Document:

f8k021814ex4i_jbi.htm

	
  

	
Exhibit 4.1

	
  

	
NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND THE APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.

 

Warrant to Purchase Common Stock

 

Warrant to Purchase an Aggregate of ______ shares of Common Stock

 

Date of Issuance:      February __, 2014

 

FOR VALUE RECEIVED, JBI, INC., a Nevada corporation (the "Company"), promises to issue in the name of, and sell and deliver to _____________ (the "Holder") a certificate or certificates for an aggregate of ________ shares of the Company's common stock, par value $0.001 per share (the "Common Stock"), upon cashless exercise or payment by the Holder of $0.10 per share (the "Exercise Price"), with the Exercise Price being subject to adjustment in the circumstances set forth below.

1. 1.         Exercise of Warrant

 

A. (A)         Exercise Period. The Holder may exercise this Warrant, in whole or in part (but not as to fractional shares), at any time and time to time commencing on the date hereof and ending at 5:00 p.m., Eastern Time, on February ___, 2017 (the "Exercise Period").

	
i.  

	
(B)         Exercise Procedure.

 

i. (i)         This Warrant will be deemed to have been exercised at such time as the Company has received all of the following items (the "Exercise Date"):

 

a. (a)         a completed Exercise Agreement, in the form attached hereto as Exhibit 1, executed by the Holder (the "Purchaser"); and

a. (b)         a certified check or other immediately available funds payable to the Company in an amount equal to the sum of the product of the Exercise Price multiplied by the number of shares of Common Stock being purchased upon such exercise (the "Cash Exercise") or the Holder may satisfy its obligation to pay the Exercise Price through a cashless exercise (the "Cashless Exercise") in which the Company shall issue to the Holder that number of shares of Common Stock determined as follows:

 

X = Y [A-B/A].

X = the number of shares of Common Stock.

 

Y = the number of Warrants being exercised (prior to the Cashless Exercise).

A = the average of the closing bid and asked  prices  on  the  primary trading market on which the Company's Common Stock is then listed or quoted for the five (5) trading days immediately prior to  but  not including the Exercise Date. If the Common Stock is not so listed  or quoted and bid and ask prices are not reported, the fair market value shall be the price per share as determined in good faith by  the  Company's Board of Directors.

B = the Exercise Price.

 

  

1

  

For purposes of Rule 144 promulgated under the Securities Act of 1933, it is intended, understood and acknowledged that the shares of Common Stock issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the shares of Common Stock shall be deemed to have commenced, on the date the Original Warrant was issued to the Holder (provided the Securities and Exchange Commission continues to take the position that such treatment is proper at the time of such exercise). Notwithstanding anything to the contrary contained in this Warrant, Holder may not exercise this Warrant using the Cashless Exercise method without the prior written consent of the Company.

 

(ii)          Certificates for the shares of Common Stock purchased upon exercise of this Warrant will be delivered by the Company to the Purchaser within ten (10) business days after the Exercise Date. Unless this Warrant has expired or all of the purchase rights represented hereby have been exercised, the Company will prepare a new Warrant representing the rights formerly represented by this Warrant that have not expired or been exercised. The Company will, within such ten (10) day period, deliver such new Warrant to the Holder at the address set forth in this Warrant.

 

(iii)          The shares of Common Stock issuable upon the exercise of this Warrant will be deemed to have been transferred to the Purchaser on the Exercise Date, and the Purchaser will be deemed for all purposes to have become the record holder of such Common Stock on the Exercise Date.

 

(iv)          The issuance of certificates for shares of Common Stock upon the exercise of this Warrant will be made without charge to the Purchaser for any issuance tax in respect thereof or any other cost incurred by the Company in connection with such exercise and related transfer of the shares; provided, however, that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any certificate or instrument in a name other than that of the Holder of this Warrant, and that the Company shall not be required to issue or deliver any such certificate or instrument unless and until the person or persons requiring the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.

(v)         Unless the Company shall have registered the shares of Common Stock underlying this Warrant, the shares of Common Stock issuable upon the exercise of this Warrant will be "restricted securities" as that term is defined in the Securities Act of 1933. The Company may insert the following or similar legend on the face of the certificates evidencing shares of Common Stock if required in compliance with state securities laws:

"These securities have not been registered under any state securities laws and may not be sold or otherwise transferred or disposed of except pursuant to an effective registration statement under any applicable stale securities laws, or an opinion of counsel satisfactory to counsel to the Company that an exemption from registration under any applicable state securities laws is available."

 

  

2

  

 

(C)           Fractional Shares. The Company shall not be required to issue fractions of shares of Common Stock on the exercise of this Warrant. The Company shall not be obligated to issue any fractional share interests or fractional warrant interests upon the exercise of this Warrant, nor shall it be obligated to issue scrip or pay cash in lieu of fractional interests, provided, however, that if a holder exercises all the Warrants held of record by such holder, the Company shall at its option (i) eliminate the fractional interests by rounding any fraction up to the nearest whole number of shares or (ii) within 30 days after the Exercise Date, deliver to the Purchaser a check payable to the Purchaser, in lieu of such fractional share, in an amount equal to the value of such fractional share as determined by the closing price of the Company's Common Stock as reported on the principal exchange on which the Company's Common Stock is then traded, as of the close of business on the Exercise Date.

	
  

	
2.          Effect of Reorganization, Reclassification, Consolidation, Merger or Sale

 

A. (A)  Recapitalization or Reclassification of Common Stock. In  case the Company shall at any time prior to the satisfaction of the exercise of this Warrant, or the expiration of the Exercise Period, whichever first occurs, effect a recapitalization or reclassification of such character that its Common Stock shall be changed into or become exchangeable for a larger number of shares, then, upon the effective date thereof, the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall be increased in direct proportion to the increase in such number of shares of Common Stock by reason of such recapitalization or reclassification, and the Exercise Price of such recapitalized or reclassified Common Stock shall, in the case of an increase in the number of shares, be proportionately decreased. Conversely, in case the Company shall at any time prior to the satisfaction of the exercise of this Warrant, or the expiration of the Exercise Period, whichever first occurs, effect a recapitalization or reclassification of such character that its Common Stock shall be changed into or become exchangeable for a smaller number of shares, then, upon the effective date thereof, the number of shares of Common Stock that the Holder of this Warrant shall be entitled to purchase upon exercise hereof shall be decreased in direct proportion to the decrease in such number of shares of Common Stock by reason of such recapitalization or reclassification, and the Exercise Price of such recapitalized or reclassified Common Stock shall, in the case of an decrease in the number of shares, be proportionately increased. Notwithstanding the foregoing, there shall be no adjustment to the Exercise Price of the Warrant in the event of a reverse stock split that is effected prior to the one (1) year anniversary of the issuance date of this Warrant.

 

A. (B)  Consolidation, Merger or Sale. In case the Company shall at any time prior to the exercise of this Warrant, or the expiration of the Exercise Period, whichever first occurs, consolidate or merge with any other corporation (unless the Company shall be the surviving entity) or transfer all or substantially all of its assets to any other corporation preparatory to a dissolution (collectively, the "Fundamental Transaction"), then the Company shall, as a condition precedent to  such  transaction, provide notice to the Holder of not less than ten (10) of days prior to the closing and/or effective date of such Fundamental Transaction during which time the Holder shall have the right to exercise this Warrant pursuant to its terms. To the extent not exercised, this Warrant and any right to acquire shares of the Company's Common Stock will automatically expire on the closing date and/or effective date of such Fundamental Transaction.

 

A. (C)  Notice  of  Adjustment. Whenever the number of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted as provided herein, the Company shall file with its corporate records a certificate of its Chief Financial Officer setting forth the computation and the adjusted number of shares of Common Stock purchasable hereunder resulting from such adjustments, and a copy of such certificate shall be mailed to the Holder. Any such certificate or letter shall be conclusive evidence as to the correctness of the adjustment or adjustments referred to therein and shall be available for inspection by the holders of the Warrants on any day during normal business hours.

  

3

  

 

	
A.  

	
3.         [INTENTIONALLY  OMITTED]

 

A. 4.         Reservation of Common Stock. The Company will at all time reserve and keep available such number of shares of Common Stock as will be sufficient to permit the exercise in full of this Warrant. Upon exercise of this Warrant pursuant to its terms, the Holder will acquire fully paid and non-assessable ownership rights of the Common Stock, free and clear of any liens, claims or encumbrances except as otherwise provided herein.

A. 5.         No Stockholder Rights or Obligations. This Warrant will not entitle the Holder hereof to any voting rights or other rights as a Stockholder of the Company. Until the shares of Common Stock issuable upon the exercise of this Warrant are recorded as issued on the books and records of the Company's transfer agent, the Holder shall not be entitled to any voting rights or other rights as a Stockholder, provided, however, the Company uses commercially reasonable efforts to ensure that, upon receipt of the Exercise Agreement and payment of the Exercise Price, the appropriate documentation necessary to effectuate the exercise of the Warrant and the issuance of the Common Stock  is accomplished as expeditiously as possible. No provision of this Warrant, in the absence of affirmative action by the Holder to purchase Common Stock, and no enumeration in this Warrant of the rights or privileges of the Holder, will give rise to any obligation of such Holder for the Exercise Price or as a stockholder of the Company.

A. 6.         Transferability. Subject to the terms hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of this Warrant with a properly executed Assignment in the form of Exhibit 2 hereto at the principal offices of the Company. This Warrant and the underlying shares of Common Stock may not be offered, sold or transferred except in compliance with the Securities Act of 1933, and any applicable state securities laws, and then only against receipt of an agreement of the person to whom such offer or sale or transfer is made to comply with the provisions of this Warrant with respect to any resale or other disposition of such securities; provided that no such agreement shall be required from any person purchasing this Warrant or the underlying shares of Common Stock pursuant to a registration statement effective under the Securities Act of 1933. The Holder of this Warrant agrees that, prior to the disposition of any security purchased on the exercise hereof other than pursuant to a registration statement then effective under the Securities Act of 1933, or any similar statute then in effect, the Holder shall give written notice to the Company, expressing his intention as to such disposition. Upon receiving such notice, the Company shall present a copy thereof to its securities counsel. If, in the sole opinion of such counsel, which such opinion shall not be unreasonably withheld, the proposed disposition does not require registration of such security under the Securities Act of 1933, or any similar statute then in effect, the Company shall, as promptly as practicable, notify the Holder of such opinion, whereupon the Holder shall be entitled to dispose of such security in accordance with the terms of the notice delivered by the Holder to the Company.

  

4

  

	
A.  

	
7.         Miscellaneous.

 

A. (A)          Notices. Any notices, requests or consents hereunder shall be deemed given, and any instruments delivered, two days after they have been mailed by first class mail, postage prepaid, or upon receipt if delivered personally or by facsimile transmission, as follows:

 

If to the Company:   JBI INC.

                   20 Iroquois Street

           Niagara Falls, Ontario  14303

If to the Holder:     ______________.

         _______________

                ________________

except that any of the foregoing may from time to time by written notice to the other designate another address which shall thereupon become its effective address for the purposes of this paragraph.

 

(B)           Entire Agreement.   This Warrant,  including the exhibits and documents referred to herein which are a part hereof, contain the entire understanding of the parties hereto with respect to the subject matter and may be amended only by a written instrument executed by the parties hereto or their successors or assigns. Any paragraph headings contained in this Warrant are for reference purposes only and shall not affect in any way the meaning or interpretation of this Warrant.

(C)           Governing Law.  This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each of the Parties submits to the jurisdiction of any state or federal court sitting in the County, City and State of New York, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED HEREBY.

IN WITNESS WHEREOF, this Warrant has been duly executed and the corporate seal affixed hereto, all as of the day and year first above written.

JBI, INC.

By:______________________________

Name: Richard W. Heddle

Title:  CEO and President

  

5

  

 

EXHIBIT 1

 

EXERCISE AGREEMENT

 

	 To:   	 	Dated:    	 

 

                          The undersigned record Holder, pursuant to the provisions set forth in the within Warrant, hereby subscribed for and purchases __________ shares of Common Stock covered by such Warrant as follows.  Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Warrant.

 

(a)  The Warrant is currently exercisable to purchase a total of __________ shares of the Company's Common Stock.

 

(b)  The undersigned Holder hereby exercises its right to purchase ____________    shares of Common Stock pursuant to the Warrant.

 

(c)  The Holder shall make payment of the Exercise Price as follows (check one):

ο ___________ “Cash Exercise” under Section 1

ο ___________ “Cashless Exercise” under Section 11

(d)  If the Holder is making a Cash Exercise, the holder shall pay the sum of $________ to the Company in accordance with the terms of the Warrants

(e)  Pursuant to this exercise, the Company shall deliver to the Holder shares of the Company's Common Stock in accordance with the terms of the Warrant.

 

(f)  Following this exercise, the Warrant shall be exercisable to purchase a total of  shares of the Company's Common Stock.

(Signature)

 

(Print or type name) 

 

(Address)

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

1 Holder may not exercise this Warrant using the Cashless Exercise method without the prior written consent of the Company.

  

6

  

EXHIBIT 2

 

ASSIGNMENT

 

FOR VALUE RECEIVED,    , the undersigned Holder hereby sell, assigns, and transfer all of the rights of the undersigned under the within Warrant with respect to the number of shares of Common Stock issuable upon the exercise of such Warrant set forth below, unto the Assignee identified below, and does hereby irrevocable constitute and appoint to effect such transfer of rights on the books of the Company, with full power of substitution:

 

Name of

 

Assignee

 

Address of Assignee

 

Number of Shares of Common Stock

 

Dated

 

____________________________

(Signature of Holder) 

 

____________________________

(Print or type name)

 

 

NOTICE: The signature of this Exercise Agreement must correspond with the name as written upon the face of the within Warrant, or upon the Assignment thereof, if applicable, in every particular, without alteration, enlargement or any change whatsoever.

 

CONSENT OF ASSIGNEE

 

I HEREBY CONSENT to abide by the terms and conditions of the within Warrant.

 

Dated:                         

 

________________________________

(Signature of Assignee)

 

________________________________

(Print or type name)f8k021814ex10i_jbi.htm

 

Exhibit 10.1

Subscription Agreement

JBI, Inc.

Common Stock Offering at the Price of $0.05 per Share (“Offering”)

JBI, Inc. (OTC: JBII) (“JBI” or the “Company”) is Offering to sell to the undersigned shares of the Company’s common stock, at the price of $0.05 (five cents) per share (“Shares”). The Shares in this offering are restricted pursuant to Securities and Exchange Commission (“SEC”) Rule 144, promulgated under the Securities Act of 1933, as amended (the “Securities Act”). In further consideration of this transaction, the Company shall provide a warrant to purchase _______ shares to __________, which appears at Exhibit A to this Agreement.

In connection with the delivery of the Shares, the undersigned hereby represents and warrants to the Company that:

1.           The undersigned understands that the Shares offered hereunder have not been approved or disapproved by the SEC or any State Securities Commission, nor has the SEC or any State Securities Commission passed upon the accuracy of any information provided to the undersigned or made any finding or determination as to the fairness of the offering of the Shares of the Company. Any representation to the contrary is a criminal offense.

2.           The undersigned affirms that all information, if any, that the undersigned has provided to the Company either directly, or indirectly, concerning the undersigned, the undersigned’s financial position and the undersigned’s knowledge of financial and business matters is accurate and complete as of the date of this Agreement.

3.           The undersigned is purchasing the Shares for the undersigned’s own account without the participation of any other person and with the intent of holding the Shares for investment and without the intent of participating directly or indirectly in a distribution of the Shares, or any portion thereof and not with a view to, or for resale in connection with, any distribution of the Shares, or any portion thereof.

4.           The undersigned believes that, based on the undersigned’s business experience as a sophisticated investor and based on the undersigned’s economic bargaining power, the undersigned has been provided with all information or been given access to all information with respect to the Company, the planned future activities of the Company, its capital needs, its prospects for failure and success, and all such other factors that the undersigned considers material which might affect the undersigned’s decision whether to purchase the Shares.

5.           The undersigned has met and had conversations with Company’s officers, employees and/or shareholders, and has had the opportunity to ask questions of, and receive answers from, such persons concerning all aspects of the Company, including, without limitation, the distribution of share ownership and the proposed use of proceeds from the sale of the Shares. The undersigned fully understands that this Offering has not been registered under the Securities Act, and is made in reliance upon exemptions therefrom, and accordingly, to the extent that the undersigned is not supplied with information, which would have been contained in a registration statement filed under the Securities Act, the undersigned must rely upon the undersigned’s own access to such information.

 

  

 

  

 

6.           The undersigned has the right, power and authority to purchase of the Shares, and the undersigned is authorized to purchase the Shares on the terms and conditions hereof. Purchase of the Shares hereunder will also not violate any agreement, understanding or arrangement that the undersigned may have with any other party.

7.           The undersigned has previously invested in securities, which were restricted as to their transfer, and has reviewed and understands Rule 144 of the Securities Act.

8.           The undersigned is an “accredited investor” as this term is defined in Rule 501(a) promulgated by the SEC under the Securities Act. The undersigned understands the risk of this investment, and has such knowledge and experience in financial and business matters that the undersigned is capable of evaluating the merits and risks of an investment in the Shares.

9.           The undersigned is not investing in the Shares based upon any representation, oral or written, by any person with respect to the future value, if any, of, or the income, if any, from the Shares. The undersigned has made an independent examination of, and judgment with respect to, the Company’s prospects and the Shares, and not relied upon any of the Company’s financial projections. The undersigned has been advised by the Company that the undersigned should consult with the undersigned’s legal and financial advisors with respect to legal, accounting and tax issues relative to the investment in the Shares.

10.           The undersigned is a resident of the State of Florida.

11.           The undersigned acknowledges that he must continue to bear the economic risk of the investment in the Shares for at least six (6) months from the date of this Agreement and recognizes that the Shares will be (i) sold without registration under any state or federal law relating to the registration of securities for sale; (ii) issued and sold in reliance on the exemption from registration provided by the securities laws of the State of Florida; and (iii) issued and sold in reliance on exemptions from registration provided by the Securities Act and the General Rules and Regulations of the SEC promulgated thereunder.

12.           The undersigned will offer, sell, pledge, convey or otherwise transfer the Shares or any portion thereof only in a transaction or manner that is in compliance with the Securities Act, applicable State laws, and any applicable regulations or rules promulgated thereunder.

13.           If the Company hereafter decides to register any of its shares of Common Stock or securities convertible into or exchangeable for Common Stock under the Securities Act (a “Registration”) on a form that is suitable for an offering of shares of Common Stock by the Company or by third parties, the Company shall give written notice to the undersigned of its intention to effect such a Registration. The Company shall use commercially reasonable  efforts to include all of the Shares in such Registration (other than a registration on Form S-8 relating solely to the sale of securities to participants in a Company stock option or purchase plan or a registration on Form S-4 or a Rule 145 transaction).

 

  

2

  

 

14.           The undersigned understands that a restrictive legend in substantially the following form will be imprinted on the certificate(s) evidencing the Shares and the underlying securities and stop transfer orders or other appropriate instructions to such effect will be maintained against the transfer of the Shares and underlying securities on the transfer records of the Corporation or its transfer agent.

“The securities represented by this Certificate have not been registered under the Securities Act of 1933 (the ‘1933 Act’). The Securities have been acquired for investment and may not be sold, transferred, pledged or otherwise disposed of in the absence of an effective Registration Statement for the securities under the 1933 Act or an opinion of counsel satisfactory to the issuer that the proposed disposition of the securities will not violate Section 5 of the 1933 Act.”

15.           The undersigned has carefully reviewed the Company’s public filings with the SEC under the Securities Exchange Act of 1934, as amended, and realized that the Shares are a highly speculative investment involving a high degree of risk and are suitable only for persons of substantial means who have no need for liquidity with respect to their investment in the Shares and who can afford a total loss of their entire investment without hardship.

16.           The undersigned is not aware of any remuneration or commission, which is to be paid to any person, directly or indirectly, in connection with soliciting the purchase of the Shares.

17.           The undersigned understands that the undersigned or the undersigned’s representatives have been and will continue to be provided with reasonable access to the Company’s financial records.

18.           Indemnification. The undersigned shall indemnify and hold harmless the Company, its officers, directors and employees and any of its professional advisors, from and against any and all loss, damage, liability or expense, including costs and reasonable attorney’s fees, to which they may become subject or which they may incur by reason of or in connection with any misrepresentation made by the undersigned herein, any breach of any of the undersigned’s representations or warranties made herein, or the undersigned’s failure to fulfill any of its covenants or agreements herein.

19.           Confidentiality; Etc. (a) The information about the Company, which has been disclosed to the undersigned in connection with the undersigned’s purchase of the Shares, is deemed to be “Confidential Information” of the Company, and the undersigned represents and warrants to, and hereby agrees with, the Company, that unless the Company has consented in writing to the contrary, the undersigned will use the undersigned’s best efforts not to disclose such Confidential Information to others or use any part of such Confidential Information that has been disclosed to the undersigned, except any part thereof (i) which may be in the public domain, or (ii) which may be independently disclosed to the undersigned by any third party not itself in a confidential relationship with the Company, or (iii) which may already be in possession (otherwise than through disclosure by the Company or by any third party that is in a confidential relationship with the Company) of the undersigned, or (iv) which the undersigned may be required to disclose by order of a court or administrative agency having competent jurisdiction; provided, however, that this paragraph shall be terminated and be of no force or effect with respect to any such Confidential Information upon such Confidential Information becoming a part of the public domain through action by anyone other than the undersigned. (b) The undersigned is aware that Company is a publicly-traded company and that United States Securities laws prohibit any person who has received from an issuer material, non-public information (i) from purchasing or selling securities of such issuer; (ii) from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. Accordingly, the undersigned shall not directly or indirectly engage in the aforementioned conduct while it is in possession of material, non-public information and does hereby agree to indemnify, defend and hold harmless the Company and its officers, directors, employees, affiliates, agents and representatives, from and against any and all damages (including reasonable attorneys’ fees and costs) incurred by any of them as a result of breach of this provision by the undersigned or any of its officers, directors, employees, affiliates, agents and representatives. This Section 19 shall survive the purchase and sale of the Shares hereby for a period of one (1) year following the parties’ execution of this Subscription Agreement.

  

3

  

20.           The representations, warranties, acknowledgments and covenants made by the undersigned herein extend to and apply to all of the Shares acquired by the undersigned. Execution of this Agreement shall constitute a confirmation by the undersigned that all of the representations, warranties and covenants made herein shall be true and correct at such time.

21.           Notices. All notices and correspondence hereunder shall be in writing and sent by certified or registered mail, return receipt requested, or by overnight delivery service, with all charges prepaid, to the applicable party at the addresses set forth above, or by confirmed facsimile transmission (including, without limitation computer generated facsimile) or electronic mail, to the facsimile numbers and/or email addresses set forth on each party’s then published Web site, or, as to each party, to such other address as any party may from time to time designate for itself by notice in writing given to the other party hereto complying as to delivery with the terms of this paragraph. All such notices and correspondence shall be deemed given upon the earliest to occur of (i) actual receipt, (ii) if sent by certified or registered mail, three (3) business days after being postmarked, (iii) if sent by overnight delivery service, when received at the above stated addresses or when delivery is refused or (iv) if sent by facsimile transmission or electronic mail, on the next business day or when receipt of such transmission is acknowledged or confirmed, whichever is earlier.

22.           Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without reference to the conflicts of law principles thereof that would result in the application of any law other than the law of the State of New York.  The United States District Courts located in New York City or the Commercial Division of the New York Supreme Court Branch, New York County, shall have exclusive jurisdiction over any and all disputes among the parties hereto, whether in law or equity, arising out of or relating to this Agreement.  Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other Party with respect thereto.  Any Party may make service on any other Party by sending or delivering a copy of the process to the Party to be served at the address and in the manner provided for the giving of notices in Section 21 above.  Nothing in this Section 22, however, shall affect the right of any Party to serve legal process in any other manner permitted by law or at equity.  Each Party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity.

  

4

  

23.           Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

24.           Headings / Interpretation. The headings used in this document are for organizational purposes only and should not be interpreted as altering in any way or eliminating provisions contained herein. In the interpretation of this Agreement, the ‘contra proferentem’ rule of construction will not apply (this Agreement being the product of negotiations between commercially sophisticated Parties) and this Agreement will therefore not be construed in favor of or against any Party by reason of the extent to which any Party or its professional advisors participated in the preparation and drafting hereof.

25.           Entire Agreement. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes any prior understandings, whether oral or written.

In connection with the delivery of the Shares, the Company hereby represents and warrants to the Holder that:

	
1.  

	
The Company has the right, power and authority to cause the issuance and sale of the Shares, and the Company’s Board of Directors has duly authorized the undersigned the issuance of the Shares and the sale thereof to the undersigned on the terms and conditions hereof. Purchase of the Shares hereunder will also not violate any agreement, understanding or arrangement that the undersigned may have with any other party.

	
2.  

	
AGREEMENT ON SHARE CLEARANCE. Company agrees to take any and all commercially reasonable action(s) necessary to clear the Shares purchased hereunder of restriction upon presentation of any Rule 144 application by the undersigned or its broker(s), including, without limitation, (i) authorizing the Company’s transfer agent to remove the restrictive legend on the subject shares, (ii) expediting the acquisition of a legal opinion from Company’s counsel at Company’s expense (or, in the event the undersigned must use its own counsel, at Company’s expense up to $750) favorably opining as to the removal of the restrictive legend, and (iii) cooperating and communicating with the undersigned and its broker(s) in order to use the Company’s commercially reasonable efforts to clear the Shares of restriction as soon as possible after presentation of a Rule 144 application by the undersigned or its broker(s) to either the Company or its transfer agent. Further, the Company agrees not to unreasonably withhold or delay approval of any application filed by the undersigned or its broker(s) under Rule 144 to clear the Shares of restriction and to provide any additional documentation that may be requested by the undersigned including a Board Resolution authorizing the issuance of the Additional Shares and a Company Representation Letter or Officer’s Certificate under Rule 144. Notwithstanding the foregoing, the undersigned acknowledges that the Company is a former shell company and, as such, the current public information requirements of Rule 144 will remain applicable regardless of the lapse of relevant holding periods. Furthermore, the Company’s obligation hereunder to cause its legal counsel to provide a legal opinion shall be subject to counsel to compliance with such current public information requirements.

 

  

5

  

NOTICE TO RESIDENTS OF ALL STATES:

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF OUR BUSINESS AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. NO FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY HAS RECOMMENDED THESE SECURITIES. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE SECURITIES OFFERED HEREBY ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

 

NOTICE TO FLORIDA RESIDENTS:

THE SHARES REFERRED TO HEREIN WILL BE SOLD TO, AND ACQUIRED BY, THE HOLDER IN A TRANSACTION EXEMPT UNDER SECTION 517.061 OF THE FLORIDA SECURITIES ACT. THE SHARES HAVE NOT BEEN REGISTERED UNDER SAID ACT IN THE STATE OF FLORIDA. IN ADDITION, ALL FLORIDA RESIDENTS SHALL HAVE THE PRIVILEGE OF VOIDING THE PURCHASE WITHIN THREE (3) DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO THE ISSUER, AN AGENT OF THE ISSUER, OR AN ESCROW AGENT, OR WITHIN THREE (3) DAYS AFTER THE AVAILABILITY OF THAT PRIVILEGE IS COMMUNICATED TO SUCH PURCHASER, WHICHEVER OCCURS LATER.

Rule 506 Notice

In this Offering, the Company is relying on the registration exemption safe harbor under Rule 506(b) of the Securities Act of 1933. This is the primary safe harbor relied upon by issuers of securities in private placements in the United States.  The Company has relied on Rule 506 in many of its private placements over the past several years and, although other options are available, the Company expects that it will rely on Rule 506 in future private placements. The SEC recently implemented a rule (the “Disqualification Rule”) pursuant to the Dodd-Frank Act to prohibit “bad actors” from relying on the registration exemption safe harbor under Rule 506 in connection with private placements conducted on or after the effective date of the Disqualification Rule (i.e. September 23, 2013).  As previously disclosed by the Company in its publicly-filed reports (see the Company’s Form 8-K dated March 21, 2013), a consent judgment was entered against the Company in connection with an SEC enforcement action commenced in 2012 relating to past misstatements in the Company’s financial statements.  You are encouraged to review the Company’s SEC filings that discuss this matter.  The judgment against the Company would have disqualified the Company from relying on Rule 506 except that the disqualifying conduct occurred before the effective date of the Disqualification Rule.  Thus, the Company is not barred from using Rule 506 in this Offering or in future private placements.  Nonetheless, the Disqualification Rule requires the Company to inform new investors of the conduct that would have otherwise disqualified the Company from relying on Rule 506 in this Offering if the conduct had occurred on or after the effective date of the new Disqualification Rule.

  

6

  

Executed this ___ day of February 2014.

Name of Purchaser: ___________

By: _____________

 

Signed:   _________________________________

Title:       CEO

Name of Seller: JBI, Inc.

Accepted By:  Richard W. Heddle

 

Signed:   _________________________________

Title:       CEO and President

  

7

  

 

ALL SUBSCRIBERS MUST COMPLETE THIS PAGE

IN WITNESS WHEREOF, the undersigned has executed this Subscription

Agreement on this ___ Day of February 2014.

Subscribed for Quantity and Type of Shares:

Quantity of Shares:                                           ________ Shares @ $0.05 = $_____

Manner in which Title is to be held (Please Check One):

 

 

	1.	o	Individual  	 	7.	o	Trust/Estate/Pension or Profit Sharing Plan Date Opened:  ______
	 	 	 	 	 	 	 
	2.	o	Joint Tenants With Right of Survivorship	 	8.  	o	As a Custodian for:
	 	 	 	 	 	 	 
	3.  	o	Community Property  	 	 	 	 
	 	 	 	 	 	 	Under the Uniform Gift to 
	4.	o	Tenants in Common  	 	 	 	Minors Act of the State of _______
	 	 	 	 	 	 	 
	5. 	þ	Corporate/Partnership    	 	9. 	o	Married with Separate Property
	 	 	 	 	 	 	 
	6. 	o	IRA	 	10. 	o	Keogh
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

_____________

	 	 	 	 
	
 

	
By: 

	/s/ 	 

 

Please indicate whether or not you or any member of your immediate family is affiliated with any member of the National Association of Securities Dealers, Inc. A member of your immediate family includes parents, mother-in-law, father-in-law, husband or wife, brother or sister, brother-in-law or sister-in-law, son-in-law, daughter-in-law and children and any other person who is supported, directly or indirectly to a material extent by the subscriber.

Check One:                      / /  P           No Affiliates                                / /           Affiliated with (explain)_________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]