Date of Report (Date of earliest event reported) August 24, 2011 |
BIG BEAR MINING CORP.
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(Exact name of registrant as specified in its charter)
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Nevada
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333-132547
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20-4350486
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(State or other jurisdiction of incorporation)
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(Commission File
Number)
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(IRS Employer Identification No.)
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60 E Rio Salado Parkway, Suite 900, Tempe, Arizona
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85281
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code (480) 253-0323 |
n/a
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(Former name or former address, if changed since last report.)
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Item 1.01
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Entry into Material Definitive Agreement
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Item 3.02
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Unregistered Sales of Equity Securities
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Item 5.01
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Changes in Control of Registrant
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Item 5.02
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Appointment of Certain Officers and Directors; Departure of Certain Officers and Directors
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Item 9.01
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Financial Statements and Exhibits
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10.1
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Form of Subscription Agreement
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BIG BEAR MINING CORP.
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/s/ James G. Baughman | |
James G. Baughman
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President and Director
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Date:
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August 31, 2011
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1.
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COMPLETE the information on page 2 of this Subscription Agreement.
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2.
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COMPLETE the Prospective Investor Suitability Questionnaire attached as Exhibit A to this Subscription Agreement (the "US Questionnaire").
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3.
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COURIER the originally executed copy of the entire Subscription Agreement, together with the Questionnaires, to the Company at:
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60 E Rio Salado Parkway
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Suite 900
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Tempe, AZ 85281
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Attention: Steve Rix
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TO:
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Big Bear Mining Corp. 60 E Rio Salado Parkway, Suite 900, Tempe, Arizona 85281
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10,000,000 Shares
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US$0.03 per Share for a total deemed purchase price of US$300,000.
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The Subscriber owns, directly or indirectly, the following securities of the Company:
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[Check if applicable] The Subscriber is an affiliate of the Company
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REGISTRATION INSTRUCTIONS
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DELIVERY INSTRUCTIONS
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Name to appear on certificate
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Name and account reference, if applicable
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Account reference if applicable
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Contact name
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Address
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Address
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Telephone Number
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WITNESS:
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EXECUTION BY SUBSCRIBER:
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X
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Signature of Witness
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Signature of individual (if Subscriber is an individual)
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X
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Name of Witness
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Authorized signatory (if Subscriber is not an individual)
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Address of Witness
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Name of Subscriber (please print)
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Name of authorized signatory (please print)
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ACCEPTED this _____ day of _________, 2011
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BIG BEAR MINING CORP.
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Address of Subscriber (residence)
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per:
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Telephone Number
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Authorized Signatory
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E-mail address
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Social Security/ Social Insurance No.:
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TO:
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Big Bear Mining Corp. (the “Company”)
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60 E Rio Salado Parkway
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Purchase of Shares of Common Stock
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1.
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Subscription
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2.
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Payment
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3.
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Documents Required from Subscriber
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(a)
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an executed copy of page 2 of this Subscription Agreement; and
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(b)
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a Prospective Investor Suitability Questionnaire in the form attached as Exhibit A (the “Questionnaire”).
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4.
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Closing
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(a)
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The Subscriber delivers $300,000 to the Company in the form prescribed by this Agreement;
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(b)
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Steve Rix shall agreement to waive the severance terms currently included in his consulting agreement with the Company and shall agree to sell to the Subscriber 22,000,000 shares of his stock in the Company for the sum of $125,000.
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(c)
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The Company’s board of directors accepts the resignations of Steve Rix and Michael Schifsky from all director and officer positions with the company; and
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(d)
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The Company’s board of directors accepts the appointment of Howard Crosby and John Ryan to the Company’s board of directors.
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5.
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Acknowledgements of Subscriber
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(a)
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none of the Securities have been registered under the 1933 Act, or under any state securities or “blue sky” laws of any state of the United States, and, unless so registered, may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S under the 1933 Act (“Regulation S”), except in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;
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(b)
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by completing the Questionnaire, the Subscriber is representing and warranting that the Subscriber is an “Accredited Investor”, as the term is defined in Rule 501 of Regulation D under the 1933 Act;
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(c)
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the decision to execute this Agreement and acquire the Securities hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company, and such decision is based entirely upon a review of information (the receipt of which is hereby acknowledged) which has been filed by the Company with the United States Securities and Exchange Commission and in compliance, or intended compliance, with applicable securities legislation (collectively, the "Public Record");
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(d)
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if the Company has presented a business plan to the Subscriber, the Subscriber acknowledges that the business plan may not be achieved or be achievable;
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(e)
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no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;
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(f)
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there is no government or other insurance covering the Securities;
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(g)
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there are risks associated with an investment in the Securities, as more fully described in certain information forming part of the Public Record;
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(h)
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the Subscriber has not acquired the Securities as a result of, and will not itself engage in, any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Shares; provided, however, that the Subscriber may sell or otherwise dispose of any of the Shares pursuant to registration thereof under the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements;
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(i)
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the Subscriber and the Subscriber’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from the Company in connection with the distribution of the Securities hereunder, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information about the Company;
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(j)
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the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the Subscriber during reasonable business hours at its principal place of business, and all documents, records and books in connection with the distribution of the Securities hereunder have been made available for inspection by the Subscriber, the Subscriber’s lawyer and/or advisor(s);
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(k)
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the Subscriber will indemnify and hold harmless the Company and, where applicable, its directors, officers, employees, agents, advisors and shareholders, from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any representation or warranty of the Subscriber contained herein, the Questionnaire or in any document furnished by the Subscriber to the Company in connection herewith being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;
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(l)
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none of the Securities are listed on any stock exchange or automated dealer quotation system and no representation has been made to the Subscriber that any of the Securities will become listed on any stock exchange or automated dealer quotation system; except that currently the common shares of the Company are quoted for trading on the OTC Bulletin Board;
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(m)
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the Company will refuse to register any transfer of the Shares not made in accordance with the provisions of Regulation S, or pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from the registration requirements of the 1933 Act;
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(n)
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the statutory and regulatory basis for the exemption claimed for the offer Securities would not be available if the offering is part of a plan or scheme to evade the registration provisions of the 1933 Act;
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(o)
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the Subscriber has been advised to consult the Subscriber’s own legal, tax and other advisors with respect to the merits and risks of an investment in the Securities and with respect to applicable resale restrictions, and it is solely responsible (and the Company is not in any way responsible) for compliance with:
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(i)
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any applicable laws of the jurisdiction in which the Subscriber is resident in connection with the distribution of the Securities hereunder, and
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(ii)
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applicable resale restrictions; and
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(p)
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this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company.
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6.
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Representations, Warranties and Covenants of the Subscriber
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(a)
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the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;
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(b)
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the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Subscriber or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;
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(c)
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the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;
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(d)
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the Subscriber has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Securities and the Company, and the Subscriber is providing evidence of such knowledge and experience in these matters through the information requested in the Questionnaires;
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(e)
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all information contained in the Questionnaire is complete and accurate and may be relied upon by the Company;
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(f)
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the Subscriber is resident in the jurisdiction set out under the heading “Name and Address of Subscriber” on the signature page of this Subscription Agreement;
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(g)
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the Subscriber is acquiring the Securities for investment only and not with a view to resale or distribution;
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(h)
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the Subscriber is acquiring the Securities as principal for the Subscriber’s own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalisation thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Securities;
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(i)
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the Subscriber is not an underwriter of, or dealer in, the common shares of the Company, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Securities;
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(j)
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the Subscriber acknowledges that the Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;
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(k)
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the Subscriber is not aware of any advertisement of any of the Securities; and
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(l)
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no person has made to the Subscriber any written or oral representations:
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(i)
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that any person will resell or repurchase any of the Securities;
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(ii)
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that any person will refund the purchase price of any of the Securities;
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(iii)
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as to the future price or value of any of the Securities; or
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(iv)
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that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of the Company on the OTC Bulletin Board.
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7.
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Acknowledgement and Waiver
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8.
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Company Representations
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9.
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Legending of Subject Securities
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10.
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Post Closing Covenants
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11.
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Costs
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12.
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Governing Law
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13.
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Survival
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14.
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Assignment
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15.
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Severability
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16.
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Entire Agreement
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17.
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Notices
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18.
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Counterparts and Electronic Means
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(a)
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the Subscriber is a U.S. Person;
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(b)
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the Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the transactions detailed in the Subscription Agreement and it is able to bear the economic risk of loss arising from such transactions;
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(c)
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the Subscriber is acquiring the Securities for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons; provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration thereof pursuant to the Securities Act of 1933 (the “1933 Act”) and any applicable State securities laws unless an exemption from such registration requirements is available or registration is not required pursuant to Regulation S under the 1933 Act or registration is otherwise not required under this 1933 Act;
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(d)
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the Subscriber satisfies one or more of the categories indicated below (please check the appropriate box):
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Category 1
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An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the Securities, with total assets in excess of US $5,000,000;
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Category 2
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A natural person whose individual net worth, or joint net worth with that person’s spouse, on the date of purchase exceeds US $1,000,000, excluding the value of such person’s primary residence;
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Category 3
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A natural person who had an individual income in excess of US $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of US $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
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Category 4
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A “bank” as defined under Section (3)(a)(2) of the 1933 Act or savings and loan association or other institution as defined in Section 3(a)(5)(A) of the 1933 Act acting in its individual or fiduciary capacity; a broker dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934 (United States); an insurance company as defined in Section 2(13) of the 1933 Act; an investment company registered under the Investment Company Act of 1940 (United States) or a business development company as defined in Section 2(a)(48) of such Act; 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 (United States); a plan with total assets in excess of $5,000,000 established and maintained by a state, a political subdivision thereof, or an agency or instrumentality of a state or a political subdivision thereof, for the benefit of its employees; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (United States) whose investment decisions are made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a self-directed plan, whose investment decisions are made solely by persons that are accredited investors;
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Category 5
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A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940 (United States);
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Category 6
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A director or executive officer of the Company;
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Category 7
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A trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act; or
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Category 8
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An entity in which all of the equity owners satisfy the requirements of one or more of the foregoing categories; and
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(e)
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the Subscriber is not acquiring the Securities as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.
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(a)
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if the Subscriber decides to offer, sell or otherwise transfer any of the Securities, it will not offer, sell or otherwise transfer any of such securities directly or indirectly, unless:
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(i)
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the sale is to the Company;
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(ii)
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the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the 1933 Act and in compliance with applicable local laws and regulations;
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(iii)
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the sale is made pursuant to the exemption from the registration requirements under the 1933 Act provided by Rule 144 thereunder if available and in accordance with any applicable state securities or “Blue Sky” laws; or
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(iv)
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the Securities are sold in a transaction that does not require registration under the 1933 Act or any applicable U.S. state laws and regulations governing the offer and sale of securities, and it has prior to such sale furnished to the Company an opinion of counsel reasonably satisfactory to the Company;
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(b)
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the Subscriber has not acquired the Securities as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Securities pursuant to registration of any of the Securities pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein; ‘
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(c)
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upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the 1933 Act or applicable U.S. State laws and regulations, the certificates representing any of the Securities will bear a legend in substantially the following form:
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(d)
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the Company may make a notation on its records or instruct the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described herein; and
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(e)
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the Subscriber, if an individual, is a resident of the state or other jurisdiction in its address on the Subscriber’s execution page of the Subscription Agreement, or if the Subscriber is not an individual, the office of the Subscriber at which the Subscriber received and accepted the offer to acquire the Securities is the address listed on the Subscriber’s execution page of the Subscription Agreement.
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If a Corporation, Partnership or Other Entity: | If an Individual: |
Print or Type Name of Entity
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Signature
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Signature of Authorized Signatory
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Print or Type Name
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Type of Entity
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Social Security/Tax I.D. No.
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