INVESTMENT AGREEMENT
October 9, 1996
Investment in Nortech Forest Technologies, Inc.
The undersigned Investor hereby agrees to purchase an investment unit in Nortech
Forest Technologies, Inc. 0000 Xxxx 00xx Xxxxxx, Xx. Xxxxx Xxxx, Xxxxxxxxx 00000
("Nortech" or "Company") and to purchase shares from an Existing Shareholder on
the following terms.
Investment unit consisting of Purchase unit consisting of 284,615 newly issued
shares and warrants common shares of Nortech at $1.30 per share, plus
a three-year warrant to purchase 100,000 common
shares at $1.30 per share. Price for unit: $340,000.
Purchase from Existing Shareholder: Purchase 250,000 common shares from an
Existing Shareholder at $0.01 per share. Price
$2,500. Clean tradable 2-3 days.
Shares outstanding: Nortech represents that as of the date hereof, the
total number of common shares outstanding is
1,065,375.
Convertible notes: Convertible note holders with $190,000
outstanding agree to convert those notes at $1.30
per share for a total of 146,154 shares.
Other shareholder debt: Xxxxx Xxxxxxx, shareholder and former director,
extends his $150,000 note for six months, or until
an additional $500,000 of new equity is obtained
by Nortech.
Registration rights: Nortech agrees to give Investor demand
registration rights upon 90 days notice.
Use of funds: Working capital and operating expenses to
support the Company's growth following the
summary of Use of Funds provided.
Board representation and Nortech agrees that the Investor will have the
inspection rights right to designate one individual to serve on the
Board of Directors. Investor shall have the right
to inspect the Company's premises at times
convenient to both parties and will receive
monthly financial statements, usually prepared by
the Company.
Closing date: The Investor is prepared to make the investment
pursuant to this Agreement on or before noon of
Monday, October 14, 1996.
The terms of this Agreement shall remain confidential except to Nortech's
directors, officers and advisors. The terms hereof shall be interpreted
according to the laws of the State of Minnesota.
AGREED AND ACCEPTED
NORTECH FOREST TECHNOLOGIES, INC. INVESTOR
By Signature
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Xxxxxx de Petra, Chief Executive Officer
Name
Printed Xxxxxxx Xxxxxxx
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Date: October 10, 1996 Date 10/10/96
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EXISTING SHAREHOLDER
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Name printed Xxxxxx X. Xxxxxxxxxx
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Date 10/10/96
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