FORM OF SUBSCRIPTION AGREEMENT FIIC HOLDINGS, INC. SUBSCRIPTION AGREEMENT
FORM
OF SUBSCRIPTION AGREEMENT
FIIC
HOLDINGS, INC.
The
undersigned hereby executes this Subscription Agreement (the “Subscription”) and
applies to purchase the Convertible Promissory Note(s) (“Note(s)”) of FIIC
HOLDINGS, INC., a Delaware Corporation (the “Company”), set forth on the last
page hereof. The Loan amount of ___________ Thousand dollars ($___,000) is
being
made in connection with the certain Notes hereby subscribed, for and will be
paid by delivering to the Company a check payable to “FIIC Holdings,
Inc.”
Accompanying
this Subscription Agreement are: (i) the undersigned’s check in the amount of
$___,000 as a loan subscribed and (ii) a completed Confidential Purchaser
Questionnaire. The Company hereby agrees that such executed documents, and
the
subscription funds.
The
undersigned hereby represents and warrants to the Company as
follows:
1.
|
The
undersigned is an Accredited Investor within the meaning of Regulation
D
promulgated under the Securities Act of 1933, as amended (the "Securities
Act").
|
2.
|
The
undersigned has read and understands the “Risk Factors” attached to this
Subscription Agreement, as well as the Risk Factors and Plan of Operation
information in the Company’s 10-KSB dated April 11, 2006, and any document
publicly filed by the Company with the Securities and Exchange Commission
subsequent thereto and prior to the date
hereof.
|
3.
|
The
undersigned and the advisors of the undersigned have had ready access
to,
and an opportunity to review, any and all documents that the undersigned
and/or the advisors of the undersigned deem relevant to this transaction
and no requested information, oral or written, has been
withheld.
|
4.
|
The
undersigned is the sole party in interest as the
subscriber.
|
5.
|
The
undersigned is acquiring Note(s) for investment and without a view
to
resale in connection with any
distribution.
|
6.
|
The
undersigned is aware of the
following:
|
(a) |
the
Note(s) offered by the Company and the underlying shares have not
been
registered under the Securities Act in reliance upon the exemptions
provided by Section 4(2) of the Securities Act and/or Regulation
D
promulgated under the Securities
Act;
|
(b) |
the
resale of any Note(s) or underlying shares without registration under
the
Securities Act or exemption there from is prohibited (reliance on any
exemption from registration must be established to the Company's
satisfaction in its sole and absolute
discretion);
|
(c) |
this
Subscription may be rejected in whole or in part by the Company in
its
sole and absolute discretion;
|
(d) |
there
will be no public market for the Note(s) offered by the Company and,
accordingly, it may not be possible for the undersigned to liquidate
an
investment in the Company; and
|
(e) |
the
Note(s) offered and subscribed for hereunder are offered to purchaser
only
as an investment and without a view to resale in connection with any
distribution.
|
7. |
The
undersigned has either: (i) consulted with the undersigned's business,
tax
and legal advisors (purchaser representative) with respect to the
documents and information relating to this transaction, and they
have
advised the undersigned as to the merits of the offering; or (ii)
the
undersigned has had sufficient experience in investments and business
matters to recognize the advantages and disadvantages of an investment
of
this nature.
|
8. |
If
the undersigned is a corporation, partnership, plan or trust, then
all
action necessary to enter into and deliver this Subscription Agreement
has
been taken and the undersigned agrees that it will deliver a copy
of the
organization documents of the subscriber to the Company. In addition,
the
undersigned warrants that any such corporation, partnership, plan
or trust
was: (i) existing prior to receiving any offer hereunder; and (ii)
was not
formed or organized for the purpose of purchasing any of the
Note(s).
|
9. |
If
the undersigned is an employee benefit plan within the meaning of
ERISA:
(i) the purchase of Note(s) by the undersigned is not a “prohibited
transaction” within the meaning of ERISA, the Internal Revenue Code, or
the regulations promulgated there under, respectively, and such purchase
is a prudent investment within the meaning of ERISA; and (ii) the
undersigned agrees to indemnify and hold harmless the Company, its
agents,
successors and assigns from and against any and all liability, loss,
cost
and expense (including attorneys’ fees) resulting from any adverse claim
or determination by the Department of Labor or the Internal Revenue
Service respecting the propriety, suitability or legality of the
undersigned's investment in the
Note(s).
|
10. |
The
information contained in the undersigned's Confidential Purchaser
Questionnaire is true and complete.
|
The
undersigned recognizes that the offer and sale of the Note(s) to the undersigned
are based upon the representations and warranties of the undersigned contained
herein. The undersigned hereby indemnifies the Company, and anyone acting on
behalf of the Company, with respect to the offer and sale of the Note(s)
(including, but not limited to, the Company's attorneys), and agrees to hold
each of such persons harmless against all liabilities, costs, or expenses
(including attorneys’ fees and costs of collection) arising by reason of, or in
connection with, any misrepresentation or any breach of such representations
or
warranties by the undersigned, or arising as a result of the sale or
distribution of the Note(s) by the undersigned in violation of the Securities
Act, applicable federal and state securities laws, ERISA, the Internal Revenue
Code, and any other applicable law, or for failure to fulfill any of the
undersigned's covenants or agreements set forth herein. Further, the undersigned
hereby indemnifies the Company, and anyone acting on behalf of the Company,
with
respect to the offer and sale of the Note(s) (including, but not limited to,
the
Company's attorneys), and agrees to hold each of such persons harmless against
all liabilities, costs or expenses (including attorney’s fees and costs of
collection) incurred in connection with the successful defense by the Company,
or any of such other persons, of any claim, action or cause of action of the
undersigned.
2
The
undersigned hereby acknowledges and agrees that the undersigned is not entitled
to cancel, terminate, or revoke this Subscription Agreement or any agreements
of
the undersigned hereunder and that such Subscription Agreement and agreements
shall survive the death or disability of the undersigned or any assignment
by
the undersigned of any Note(s); provided,
however,
that if
the Company has not accepted this Subscription on or before the termination
of
the offering, all agreements of the undersigned hereunder shall automatically
be
cancelled, revoked and terminated. This Subscription Agreement, its provisions
and the representations and warranties contained herein shall be binding upon
the heirs, legal representatives, successors and assigns of the
undersigned.
IN
WITNESS WHEREOF, this Subscription has been executed at _________, ____________,
on this day of _____________,
2006.
Amount
of
Note(s) Subscribed For: _______________.
________________________________ | |
Name of subscriber(s) (type or print) | ________________________________ |
________________________________ | |
Signature of subscriber(s) |
Type or print mailing address including,
street number, city, state and zip
code
|
By:______________________
|
________________________________
|
Name and Title of Authorized
Representative, if applicable
|
Type or print taxpayer identification
number of the
subscriber
|
ACCEPTED
BY:
FIIC
HOLDINGS, INC.
By:
__________________________________
Title:
_________________________________
Dated:
____________________, 2006
3
FIIC
HOLDINGS, INC.
A
Delaware Corporation
(the
"Company")
CONFIDENTIAL
PURCHASER QUESTIONNAIRE
Name(s)
of Purchaser(s): __________________________________________________________
__________________________________________________________
Address:
________________________________________________________________
________________________________________________________________
Telephone
Number(s): ____________________________________________________________
Marital
Status: __________________________________________________________________
Age(s): ________________________________________________________________________
Taxpayer
I.D. Number(s): ___________________________________________________________
Employment
Information:
Occupation
or Profession(s): _________________________________________________
________________________________________________________________________
Nature
of
Business: ________________________________________________________
________________________________________________________________________
Name
and
Address of Employer(s): _____________________________________________
________________________________________________________________________
Office
Telephone Number(s): __________________________________________________
Current
Position or Title: _____________________________________________________
Nature
of
Duties: ___________________________________________________________
Period
Employed: ___________________________________________________________
Investor
Qualifications:
Please
complete Part A
if you
are individually purchasing Note(s) or Part B
if you
are signing on behalf of a corporation, partnership, plan, or
trust.
A.
|
All
investors who are natural
persons
must complete the following:
|
I
hereby
represent, by marking the appropriate lines below, that:
______
|
1.
|
I
am an Accredited
Investor
within the meaning of Regulation D because I have had an individual
income
in excess of $200,000 or more in each of the two most recent years,
or
joint income with my spouse in excess of $300,000 in each of those
years,
and reasonably anticipate to reach the same income level in the current
year.
|
______
|
2.
|
I
am an Accredited
Investor
within the meaning of Regulation D because I have an individual net
worth,
or a net worth with my spouse, of $1,000,000 or
more.
|
B.
|
All
persons signing on behalf of a purchaser that is an entity
(i.e., corporation, partnership, plan, or trust) must complete the
following:
|
I
hereby
represent, by marking one or more of the following lines below, that the
Purchaser is an Accredited
Investor
within
the meaning of Regulation D because:
______
|
1.
|
The
Purchaser is an organization described in Section 501(c)(3) of
the
Internal Revenue Code of 1986, as amended, or a corporation, Massachusetts
or similar business trust, or partnership, not formed for the specific
purpose of acquiring the Note(s), with total assets in excess of
$5,000,000.
|
______
|
2.
|
The
Purchaser is a trust, with total assets in excess of $5,000,000,
not
formed for the specific purpose of acquiring the Note(s), whose
purchase
is directed by a person who has such knowledge and experience
in financial
and business matters that such purchaser is capable of evaluating
the
merits and risks of the prospective
investment.
|
______
|
3.
|
The
Purchaser is a corporation or partnership in which all
of the equity
owners are Accredited Investors within the meaning of Regulation
D.
|
______
|
4.
|
The
Purchaser is an employee benefit plan within the meaning
of Title I of
ERISA, and the decision to purchase the Note(s) has
been made by a plan
fiduciary which is a bank, savings and loan association,
insurance company
or registered investment advisor, or the plan has total
assets which
exceed $5,000,000, or if a self-directed plan, investment
decisions are
made solely by individuals who are Accredited
Investors.
|
2
Type
of Ownership:
|
Indicate
type of ownership you prefer, if other than individual (Natural Persons
Only):
|
______ |
Joint
Tenants with rights of survivorship (each must complete and sign
this
Questionnaire)
|
______ |
Tenants
in Common (each must complete and sign this
Questionnaire)
|
Representations
and Warranties:
The
undersigned understands that the Company will be relying on the accuracy and
completeness of my responses to the foregoing questions and the undersigned
represents and warrants to the Company, and its attorneys and agents, as
follows:
1.
|
The
answers to the above questions are complete and correct and may be
relied
upon by each of the foregoing for all purposes, including but not
limited
to, determining whether the offering is exempt from registration
under the
Securities Act of 1933, as amended, and applicable state securities
laws.
|
2.
|
The
undersigned will notify all of the foregoing immediately of any material
change in any statement made herein that occurs prior to the closing
of
any purchase of securities in the proposed
investment.
|
_________________________________
Signature(s)
of Purchaser(s)
_________________________________
Please
Print Name of Purchaser(s)
Dated:
___________________, 2006
3