OUTCAST, INC. SUBSCRIPTION AGREEMENT
OUTCAST,
INC. SUBSCRIPTION AGREEMENT
Outcast,
Inc.
0000
Xxx
Xxx Xxxxxxx Xxxx, Xxxxx 000
Xxx
Xxx,
Xxxxxxxxxx 00000
(Tel.)
(000) 000-0000
Ladies
and Gentlemen:
The
undersigned subscriber (the “Subscriber” or “Investor”) acknowledges having
received and reviewed the Private Placement Memorandum, dated January 10, 2008
and as may be further supplemented or amended from time to time (the
“Memorandum”) for Outcast, Inc., a Nevada corporation (the “Company”). The
Subscriber further acknowledges that the terms of the offering of the Units
are
stated in this Subscription Agreement (“Agreement”) and the Memorandum and that,
in the event of any conflict between the Memorandum and this Agreement, the
provisions of this Agreement shall control. The Company does not requires a
minimum aggregate purchase of Units. This Offering will remain open until
January 31, 2008, unless fully subscribed or closed or extended by the Board
of
Directors, in its sole discretion. Capitalized terms not defined herein have
the
meanings given to them in the Memorandum.
The
Subscriber hereby agrees with the Company as follows:
1.
|
Defined
Terms; Incorporation of Preamble and Preliminary
Statements.
The preamble and preliminary statements set forth above are incorporated
herein and made a part of this Agreement. For purposes of this Agreement,
the term, “Shareholder”
means the Investor.
|
2.
|
Purchase
of Units.
The Investor hereby subscribes for and agrees to purchase, concurrently
with the execution and delivery of this Agreement by the Investor,
_________ Units, at $0.20 per Units (the “Subscription
Price”),
where each Unit consists of one common share of stock and one A Series
warrant to purchase an additional share of common stock at an exercise
price of $0.35.
|
3.
|
Representations
and Warranties of the Company.
The Company represents to the Shareholder as
follows:
|
a.
|
Organization
and Standing; Articles of Incorporation. The
Company is a C-corporation duly organized and validly existing under,
and
by virtue of, the laws of the State of Nevada and is good standing
under
such laws. The Company has the requisite corporate power and authority
to
own and operate its properties and assets and to carry on its business
as
presently conducted and as proposed to be conducted.
|
b.
|
Corporate
Power.
The Company has all requisite corporate power and authority to enter
into
this Agreement and to carry out and perform its other obligations
under
the terms of the Agreement.
|
c.
|
Authorization.
All corporate action on the part of the Company and its directors,
officers and shareholders necessary for the authorization, execution,
delivery and performance of all obligations of the Company under
this
Agreement and any document contemplated thereby, for the authorization,
issuance and delivery of the Shares underlying the Units, has been
taken.
|
d.
|
Validity
of Shares underlying the Unit.
The Shares underlying the Unit, when issued, sold and delivered in
compliance with the provisions of this Agreement, will be validly
issued,
fully paid and non-assessable, will be free of any liens or encumbrance
|
4.
|
Conditions
to Obligations of Company.
The obligations of the Company to issue and sell the Shares underlying
the
Units to the Subscriber upon acceptance of the subscription by the
Company
(the “Closing”) shall be subject to the fulfillment or satisfaction, or
waiver by the Company, prior to or at the Closing, of the following
conditions:
|
a.
|
Execution
of Documents.
The Subscriber shall have duly executed and delivered to the Company
(a) a
completed Suitability Questionnaire in the form attached as Attachment
A
hereto, including all applicable certifications attached thereto
(the
“Suitability Questionnaire”) and (b) a copy of this Agreement. The
Suitability Questionnaire and this Agreement are collectively referred
to
herein as the “Subscription
Documents.”
|
b.
|
Representations
and Warranties.
The representations and warranties made by the Subscriber in the
Subscription Documents shall be true and correct in all material
respects
at the time when made at the Closing.
|
c.
|
Payments.
All amounts due to the Company pursuant to Section 2 shall have been
paid
in full.
|
5.
|
Representations
and Warranties of the Subscriber. The
Subscriber represents and warrants to the Company that:
|
a.
|
In
General.
The Subscriber has full power and authority to execute each Subscription
Document and to subscribe for and purchase Units hereunder. If the
Subscriber is not a natural person, the Subscriber’s purchase of Units and
its execution and delivery of each Subscription Document has been
authorized by all necessary corporate, partnership or other action,
and
the Subscriber is duly organized, validly existing and in good standing
in
the Subscriber’s jurisdiction of organization, and has all consents,
approvals and orders of any person required to be obtained in order
for it
to purchase the Units, to fully perform the provisions of the Subscription
Documents and to consummate the transactions contemplated hereby
and
thereby. Each Subscription Document is, and will be, the legal valid
and
binding obligation of the Subscriber, enforceable against the Subscriber
in accordance with its terms. There is no action, investigation or
proceeding pending, or, to the Subscriber’s actual knowledge, threatened
against the Subscriber which, if adversely determined, would materially
adversely affect the Subscriber’s business or financial condition or the
Subscriber’s ability to pay the Subscription Price or otherwise to
consummate the transactions contemplated by the Subscription Documents.
|
b.
|
Approvals;
No Conflict.
No
authorization, approval, consent or license of any person is required
to
be obtained for the purchase of the Units by the Subscriber, other
than as
have been obtained are in full force and effect. The execution and
delivery of the Subscription Documents does not, and the consummation
of
the transactions contemplated hereby will not, result in any violation
of
or constitute a default under any material agreement or other instrument
to which the Subscriber is a party or by which the Subscriber or
any of
its properties are bound, or to the best of the Subscriber’s knowledge,
any permit, franchise, judgment, order, decree, statute, rule or
regulation to which the Subscriber or any of its businesses or properties
is subject.
|
c.
|
Access
to Information.
The Subscriber has been furnished with and has reviewed a copy of
the
Memorandum and each of the Subscription Documents. The Subscriber
has been
provided an opportunity to ask questions of, and the Subscriber has
received answers from, the Company and its representatives regarding
the
terms and conditions of the offering of Shares and the terms and
conditions of the Subscription Documents and the nature, business,
assets
and liabilities of the Company and the principals of the Company,
and the
Subscriber has obtained all additional information requested by the
Subscriber from the Company and its respective representatives.
|
d.
|
Representations
Incorporated by Reference.
The Subscriber represents and warrants that the statements, answers
and
representations of the Subscriber contained in the Suitability
Questionnaire are true and correct and agrees that they are hereby
incorporated by reference herein as though fully set forth herein
as
representations and warranties of the Subscriber.
|
e.
|
Securities
Act Representations.
The Subscriber is an “accredited investor” as that term is defined in Rule
501 under the Securities Act of 1933, as amended (the “Securities Act”).
The Subscriber (a) has the financial ability to bear the substantial
economic risks of an investment in the Company, (b) has adequate
means of
providing for its current needs and other contingencies, (c) is able
to
bear the substantial economic risks of an investment in the Company
for an
indefinite period of time, (d) has no need for liquidity in its investment
in the Company and (a) is able to afford a complete loss of its investment
in the Company. The Subscriber is acquiring the Units to be purchased
by
it at the Closing for the Subscriber’s own account, in each case not with
a view to or for resale or for sale in connection with any distribution
of
all or any part of such Shares or otherwise. The Subscriber understands
that it must bear the economic risk of an investment in the Shares
for an
indefinite period of time because, among other things, the offing
and sale
of the Shares has not been registered under the Securities Act or
state
securities or “blue sky” laws and, therefore, the Shares cannot be sold
unless it is subsequently registered under the Securities Act and
any
applicable state securities and “blue sky” laws or unless an exemption
wherefrom is available. The Subscriber also understands that sales
or
transfers of the Shares are further restricted by state securities
or
“blue sky” laws. The Subscriber hereby agrees not to transfer or dispose
of all or any part of the Shares except in full compliance with the
requirements of the Securities Act and applicable state securities
or
“blue sky” laws. The Subscriber agrees that any certificate evidencing the
Shares or any portion thereof may contain such legends evidencing
the
various legal and contractual restrictions upon the transferability
thereof as the Company, acting upon the advice of its counsel, may
determine.
|
f.
|
Tax
Consideration.
The Subscriber is not relying on the Company or the Memorandum with
respect to individual tax considerations involved in this investment.
|
g.
|
No
Representations.
Neither the Company nor any director, officer, employee, agent, counsel,
adviser or affiliate of or to either of them, has made any representations
or warranties to the Subscriber other than any express representations
and
warranties of the Company (subject to the introductory paragraph
to this
Agreement) in the Memorandum.
|
h.
|
Confidentiality.
The Subscriber acknowledges and agrees that (a) the Memorandum, and
(b)
any additional information that may have been furnished to the Subscriber
pursuant hereto or otherwise concerning the Company and its affiliates
(collectively, the “Information”), is privileged and confidential and, on
behalf of itself and its directors, officers, employees, agents,
advisers
and affiliates, agrees to hold in confidence and not use, disclose
or
reveal to any other person or entity any Information, except (a)
Information that has become generally available to the public through
no
fault or omission on the part of the Subscriber or any of its directors,
officers, employees, agents advisers or affiliates, (b) to the employees,
auditors, legal counsel and professional advisers who have a need
to know
such Information and who have been instructed by the Subscriber to
keep
such Information confidential, (c) Information disclosed by a third
party
whose disclosure to Subscriber’s knowledge is not in violation of a
confidentiality agreement between such third party and the Company
or an
entity in which it invests, (d) Information that is independently
developed by Subscriber or any of its affiliates in the ordinary
course of
its business, (e) Information required to be furnished to any governmental
regulatory body having jurisdiction over the Subscriber, (f) Information
required in response to any summons or subpoena, (g) Information
disclosed
in connection with any disclosure obligation under applicable federal
or
state law, and (h) as otherwise required by applicable law or court
order,
provided that in the case of (e), (f) (g) and (h) above, the Subscriber
shall use its reasonable best efforts to provide notice as soon as
practicable to the Company prior to the disclosure of such Information
in
order to enable the Company to seek a protective order or other
appropriate remedy.
|
i.
|
Separate
Counsel.
The Subscriber acknowledges that ____________ is acting as special
counsel
to the Company and does not represent the Subscriber. The Subscriber
acknowledges that it has been advised by the Company to retain its
own
counsel in connection with investment in the Company.
|
j.
|
Address.
The address (if the Subscriber is a natural person, his or her residential
address if different from his or her mailing address) of such Subscriber
on its Suitability Questionnaire submitted to the Company has at
all
times, since the date of the Memorandum, been the Subscriber’s bona fide
address, and the Subscriber has no present intention of changing
such
address to an address outside of the state where such address is
located.
|
k.
|
Non-Marketable
Investment Commitments. The
Subscriber’s overall commitment to investments which are not readily
marketable has not been disproportionate to its net worth, and its
investment in the Company has not caused and will not cause such
overall
commitment to be excessive.
|
l.
|
No
General Solicitation or Advertising. The
Subscriber and its advisers have not been furnished, and are not
relying
upon, any oral or written representations relating to the Company
except
as set forth in the Memorandum, and the Subscriber is not purchasing
the
Shares pursuant to this Agreement as a result of or subsequent to
(a) any
advertisement, article, notice, or other communication published
in any
newspaper, magazine, or similar media or broadcast over television
or
radio (b) any seminar or meeting to which the attendees, including
the
Subscriber, had been invited as a result of, subsequent to, or pursuant
to
any of the foregoing, or (c) any solicitation by any natural person
or
entity not previously known to the Subscriber in connection with
investments in securities generally.
|
m.
|
Knowledge
and Experience.
The Subscriber has such knowledge and experience in financial, tax,
and
business matters that the Subscriber is capable of evaluating the
merits
and risks of an investment in the Company and making an informed
investment decision with respect thereto, and is aware that an investment
in the Company involves a number of very significant risks, including,
without limitation, certain tax and economic variables and risks
that
could adversely effect the value of an investment in the Company.
|
n.
|
Absence
of Endorsements.
The Subscriber understands that no federal or state agency has made
any
finding or examination as to the fairness of an investment in, or
any
recommendation or endorsement of, the Shares.
|
o.
|
No
Affiliated Financial Adviser.
Neither the Company nor any its representative affiliates have been
or is
the Subscriber’s financial adviser. The Subscriber (a) has never and is
not relying upon the Company or any of its respective affiliates
with
respect to the tax and other economic considerations of an investment
in
the Company, and (b) has reviewed the merits of an investment in
the
Company with its advisers (including, without limitation, its legal
counsel, accountants or other tax advisers, business advisers and
investment advisers) to the extent such Subscriber deemed advisable.
|
p.
|
Representations
and Warranties.
Each representation and warranty made by the Subscriber in this Agreement
and in the related Suitability Questionnaire, and all information
furnished by the Subscriber to the Company, is true, complete, and
correct
in all respects. The Subscriber agrees that all such representations
and
warranties shall survive the admission of the Subscriber as a stockholder
of the Company.
|
q.
|
Notification
and Further Assurances.
The Subscriber aggress to (a) notify the Company immediately of any
change
in representation, warranty, or other information relating to the
Subscriber set forth in the Subscription Documents, (b) supply the
Company, within five days after the Subscriber receives the request
therefore from the Company, with such additional information concerning
the Subscriber as the Company deems necessary or advisable, and (c)
execute and deliver to the Company, within five days after the Subscriber
receives the request therefore from the Company, such further
designations, powers of attorney, and other instruments as the Company
deems reasonably necessary or advisable in order to carry out the
provisions of the Bylaws of the Company.
|
r.
|
Indemnity.
The Subscriber understands the meaning and legal consequences of
the
representations and warranties made by the Subscriber herein and
in the
Suitability Questionnaire, and agrees to indemnify and hold harmless
the
Company and each of its respective affiliates, and each of the respective
directors, officers, stockholders, principals, employees, counsel,
agents,
successors and assigns, if any, of each of the foregoing (each, the
“Indemnities”), from and against any and all loss, damage, liability or
expense (including, without limitation, attorney’s fees) arising out of,
due to, relating to, or in connection with, in each case in whole
or in
part, any misrepresentation made by the Subscriber in the Subscription
Documents, or any other agreement, instrument, or other document,
any
failure by the Subscriber to fulfill any of its covenants or agreements
set forth herein or therein, or the resale or distribution by the
Subscriber or the Shares or any portion thereof in violation of the
Securities Act, any applicable state securities laws.
|
6.
|
Amendments
and Waivers.
This Agreement may be amended by and the observance of any provision
hereof may be waived (either generally or in a particular instance
and
either retroactively or prospectively) only within the written consent
of
the Subscriber and the Company.
|
7.
|
Survival
of Representations and Warrants.
All representations and warranties made or deemed to be made by the
Subscriber in any of the Subscription Documents shall survive the
execution and delivery of each Subscription Document, any investigation
at
any time made by or on behalf of the Company, and the issue and sale
of
the Shares to the Subscriber.
|
8. |
Notices.
All notices, requests, demands and other communications hereunder
shall be
in writing and shall be deemed to have been duly given when received
(a)
if by the Subscriber, at the address set forth opposite the Subscriber’s
signature, or at such other address as the Subscriber shall have
furnished
to the Company in writing , and (b) if by the Company at
___________________________________________________________________________,
or at such other address as the Company shall have furnished to
the
Subscriber in writing.
|
9.
|
Headings.
The descriptive headings in this Agreement are for convenience of
reference only and shall not be deemed to alter or affect the meaning
or
interpretation of any provision of this Agreement.
|
10.
|
Entire
Agreement.
This Agreement and the other Subscription Documents contain the entire
agreement of the parties with respect to the subject matter of this
Agreement, and there are no representations, covenants or other agreements
except as stated or referred to herein and therein.
|
11.
|
Counterparts.
This Agreement may be executed in one or more counterparts, each
of which
shall be an original but all of which shall constitute one and the
same
instrument.
|
12.
|
Governing
Law.
This Agreement shall be governed by and construed in accordance with
the
laws of the State of Nevada, without reference to the conflict of
law
principles thereof.
|
13.
|
No
Revocations; Survival.
Except as otherwise required by applicable law, the Subscriber
acknowledges and agrees that (a) it is not entitled to cancel, terminate
or revoke this Agreement, any of the Subscription Documents, or any
of the
representations, warranties, or agreements made by the Subscriber
herein
or therein, and (b) the Subscription Documents shall survive the
bankruptcy, death, incapacity, disability, adjudication of incompetence
or
insanity, liquidation, or dissolution of the Subscriber.
|
14.
|
Binding
Effect.
This Agreement shall be binding upon and shall inure to the benefit
of the
Subscriber, but this Agreement shall not be assignable by the Subscriber
without the prior written consent of the Company (which consent may
be
granted or withheld in the Company’s sole discretion). When the
Subscriber’s subscription is accepted by the Company as provided herein,
this Agreement shall be binding upon, and shall inure to the benefit
of
the Company.
|
15.
|
Third
Party Beneficiaries.
Each of the Indemnities shall be entitled to rely upon the representations
and warranties, and to enforce the agreements, of the Subscriber
as set
forth herein and in the related Suitability Questionnaire as if they
were
a party hereto and thereto, as the case may be. No other person not
a
party to this Agreement shall be entitled to rely upon or to enforce
the
provisions of this Agreement as a third party beneficiary thereof.
|
16.
|
Severability.
Any requirements imposed under the applicable law shall, where
inconsistent with any provision of this Agreement, be controlling
and
shall govern the rights among the parties hereto. Any provision of
this
Agreement which is unenforceable in any jurisdiction shall, as to
such
jurisdiction, be unenforceable without invalidating the remaining
provisions hereof in such jurisdiction or any of the provisions hereof
in
any other jurisdiction.
|
17.
|
Gender.
Whenever required by the context hereof, the singular shall include
the
plural and the plural shall include the singular. Whenever required
by the
context hereof, the masculine gender shall include the feminine and
the
neutral genders and the neutral gender shall included the masculine
and
the feminine genders.
|
OUTCAST,
INC. SUBSCRIPTION AGREEMENT
__________________________________________
By:
_______________________________________
Name:
_____________________________________
Title:
______________________________________
Number
of
Shares: ___________________________
$0.20
per
Share
Subscription
Price:
$__________________________________________
Agreed
to and Accepted By:
Outcast,
Inc.
By:
________________________________________
By:
__________________________________
Name:
________________________________
Title:_________________________________