REGULATION S STOCK PURCHASE AGREEMENT
Exhibit
10.09
This
Regulation S Stock Purchase Agreement is executed in reliance upon the
transaction exemption afforded by Regulation S ("Regulation S") as promulgated
by the Securities and Exchange Commission ("SEC"), under the Securities Act of
1933, as amended ("1933 Act").
This
Agreement has been executed by the undersigned in connection with the private
placement of shares of the Common Stock (hereinafter referred to as the
"Shares") of DigitalPost Interactive, Inc., a Nevada corporation (OTCBB Symbol:
DGLP.OB), (hereinafter referred to as the "Seller"), Imini Enterprises
Corporation, a Panamanian company, a resident of a non USA Jurisdiction
(hereinafter referred to as the "Purchaser"), and Regional Settlement
Services, LLC (a Florida Limited Liability Corporation hereinafter
referred to as the “Escrow Agent”) hereby represents and warrants to, and agrees
with the Seller as follows:
1. Agreements to Purchase; Purchase
Price
a.
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The
Seller agrees to sell to the Purchaser in an offshore transaction
negotiated outside the U.S. and to be consummated and closed outside the
U.S. and, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this
Agreement, the Purchaser agrees to purchase, subject to the conditions
hereinafter set forth, from the Seller up to One Million ($1,000,000)
dollars worth of common shares (the “Shares”) of the Company at a per
share purchase price (the “Purchase Price”) equal to forty percent (40%)
of the previous day’s last trade price (the “Closing Price”), as traded on
the OTCBB, adjusted as the Closing Price changes from time to time, and
subject to the conditions set forth below. Notwithstanding the foregoing,
if the Closing Price is less than $.40 per share, then the Seller has the
right to sell only part of the Shares or not sell any of the
Shares.
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b.
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Closing;
Payment. The transaction will be closed in an offshore
transaction, and the Purchaser will pay the Purchase Price in US Dollars
to the account of the Escrow Agent designated by the Purchaser for this
purpose. Purchaser shall initiate the closing process for each purchase by
sending or faxing a written purchase notice to Seller at the address set
forth below (the “Purchase Notice”). The Purchase Notice shall
set forth the number of Shares to be purchased and the total consideration
to be paid in accordance with Purchase Price formula described in 1.a
above (the “Closing”). The Company will deliver a stock certificate
representing such Shares in the name of Purchaser (collectively
“Certificate”) to the Escrow Agent within seven (7) days of payment
received by Seller.
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c.
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Form of Payment;
Escrow. Purchaser shall cause the payment of the
Purchase Price by delivering good and immediately available funds in
United States Dollars to the escrow trust account of a designated bank
account for credit to the account of Seller as set forth herein. The
Escrow Agent will complete the closing process by wiring the Purchase
Price to the designated bank account of the Seller. The seller will
deliver a certificate within seven (7) days of
payment.
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d.
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Delivery
of Purchase Notice; Term. A Purchase
Notice may be for all or a part of the Purchase Price described in 1.a
above. Purchaser may deliver more than one Purchase Notice,
provided, however, that the number of shares purchased pursuant to all
Purchase Notices shall not exceed One Million ($1,000,000) as described in
1a. above. Purchaser shall have to and until December 31, 2008 (the
“Termination Date”) to deliver one or more Purchase Notices to the Company
at which time this Agreement shall terminate, unless extended in writing
by the parties. Purchaser understands and agrees that the
Company, in its sole discretion, may terminate this Agreement by providing
Purchaser with a written notice thirty (30) days prior to the desired
termination date. In the event this Agreement is terminated prior to the
Termination Date, company agrees to honor all sales made prior to the
Termination Date.
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e.
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Covenant
of Best Efforts. The Purchaser agrees to use its best
efforts to purchase up to $1,000,000 dollars of shares between the date
hereof and
December 31, 2008. Purchaser shall only be liable to purchase
the number of Shares set forth in each Purchase
Notice.
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2. Purchaser Representations:
Access to Information;
Independent Investigation
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a.
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Offshore
Transaction. Purchaser represents and warrants to Seller as
follows:
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(i)
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Purchaser
is not a U.S. person as that term is defined under Regulation
S;
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(ii)
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At
the time the buy order was originated, Purchaser was outside the United
States and is outside of the United States as of the date of the execution
and delivery of this Agreement;
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(iii)
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Purchaser
is purchasing the Shares for its own account and not on behalf of any U.S.
person, and the sale has not been pre-arranged with a purchaser in the
United States;
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(iv)
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Purchaser
acknowledges that the purchase of the Shares involves a high degree of
risk and further acknowledges that it can bear the economic risk of the
purchase of the Shares, including the total loss of its
investment.
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(v)
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Purchaser
understands that the Shares are being offered and sold to it in reliance
on specific exemption from the registration requirements of Federal and
State securities laws and that the Seller is relying upon the truth and
accuracy of the representations, warranties, agreements, acknowledgments
and understandings of Purchaser set forth herein in order to determine the
applicability of such exemptions and the suitability of Purchaser to
acquire the Shares.
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b.
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Current Public
Information. Purchaser acknowledges that Purchaser has
been furnished with or has acquired copies of the Company's most recent
financial statement.
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c.
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Independent
Investigation; Access. Purchaser acknowledges that
Purchaser in making the decision to purchase the Shares subscribed for,
has relied upon independent investigations made by it and it's purchaser
representatives, if any and Purchaser and such representatives, if any,
have, prior to any sale to it, been given access and the opportunity to
examine all material books and records of the Corporation, all material
contracts and documents relating to this offering and an opportunity to
ask questions of, and to receive answers from Seller or any person acting
on its behalf concerning the terms and conditions of this
offering. Purchaser and its advisors, if any, have been
furnished with access to all publicly available materials relating to the
business, finances and operation of the Seller and materials relating to
the offer and sale of the Shares, which have been
requested. Purchaser and its advisors, of any, have received
complete and satisfactory answers to any such
inquiries.
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d.
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No Government
Recommendation or Approval. Purchaser understands that
no federal or state agency has passed on or made any recommendation or
endorsement of the Shares.
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e.
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Sophistication and
Knowledge. The Purchaser and/or its representatives has such
knowledge and experience in financial and business matters that it can
represent itself and is capable of evaluating the merits and risks of the
purchase of the Shares. The Purchaser is not relying on the
Company with respect to the tax and other economic considerations of an
investment in the Shares, and the Purchaser has relied on the advice of,
or has consulted with, only the Purchaser’s own advisor(s). The Purchaser
represents that it has not been organized for the purpose of acquiring the
Shares.
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f.
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Lack of
Liquidity. The Purchaser acknowledges that the purchase
of the Shares involves a high degree of risk and further acknowledges that
it can bear the economic risk of the purchase of the Shares, including the
total loss of its investment. The Purchaser acknowledges and
understands that the Shares may not be sold to a U.S. Person (as
hereinafter defined) or into the United States for a period of one (1)
year from the date of purchase, only in accordance with the provisions
provided under Regulation S, and that Purchaser has no present need for
liquidity in connection with its purchase of the
Shares.
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g.
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No Public
Solicitation. The Purchaser is not subscribing for the
Shares 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 television or radio, or presented at any seminar
or meeting, or any solicitation of a subscription by a person not
previously known to the Purchaser in connection with investments in
securities generally. Neither the Company nor the Purchaser nor
any person acting on behalf of either of them has engaged or will engage
in any “Directed Selling Efforts in the U.S.” as defined in Regulation S
promulgated by the SEC pursuant to the Securities Act with respect to the
Shares purchased hereby.
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h.
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Requirements for
Transfer. Purchaser agrees that it will not transfer the
Shares, and the Company shall not be required to transfer the shares on
its books unless the transferee executes a representation letter in a form
reasonably acceptable to the Company. A form certificate of delivery
instructions, that is acceptable, is attached as Exhibit B and by this
reference, is made a part of
herein.
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i.
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Compliance with Local
Laws. The Purchaser will only make offers and sales of
the Shares during the “distribution compliance period” as defined in Rule
902(f) of Regulation S to persons permitted to purchase such Shares in
offshore transactions in reliance upon Regulation S. Further, any such
sale of the Shares in any jurisdiction outside of the United States will
be made in compliance with the securities laws of such
jurisdiction. Purchaser will not offer to sell or sell the
Shares in any jurisdiction unless the Purchaser obtains all required
consents, if any.
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j.
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Regulation S
Exemption. The Purchaser understands that the Shares are
being offered and sold to it in reliance on an exemption from the
registration requirements of United States federal and state securities
laws under Regulation S promulgated under the Securities Act and that the
Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of the
Purchaser set forth herein in order to determine the applicability of such
exemptions and the suitability of the Purchaser to acquire the
Shares. In this regard, the Purchaser represents, warrants and
agrees that:
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a.
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The
Purchaser is not a U.S. Person (as defined below) and is not an affiliate
(as defined in Rule 501(b) under the Securities Act) of the
Company. A U.S. Person means any one of the
following:
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i
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any
natural person resident in the United States of
America;
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ii
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any
partnership or corporation organized or incorporated under the laws of the
United States of America;
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iii
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any
estate of which any executor or administrator is a U.S.
person;
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iv
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any
trust of which any trustee is a U.S.
person;
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v
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any
agency or branch of a foreign entity located in the United States of
America;
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vi
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any
non-discretionary account or similar account (other than an estate or
trust) held by a dealer or other fiduciary for the benefit or account of a
U.S. person;
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vii
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any
discretionary account or similar account (other than an estate or trust)
held by a dealer or other fiduciary organized, incorporated or (if an
individual) resident in the United States of America;
and
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viii
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any
partnership or corporation if:
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1.
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Organized or incorporated under
the laws of any foreign jurisdiction; and formed by a U.S. person
principally for the purpose of investing in securities not registered
under the Securities Act, unless it is organized or incorporated, and
owned, by accredited investors (as defined in
Rule 501(a) under the Securities Act) who are not natural persons, estates
or trusts.
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b.
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At
the time of the origination of contact concerning this Agreement and the
date of the execution and delivery of this Agreement, the Purchaser was
outside of the United States.
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c.
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The
Purchaser will not, during the period commencing on the date of issuance
of the Shares and ending on the first anniversary of such date, or such
shorter period as may be permitted by Regulation S or other applicable
securities law (the “Restricted Period”), offer, sell, pledge or otherwise
transfer the Shares in the United States, or to a U.S. Person for the
account or for the benefit of a U.S. Person, or otherwise in a manner that
is not in compliance with Regulation
S.
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d.
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The
Purchaser will, after expiration of the Restricted Period, offer, sell,
pledge or otherwise transfer the Shares only pursuant to registration
under the Securities Act or an available exemption therefrom, and in
accordance with all applicable state and foreign securities
laws. Without limiting the foregoing, the Purchaser will not,
in connection with its resale of the Shares, make any untrue statement of
a material fact or omit to state any material fact necessary to make the
statements made, in light of the circumstances under which they were made,
not misleading. Purchaser agrees that, in connection with its
resale of Shares, it will provide to the persons who purchase Shares no
information regarding the Company that is not contained in the SEC
Filings, the Company’s website, or written materials approved in advance
in writing by the Company.
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e.
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The
Purchaser has not in the United States engaged in, and will not engage in,
any short selling of or any hedging transaction with respect to the
Shares, including without limitation, any put, call or other option
transaction, option writing or equity
swap.
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f.
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Neither
the Purchaser nor any person acting on its behalf has engaged, nor will
engage, in any directed selling efforts to a U.S. Person with respect to
the Shares and the Purchaser and any person acting on its behalf have
complied and will comply with the “offering restrictions” requirements of
Regulation S under the Securities
Act.
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g.
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The
transactions contemplated by this Agreement have not been pre-arranged
with a buyer located in the United States or with a U.S. Person, and are
not part of a plan or scheme to evade the registration requirements of the
Securities Act.
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h.
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Neither
the Purchaser nor any person acting on its behalf has undertaken or
carried out any activity for the purpose of, or that could reasonably be
expected to have the effect of, conditioning the market in the United
States, its territories or possessions, for any of the
Shares. The Purchaser agrees not to cause any advertisement of
the Shares to be published in any newspaper or periodical or posted in any
public place and not to issue any circular relating to the Shares, except
such advertisements that include the statements required by Regulation S
under the Securities Act, and only offshore and not in the U.S. or its
territories, and only in compliance with any local applicable securities
laws.
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L.
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The
Purchaser understands and agrees that the Company shall be under no
obligation whatsoever to include any of said securities in any future
registration statement filed under the Securities Act of 1933 and that,
consequently, the sale or transfer thereof in the future will be
subject to significant restrictions as provided in Regulation S under the
Securities Act. Purchaser expressly acknowledges that the Company is
making and in the future may make other offers and sale of its securities
on different terms and conditions as determined in the Company
management’s sole discretion.
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3. Seller
Representations.
a.
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Reporting
Company Status. DigitalPost Interactive, Inc. is a reporting
company.
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b.
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Offshore
Transaction.
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(i)
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Seller
has not offered these securities to any person in the United States or to
any U.S. person as that term is defined in Regulation
S.
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(ii)
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At
the time the buy order was originated, Seller and/or its agent reasonably
believed Purchaser was outside of the United States and was not a U.S.
person.
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(iii)
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Seller
and/or it's agents reasonably believe that the transaction has not been
pre-arranged with a Purchaser in the United
States.
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c.
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No
Directed Selling Efforts. In regard to this transaction, Seller
has not conducted any "directed selling efforts" as that term is defined
in Rule 902 of Regulation S, nor has Seller conducted any general
solicitation relating to the offer and sale of the Shares within
securities to person resident within the United States or
elsewhere.
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d.
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Removal
of Restrictive Legend. At the end of the Restricted Period the Company
will provide to its Transfer Agent a legal opinion prepared by Company
Counsel to the effect that the restrictive legend may be appropriately
removed from the Share Certificates, should such a legal opinion be
required by the Transfer Agent in order to so remove the restrictive
legend. All fees relating to the removal of the legend, except
for selling or brokerage commissions, shall be borne by the
Company. However, nothing contained herein shall affect in any
way the Subscriber’s obligation and agreement to comply with all
applicable securities laws upon the sale of the
Shares.
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4.
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Escrow Agent
Representations.
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a.
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The
Escrow Agent shall create a depository account with a recognized bank for
the receipt and safe keeping of funds during the term of this agreement,
and for the receipt and safe keeping of Seller’s share
certificates.
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b.
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Escrow
Agent shall be under no duty to determine whether the Seller and the
Purchaser are complying with requirements of this Agreement in tendering
to the Escrow Agent said proceeds of the sale of said Shares. The Escrow
Agent may conclusively rely upon and shall be protected in acting upon any
statement, certificate, notice, request, consent, order or other document
believed by it to be genuine-and to have been signed or presented by the
proper party or parties. The Escrow Agent shall have no duty or liability
to verify any such statement, certificate, notice, request, consent, order
or other document, and its sole responsibility shall be to act only as
expressly set forth in this Agreement. The Escrow Agent shall be under no
obligation to institute or defend any action, suit or proceeding in
connection with this Agreement unless first indemnified to its
satisfaction. The Escrow Agent may consult counsel in respect of any
question arising under this Agreement and the Escrow Agent shall not be
liable for any action taken or omitted in good faith upon advice of such
counsel.
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c.
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Upon
receipt by the Escrow Agent of funds sufficient to consummate the sale and
purchase of all or a portion of the Shares under the terms stated herein,
and upon the completion by the Purchaser of the certificate of delivery
instructions attached as Exhibit B, and upon receipt by the Escrow Agent
of notice sufficient to the Escrow Agent of such funds having cleared
Escrow Agent's bank and being funds free, clear and available for payment
by the Escrow Agent, Escrow Agent shall notify the Seller of number of
shares to be purchased, and the funds availability for uses in the
consummation of a sale and purchase of all or a portion of the
Shares.
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Escrow
Agent shall maintain adequate records to ensure that the purchaser is properly
credited with any amount remitted to Escrow Agent by the purchaser, and that
purchaser receives the proper number of shares purchased by such
purchaser.
All
moneys and funds contemplated in this Agreement shall be in United States
Dollars.
5.
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Legends on
Certificates. The transaction restriction in connection
with this offshore offer and sale restricts Purchaser from offering and
selling to U.S. persons or for the account or benefit of a U.S.
person. Purchaser acknowledges that the certificate(s)
evidencing the Shares will have attached to it a Regulation S legend in
the form of Exhibit A hereto.
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6.
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Exemptions; Reliance on
Representations. Purchaser understands that the offer
and sale of the Shares is not being registered under the 1933
Act. Seller is relying on the rules governing offers and sales
made outside the United States pursuant to Regulation. Rules
901 through 904 of Regulation S govern this
transaction.
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7.
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Transfer Agent
Instruction. Seller's transfer agent will be instructed
to issue one or more share certificates representing Shares with a
restrictive legend attached thereto in the name of Purchaser (collectively
“Certificate”). Seller further warrants that stop transfer instructions
have been given to the transfer agent and that these shares are not freely
transferable on the books and records of the Company until an exemption
from registration for these shares has been complied
with.
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8.
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Stock Delivery
Instructions. The share certificate shall be delivered
by Seller to Escrow Agent with instructions to deliver the share
certificate to Purchaser upon Purchaser’s payment of the full Purchase
Price and the confirmation by Escrow Agent of good and immediately
available funds in said amount to the account of Seller. Purchaser shall
provide Escrow Agent with appropriate share certificate delivery
information. Escrow Agent shall not deliver the share
certificate unless and until good and immediately available funds in the
amount of the full Purchase Price have been confirmed to the account of
Seller
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9.
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Conditions to the Company's
Obligation to Sell. Purchaser understands that Seller's
obligation to sell the stock is conditioned
upon:
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a.
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The
receipt and acceptance by Seller of this Agreement for all of the Shares
as evidenced by execution of this Agreement by the President or any Vice
President of the Seller.
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b.
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Deliver
into the closing depository by Purchaser of good funds as payment in full
for the purchase of the Shares to be delivered subject to the receipt and
acceptance of a purchase notice.
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c.
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Compliance
with the term and conditions of this
Agreement.
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11
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.00.
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Conditions to Purchaser's
Obligation to Purchase. Seller understands that
Purchaser's obligation to purchase the Stock is conditioned
upon;
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a.
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Acceptance
by Purchaser of this Agreement for the sale of the
Shares.
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b.
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Delivery
of Shares of common stock with a restrictive legend attached
thereto.
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c.
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Purchaser's
determination, in its sole and absolute discretion, to acquire the shares
pursuant to this Agreement.
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11.
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No Waiver; Cumulative
Remedies. No failure or delay on the part of any party
to this Agreement in exercising any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise
thereof or the exercise of any other right, power or remedy
hereunder. The remedies herein provided are cumulative and not
exclusive of any remedies provided by
law.
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12.
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Amendments, Waivers and
Consents. Any provision in the Agreement to the contrary
notwithstanding, and except as hereinafter provided, changes in,
termination or amendments of or additions to this Agreement may be made,
and compliance with any covenant or provision set forth herein may be
omitted or waived, if the Company shall obtain consent thereto in writing
from the Purchaser. Any waiver or consent may be given subject
to satisfaction of conditions stated therein and any waiver or consent
shall be effective only in the specific instance and for the specific
purpose for which given.
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13
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Addresses for
Notices. All notices, requests, demands and other
communications provided for hereunder shall be in writing (including
telegraphic communication) and mailed, telegraphed or delivered to each
applicable party at the address set forth hereto or at such other address
as to which such party may inform the other parties in writing in
compliance with the terms of this Section. All such notices,
requests, demands and other communications shall be considered to be
effective when delivered.
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Regional
Settlement Services LLC
0000 Xxxx
Xxxxx Xxxx
Xxxx
Xxxxx, Xxxxxxx 00000
XXX
Imini
Enterprises Corp.
53rd
Street
Urbanisation
Obarrio
Swiss
Bank Tower
Panama
0000 Xx Xxxxxx Xxxx, Xxxxx
000
Xxxxxx,
XX 00000
14. Costs, Expenses and
Taxes. All parties to
bear their own expenses.
15.
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Effectiveness; Binding Effect;
Assignment. This Agreement shall be binding upon and
inure to the benefit of the Company, the Purchaser and the respective
successors and assigns; provided, that, the Company may not assign any of
its rights or obligations under this Agreement without the prior written
consent of the Purchaser. The Purchaser may assign all or any
part of its rights and obligations hereunder to any person who acquires
any Shares or Warrants owned by the Purchaser subject to the conditions of
this Agreement.
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16.
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Prior
Agreements. This Agreement along with the instruments
contemplated hereby and executed and delivered in connection herewith
(“Transaction Documents”) constitute the entire agreement between the
parties and supersede any prior understandings or agreements concerning
the subject matter hereof.
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17.
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Severability. The
provisions of the Transaction Documents are severable and, in the event
that any court of competent jurisdiction shall determine that any one or
more of the provisions or part of a provision contained therein shall, for
any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect
any other provision or part of a provision of such Transaction Document
and the terms of the Shares shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of a provision, had
never been contained herein, and such provisions or part reformed so that
it would be valid, legal and enforceable to the maximum extent
possible.
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18.
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Governing Law; Venue.
This Agreement shall be enforced, governed and construed in accordance
with the laws the State of Florida or federal securities law where
applicable without giving effect to choice of laws principles or conflict
of laws provisions. Any suit, action or proceeding pertaining to this
Agreement or any transaction relating hereto shall be brought to the
courts sitting in Florida, United States of America, and the undersigned
hereby irrevocably consents and submits to the jurisdiction of such courts
for the purpose of any such suit, action, or
proceeding. Purchaser acknowledges and agrees that venue
hereunder shall lie exclusively in Florida, United States of
America.
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Purchaser
hereby waives, and agrees not to assert against the Company, or any successor
assignee thereof, by way of motion, as a defense, or otherwise, in any such
suit, action or proceeding, (i) any claim that the Purchaser is not personally
subject to the jurisdiction of the above-named courts, and (ii) to the extent
permitted by applicable law, any claim that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of any such suit, action or
proceeding is improper or that this Agreement may not be enforced in or by such
courts.
19.
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Headings. Article,
section and subsection headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.
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20.
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Survival of Representations and
Warranties. All representations and warranties made in
the Transaction Documents, the Shares, or any other instrument or document
delivered in connection herewith or therewith, shall survive the execution
and delivery hereof or thereof.
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21.
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Counterparts. This
Agreement may be executed in any number of counterparts, all of which
taken together shall constitute one and the same instrument, and any of
the parties hereto may execute this Agreement by signing any such
counterpart.
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22.
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Parties in
Interest. Nothing in this Agreement or the Transaction
Documents, whether express or implied, is intended to confer any rights or
remedies under or by reason of this Agreement or the Transaction Documents
on any persons other than the parties to it and their respective
successors and assigns, nor is anything in this Agreement or the
Transaction Documents intended to relieve or discharge the obligation or
liability of any third party to this Agreement or the Transaction
Documents, nor shall any provision give any third person any right of
subrogation or action over against any party to this Agreement or the
Transaction Documents.
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23.
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Further
Assurances. From and after the date of this Agreement,
upon the request of the Purchaser or the Company, the Company and the
Purchaser shall execute and deliver such instruments, documents and other
writings as may be reasonably necessary or desirable to confirm and carry
out and to effectuate fully the intent and purposes of the Transaction
Documents and the Shares.
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IN WITNESS WHEREOF, the parties hereto
have caused this Regulation S Stock Purchase Agreement to become effective as of
the date written below.
Effective
the 8th day of January 2008
Seller: DigitalPost
Interactive, Inc., a Nevada corporation
By:________________________________
Title:
_______________________________
Authorized
Signatory
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Purchaser: Imini
Enterprises Corporation, a Panamanian company
By:_________________________________
Title:
_______________________________
Authorized
Signatory
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Escrow Agent: Regional
Settlement Services, LLC , a Florida LLC
By:
________________________________
Title:
_______________________________
Authorized
Signatory
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Exhibit
A
THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”) AND ARE RESTRICTED SECURITIES AS DEFINED
UNDER REGULATION S, AND (A) TRANSFER OF THE SHARES IS PROHIBITED, UNLESS THE
TRANSACTION (1) COMPLIES WITH REGULATION S, (2) IS AFTER REGISTRATION UNDER THE
ACT, OR (3) IS UNDER A REGISTRATION EXEMPTION FROM THE ACT; AND (B) HEDGING THE
SHARES IS PROHIBITED, UNLESS DONE IN COMPLIANCE WITH THE
ACT.