SUBSCRIPTION AGREEMENT
SUBSCRIPTION
AGREEMENT made as
of this ___ day of December, 2007, between La Solucion, Inc., a Delaware
corporation (the “Company”), and the undersigned
(the “Subscriber”).
WHEREAS,
the
Company is
offering in a private placement (the “Offering”) to accredited
investors Units at a purchase price of $50,000 per Unit, with each Unit
consisting of 100,000 shares of the Company’s common stock, par value $0.001 per
share (the “Common
Stock”), and a three-year, warrant to purchase 100,000 shares of Common
Stock at an exercise price of $0.75 per share in the fom attached hereto as
Exhibit A (the
“Warrants”).
As used
herein, the term “Units” means such Units, and all Common Stock and Warrants
underlying the Units), and
WHEREAS,
the Subscriber
desires to subscribe for the number of Units set forth on the signature page
hereof, on the terms and conditions hereinafter set forth.
NOW,
THEREFORE, for and in
consideration of the premises and the mutual covenants hereinafter set forth,
the parties hereto do hereby agree as follows:
I.
|
SUBSCRIPTION
FOR AND REPRESENTATIONS AND COVENANTS OF
SUBSCRIBER
|
1.1 Subject
to the terms and conditions hereinafter set forth, the Subscriber hereby
subscribes for and agrees to purchase from the Company such number of Units
set
forth upon the signature page hereof, at a price equal to $50,000 per Unit,
and
the Company agrees to sell such to the Subscriber for said purchase price,
subject to the Company’s right to sell to the Subscriber such lesser number of
(or no) Units as the Company may, in its sole discretion, deem necessary or
desirable. The purchase price is payable by wire transfer of
immediately available funds, pursuant to the wire instructions Annexed hereto
as
Annex A or by
check payable to Xxxxxx & Xxxxxx, LLP, as Escrow Agent to La Solucion,
Inc.
1.2 The
Subscriber recognizes that the purchase of Units involves a high degree of
risk
in that (i) an investment in the Company is highly speculative and only
investors who can afford the loss of their entire investment should consider
investing in the Company and the Units; (ii) the Units are not registered under
the Securities Act of 1933, as amended (the “Act”), or any state securities
law; (iii) there is no trading market for the Units, none is likely ever to
develop, and the Subscriber may not be able to liquidate his, her or its
investment; (iv) transferability of the Units is extremely limited; and (v)
an
investor could suffer the loss of his, her or its entire
investment.
1.3 The
Subscriber is an “accredited investor,” as such term in defined in Rule 501 of
Regulation D promulgated under the Act, and the Subscriber is able to bear
the
economic risk of an investment in the Units.
1.4 The
Subscriber has prior investment experience (including investment in non-listed
and non-registered securities), and has read and evaluated, or has employed
the
services of an investment advisor, attorney or accountant to read and evaluate,
all of the documents furnished or made available by the Company to the
Subscriber and to all other prospective investors in the Units, as well as
the
merits and risks of such an investment by the
Subscriber.
The
Subscriber’s overall commitment to investments which are not readily marketable
is not disproportionate to the Subscriber’s net worth, and the Subscriber’s
investment in the Units will not cause such overall commitment to become
excessive. The Subscriber, if an individual, has adequate means of
providing for his or her current needs and personal and family contingencies
and
has no need for liquidity in his or her investment in the Units. The
Subscriber is financially able to bear the economic risk of this investment,
including the ability to afford holding the Units for an indefinite period
or a
complete loss of this investment.
1.5 The
Subscriber acknowledges receipt and careful review of all documents furnished
in
connection with this transaction by the Company (collectively, the “Offering Documents”) and has
been furnished by the Company during the course of this transaction with all
information regarding the Company which the Subscriber has requested or desires
to know; and the Subscriber has been afforded the opportunity to ask questions
of and receive answers from duly authorized officers or other representatives
of
the Company concerning the terms and conditions of the Offering, and any
additional information which the Subscriber has requested.
1.6 The
Subscriber acknowledges that the purchase of the Units may involve tax
consequences to the Subscriber and that the contents of the Offering Documents
do not contain tax advice. The Subscriber acknowledges that the
Subscriber must retain his, her or its own professional advisors to evaluate
the
tax and other consequences to the Subscriber of an investment in the Units.
The
Subscriber acknowledges that it is the responsibility of the Subscriber to
determine the appropriateness and the merits of a corporate entity to own the
Subscriber’s Units and the corporate structure of such entity.
1.7 The
Subscriber acknowledges that this Offering has not been reviewed by the
Securities and Exchange Commission (the “SEC”) or any state securities
commission, and that no federal or state agency has made any finding or
determination regarding the fairness or merits of the Offering. The
Subscriber represents that the Units are being purchased for his, her or its
own
account, for investment only, and not with a view toward distribution or resale
to others. The Subscriber agrees that he, she or it will not sell or
otherwise transfer the Units unless they are registered under the Act or unless
an exemption from such registration is available.
1.8 The
Subscriber understands that the provisions of Rule 144 under the Act are not
available for at least one (1) year to permit resales of the Units or the Common
Stock and Warrants comprising the Units and there can be no assurance that
the
conditions necessary to permit such sales under Rule 144 will ever be
satisfied. The Subscriber understands that the Company is under no
obligation to comply with the conditions of Rule 144 or take any other action
necessary in order to make available any exemption from registration for the
sale of the Units or the Common Stock and Warrants comprising the
Units.
1.9 The
Subscriber understands that the Units have not been registered under the Act
by
reason of a claimed exemption under the provisions of the Act which depends,
in
part, upon his, her or its investment intention. In this connection,
the Subscriber understands that it is the position of the SEC that the statutory
basis for such exemption would not be present if his, her or its representation
merely meant that his, her or its present intention was to hold such securities
for a short period, such as the capital gains period of tax statutes, for a
deferred sale, for a market rise, assuming that a market develops, or for any
other fixed period.
2
The
Subscriber realizes that, in the view of the SEC, a purchase now with an
intent
to resell would represent a purchase with an intent inconsistent with his,
her
or its representation to the Company and the SEC might regard such a sale
or
disposition as a deferred sale, for which such exemption is not
available.
1.10 The
Subscriber agrees to indemnify and hold the Company, its directors, officers
and
controlling persons and their respective heirs, representatives, successors
and
assigns harmless against all liabilities, costs and expenses incurred by them
as
a result of any misrepresentation made by the Subscriber contained herein or
any
sale or distribution by the Subscriber in violation of the Act (including,
without limitation, the rules promulgated thereunder), any state securities
laws, or the Company’s Certificate of Incorporation or By-laws, as amended from
time to time.
1.11 The
Subscriber consents to the placement of a legend on any certificate or other
document evidencing the Common Stock or the Warrants stating that such
securities have not been registered under the Act and setting forth or referring
to the restrictions on transferability and sale thereof.
1.12 The
Subscriber understands that the Company will review and rely on this
Subscription Agreement without making any independent investigation; and it
is
agreed that the Company reserves the unrestricted right to reject or limit
any
subscription and to withdraw the Offering at any time.
1.13 The
Subscriber hereby represents that the address of the Subscriber furnished at
the
end of this Subscription Agreement is the undersigned’s principal residence, if
the Subscriber is an individual, or its principal business address if it is
a
corporation or other entity.
1.14 The
Subscriber acknowledges that if the Subscriber is a Registered Representative
of
a firm subject to regulation by the Financial Industry Regulatory Authority,
Inc. (“FINRA”), the
Subscriber must give such firm the notice required by FINRA’s rules and
regulations, receipt of which must be acknowledged by such firm on the signature
page hereof.
1.15 The
Subscriber hereby acknowledges that neither the Company nor any persons
associated with the Company who may provide assistance or advice in connection
with the Offering (other than the placement agent, if one is engaged by the
Company) are or are expected to be persons or associated persons of firms
regulated by FINRA or registered broker-dealers under any federal or state
securities laws.
1.16 The
Subscriber understands that there is no minimum amount of Units that msut be
subscribed for in order to close on any purchase and that there can be no
assurance regarding the number of Units subscribed for and/or the amount gross
proceeds raised in the Offering.
3
1.17 The
Subscriber hereby represents that, except as expressly set forth in the Offering
Documents, no representations or warranties have been made to the Subscriber
by
the Company or any agent, employee or affiliate of the Company and, in entering
into this transaction, the Subscriber is not relying on any information other
than that contained in the Offering Documents and the results of independent
investigation by the Subscriber.
1.18 All
information provided by the Subscriber in the Investor Questionnaire attached
hereto as Annex
B is true and accurate in all respects, and the Subscriber acknowledges
that the Company will be relying on such information to its possible detriment
in deciding whether the Company can sell these securities to the Subscriber
without giving rise to the loss of the exemption from registration under
applicable securities laws.
II.
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REPRESENTATIONS
AND COVENANTS BY THE COMPANY
|
2.1 The
Company represents and warrants to the Subscriber that as of the date of the
closing of this Offering (the “Closing Date”):
(a) The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Delaware and has the corporate power
to
conduct the business which it conducts and proposes to conduct.
(b) The
execution, delivery and performance of this Subscription Agreement by the
Company have been duly authorized by the Company and all other corporate action
required to authorize and consummate the offer and sale of the Units has been
duly taken and approved.
(c) The
Units
and the underlying Common Stock have been duly and validly authorized and
issued.
(d) The
Company has obtained, or is in the process of obtaining, all licenses, permits
and other governmental authorizations necessary for the conduct of its business,
except where the failure to so obtain such licenses, permits and authorizations
would not have a material adverse effect on the Company. Such licenses, permits
and other governmental authorizations which have been obtained are in full
force
and effect, except where the failure to be so would not have a material adverse
effect on the Company, and the Company is in all material respects complying
therewith.
(e) The
Company knows of no pending or threatened legal or governmental proceedings
to
which the Company is a party which would materially adversely affect the
business, financial condition or operations of the Company.
(f) The
Company is not in violation of or default under, nor will the execution and
delivery of this Subscription Agreement or the issuance of the Common Stock,
or
the consummation of the transactions herein contemplated, result in a violation
of, or constitute a default under, the Company’s Certificate of Incorporation or
By-laws, any material obligations, agreements, covenants or conditions contained
in any bond, debenture, note or other evidence of indebtedness or in any
material contract, indenture, mortgage, loan agreement, lease, joint venture
or
other agreement or instrument to which the Company is a party or by which it
or
any of its properties may be bound or any material order, rule, regulation,
writ, injunction, or decree of any government, governmental instrumentality
or
court, domestic or foreign.
4
2.2 For
a
period of the earlier of (i) twelve (12) months following the Closing Date
or
(ii) the date that is 90 days following the date that the “resale” registration
statement covering the shares of Common Stock and the shares of Common Stock
underlying the Warrants included within the Units sold in the Offering is
declared effective by the SEC (the “Adjustment Period”), in the
event that the Company sells or grants any option to purchase or sells or grants
any right to reprice, or otherwise disposes of or issues (or announces any
sale,
grant or any option to purchase or other disposition), any Common Stock or
Common Stock Equivalents entitling any person to acquire shares of Common Stock
at an effective price per share that is lower than $0.50 per share (such lower
price, the “Base Price”
and such issuances,
collectively, a “Dilutive Issuance”) (if the
holder of the Common Stock or Common Stock Equivalents so issued shall at any
time, whether by operation of purchase price adjustments, reset provisions,
floating conversion, exercise or exchange prices or otherwise, or due to
warrants, options or rights per share which are issued in connection with such
issuance, be entitled to receive shares of Common Stock at an effective price
per share that is lower than $0.50 per share, such issuance shall be deemed
to
have occurred for less than the $0.50 per share on such date of the Dilutive
Issuance), then the Company shall issue additional shares of Common Stock to
the
Subscriber in an amount sufficient that the subscription price paid hereunder,
when divided by the total number of shares issued in the Dilutive Issuance
will
result in an actual price paid by the Subscriber per share of Common Stock
equal
to the Base Price. Such adjustment shall be made whenever any Dilutive Issuance
is made within the Adjustment Period. Notwithstanding the foregoing, no
adjustment will be made under this Section 2.2 in respect of an Exempt
Issuance. The Company shall notify the Subscriber in writing, no
later than 1 business day following a Dilutive Issuance, indicating therein
the
applicable issuance price, or applicable reset price, exchange price, conversion
price and other pricing terms (such notice, the “Dilutive Issuance
Notice”). For purposes of clarification, whether or not the
Company provides a Dilutive Issuance Notice pursuant to this Section 2.2, upon
the occurrence of any Dilutive Issuance, the Subscriber is entitled to receive
a
number of shares based upon the Base Price on or after the date of such Dilutive
Issuance. Notwithstanding anything herein or in any related document to the
contrary, the foregoing does not convey to the Subscriber any right to
participation in any future financings or offerings now or in the future
contemplated or undertaken by the Company. The Company reserves the
right to establish procedures in order to effectuate the issuance of additional
shares in the event of any dilutive issuance requiring an adjustment to the
Base
Price, in its sole discretion, including delivery of such shares to the
Subscriber in full and complete satisfaction of the Company’s obligation upon a
Dilutive Issuance.
“Common
Stock Equivalents” means
any securities of the Company or any of its subsidiaries which would entitle
the
holder thereof to acquire at any time Common Stock, including, without
limitation, any debt, preferred stock, rights, options, warrants or other
instrument that is at any time convertible into or exercisable or exchangeable
for, or otherwise entitles the holder thereof to receive, Common
Stock.
“Exempt
Issuance” means the issuance of (a) shares of Common Stock or options to
employees, officers, directors, or consultants of the Company pursuant to any
stock or option plan duly adopted for such purpose by a majority of the
non-employee members of the Board of Directors of the Company or a majority
of
the members of a committee of non-employee directors established,
5
(b)
securities upon the exercise or exchange of or conversion of any securities
issued hereunder and/or other securities exercisable or exchangeable for or
convertible into shares of Common Stock issued and outstanding on the date
of
this Agreement, provided that such securities have not been amended since the
date of this Agreement to increase the number of such securities or to decrease
the exercise, exchange or conversion price of such securities; and (c)
securities issued pursuant to acquisitions or strategic transactions approved
by
a majority of the disinterested directors of the Company, provided that any
such
issuance shall only be to a person which is either an owner of, or an entity
that is, itself or through its subsidiaries, an operating company in a business
synergistic with the business of the Company and in which the Company receives
benefits in addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily for the purpose
of raising capital or to an entity whose primary business is investing in
securities.
III.
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TERMS
OF SUBSCRIPTION
|
3.1 The
Subscriber has effected a wire transfer in the full amount of the purchase
price
for the Units to the Company’s escrow account in accordance with the wire
instructions attached hereto as Annex
A or has delivered a check in payment of the purchase price for the
Units.
3.2 Pending
the sale of the Units, all funds paid hereunder shall be deposited by the
Company in escrow with the Company’s escrow agent. If (a)
subscriptions for Units are received and accepted, (b) the Company issues
irrevocable instructions to its transfer agent to issuce the Common Stock
comprising such Units, and (c) the Company issues the Warrant comprising such
Units, the escrow agent shall release all such funds to the
Company.
3.3 The
Subscriber hereby authorizes and directs the Company and its escrow agent to
deliver any certificates or other written instruments representing the Units
to
be issued to such Subscriber pursuant to this Subscription Agreement to the
address indicated on the signature page hereof.
3.4 The
Subscriber hereby authorizes and directs the Company and its escrow agent to
return any funds, without interest, for unaccepted subscriptions to the same
account from which the funds were drawn.
3.5 If
the
Subscriber is not a United States person, such Subscriber shall immediately
notify the Company and the Subscriber hereby represents that the Subscriber
is
satisfied as to the full observance of the laws of its jurisdiction in
connection with any invitation to subscribe for the Units or any use of this
Subscription Agreement, including (i) the legal requirements within its
jurisdiction for the purchase of the Units, (ii) any foreign exchange
restrictions applicable to such purchase, (iii) any governmental or other
consents that may need to be obtained, and (iv) the income tax and other tax
consequences, if any, that may be relevant to the purchase, holding, redemption,
sale or transfer of the Units. Such Subscriber’s subscription and
payment for, and continued beneficial ownership of, the Units will not violate
any applicable securities or other laws of the Subscriber’s
jurisdiction.
IV.
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MISCELLANEOUS
|
6
4.1 Any
notice or other communication given hereunder shall be deemed sufficient if
in
writing and sent by reputable overnight courier, facsimile (with receipt of
confirmation) or registered or certified mail, return receipt requested,
addressed to the Company, at the address set forth in the first paragraph
hereof, and to the Subscriber at the address or facsimile number indicated
on
the signature page hereof. Notices shall be deemed to have been given
on the date when mailed or sent by facsimile transmission or overnight courier,
except notices of change of address, which shall be deemed to have been given
when received.
4.2 This
Subscription Agreement shall not be changed, modified or amended except by
a
writing signed by both (a) the Company and (b) subscribers in the Offering
holding a majority of the Units issued in the Offering.
4.3 This
Subscription Agreement shall be binding upon and inure to the benefit of the
parties hereto and to their respective heirs, legal representatives, successors
and assigns. This Subscription Agreement sets forth the entire
agreement and understanding between the parties as to the subject matter hereof
and merges and supersedes all prior discussions, agreements and understandings
of any and every nature among them.
4.4 Notwithstanding
the place where this Subscription Agreement may be executed by any of the
parties hereto, the parties expressly agree that all the terms and provisions
hereof shall be construed in accordance with and governed by the laws of the
State of Delaware. The parties hereby agree that any dispute which
may arise between them arising out of or in connection with this Subscription
Agreement shall be adjudicated only before a Federal court located in Kent
County, State of Delaware and they hereby submit to the exclusive jurisdiction
of the federal courts located in Kent County, State of Delaware 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 Subscription 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, in care of
the
address set forth below or such other address as the undersigned shall furnish
in writing to the other. The parties further agree that in the event
of any dispute, action, suit or other proceeding arising out of or in connection
with this Subscription Agreement or other matters related to this subscription
brought by a Subscriber (or transferee), the Company (and each other defendant)
shall recover all of such party’s attorneys’ fees and costs incurred in each and
every action, suit or other proceeding, including any and all appeals or
petitions therefrom. As used herein, attorney’s fees shall be deemed to mean the
full and actual costs of any investigation and of legal services actually
performed in connection with the matters involved, calculated on the basis
of
the usual fee charged by the attorneys performing such services.
4.5 This
Subscription Agreement may be executed in counterparts. Upon the
execution and delivery of this Subscription Agreement by the Subscriber, this
Subscription Agreement shall become a binding obligation of the Subscriber
with
respect to the purchase of Units as herein provided; subject, however, to the
right hereby reserved by the Company to (i) enter into the same agreements
with
other subscribers, (ii) add and/or delete other persons as subscribers and
(iii)
reduce the amount of or reject any subscription.
7
4.6 The
holding of any provision of this Subscription Agreement to be invalid or
unenforceable by a court of competent jurisdiction shall not affect any other
provision of this Subscription Agreement, which shall remain in full force
and
effect.
4.7 It
is
agreed that a waiver by either party of a breach of any provision of this
Subscription Agreement shall not operate or be construed as a waiver of any
subsequent breach by that same party.
4.8 The
parties agree to execute and deliver all such further documents, agreements
and
instruments and take such other and further actions as may be necessary or
appropriate to carry out the purposes and intent of this Subscription
Agreement.
[Signature
Pages Follow]
8
IN
WITNESS WHEREOF, the
parties have executed this Subscription Agreement as of the day and year first
written above.
__________________________
|
X
$50,000 for each Unit
|
=
$_____________________.
|
Number
of Units 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
|
12.
|
___
|
Foundation
described in Section 501(c)(3) of the Internal Revenue Code of 1986,
as
amended.
|
IF
MORE THAN ONE SUBSCRIBER, EACH SUBSCRIBER
MUST
SIGN:
· INDIVIDUAL
SUBSCRIBERS MUST COMPLETE
PAGE 10
· SUBSCRIBERS
WHICH ARE ENTITIES MUST COMPLETE
PAGE
11
9
EXECUTION
BY NATURAL
PERSONS
_____________________________________________________________________________
Exact
Name in Which Title is to be Held
|
||
Name
(Please Print)
|
Name
of Additional Subscriber
|
|
Residence:
Number and Street
|
Address
of Additional Subscriber
|
|
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 Subscriber)
|
|
ACCEPTED
this ___ day of _________ 2007, on behalf of La Solucion,
Inc.
|
||
By:
Name:
Title:
|
10
EXECUTION
BY SUBSCRIBER
WHICH IS AN ENTITY
(Corporation,
Partnership, Trust,
Etc.)
____________________________________________________________________________
Name
of Entity (Please Print)
|
|
Date
of Incorporation or Organization:
|
|
State
of Principal Office:
|
|
Federal
Taxpayer Identification Number:
____________________________________________
Office
Address
____________________________________________
City,
State and Zip Code
____________________________________________
Telephone
Number
____________________________________________
Fax
Number (if available)
____________________________________________
E-Mail
(if available)
|
|
[seal]
Attest:
(If
Entity is a Corporation)
|
By:
Name:
Title:
|
*If
Subscriber is a Registered Representative of FINRA regulated firm,
have
the following acknowledgement signed by the appropriate
party:
|
|
The
undersigned FINRA regulated firm acknowledges receipt of the notice
required by Rule 3050 of the NASD Conduct Rules
|
|
Name
of FINRA regulatedFirm
|
ACCEPTED
this ____ day of __________ 2007, on behalf of La Solucion,
Inc.
|
By:
Name:
Title:
|
By:
Name:
Title:
|
11
Annex
B
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
(the “Shares”) of La Solucion, Inc., 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,
(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 with total assets in excess of $5,000,000.
|
o
|
You
are a director or executive officer of La Solucion, Inc.
|
12
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, 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.
|
13
Check
all boxes below which correctly describe you.
With
respect to this investment in Shares of the Company, your:
Investment
Objectives:
|
x Aggressive
Growth
|
x Speculation
|
|
Risk
Tolerance:
|
o Low
Risk
|
o Moderate
Risk
|
x High
Risk
|
Are
you
associated with a FINRA regulated
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 of the
Company.
___________________________________
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
|
14