UNIVERSAL TRACKING SOLUTIONS, INC. SUBSCRIPTION AGREEMENT UP TO 3,000,000 SHARES OF COMMON STOCK AT $.20 PER SHARE
Name
of
Subscriber:_________________
Principal
Amount:
$_________________
UNIVERSAL
TRACKING SOLUTIONS,
INC.
UP
TO 3,000,000 SHARES OF COMMON STOCK
AT $.20 PER SHARE
AGREEMENTdated
as of the date set forth below, by
and between Universal Tracking Solutions, Inc., a Nevada corporation (the
“Company”) having a principal office at 0000 X. Xxxxxx Xx., Xxxxx 000-000,
Xxxxxxx, Xxxxxxx, 00000, and the person or entity whose signature appears at
the
end of this Agreement (the “Investor”).
WITNESSETH:
WHEREAS,the
Company desires to sell shares of
its Common Stock (the “Stock”) in the aggregate amount of not more than U.S.
$300,000 to certain persons, including the Investor.
WHEREAS,the
Investor wishes, pursuant to the
terms and conditions hereinafter set forth, to purchase the amount of Shares
set
forth on the signature page of this Agreement.
NOW
THEREFORE,in consideration
of the premises, and the respective representations and warranties hereinafter
set forth, the Company and the Investor agree as follows:
1.
SUBSCRIPTION.
Upon
the terms and subject to the
conditions of this Agreement, the Investor, intending to be legally bound,
hereby irrevocably subscribes for and agrees to purchase the amount of the
Company’s Shares indicated on the signature page hereof.
2.
PURCHASE
AND
CLOSING.
The
Investor delivers herewith the
consideration in United States dollars (the “Purchase Price”) required to
purchase the Shares subscribed for hereunder. The Purchase Price is being paid
simultaneously herewith by delivery to the Company of a wire transfer or check
payable to the Company in the amount of the Purchase Price.
2.2
At the Closing, the Company
will
deliver the following to the Investor:
(a)
a certificate, in due and proper
form, representing the Shares purchased; and
(b)
a counterpart of this Agreement
executed by the Company.
3.
INVESTOR
REPRESENTATIONS AND WARRANTIES.
The
Investor hereby acknowledges,
represents and warrants to, and agrees with, the Company as
follows:
-1-
|
3.1
|
The
undersigned acknowledges his
understanding that the offering and sale of the Shares are restricted
and
will be included in a Registration Statement to be filed with the
Securities and Exchange Commission. In furtherance thereof, the
undersigned represents and warrants to and agrees with the Company
that
the undersigned has the financial ability to bear the economic risk
of his
investment, has adequate means for providing for his current needs
and
personal contingencies and has no need for liquidity with respect
to his
investment in the Company.
|
|
3.2
|
The
Investor:
|
|
(a)
|
has
been given the opportunity to
ask questions of and receive answers from the Company
concerning the terms and conditions of the offering and other matters
pertaining to this investment, and has been given the opportunity
to
obtain such additional information necessary to verify the accuracy
of the
information contained in the Documents or that which was otherwise
provided in order for him to evaluate the merits and risks of purchase
of
the Stock to the extent the Company possesses such information or
can
acquire it without unreasonable efforts or expense, and has not been
furnished any other offering literature or prospectus except as
mentioned herein or in the
Documents;
|
|
(b)
|
has
been provided an opportunity
to obtain additional information concerning the offering, the Company
and
all other information to the extent the Company possesses such
information or can acquire it without unreasonable effort or
expense;
|
|
(c)
|
has
not been furnished with any
oral representation or oral information in connection with the offering
of
the Stock which is not contained in the Documents;
and
|
|
(d)
|
has
determined that the Stock is a
suitable investment for him/her and that at this time (s)he could
bear a
complete loss of his
investment.
|
|
3.3
|
The
undersigned is not relying on
the Company thereof with respect to economic considerations involved
in
this investment. The undersigned has relied on the advice of,
or has consulted with, in regard to the economic considerations involved
in this investment, only those persons, if any, named as Purchaser
Representative. The undersigned is capable of evaluating the merits
and
risks of this investment on the terms and conditions set forth in
the
Documents and each has disclosed to the undersigned in writing (a
copy of
which is annexed to this agreement) the specific details of any and
all
past, present or future relationships, actual or contemplated, between
himself and the Company or any affiliate or subsidiary of any of
the
foregoing;
|
|
3.4
|
If
the Investor is a corporation,
partnership, trust or other entity, the person signing this Subscription
Agreement on behalf of such entity has been duly authorized by such
entity
to do so;
|
|
3.5
|
No
representation or warranties
have been made to the Investor by the Company, or any officer, employee,
agent, affiliate or subsidiary of the Company, other than the
representations of the Company
herein.
|
|
3.6
|
The
undersigned confirms that the
decision to subscribe for the Stock was not made as a result of any
material information about the Company’s affairs that had not been
publicly disclosed;
|
|
3.7
|
The
undersigned acknowledges
that:
|
|
(a)
|
the
undersigned is purchasing the
Stock pursuant to an exemption under the Act on the basis that the
undersigned is sophisticated and, as a
consequence:
|
-2-
|
(i)
|
is
restricted from using most of
the civil remedies available under securities
legislation,
|
|
(ii)
|
may
not receive information that
would otherwise be required to be provided to him under securities
legislation, and
|
|
(iii)
|
the
Company is relieved from
certain obligations that would otherwise apply under securities
legislation;
|
|
(b)
|
the
Stock is being purchased by
the undersigned as principal for investment only and not with a view
to
the distribution thereof, and the undersigned is not participating
directly or indirectly in any underwriting of the
Stock.
|
|
(c)
|
the
undersigned has had an
opportunity to ask questions of, and receive answers from persons
acting
on behalf of the Company;
|
|
3.8
|
The
foregoing representations,
warranties and agreements shall survive the
Closing.
|
4.
INVESTOR
AWARENESS.
The
Investor acknowledges, represents,
agrees and is aware that:
|
4.1
|
No
Federal or state agency has
passed on the Stock or made any finding or determination as to the
fairness of this investment;
|
|
4.2
|
There
are substantial risks
incident to the purchase of Stock;
and
|
|
4.3
|
The
foregoing acknowledgments,
representations, warranties and agreements shall survive the Closing
Date
and the return of subscriber’s funds if subscriptions are not
accepted.
|
5.
INDEMNITY.
The
Investor agrees to indemnify and
hold harmless the Company and each other person, if any, who controls it
within the meaning of Section 15 of the Securities Act of 1933, as
amended (the “Act”) against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all
expenses whatsoever reasonably incurred in investigating, preparing for
or defending against any litigation commenced or threatened or any
claim whatsoever) arising out of or based upon any false
representation or warranty or breach or failure by the Investor to
comply with any covenant or agreement made by the Investor
herein.
6.
COMPANY
REPRESENTATIONS AND WARRANTIES.
The
Company hereby acknowledges,
represents and warrants to, and agrees with the Investor (which representations
and will be true and correct as of the date of the Closing as if the Agreement
were made on the date of Closing) as follows:
|
6.1
|
The
Company has been duly
organized, is validly existing and is in good standing under the
laws of
Nevada.
|
|
6.2
|
The
Company has all requisite
corporate power and authority to execute and deliver this Agreement
and to
perform its obligations hereunder. The execution and delivery of
this
Agreement by the Company do not, and the performance of its obligations
hereunder will not, violate or conflict with any provision of the
Company’s Certificate of Incorporation or Bylaws. All corporate
action on the part of the Company required for the authorization,
execution and delivery of this Agreement and the performance of its
obligations hereunder, including theissuance
and delivery of the
Stock, have been taken. This Agreement has been duly executed and
delivered by the Company, and assuming due execution and delivery
by the
Purchaser, constitutes a valid and legally binding obligation of
the
Company enforceable in accordance with its terms, except as limited
by (i)
applicable bankruptcy, insolvency, reorganization, moratorium, and
other
laws of general application affecting enforcement of creditors’ rights
generally and (ii) equitable principles relating to the availability
of
specific performance, injunctive relief and other equitable
remedies.
|
-3-
|
6.3
|
The
Stock which are being
purchased by the Purchaser hereunder are duly authorized and, when
issued,
sold and delivered in accordance with the terms hereof, will be duly
and
validly issued, and, based upon the representations of the Purchaser
in
this Agreement, will be issued in compliance with the registration
requirements of all applicable federal and state securities laws.
The
Common Stock issuable is duly authorized and has been duly and validly
reserved for issuance and, upon issuance to the Purchaser in accordance
with the terms of the Subscription Agreement, will be duly and validly
issued, fully paid and non assessable, and issued in compliance with
the
registration requirements of all applicable federal and state securities
laws or exemption therefrom, as presently in effect, of the United
States
and will be freely tradable without further
restriction.
|
|
6.4
|
The
execution and delivery by the
Company of, and the performance by the Company of its obligations
under
this Agreement in accordance with the terms of this Agreement will
not
contravene any provision of applicable law or the charter documents
of the
Company or any agreement or other instrument binding upon the Company,
or
any judgment, order or decree of any governmental body, agency or
court
having jurisdiction over the Company, and no consent, approval,
authorization or order of, or qualification with, any governmental
body or
agency is required for the performance by the Company of its obligations
under this Agreement in accordance with the terms of this
Agreement.
|
|
6.6
|
The
Company is not in violation of
its charter or bylaws and is not in default in the performance of
any
bond, debenture, note or any other evidence of indebtedness or any
indenture, mortgage, deed of trust, license, contract, lease or other
instrument to which the Company is a party or by which it is bound,
or to
which any of the property or assets of the Company is subject, except
such
as have been waived or which would not have, singly or in the aggregate,
a
material adverse effect on the Company, taken as a
whole.
|
|
6.8
|
The
execution and delivery by the
Company of, and the performance by the Company of its respective
obligations under this Agreement will not contravene any provision
of law
known by the Company to be applicable to it, or the charter documents
of,
the Company or any subsidiary of the Company, or any judgment, order
or
decree of any governmental body, agency or court having jurisdiction
over
the Company or any subsidiary of the Company and no consent, approval,
authorization or order of, or qualification with, any governmental
body or
agency is required for the performance by the Company of its obligations
under this Agreement in accordance with the terms of this
Agreement.
|
|
6.9
|
There
is no material litigation or
governmental proceeding pending, or to the knowledge of the Company,
threatened against, or involving the property or the business of
the
Company, or, to the best knowledge of the Company which would adversely
affect the condition (financial or otherwise), business, prospects
or
results of operations of the Company, taken as a
whole.
|
|
6.10
|
The
foregoing representations,
warranties and agreements shall survive the
Closing.
|
7.
|
MISCELLANEOUS.
|
-4-
|
7.
1
|
Modification
.. Neither
this Agreement nor any
provisions hereof shall be modified, discharged or terminated except
by an
instrument in writing signed by the party against whom any waiver,
change,
discharge or termination is
sought.
|
|
7.2
|
Notices. Any
notice,
demand or other communication which any party hereto may be required,
or
may elect, to give to anyone interested hereunder shall be sufficiently
given if (a) deposited, postage prepaid, in a United States mail
letter
box, registered or certified mail, return receipt requested, addressed
to
such address as may be given herein, or (b) delivered personally
at such
address.
|
|
7.3
|
Counterparts.
This Agreement may be executed
through the use of separate signature pages or in any number of
counterparts, and each of such counterparts shall, for all purposes,
constitute one agreement binding on all the parties, notwithstanding
that
all parties are not signatories to the same
counterpart.
|
|
7.4
|
Binding
Effect. Except as
otherwise provided herein, this Agreement shall be binding upon and
inure
to the benefit of the parties and their heirs, executors, administrators,
successors, legal representatives and assigns. If the undersigned
is more
than one person, the obligation of the Investor 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 heirs, executors, administrators
and
successors.
|
|
7.5
|
Entire
Agreement. This
instrument contains the entire agreement of the parties, and there
are no
representations, covenants or other agreements except as stated or
referred to herein.
|
|
7.6
|
Assignability.
This Agreement is not
transferable or assignable by the Investor except as may be provided
herein.
|
|
7.7
|
Applicable
Law.
|
|
(a)
|
It
is the intention of the parties
that the laws of the State of Arizona shall govern the validity of
this
Agreement, the construction of its terms and the interpretation of
the
rights and duties of the
parties.
|
|
(b)
|
In
the case of any dispute,
question, controversy or claim arising among the parties hereto
which
shall arise out of or in connection with this Agreement, the
same shall be
submitted to arbitration before a panel of three arbitrators
in Gilbert,
Arizona, in accordance with the rules of the American Arbitration
Association. One arbitrator shall be appointed by the party or
parties
bringing the claims ("Claimant") and one arbitrator shall be
appointed by
the party or parties defending the claim ("Respondent"). The
arbitrators
selected by such parties shall be selected within thirty (30)
days after
notification by the Claimant to the Respondent that it has determined
to
submit such dispute, question, controversy or claim to arbitration.
The
two arbitrators so selected shall select a third arbitrator within
thirty
(30) days after the selection of the arbitrator selected by such
parties.
Should a party fail to select an arbitrator within the specified
time
period, or should the arbitrators selected by the parties fail
to select a
third arbitrator, the missing arbitrator or arbitrators shall
be appointed
by the Gilbert, Arizona office of the American Arbitration Association.
The decision of the panel shall be final and binding on the parties
and
enforceable in any court of competent jurisdiction. The costs
of the
arbitration will be imposed upon the Claimant and Respondent
as determined
by the arbitration panel or, failing such determination, will
be borne
equally by the Claimant and the Respondent. The successful or
prevailing
party or parties shall be entitled to recover reasonable attorneys
fees in
addition to any other relief to which it may be
entitled.
|
-5-
|
(c)
|
In
the event of any dispute,
question, controversy or claim arising among the parties hereto which
shall arise out of or in connection with this Agreement, the parties
shall
keep the proceeding related to such controversy in strict confidence
and
shall not disclose the nature of said dispute, the status of the
proceeding or any testimony, documents or information obtained or
exchanged in the course of said proceeding without the express written
consent of all parties to such dispute.
|
8.
EXECUTION.
|
8.1
|
Subscriber.
The Investor has executed this
Subscription Agreement on this ____ day of ____________,
2006.
|
Number
of Shares of Stock to be
purchased at $.20 per share:
Total
Purchase Price: $
8.2
The
Company.
Accepted
this _________ day of
________________, 2006.
Universal
Tracking Solutions,
Inc.
By:
______________________________
Xxxxx
Xxxxx, CEO
The
undersigned hereby subscribes for
____________ shares of Stock, and agrees to pay herewith funds in the amount
of
____________________________U.S. Dollars ($________________
U.S.).
The
undersigned acknowledges that this
subscription shall not be effective unless accepted by the Company as indicated
below.
Dated
this _____ day of
________________, 2006.
Delivery
Instructions: Please
print the address to which you want your securities delivered
to
|
|
(Signature)
|
|
Attn:
|
|
Name:
Please
Print
|
|
Name
of
Addressee
|
|
Title/Representative
Capacity
|
|
Street
Address
|
|
Name
of Company You
Represent
|
|
City,
State Zip
Code
|
|
Place
of
Execution
|
|
Phone
Number (For Overnight
Packages)
|
|
REGISTERED
HOLDER:
|
|
Email
Address
|
|
Exact
Name You Want the Security
to be Registered to (Please Print Exact Registered
Name)
|
|
Social
Security or Tax ID Number
of Subscriber
|
-6-
CONFIDENTIAL
INVESTOR
QUESTIONNAIRE
In
accordance with Section 3 of the
Subscription Agreement, please answer the following questions by placing an
(X)
in the spaces provided below.
Accredited
Investor “ Status”. I am:
____(1)
|
A
natural person whose individual
net worth, or joint net worth will
spouse, exceeds
$1,000,000;
|
____(2)
|
A
natural person who had an
individual income over $200,000 in each of 2004 and 2005 or joint
income
with spouse over $300,000 in each of those years and has a reasonable
expectation of reaching the same income level in
2006.
|
____(3)
|
Any
bank as defined in Section 3
(a) (2) of the Security Act, or any savings and loan association
or other
institution as defined in Section 3(a) (5) (A) of the Securities
Act,
whether acting in its individual or fiduciary capacity; any broker
or
dealer registered pursuant to Section 15 of the Security Exchange
Act of
1934, as amended; and insurance company as defined in Section 2(13)
of the
Security Act; any investment company registered under the Investment
Company Act of 1940, as amended ( the “Investment Company “Act”) or a
business development company as defined in Section 2(a) (48) of the
Investment Company Act; and Small Business Investment Company under
Section 301(c) or (d) of the Small Investment Act of 1958, as amended;
any
plan established and maintained by a state, its political subdivision
or
any agency or instrumentality of a state or its subdivision for the
benefit of its employment, if such plan has total assets in excess
of
$5,000,000; any employee benefit plan within the meaning of ERISA,
if the
investment decision is made by a plan fiduciary, as defined in Section
3(21) of ERISA, which plan fiduciary is a bank, savings and loan
association, insurance company or registered investment advisor under
the
Investment Advisers Act of 1940, as amended ( the “Advisers Act”), or if
the employee benefit plan has total assets in excess of $5,000,000,
or if
a self-directed plan, with investment decisions made solely by person
that
are Accredited Investors;
|
____(4)
|
Any
private business development
company as defined in Section 202 (a) (22) of the Advisors
Act;
|
____(5)
|
Any
organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
or any
corporation, Massachusetts or similar business trust or partnership,
not
formed for the specific purpose of acquiring the Common Stock offered,
with total assets in excess of
$5,000,000;
|
____(6)
|
Any
trust with total assets in
excess of $5,000,000 not formed for the specific purpose of acquiring
the
Common Stock, whose purchase is directed by a sophisticated person
as
described in Rule 506(b)(2)(ii) of Regulation D promulgated under
the
Securities Act;
|
____(7)
|
Any
entity in which all of the
equity owners are Accredited
Investors;
|
____(8)
|
None
of the
above.
|
-7-
As
used herein, the term ‘net worth’
means the excess of the total assets over total liabilities. In
calculating, “net worth’ the value of a principal residence must be valued at
cost or at a written appraised value used by an institutional lender to make
a
loan secured by the property. In determining income, a subscriber
should add to such subscriber’s adjusted gross income any amounts attributable
to tax exempt income received, losses claimed as a limited partner in any
limited partnership, deductions claimed for depletion contributions to an XXX
or
XXXXX retirement plan, alimony payments and any amounts by which income from
long-term capital gains has been reduced in arriving at adjusted gross
income.
Investment
Company Act.
|
(1)
|
Indicate
below whether the
undersigned is an investment company, as defined in the Investment
Company
Act.
|
_______Yes.
_______
No.
|
(2)
|
Indicate
below whether the
undersigned is a corporation, partnership, trust or other form of
business
entity.
|
_________
Yes ( Indicate type of
entity:______________________)
_________
No
|
(3)
|
If
the answer to the question
posed in paragraph (2) is yes, indicate below whether the undersigned
is
subscribing for more than ten percent (10%) of the Common Stock being
offered (i.e., more than 1,000,000 shares of Common
Stock).
|
________
Yes (Indicate number of common
shares for which the undersigned is subscribing:
___________________)
________
No
|
(4)
|
If
the answers to each of the
questions posed in paragraphs (2) and (3) are yes, indicate below
the
value of all securities owned by the undersigned (including the common
stock subscribed for hereby) of Closely Held Investment Companies
(defined
below), the value of the total assets of the undersigned, and the
percentage that the former number represents of the latter
number.
|
Value
of Securities of Closely Held
Investment
Companies:
$_________________
Value
of the Total Assets of the
Undersigned:
Percentage:
_________%
-8-
“Closely
Held Investment Companies”
means all issuers (including the Company) that are excluded from the definition
of “investment company” under the Investment Company Act solely by paragraph
3(c) (1) of such Act (applicable to issuers with not more than 100 beneficial
owners), or would be excluded but for subparagraph (A) thereof (which in certain
cases, imputes beneficial ownership by an entity to such entity’s beneficial
owners).
|
(5)
|
If
the percentage set forth in
paragraph (4) exceeds ten percent (10%) indicate below the number
of
beneficial owners of the securities of the
undersigned.
|
No.
of Beneficial Owners:
____________________
Investment
experience.
(A)
Please indicate the frequency
of
your investment in marketable securities.
Often
____________; Occasionally
___________
Seldom
___________; Never
____________.
(B)
Please indicate the frequency
of
your investment in unmarketable securities.
Often
___________; More than Once
_____________; Never
Purchase
Representative.
I
have ________ have not________ (check
one) anyone to serve as my Purchaser Representative to assist or advise me
in
connection with evaluating the risks and merits of the prospective
investment.
By
signing this Questionnaire, I hereby
confirm the following statements:
|
1.
|
I
acknowledge on behalf of the
subscriber that any delivery to such subscriber of the Subscription
Agreement relating to the Common Stock prior to the determination
by the
Company of the suitability of the subscriber as an investor shall
not
constitute any offer of Common Stock until such determination of
suitability is made.
|
|
2.
|
In
order to induce the Company to
issue and sell the Common Stock to the undersigned, I represent and
warrant on behalf of the subscriber that the information stated herein
is
true and complete as of the date hereof and will be true and complete
as
of the date that the Subscription Agreement is accepted by the Company
and
so of the date that the subscriber’s purchase of the Common Stock becomes
effective. If, prior to the final consummation of the offer and
sale of the Common Stock, there should be any change in such information
or any of such information becomes incomplete or incorrect the subscriber
agrees to notify and supply corrective information to the
Company.
|
______________________________
____________________________
Print
Name of Subscriber
(s) Authorized
Signature
Date
Executed:
_____________________
-9-