all other instruments executed and delivered by or on behalf of such Entity in connection with the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning purchase of the Securities Act of 1933Units and to purchase and hold such Units, as amended (ii) the “Securities Act”), in violation signature of the Securities Actparty signing on behalf of such Entity is binding upon such Entity; providedand (iii) such Entity has not been formed for the specific purpose of acquiring such Units, however, that by making the representations herein, Subscriber does not agree to hold any unless each beneficial owner of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or such entity is qualified as an exemption under the Securities Act; (c) it is an “accredited investor,” investor within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act; Act and has submitted information substantiating such individual qualification.
(dl) itIf Subscriber is a retirement plan or is investing on behalf of a retirement plan, either alone or together its representatives, has such knowledge, sophistication and experience Subscriber acknowledges that investment in business, financial and investment matters that it is capable of evaluating the merits and Stock poses additional risks of including the inability to use losses generated by an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able Stock to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect to the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Securitiesoffset taxable income.
Appears in 1 contract
Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants that: to the Company as follows:
(a) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations Subscriber is an "accredited investor" as defined by Rule 501 under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities "Act”"), and Subscriber is capable of evaluating the merits and risks of Subscriber's investment in violation the Company and has the capacity to protect Subscriber's own interests.
(b) Subscriber understands that the Securities are not presently registered, but Subscriber is entitled to certain rights with respect to the registration of the Units (see Section 5 below).
(c) Subscriber acknowledges and understands that the Securities are being purchased for investment purposes and not with a view to distribution or resale, nor with the intention of selling, transferring or otherwise disposing of all or any part thereof for any particular price, or at any particular time, or upon the happening of any particular event or circumstances, except selling, transferring, or disposing the Securities made in full compliance with all applicable provisions of the Act, the rules and regulations promulgated by the Securities and Exchange Commission ("SEC") thereunder, and applicable state securities laws; and that an investment in the Securities is not a liquid investment.
(d) Subscriber acknowledges that the Securities must be held indefinitely unless subsequently registered under the Act or unless an exemption from such registration is available. Subscriber is aware of the provisions of Rule 144 promulgated under the Act which permit limited resale of common stock purchased in a private placement subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for the common stock, the availability of certain current public information about the Company, the resale occurring not less than one year after a party has purchased and paid for the security to be sold, the sale being effected through a "broker's transaction" or in transactions directly with a "market maker" and the number of shares of common stock being sold during any three-month period not exceeding specified limitations.
(e) Subscriber acknowledges that Subscriber has had the opportunity to ask questions of, and receive answers from the Company or any person acting on its behalf concerning the Company and its business and to obtain any additional information, to the extent possessed by the Company (or to the extent it could have been acquired by the Company without unreasonable effort or expense) necessary to verify the accuracy of the information received by Subscriber. In connection therewith, Subscriber acknowledges that Subscriber has had the opportunity to discuss the Company's business, management and financial affairs with the Company's management or any person acting on its behalf. Subscriber has received and reviewed the Memorandum, and all the information, both written and oral, that it desires. Without limiting the generality of the foregoing, Subscriber has been furnished with or has had the opportunity to acquire, and to review, (i) copies of all of the Company's publicly available documents, including but not limited to, those attached to the Memorandum, and (ii) all information, both written and oral, that it desires with respect to the Company's business, management, financial affairs and prospects. In determining whether to make this investment, Subscriber has relied solely on Subscriber's own knowledge and understanding of the Company and its business based upon Subscriber's own due diligence investigations and the information furnished pursuant to this paragraph. Subscriber understands that no person has been authorized to give any information or to make any representations which were not furnished pursuant to this paragraph and Subscriber has not relied on any other representations or information.
(f) Subscriber has all requisite legal and other power and authority to execute and deliver this Subscription Agreement and to carry out and perform Subscriber's obligations under the terms of this Subscription Agreement. This Subscription Agreement constitutes a valid and legally binding obligation of Subscriber, enforceable in accordance with its terms, and 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 general principals of equity, whether such enforcement is considered in a proceeding in equity or law.
(g) Subscriber has carefully considered and has discussed with the Subscriber's professional legal, tax, accounting and financial advisors, to the extent the Subscriber has deemed necessary, the suitability of this investment and the transactions contemplated by this Subscription Agreement for the Subscriber's particular federal, state, local and foreign tax and financial situation and has determined that this investment and the transactions contemplated by this Subscription Agreement are a suitable investment for the Subscriber. Subscriber relies solely on such advisors and not on any statements or representations of the Company or any of its agents. Subscriber understands that Subscriber (and not the Company) shall be responsible for Subscriber's own tax liability that may arise as a result of this investment or the transactions contemplated by this Subscription Agreement.
(h) This Subscription Agreement does not contain any untrue statement of a material fact concerning Subscriber.
(i) There are no actions, suits, proceedings or investigations pending against Subscriber or Subscriber's properties before any court or governmental agency (nor, to Subscriber's knowledge, is there any threat thereof) which would impair in any way Subscriber's ability to enter into and fully perform Subscriber's commitments and obligations under this Subscription Agreement or the transactions contemplated hereby.
(j) The execution, delivery and performance of and compliance with this Subscription Agreement, and the issuance of the Securities Act; providedwill not result in any material violation of, howeveror conflict with, that by making or constitute a material default under, any of Subscriber's articles of incorporation or bylaws, if applicable, or any of Subscriber's material agreements nor result in the representations hereincreation of any mortgage, Subscriber does not agree to hold pledge, lien, encumbrance or charge against any of the assets or properties of Subscriber or the Securities.
(k) Subscriber acknowledges that the Securities for are speculative and involve a high degree of risk and that Subscriber can bear the economic risk of the purchase of the Securities, including a total loss of his/her/its investment.
(l) Subscriber acknowledges that he/she/it has carefully reviewed and considered the risk factors discussed in the "Risk Factors" section of the Memorandum.
(m) Subscriber recognizes that no federal, state or foreign agency has recommended or endorsed the purchase of the Securities.
(n) Subscriber is aware that the Securities are and will be, when issued, "restricted securities" as that term is defined in Rule 144 of the general rules and regulations under the Act.
(o) Subscriber understands that any minimum and all certificates representing the Securities and any and all securities issued in replacement thereof or other specific term in exchange therefor shall bear the following legend or one substantially similar thereto, which Subscriber has read and understands: "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE."
(p) In addition, the certificates representing the Securities, and any and all securities issued in replacement thereof or in exchange therefor, shall bear such legend as may be required by the securities laws of the jurisdiction in which Subscriber reserves resides.
(q) Because of the restrictions imposed on resale, Subscriber understands that the Company shall have the right to dispose note stop-transfer instructions in its stock transfer records, and Subscriber has been informed of the Company's intention to do so. Any sales, transfers, or any other dispositions of the Securities at any time by Subscriber, if any, will be in accordance compliance with or pursuant to a registration statement or an exemption under the Securities Act; .
(cr) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, Subscriber acknowledges that Subscriber has such knowledge, sophistication knowledge and experience in business, financial and investment business matters that it he is capable of evaluating the merits and risks of an investment in the Securities, Securities and has so evaluated the merits and risk of such investment; making an informed investment decision.
(es) it understands Subscriber represents that it must (i) Subscriber is able to bear the economic risk risks of this an investment in the Securities indefinitely, and is able to bear such risk and is able to afford a the complete loss of such the investment; and (fii) it (A) Subscriber could be reasonably assumed to have the capacity to protect his/her/its own interests in connection with this subscription; or (B) Subscriber has received a pre-existing personal or business relationship with either the Company or any affiliate thereof of such duration and reviewed nature as would enable a reasonably prudent purchaser to be aware of the Offering Materials character, business acumen and has been afforded the opportunity to ask questions of, general business and receive answers from representatives financial circumstances of the Company concerning or such affiliate and is otherwise personally qualified to evaluate and assess the terms risks, nature and conditions other aspects of this subscription.
(t) Subscriber further represents that the address set forth below is his/her principal residence (or, if Subscriber is a company, partnership or other entity, the address of its principal place of business); that Subscriber is purchasing the Securities for Subscriber's own account and not, in whole or in part, for the account of any other person; Subscriber is purchasing the Securities for investment and not with a view to resale or distribution; and that Subscriber has not formed any entity for the purpose of purchasing the Securities.
(u) Subscriber understands that the Company shall have the unconditional right to accept or reject this subscription, in whole or in part, for any reason or without a specific reason, in the sole and absolute discretion of the Company (even after receipt and clearance of Subscriber's funds). This Subscription Agreement is not binding upon the Company until accepted by an authorized officer of the Company. In the event that the subscription is rejected, then Subscriber's subscription funds will be returned without interest thereon or deduction therefrom.
(v) Subscriber has not been furnished with any oral representation or oral information in connection with the offering of the Securities that is not contained in the Memorandum and this Subscription Agreement.
(w) Subscriber represents that Subscriber is not subscribing for Securities 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 the Internet, television or radio or presented at any seminar or meeting.
(x) Subscriber has carefully read this Subscription Agreement and the merits Memorandum, and risks of investing in Subscriber has accurately completed the Securities and Purchaser Questionnaire which accompanies this Subscription Agreement.
(y) No representations or warranties have been made to obtain any additional information necessary to verify the accuracy of any information provided Subscriber 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 general had access to all information about subscribing for the Company it deemed necessary to make an informed investment decision with respect Securities the Subscriber is not relying upon any representations other than those contained in the Memorandum or in this Subscription Agreement.
(z) Subscriber represents and warrants, to the purchase best of its knowledge, that other than the Securities. The Subscriber further represents and warrants that it has consulted with such legalPlacement Agent, tax and investment advisors no finder, broker, agent, financial advisor or other intermediary, nor any purchaser representative or any broker-dealer acting as ita broker, in its sole discretion, has deemed necessary or appropriate is entitled to any compensation in connection with its purchase of the Securitiestransactions contemplated by this Subscription Agreement.
Appears in 1 contract
Sources: Subscription Agreement (Velocity Asset Management Inc)
Representations and Warranties of Subscriber. The Subscriber hereby represents undersigned represents, warrants, and warrants that: agrees as follows:
(a) it has the full legal right and power and all authority and approval required to execute, deliver and perform its obligations under this Agreement; This Subscription Agreement is irrevocable.
(b) it is acquiring He has carefully read and understands the Securities solely for its own accountterms of this Subscription Agreement. He has read the Term Sheet and Summary dated as of August 7, for present investment and not with 2001 (the "Disclosure Documents"). In addition, he has been given the opportunity to conduct a view toward resale or other distribution within "due diligence" inquiry into the meaning business of the Securities Act of 1933Company, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree to hold any of the Securities for any minimum or other specific term and Subscriber reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; (c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, has such knowledge, sophistication and experience in business, financial and investment matters that it is capable of evaluating the merits and risks of an investment in the Securities, and has so evaluated the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; (f) it has received and reviewed the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives of from, the Company and its management concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities Offering and to obtain any such additional written information, to the extent the Company possesses such information or can acquire it without unreasonable effort or expense, necessary to verify the accuracy of any information provided by same, as the Company, and undersigned desires in general had access order to all information about the Company it deemed necessary to make an informed investment decision with respect to evaluate his investment.
(c) He is aware that the purchase of the SecuritiesShares is a speculative investment, involving a high degree of risk and that there is no guarantee that he will realize any gain from this investment, and that his entire investment could be lost.
(d) He understands that no federal or state agency has made any finding or determination regarding the fairness of this Offering or any recommendation or endorsement of the Offering.
(e) He is purchasing the Shares for his own account, with the intention of holding the Shares indefinitely, with no present intention of dividing or allowing others to participate in this investment or of reselling or otherwise participating, directly or indirectly, in a distribution of the Shares and shall not make any sale, transfer, or pledge thereof without registration under the 1933 Act and any applicable securities laws of any state or unless an exemption from registration is available under those laws.
(f) He, if an individual, has adequate means of providing for his current needs and personal and family contingencies and has no need for liquidity in his investment in the Shares. He has no reason to anticipate any material change in his personal financial condition for the foreseeable future.
(g) The Subscriber further represents is an "Accredited Investor" as that term is defined in Section 2(15) of the 1933 Act and warrants that it has consulted with such legalRule 501 of Regulation D promulgated thereunder. Specifically an Accredited Investor is:
(i) A bank defined in Section 3(a)(2) of the Act, tax or a savings and investment advisors loan association or other institution as itdefined in Section 3(a)(5)(A) of the Act, whether acting in its sole discretion, has deemed necessary individual or appropriate in connection with its purchase fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the SecuritiesSecurities Exchange Act of 1934; an insurance company as defined in Section 2(13) of the Act; an investment company registered under the Investment Company Act of 1940 (the "Investment Company Act") or a business development company as defined in Section 2(a)(48) of the Investment Company Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(3) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets greater than $5,000,000; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 ("ERISA"), if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or a registered investment advisor, or if the employee benefit plan has total assets greater than $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.
(ii) A private business development company as defined in Section 202(a)(22) of the Investment Adviser Act of 1940.
(iii) An organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets greater than $5 million.
(iv) a natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his or her
Appears in 1 contract
Sources: Subscription Agreement (Hiv Vac Inc)
Representations and Warranties of Subscriber. The Subscriber hereby represents and warrants that: to the Company and its officers, agents, directors, counsel and affiliates (collectively, "Representatives"), as follows:
(a) it has The Subscriber understands the full legal right and power and all authority and approval required to execute, deliver and perform its obligations Shares are being issued without registration under this Agreement; (b) it is acquiring the Securities solely for its own account, for present investment and not with a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities "Act”") or under any state securities laws, including those of the State of Indiana, in reliance upon various exemptions from the registration requirements of the Act, including the private offering exemptions contained in Section 4(2) of the Act, and Regulation D promulgated thereunder, and such state laws, and that such reliance is based in part on the information herein supplied. For the foregoing reasons, and to induce the Company to issue and deliver the Shares to the Subscriber, the Subscriber makes the representations and warranties contained herein to the Company and each of the Representatives.
(b) The purchase of the Shares will be solely for the account of the Subscriber with its own funds, and not for the account of any other person, and for investment purposes only, and not with a view toward resale, assignment, fractionalization, or distribution thereof.
(c) The Subscriber understands that (i) there are restrictions on the transferability of the Shares; (ii) the Subscriber must bear the economic risk of an investment in the Shares for an indefinite period of time because the Shares have not been registered under the Act and, therefore, cannot be sold unless they are subsequently registered under the Act or an exemption from such registration is available; (iii) the Subscriber has no right to compel registration under the Act and the Company has no present intention of registering the Shares under the Act or to take the actions required to make Rule 144 under the Act available for resale of the Shares; and (iv) under no circumstances will the Subscriber be able to sell, transfer, assign, hypothecate or pledge all or any portion of the Shares without the prior written consent of the Company.
(d) The Subscriber is a person who is able to bear the economic risk of an investment in the Shares. In making this statement, consideration has been given to whether the Subscriber can afford to hold the investment for an indefinite period of time and whether it can afford a complete loss of its investment.
(e) Except as set forth in the Due Diligence Information Requested by the Subscriber ("Company Materials"), in violation a copy of which the Securities Act; providedSubscriber acknowledges it has received and carefully reviewed, howeverno representations and warranties, that oral or otherwise, have been made to the Subscriber by making the representations hereinCompany, Subscriber does not agree to hold any of the Securities for Representatives or any minimum agent, employee or other specific term and Subscriber reserves the right to dispose affiliate of the Securities at Company, or any time other person, whether or not associated with this offering, and in accordance entering into this transaction, the Subscriber is not relying upon any information, other than that contained in the Company Materials and the results of its own independent investigation.
(f) The Subscriber has had an opportunity to ask questions of and receive answers from the Company, or a person or persons acting on their behalf, concerning the terms and conditions of this investment; and all such questions have been answered to the full satisfaction of the Subscriber, none of which answers is in any way inconsistent with or pursuant to a registration statement or an exemption under the Securities Act; Company Materials.
(cg) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) it, either alone or together its representatives, The Subscriber has such knowledge, sophistication sufficient knowledge and experience in business, real estate, law and financial matters to evaluate and investment matters that it is capable of evaluating understand the merits and risks of an investment in the Securities, Company.
(h) The Subscriber is a corporation duly organized and has so evaluated in good standing under the merits and risk laws of such investment; (e) it understands that it must bear the economic risk State of this investment in the Securities indefinitely, New Jersey and is able to bear such risk qualified as a foreign corporation and is able to afford a complete loss of such investment; (f) it has received and reviewed in good standing under the Offering Materials and has been afforded the opportunity to ask questions of, and receive answers from representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Securities and to obtain any additional information necessary to verify the accuracy laws of any information provided by and all other states and jurisdictions where the Company, nature of its business and in general had access to all information about the Company it deemed operations make such qualification necessary to make an informed investment decision with respect to the purchase of the Securitiesor appropriate. The Subscriber further represents has the authority and warrants that it has consulted with such power to enter into this Agreement, and this Agreement is the legal, tax valid, and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase binding obligation of the SecuritiesSubscriber. The person executing this Agreement is an officer of the Subscriber with full authority to execute and deliver this Agreement and to bind the Subscriber to its obligations hereunder.
(i) The Subscriber is aware that the Company has a limited financial and operating history.
(j) The Taxpayer Identification Number furnished below is correct and the Subscriber is not subject to the back-up withholding provisions of Section 3406 of the Internal Revenue Code of 1986, as amended.
(k) The information contained herein is true, accurate and complete and may be relied upon by the Company and each of the Representatives. The Subscriber will notify the Company immediately if any of such information becomes inaccurate, incomplete or misleading prior to the acceptance of this Subscription.
Appears in 1 contract
Sources: Subscription Agreement (Interactive Intelligence Inc)
Representations and Warranties of Subscriber. The In consideration of the Cooperative’s offer to sell the Shares, Subscriber hereby represents and warrants that: to the Cooperative as follows:
(a) it That Subscriber has received all requested information, has fully reviewed, and is familiar with the full legal right business and power financial condition of the Cooperative, and has also reviewed the Cooperative’s Offering Circular dated May 31, 2017 (the “Offering Circular”), and any and all authority exhibits attached thereto, as the same may have been amended by any supplemental disclosure statement made prior to the date hereof. Subscriber further acknowledges that Subscriber has had adequate time and approval required opportunity to executereview the Offering Circular individually and with Subscriber’s professional advisors, deliver and perform its obligations under this Agreement; if any;
(b) it That Subscriber believes that an investment in the Shares is acquiring suitable for the Securities solely for its own account, for present investment Subscriber and not with that the Subscriber is in a view toward resale or other distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), in violation of the Securities Act; provided, however, that by making the representations herein, Subscriber does not agree financial position to hold any the Shares for an indefinite period of time and is able to bear the Securities for any minimum or other specific term economic risk and Subscriber reserves withstand a complete loss of Subscriber's investment in the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act; Shares;
(c) it is an “accredited investor,” within the meaning of Rule 501(a) of Regulation D under the Securities Act; (d) itThat Subscriber, either alone or together its representativeswith the assistance of Subscriber's own professional advisors, has such knowledge, sophistication knowledge and experience in business, financial and investment business matters that it Subscriber is capable of reading and interpreting financial statements and evaluating the merits and risks of the prospective investment in the Shares;
(d) That Subscriber recognizes that an investment in the SecuritiesShares is highly speculative, illiquid and has so evaluated involves a high degree of risk, including, but not limited to, the merits and risk of such investment; (e) it understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment; Subscriber’s investment in the Shares;
(fe) it has received and reviewed That the Offering Materials and has been afforded Subscriber certifies, under penalties of perjury, that the opportunity undersigned is NOT subject to ask questions of, and receive answers from representatives the backup withholding provisions of Section 3406(a)(i)(C) of the Company concerning the terms and conditions Internal Revenue Code of the offering of the Securities and the merits and risks of investing in the Securities and 1986, as amended. (Note: You are subject to obtain any additional information necessary backup withholding if (i) you fail to verify the accuracy of any information provided by the Company, and in general had access to all information about the Company it deemed necessary to make an informed investment decision with respect to the purchase of the Securities. The Subscriber further represents and warrants that it has consulted with such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary furnish your Social Security number or appropriate in connection with its purchase of the Securities.taxpayer identification number herein;
Appears in 1 contract
Sources: Subscription Agreement