SUBSCRIPTION AGREEMENT
To:
|
Customer
Acquisition Network, Inc.
|
000
Xxxx
Xxx Xxxx Xxxxxxxxx, Xxxxx 0000
Xxxx
Xxxxxxxxxx, XX 00000
Attn:
Xxxxxxx Xxxxxxx, President
This
Subscription Agreement (this “Agreement”)
is
being delivered to the purchaser identified on the signature page to this
Agreement (the “Subscriber”)
in
connection with its investment in Customer Acquisition Network, Inc., a Delaware
corporation (the “Company”).
The
Company is conducting a private placement (the “Offering”)
of up
to 3,000,000 shares of common stock (the “Shares”),
or
$3,000,000, at a purchase price of $1.00 per Share.
1. SUBSCRIPTION
AND PURCHASE PRICE
(a) Subscription.
Subject
to the conditions set forth in Section 2 hereof, the Subscriber hereby
subscribes for and agrees to purchase the number of Shares indicated on page
8
hereof on the terms and conditions described herein.
(b) Purchase
of Shares.
The
Subscriber understands and acknowledges that the purchase price to be remitted
to the Company in exchange for the Shares shall be set at $1.00 per Share,
for
an aggregate purchase price as set forth on page 8 hereof (the “Aggregate
Purchase Price”).
The
Subscriber’s delivery of this Agreement to the Company shall be accompanied by
payment for the Shares subscribed for hereunder, payable in United States
Dollars, by wire transfer of immediately available funds delivered
contemporaneously with the Subscriber’s delivery of this Agreement to the
Company in accordance with the instructions provided on Exhibit
A.
The
Subscriber understands and agrees that, subject to Section 2 and applicable
laws, by executing this Agreement, it is entering into a binding
agreement.
2. ACCEPTANCE,
OFFERING TERM AND CLOSING PROCEDURES
(a) Acceptance
or Rejection.
The
obligation of the Subscriber to purchase the Shares shall be irrevocable, and
the Subscriber shall be legally bound to purchase the Shares subject to the
terms set forth in this Agreement. The Subscriber understands and agrees that
the Company reserves the right to reject this subscription for Shares in whole
or part in any order at any time prior to the Closing for any reason,
notwithstanding the Subscriber’s prior receipt of notice of acceptance of the
Subscriber’s subscription. In the event of rejection of this subscription by the
Company in accordance with this Section 2, or if the sale of the Shares is
not
consummated by the Company for any reason, this Agreement and any other
agreement entered into between the Subscriber and the Company relating to this
subscription shall thereafter have no force or effect, and the Company shall
promptly return or cause to be returned to the Subscriber the purchase price
remitted to the Company, without interest thereon or deduction
therefrom.
(b) Offering
Term.
The
subscription period for the Offering will begin as of June 29, 2007, and will
terminate upon the occurrence of the earlier of (i) August 10, 2007 or (ii)
the
Company’s decision to terminate the Offering sooner.
(c) Closing.
The
closing of the Offering (the “Closing”)
shall
take place at the offices of Xxxxxx and Xxxxx, LLP, counsel to the Company,
located at 000 Xxxx 00xx
Xxxxxx,
Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000 or such other place as determined by the
Company. The Closing shall take place on a Business Day promptly following
the
satisfaction of the conditions set forth in Section 6 below, as determined
by
the Company. “Business
Day”
shall
mean from the hours of 9:00 a.m. (Eastern Time) through 5:00 p.m. (Eastern
Time)
of a day other than a Saturday, Sunday or other day on which commercial banks
in
New York, New York are authorized or required to be closed. The Shares purchased
by the Subscriber will be delivered by the Company promptly following the
Closing.
(d) Acceptance
or Rejection.
The
Subscriber acknowledges and agrees that this Agreement and any other documents
delivered in connection herewith will be held by the Company. In the event
that
this Agreement is not accepted by the Company for whatever reason, which the
Company expressly reserves the right to do, this Agreement, the Aggregate
Purchase Price received (without interest thereon) and any other documents
delivered in connection herewith will be returned to the Subscriber at the
address of the Subscriber as set forth in this Agreement. If this Agreement
is
accepted by the Company, the Company is entitled to treat the Aggregate Purchase
Price received as an interest free loan to the Company until such time as the
subscription is accepted.
3. THE
SUBSCRIBER’S REPRESENTATIONS, WARRANTIES AND COVENANTS
The
Subscriber hereby acknowledges, agrees with and represents, warrants and
covenants to the Company, as follows:
(a) The
Subscriber has full power and authority to enter into this Agreement, the
execution and delivery of which has been duly authorized, if applicable, and
this Agreement constitutes a valid and legally binding obligation of the
Subscriber.
(b) The
Subscriber acknowledges its understanding that the Offering and sale of the
Shares is intended to be exempt from registration under the Securities Act
of
1933, as amended (the “Securities
Act”),
by
virtue of Section 4(2) of the Securities Act and the provisions of Regulation
D
promulgated thereunder (“Regulation
D”).
In
furtherance thereof, the Subscriber represents and warrants to the Company
and
its affiliates as follows:
(i) The
Subscriber realizes that the basis for the exemption from registration may
not
be available if, notwithstanding the Subscriber’s representations contained
herein, the Subscriber is merely acquiring the Shares for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise. The Subscriber does not have any such
intention.
(ii) The
Subscriber realizes that the basis for exemption would not be available if
the
Offering is part of a plan or scheme to evade registration provisions of the
Securities Act or any applicable state or federal securities laws.
(iii) The
Subscriber is acquiring the Shares solely for the Subscriber’s own beneficial
account, for investment purposes, and not with a view towards, or resale in
connection with, any distribution of the Shares.
(iv) The
Subscriber has the financial ability to bear the economic risk of the
Subscriber’s investment, has adequate means for providing for its current needs
and contingencies, and has no need for liquidity with respect to an investment
in the Company.
(v) The
Subscriber and the Subscriber’s attorney, accountant, purchaser representative
and/or tax advisor, if any (collectively, the “Advisors”)
has
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of a prospective investment in the Shares.
If
other than an individual, the Subscriber also represents it has not been
organized solely for the purpose of acquiring the Shares.
(vi) The
Subscriber (together with its Advisors, if any) has received all documents
requested by the Subscriber, if any, has carefully reviewed them and understands
the information contained therein, prior to the execution of this
Agreement.
(c) The
Subscriber is not relying on the Company or any of its employees, agents,
sub-agents or advisors with respect to economic considerations involved in
this
investment. The Subscriber has relied on the advice of, or has consulted with,
only its Advisors. Each Advisor, if any, is capable of evaluating the merits
and
risks of an investment in the Shares, and each Advisor, if any, has disclosed
to
the Subscriber 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 the Advisor and the Company or any affiliate or sub-agent
thereof.
(d) The
Subscriber represents, warrants and agrees that the Subscriber will not sell
or
otherwise transfer any Shares without registration under the Securities Act
or
an exemption therefrom, and fully understands and agrees that the Subscriber
must bear the economic risk of its purchase because, among other reasons, the
Shares have not been registered under the Securities Act or under the securities
laws of any state and, therefore, cannot be resold, pledged, assigned or
otherwise disposed of unless they are subsequently registered under the
Securities Act and under the applicable securities laws of such states, or
an
exemption from such registration is available. In particular, the Subscriber
is
aware that the Shares are “restricted securities,” as such term is defined in
Rule 144 promulgated under the Securities Act (“Rule
144”),
and
they may not be sold pursuant to Rule 144 unless all of the conditions of Rule
144 are met. The Subscriber also understands that the Company is under no
obligation to register the Shares on behalf of the Subscriber or to assist
the
Subscriber in complying with any exemption from registration under the
Securities Act or applicable state securities laws. The Subscriber understands
that any sales or transfers of the Shares are further restricted by state
securities laws and the provisions of this Agreement.
-2-
(e) No
oral
or written representations or warranties have been made to the Subscriber by
the
Company or any of its officers, employees, agents, sub-agents, affiliates,
advisors or subsidiaries, other than any representations of the Company
contained herein, and in subscribing for the Shares, the Subscriber is not
relying upon any representations other than those contained herein.
(f) The
Subscriber understands and acknowledges that following the Closing the Company
intends to consummate a reverse merger with a publicly traded company
(“Pubco”),
pursuant to which Pubco shall acquire all of the outstanding capital stock
of
the Company and succeed to the business of the Company as its sole line of
business (the “Merger”).
(g) The
Subscriber understands and acknowledges that its purchase of the Shares is
a
speculative investment that involves a high degree of risk and the potential
loss of the Subscriber’s entire investment and, in particular, acknowledges that
the Company has a limited operating history and is engaged in a highly
competitive business.
(h) The
Subscriber’s overall commitment to investments that are not readily marketable
is not disproportionate to the Subscriber’s net worth, and an investment in the
Shares will not cause such overall commitment to become excessive.
(i) The
Subscriber understands and agrees that the certificates for the Shares shall
bear substantially the following legend until (i) such Shares shall have been
registered under the Securities Act and effectively disposed of in accordance
with a registration statement that has been declared effective or (ii) in the
opinion of counsel for the Company, such Shares may be sold without registration
under the Securities Act, as well as any applicable “blue sky” or state
securities laws:
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS. SUCH SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT
PURPOSES AND MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FILED BY THE ISSUER WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION
COVERING SUCH SECURITIES UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.
(j) Neither
the Securities and Exchange Commission (the “SEC”)
nor
any state securities commission has approved the Shares or passed upon or
endorsed the merits of the Offering. There is no government or other insurance
covering any of the Shares.
(k) The
Subscriber and its Advisors, if any, have had a reasonable opportunity to ask
questions of and receive answers from a person or persons acting on behalf
of
the Company concerning the Offering and the business, financial condition,
results of operations and prospects of the Company, and all such questions
have
been answered to the full satisfaction of the Subscriber and its Advisors,
if
any.
(l) 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
general advertising including, without limitation, any article, notice,
advertisement or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio, or electronic mail over
the
Internet, in connection with the Offering and is not subscribing for Shares
and
did not become aware of the Offering through or as a result of any seminar
or
meeting to which the Subscriber was invited by, or any solicitation of a
subscription by, a person not previously known to the Subscriber in connection
with investments in securities generally.
-3-
(m) The
Subscriber has taken no action that would give rise to any claim by any person
for brokerage commissions, finders’ fees or the like relating to this Agreement
or the transactions contemplated hereby.
(n) The
Subscriber is not relying on the Company or any of its employees, agents, or
advisors with respect to the legal, tax, economic and related considerations
of
an investment in the Shares, and the Subscriber has relied on the advice of,
or
has consulted with, only its own Advisors.
(o) The
Subscriber acknowledges that any estimates or forward-looking statements or
projections furnished by the Company to the Subscriber were prepared by the
management of the Company in good faith, but that the attainment of any such
projections, estimates or forward-looking statements cannot be guaranteed by
the
Company or its management and should not be relied upon.
(p) No
oral
or written representations have been made, or oral or written information
furnished, to the Subscriber or its Advisors, if any, in connection with the
Offering that are in any way inconsistent with the information contained
herein.
(q) (For
ERISA plans only) The fiduciary of the ERISA plan (the “Plan”)
represents that such fiduciary has been informed of and understands the
Company’s investment objectives, policies and strategies, and that the decision
to invest “plan assets” (as such term is defined in ERISA) in the Company is
consistent with the provisions of ERISA that require diversification of plan
assets and impose other fiduciary responsibilities. The Subscriber or Plan
fiduciary (i) is responsible for the decision to invest in the Company; (ii)
is
independent of the Company and any of its affiliates; (iii) is qualified to
make
such investment decision; and (iv) in making such decision, the Subscriber
or
Plan fiduciary has not relied primarily on any advice or recommendation of
the
Company or any of its affiliates.
(r) This
Agreement is not enforceable by the Subscriber unless it has been accepted
by
the Company, and the Subscriber acknowledges and agrees that the Company
reserves the right to reject any subscription for any reason.
(s) The
Subscriber will indemnify and hold harmless the Company and, where applicable,
its directors, officers, employees, agents, advisors, affiliates and
stockholders, and each other person, if any, who controls any of the foregoing
from and against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all fees, costs and expenses
whatsoever reasonably incurred in investigating, preparing or defending against
any claim, lawsuit, administrative proceeding or investigation whether commenced
or threatened) (a “Loss”)
arising out of or based upon any representation or warranty of the Subscriber
contained herein or in any document furnished by the Subscriber to the Company
in connection herewith being untrue in any material respect or any breach or
failure by the Subscriber to comply with any covenant or agreement made by
the
Subscriber herein or therein.
(t) The
Subscriber is, and on each date on which the Subscriber continues to own
restricted securities from the Offering, will be an “Accredited Investor” as
defined in Rule 501(a) under the Securities Act. In general, an “Accredited
Investor” is deemed to be an institution with assets in excess of $5,000,000 or
individuals with net worth in excess of $1,000,000 or annual income exceeding
$200,0000 or $300,000 jointly with his or her spouse.
(u) The
Subscriber, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters
so as
to be capable of evaluating the merits and risks of the Offering, and has so
evaluated the merits and risks of such investment. The Subscriber has not
authorized any person or entity to act as its Purchaser Representative (as
that
term is defined in Regulation D of the General Rules and Regulations under
the
Securities Act) in connection with the Offering. The Subscriber is able to
bear
the economic risk of an investment in the Shares and, at the present time,
is
able to afford a complete loss of such investment.
(v) The
foregoing representations, warranties and agreements shall survive the
Closing.
4. THE
COMPANY’S REPRESENTATIONS, WARRANTIES AND COVENANTS
The
Company hereby acknowledges, agrees with and represents, warrants and covenants
to the Subscriber, as follows:
(a) The
Company has the corporate power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement has been
duly
authorized, executed and delivered by the Company and is valid, binding and
enforceable against the Company in accordance with its terms.
-4-
(b) The
Shares to be issued to the Subscriber pursuant to this Agreement, when issued
and delivered in accordance with the terms of this Agreement, will be duly
and
validly issued and will be fully paid and non-assessable.
(c) Neither
the execution and delivery nor the performance of this Agreement by the Company
will conflict with the Company’s organizational materials, as amended to date,
or result in a breach of any terms or provisions of, or constitute a default
under, any material contract, agreement or instrument to which the Company
is a
party or by which the Company is bound.
(d) After
giving effect to the transactions contemplated by this Agreement and immediately
after the Merger, the Company will have approximately the outstanding capital
stock as set forth on Exhibit
B
attached
hereto.
(e) Any
information furnished by the Company in connection with the Offering is true
and
correct in all material respects as of its date, including, without limitation,
the Business Plan Summary attached hereto as Exhibit
C.
(f) The
Company acknowledges and agrees that the Subscriber is acting solely in the
capacity of an arm’s length purchaser with respect to the Shares and the
transactions contemplated hereby. The Company further acknowledges that the
Subscriber is not acting as a financial advisor or fiduciary of the Company
(or
in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by the Subscriber or any of its
representatives or agents in connection with this Agreement and the transactions
contemplated hereby is merely incidental to the Subscriber’s purchase of the
Shares. The Company further represents to the Subscriber that the Company’s
decision to enter into this Agreement has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its
representatives.
(g) The
Company will indemnify and hold harmless the Subscriber and, where applicable,
its directors, officers, employees, agents, advisors and shareholders, from
and
against any and all loss, liability, claim, damage and expense whatsoever
(including, but not limited to, any and all fees, costs and expenses whatsoever
reasonably incurred in investigating, preparing or defending against any claim,
lawsuit, administrative proceeding or investigation whether commenced or
threatened) arising out of or based upon any representation or warranty of
the
Company contained herein or in any document furnished by the Company to the
Subscriber in connection herewith being untrue in any material respect or any
breach or failure by the Company to comply with any covenant or agreement made
by the Company to the Subscriber in connection therewith.
(h) The
foregoing representations, warranties and agreements shall survive the
Closing.
5. USE
OF PROCEEDS
The
Company anticipates using the gross proceeds from the Offering as provided
on
Exhibit
D
hereto.
6. CONDITIONS
TO ACCEPTANCE OF SUBSCRIPTION
The
Company’s right to accept the subscription of the Subscriber is conditioned upon
satisfaction of the following conditions precedent on or before the date the
Company accepts such subscription:
(a) As
of the
Closing, no legal action, suit or proceeding shall be pending that seeks to
restrain or prohibit the transactions contemplated by this
Agreement.
(b) The
representations and warranties of the Company contained in this Agreement shall
have been true and correct on the date of this Agreement and shall be true
and
correct as of the Closing as if made on the date of the Closing.
-5-
7. NOTICES
TO THE SUBSCRIBER
(a) THE
SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OR THE SECURITIES
LAWS
OF ANY STATE AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM
THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SHARES HAVE
NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION
OR
OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED
UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF
ANY
INFORMATION FURNISHED IN CONNECTION WITH THIS OFFERING. ANY REPRESENTATION
TO
THE CONTRARY IS UNLAWFUL.
(b) THE
SHARES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT
BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT, AND
APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE SUBSCRIBER SHOULD BE AWARE THAT IT MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF
TIME.
8.
REVERSE
MERGER POWER OF ATTORNEY
The
Subscriber understands that the Company plans to enter into the Merger. The
Merger, if consummated, will result in the exchange of the Shares that are
owned
by the Subscriber for shares of the common stock of Pubco (the “Share
Exchange”).
The
Subscriber understands that the Company has conditioned the Company’s acceptance
of the Subscriber’s subscription to purchase the Shares upon its willingness to
agree to the Merger and the Share Exchange. Therefore, the Subscriber hereby
authorizes and empowers the Company’s Chief Executive Officer and Chief
Financial Officer, and each of them, to act as the Subscriber’s attorneys and
proxies for the purpose of (a) exchanging the Shares for shares of Pubco’s
common stock at the same ratio that all other Company stockholders exchange
their equity securities for shares of Pubco’s common stock, (b) executing and
delivering such documentation and taking such other actions as may be required
to effect the Merger and taking any actions as may be necessary to effectuate
the Share Exchange, including but not limited to, instructing the transfer
agent
to cancel the Shares and executing, on behalf of the Subscriber, such documents
as may be necessary to effectuate the exchange if the Subscriber fails to
deliver the stock certificate for cancellation, or fails to execute any other
documentation required to effectuate the exchange, within 15 days after the
expiration of the Share Exchange and (c) voting in favor of the adoption,
approval, execution and delivery by the Company of such agreements, contracts
and documents (including, but not limited to, any amendment to the Company’s
organizational materials, if required) and the taking of any other actions
requiring stockholder approval as may be required or deemed appropriate by
the
Company’s Chief Executive Officer to consummate the Merger and related Share
Exchange.
9.
MISCELLANEOUS
PROVISIONS
(a) All
parties hereto have been represented by counsel, and no inference shall be
drawn
in favor of or against any party by virtue of the fact that such party’s counsel
was or was not the principal draftsman of this Agreement.
(b) Each
of
the parties hereto shall be responsible to pay the costs and expenses of its
own
legal counsel in connection with the preparation and review of this Agreement
and related documentation.
(c) Neither
this Agreement, nor any provisions hereof, shall be waived, modified, discharged
or terminated except by an instrument in writing signed by the party against
whom any waiver, modification, discharge or termination is sought.
(d) The
representations, warranties and agreement of the Subscriber and the Company
made
in this Agreement shall survive the execution and delivery of this Agreement
and
the delivery of the Shares.
(e) Any
party
may send any notice, request, demand, claim or other communication hereunder
to
the Subscriber at the address set forth on the signature page of this Agreement
or to the Company at the address set forth above using any means (including
personal delivery, expedited courier, messenger service, fax, ordinary mail
or
electronic mail), but no such notice, request, demand, claim or other
communication will be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any party may change the address
to which notices, requests, demands, claims and other communications hereunder
are to be delivered by giving the other parties written notice in the manner
herein set forth.
-6-
(f) Except
as
otherwise provided herein, this Agreement shall be binding upon, and inure
to
the benefit of, the parties to this Agreement and their heirs, executors,
administrators, successors, legal representatives and assigns. If the Subscriber
is more than one person or entity, the obligation of the Subscriber shall be
joint and several and the agreements, representations, warranties and
acknowledgments contained herein shall be deemed to be made by, and be binding
upon, each such person or entity and its heirs, executors, administrators,
successors, legal representatives and assigns. This Agreement sets forth the
entire agreement and understanding between the parties as to the subject matter
thereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.
(g) This
Agreement is not transferable or assignable by the Subscriber.
(h) This
Agreement shall be governed by and construed in accordance with the laws of
the
State of New York, without giving effect to conflicts of law
principles.
(i) The
Company and the Subscriber hereby agree that any dispute that may arise between
them arising out of or in connection with this Agreement shall be adjudicated
before a court located in New York City, New York, and they hereby submit to
the
exclusive jurisdiction of the federal and state courts of the State of New
York
located in New York City with respect to any action or legal proceeding
commenced by any party, and irrevocably waive any objection they now or
hereafter may have respecting the venue of any such action or proceeding brought
in such a court or respecting the fact that such court is an inconvenient forum,
relating to or arising out of this Agreement or any acts or omissions relating
to the sale of the securities hereunder, and consent to the service of process
in any such action or legal proceeding by means of registered or certified
mail,
return receipt requested, postage prepaid, in care of the address set forth
herein or such other address as either party shall furnish in writing to the
other.
(j) This
Agreement may be executed in two or more counterparts, each of which shall
be
deemed an original, but all of which together shall constitute one and the
same
instrument.
[Signature
Pages Follow]
-7-
ALL
SUBSCRIBERS MUST COMPLETE THIS PAGE
IN
WITNESS WHEREOF, the Subscriber has executed this Agreement on the ____ day
of
____________ 2007.
________________________
|
x
$1.00 for each Share
|
=
$_____________________.
|
||
Shares
subscribed for
|
Aggregate
Purchase Price
|
Manner
in
which Title is to be held (Please Check One):
1.
|
___
|
Individual
|
7.
|
___
|
Trust/Estate/Pension
or Profit sharing Plan
Date
Opened:______________
|
2.
|
___
|
Joint
Tenants with Right of Survivorship
|
8.
|
___
|
As
a Custodian for
________________________________
Under
the Uniform Gift to Minors Act of the State of
________________________________
|
3.
|
___
|
Community
Property
|
9.
|
___
|
Married
with Separate Property
|
4.
|
___
|
Tenants
in Common
|
10.
|
___
|
Xxxxx
|
5.
|
___
|
Corporation/Partnership/
Limited Liability Company
|
11.
|
___
|
Tenants
by the Entirety
|
6.
|
___
|
XXX
|
ALTERNATIVE
DISTRIBUTION INFORMATION
To
direct
distribution to a party other than the registered owner, complete the
information below. YOU MUST COMPLETE THIS SECTION IF THIS IS AN XXX
INVESTMENT.
Name
of
Firm (Bank, Brokerage, Custodian):
Account
Name:
Account
Number:
Representative
Name:
Representative
Phone Number:
Address:
City,
State, Zip:
-8-
IF
MORE
THAN ONE SUBSCRIBER, EACH SUBSCRIBER MUST SIGN.
INDIVIDUAL
SUBSCRIBERS MUST COMPLETE THIS PAGE 9.
SUBSCRIBERS
WHICH ARE ENTITIES MUST COMPLETE PAGE 10.
EXECUTION
BY NATURAL PERSONS
_____________________________________________________________________________
Exact
Name in Which Title is to be Held
|
||
_________________________________
Name
(Please Print)
|
_________________________________
Name
of Additional Purchaser
|
|
_________________________________
Residence:
Number and Street
|
_________________________________
Address
of Additional Purchaser
|
|
_________________________________
City,
State and Zip Code
|
_________________________________
City,
State and Zip Code
|
|
_________________________________
Social
Security Number
|
_________________________________
Social
Security Number
|
|
_________________________________
Telephone
Number
|
_________________________________
Telephone
Number
|
|
_________________________________
Fax
Number (if available)
|
________________________________
Fax
Number (if available)
|
|
_________________________________
E-Mail
(if available)
|
________________________________
E-Mail
(if available)
|
|
__________________________________
(Signature)
|
________________________________
(Signature
of Additional Purchaser)
|
|
ACCEPTED
this ___ day of _________ 2007, on behalf of the
Company.
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||
By: _________________________________
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||
Name:
Title:
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-9-
EXECUTION
BY SUBSCRIBER WHICH IS AN ENTITY
(Corporation,
Partnership, LLC, Trust, Etc.)
_____________________________________________________________________________
Name
of Entity (Please Print)
|
|
Date
of Incorporation or Organization:
|
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State
of Principal Office:
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Federal
Taxpayer Identification Number:
____________________________________________
Office
Address
____________________________________________
City,
State and Zip Code
____________________________________________
Telephone
Number
____________________________________________
Fax
Number (if available)
____________________________________________
E-Mail
(if available)
|
|
By:
_________________________________
Name:
Title:
|
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[seal]
Attest:
_________________________________
(If
Entity is a Corporation)
|
_________________________________
_________________________________
Address
|
ACCEPTED
this ____ day of __________ 2007, on behalf of the
Company.
|
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By:
_________________________________
Name:
Title:
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-10-
INVESTOR
QUESTIONNAIRE
Instructions:
Check all boxes below which correctly describe you.
o |
You
are (i)
a
bank, as defined in Section 3(a)(2) of the Securities Act of 1933,
as
amended (the “Securities
Act”),
(ii)
a
savings and loan association or other institution, as defined in
Section
3(a)(5)(A) of the Securities Act, whether acting in an individual
or
fiduciary capacity, (iii)
a
broker or dealer registered pursuant to Section 15 of the Securities
Exchange Act of 1934, as amended (the “Exchange
Act”),
(iv)
an insurance company as defined in Section 2(13) of the Securities
Act,
(v)
an investment company registered under the Investment Company Act
of 1940,
as amended (the “Investment
Company Act”),
(vi)
a
business development company as defined in Section 2(a)(48) of the
Investment Company Act, (vii)
a
Small Business Investment Company licensed by the U.S. Small Business
Administration under Section 301 (c) or (d) of the Small Business
Investment Act of 1958, as amended, (viii)
a
plan established and maintained by a state, its political subdivisions,
or
an agency or instrumentality of a state or its political subdivisions,
for
the benefit of its employees and you have total assets in excess
of
$5,000,000, or (ix)
an employee benefit plan within the meaning of the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”)
and (1)
the decision that you shall subscribe for and purchase shares of
common
stock of the Company (the “Shares”),
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
registered investment adviser, or (2) you have total assets in excess
of
$5,000,000 and the decision that you shall subscribe for and purchase
the
Shares is made solely by persons or entities that are accredited
investors, as defined in Rule 501 of Regulation D promulgated under
the
Securities Act (“Regulation
D”)
or (3)
you are a self-directed plan and the decision that you shall subscribe
for
and purchase the Shares is made solely by persons or entities that
are
accredited investors.
|
o |
You
are a private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940, as
amended.
|
o |
You
are an organization described in Section 501(c)(3) of the Internal
Revenue
Code of 1986, as amended (the “Code”),
a corporation, Massachusetts or similar business trust or a partnership,
in each case not formed for the specific purpose of making an investment
in the Shares and its underlying securities in excess of
$5,000,000.
|
o |
You
are a director or executive officer of Customer Acquisition Network,
Inc.
|
o |
You
are a natural person whose individual net worth, or joint net worth
with
your spouse, exceeds $1,000,000 at the time of your subscription
for and
purchase of the Shares.
|
o |
You
are a natural person who had an individual income in excess of $200,000
in
each of the two most recent years or joint income with your spouse
in
excess of $300,000 in each of the two most recent years, and who
has a
reasonable expectation of reaching the same income level in the current
year.
|
o |
You
are a trust, with total assets in excess of $5,000,000, not formed
for the
specific purpose of acquiring the Shares and whose subscription for
and
purchase of the Shares is directed by a sophisticated person as described
in Rule 506(b)(2)(ii) of Regulation
D.
|
o |
You
are an entity in which all of the equity owners are persons or entities
described in one of the preceding
paragraphs.
|
-11-
Check
all boxes below which correctly describe you.
With
respect to this investment in the Shares, your:
Investment
Objectives:
|
x
Aggressive Growth
|
x
Speculation
|
|
Risk
Tolerance:
|
o
Low Risk
|
o
Moderate Risk
|
x
High Risk
|
Are
you
associated with a NASD Member Firm? o Yes
o No
Your
initials (purchaser and co-purchaser, if applicable) are required for each
item
below:
____ ____ |
I/We
understand that this investment is not
guaranteed.
|
____ ____ |
I/We
are aware that this investment is not
liquid.
|
____ ____ |
I/We
are sophisticated in financial and business affairs and are able
to evaluate the risks and merits of an investment in this offering.
|
____ ____ |
I/We
confirm that this investment is considered “high risk.” (This type of
investment is considered high risk due to the inherent risks including lack
of liquidity and lack of diversification. Success or failure
of private placements such as this is dependent on the corporate
issuer
of these
securities and is outside the control of the investors. While potential
loss is limited to the amount invested, such
loss is possible.)
|
The
Subscriber hereby represents and warrants that all of its answers to this
Investor Questionnaire are true as of the date of its execution of the
Subscription Agreement pursuant to which it purchased Shares.
___________________________________
Name
of Purchaser [please print]
___________________________________
Signature
of Purchaser (Entities please
provide
signature of Purchaser’s duly
authorized
signatory.)
___________________________________
Name
of Signatory (Entities only)
___________________________________
Title
of Signatory (Entities only)
|
___________________________________
Name
of Co-Purchaser [please print]
___________________________________
Signature
of Co-Purchaser
|
-12-
VERIFICATION
OF INVESTMENT ADVISOR/BROKER
I
state
that I am familiar with the financial affairs and investment objectives of
the
investor named above and reasonably believe that a purchase of the securities
is
a suitable investment for this investor and that the investor, either
individually or together with his or her purchaser representative, understands
the terms of and is able to evaluate the merits of this offering. I
acknowledge:
(a)
|
that
I have reviewed the Subscription Agreement and forms of securities
presented to me, and attachments (if any)
thereto;
|
(b)
|
that
the Subscription Agreement and attachments thereto have been fully
completed and executed by the appropriate party;
and
|
(c)
|
that
the subscription will be deemed received by the Company upon acceptance
of
the Subscription Agreement.
|
Deposit
securities from this offering directly to purchaser’s account? o Yes
o No
If
“Yes,”
please indicate the account number :
_____________________________________
_____________________________________
|
____________________________________
|
Broker/Dealer
|
Account
Executive
|
_____________________________________
|
____________________________________
|
(Name
of Broker/Dealer)
|
(Signature)
|
_____________________________________
|
____________________________________
|
(Street
Address of Broker/Dealer Office)
|
(Print
Name)
|
_____________________________________
|
____________________________________
|
(City
of Broker/Dealer Office) (State) (Zip)
|
(Representative
I.D. Number)
|
|
____________________________________
|
(Telephone
Number of Broker/Dealer Office)
|
(Date)
|
_____________________________________
|
____________________________________
|
(Fax
Number of Broker/Dealer Office)
|
(E-mail
Address of Account
Executive)
|
-13-