Document:

ex105.htm

This Confidential Memorandum of Terms

Ref #: 040220100217

Is being issued by:

Mr. John Correnti, CEO

MVP Holdings Corp ("Company")

99 John St. #223

New York, NY 10038

Phone: 1-212-962-2100

Website: www.mvpfinancial.com

Public Market: TBD

Symbol: TBD

Cusip#: TBD

To:

Investors listed in Exhibit A

This is an offer to sell securities of MVP Holdings Corp ("Company") to the Investor(s). This Memorandum of Terms is conditional on completed Due Diligence meeting the satisfaction of the Investor(s), obtaining appropriate legal opinions and signing of completed offering documents ("Closing Documents" as also described in Section II.7). This document will be followed by appropriate offering documents and other agreements between the parties should this full sales offer be committed to.

 

  

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THE OFFER AND SALE OF THE CONVERTIBLE PREFERRED SHARES AND WARRANTS ("UNITS") DESCRIBED HEREIN ARE NOT BEING ISSUED UNDER A REGISTRATION THROUGH THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR THROUGH REGISTRATION WITH ANY STATE'S SECURITIES ACTS, BUT ARE BEING ISSUED IN RELIANCE UPON AVAILABLE EXEMPTIONS FROM SUCH ACTS' REGISTRATION REQUIREMENTS. UNITS PURCHASED HEREUNDER MAY BE SUBJECT TO CERTAIN RESTRICTIONS ON SALE, TRANSFER, HYPOTHECATION OR OTHERWISE. THESE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, AND NO SUCH COMMISSION HAS PASSED UPON OR ENDORSED THE MERITS OF THESE UNITS OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. CHANGES IN INFORMATION OCCURRING AFTER THE DATE OF THIS MEMORANDUM ARE NOT NECESSARILY REFLECTED HEREIN. PURCHASE OF THESE UNITS INVOLVES A HIGH DEGREE OF RISK.

US NOTICE: Any dissemination of these possible terms to the general public, distribution within the borders of the United States of America, distribution to United States citizens abroad, or to other funding or investment sources could void any exemptions for Private Placement status under US Securities Law. The Company and Investor(s) agree that no public announcements or dissemination of any information to any source other than the Company, the Advisor, the Intermediary or the Investor(s) without an opinion from legal counsel attesting that such announcement or dissemination will not void the private placement exemption or violate Regulation D, Section 4(2) or Section 5 of the Securities Acts of the U.S.. This offer would be an "All or None" offering. Should the full offering not be committed to, this offer would be rescinded and any terms become null and void.

Section I. Investment Assumption & Definitions

1. Investment Assumptions:

	
Company:

	
MVP Holdings Corp

	
Anticipated Closing Date:

	
To be determined.

	
Current Capital Structure:

	
(See Exhibit B)

	
Pre-Money Valuation:

	
$ 4,697,253

	
Share Consolidation Necessary:

	
None

 

 

  

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Additional Assumptions:

1. If any consolidation or split of shares is contemplated by this agreement, the terms, prices and amounts listed in Sections II through V are to be considered post share adjustment.

2. Class of Security and Series of Security shall be defined in terms of their Share Attributes, and unless specified as a Series of a Class of Share, shall encompass the whole Class of Securities.

3. Ownership percentages, save for the final Share structure, are calculated on the issued and outstanding at the time of calculation and not on a fully diluted basis. The Final Share structure is calculated on the fully diluted basis.

2. Definitions:

Breakout: That separation of cash transfer from the Cash Account to the Working Account following attainment of all requirements for such Breakout.

Cash Account: That account with the Intermediary in the name of the Company which Investor(s) cash was delivered and such cash distribution to the Working Account is managed by the Intermediary.

Close: That statement by the Intermediary which formally puts the investment into effect following: receipt by Intermediary of all Investor(s) cash, all Company shares to be purchased (Fully registered or with an exchange agreement) and all signatures on all documents required to prove full agreement to the terms of the investment.

Corporate Undertaking: That letter to the Intermediary stating that the Company has delivered all necessary documents and taken all necessary corporate actions and requesting that the Intermediary close the transaction.

Intermediary: That institution responsible for closing, managing and monitoring the Cash Breakouts and the Use Of Proceeds ("UOP") through the Account Management Agreement ("AMA").

Investor(s): Refers to any and all purchasers of this offering.

Offering Documents: The Unit Subscription Agreement ("USA"), detailing the sale of securities, the Account Management Agreement ("AMA") and any additional agreements necessary to complete the transaction. The AMA details the instructions for the Intermediary to manage the distribution of assets and monitor the milestones and requirements.

Unit: That combination of Convertible Preferred Shares (Convertible to Common Shares) and Warrants to purchase additional Common Shares which encompass the securities of the transaction.

(Assumptions Continued)

Use of Proceeds: That capital inflow and outflow which includes the utilization of the capital from this offering to create valuation.

Workout: That period where each Breakout is delivered from the Company Cash Account to the Company Working Account. Workouts assess deliverable Breakout Cash as per Market metrics as described in Section II.5. The Intermediary will monitor and account for those requirements necessary to calculate the release amounts during each Workout.  A Workout is a maximum 30 calendar day, minimum 20 day market trading period.

Working Account: That domestic unrestricted account designated by the Company for cash to be distributed for use by the Company following attainment of Breakout, Workout and Business Milestone requirements.

Workout Period: A Workout Period is 30 days. If the Workout is not fully delivered during the current Breakout Period, additional Workout Periods, each of 30 days, would be employed.

  

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Section II. Investment

1. Offer Terms:

This is an offer to sell securities through a private placement of capital into Units of Convertible Preferred Shares (Convertible into Common Shares at the rate established in Figure 1.) and Warrants for Common Shares of the Company. This Private Placement will rely upon the US Securities Act of 1933 Sections 3(b) or 4(2) for its structure and on Regulation D for its exemption from registration. An S-1 registration or registrations to register the shares of this offering would be required. Investor(s) will purchase that number of "Units" of securities as detailed in their signature block. Each Unit shall be comprised of that number of Convertible Preferred Shares and Warrants as described in Figure 1:

Figure 1. (Unit Structure)

 

 

Notes:

1.           Assumes current outstanding common, common for first 6 Breakouts and VAM for first2 quarters. Discussion with counsel is advised.

2.           Includes all equity and warrants and assumes no sales of shares by Investors.

3.           Each warrant carries the right to purchase 1 registered common share. Each Unit carriesthe rights to purchase that amount of registered common shares in those amounts and atthose prices as specified in Section III Figure 8, Column 2 and 3.

2. Investment Close:

Investor(s) cash will be placed into an account with an Intermediary of Investor(s) choosing. The Company will deposit the Units of Convertible Preferred Shares and Warrants in certificate form with the Intermediary. Once all closing items have been executed and are in place, the Intermediary will transfer the Investors cash to the account of the Company with the Intermediary, (the "Cash Account"), and will deposit the share certificates in each Investor(s) account (the "Close").

3. Registration:

Following Close, the Company will perform a shareholder Registration of the underlying shares as described in Figure 1 "Common to Register", see note 1, no later than the time frame requested in Section IV.10 under Item "Registration". Additional Registrations to cover the remaining underlying common will later be filed to provide continuity to the Breakout Schedule found in II.4 below.

4. Cash Breakouts:

 

 

  

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Once those requirements detailed in this Section II.2-3 have been accomplished, apportioned "Breakouts" of cash from the Cash Account would be made to the Company's Working Account. These Breakouts of cash are divided according to the Use of Proceeds (UOP). The total offering is divided into 36 Breakouts of Cash as described in Figure 2. Breakouts must always be delivered in numerical order.

Figure 2. (Breakout Detail)

 

(Section II.4 Continued)

In order for a Breakout to commence, conversion of that Breakout's Preferred Shares to freely traded Common Shares must have previously occurred and those shares must be on deposit with the Intermediary. Conversion is completed once deposit and clearance of the underlying free trading common shares into electronic street form is verified by the Intermediary. This conversion may require additional paperwork from the Company and opinions from the Company's attorney's.

 

 

  

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(All Invested Amounts would be subject to deductions of account management and Investor(s) expenses (Including legal, accounting, account management, wire, transfer and bank fees) and payments prior to transfer from the Company's capital account to their working funds account. Any transfers of capital would have wire and or check costs and fees deducted from them. These transfer fees may vary depending on the size and destination of the transfer.)

5. Breakout Market Metric Requirements:

Volume of sales at or above the Minimum Bid Price will release cash from the account. Figure 3 lists each Breakouts Minimum Bid Price and the Release Volume, (the total volume at or above the Minimum Bid Price necessary to release 100% of the Breakout), which Breakout cash amounts were previously shown in Figure 2.

Figure 3. (Market Metric Requirements)

6. Breakout Workout Provision:

Each Breakout may be divided up into 1 or more Workouts to divide the accounting periods into 30 calendar day, (Minimum 20 trading day), periods. Breakouts of cash will be Worked Out, (the "Workout"), of the Cash Account as price and volume meeting or exceeding the market metrics found in Figure 3 occur. Should the price or volume be lacking so as not to deliver the full Breakout of cash, the Breakout may utilize as many Workout periods as is necessary to fully deliver the Breakout Cash Amount. Each Workout will begin as soon as the previous Workout schedule is exhausted.

 

 

  

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Should a Workout fully account for full delivery of the Breakout Cash Amount prior to the maximum calendar or trading days, the next Breakout would start the following trading day provided that all items necessary to start such Breakout as described in Section II.3, Section II.10-11 and any items called for in the Closing Documents, have previously been completed.

Breakout Cash Workout metrics will be accounted as follows:

Accountable Volume = Total Trading Volume above Bid Price during 30 day period

Accountable Volume X 15% = Available Uncovered Shares

Available Uncovered Shares ÷ Breakout Common Shares = Share Release %

Share Release % X Breakout Cash Amount = Workout Release Cash

So if given the following theoretical parameters the release for a theoretical Workout Period would be as follows:

Figure 4. (Theoretical Workout for Breakout 1)

 

 

7. Breakout Price Workout:

Price Workout for Bid pricing greater than Breakout minimum Bid price

In the event the Average Bid Price, defined as a bid where shares are traded and where the cumulative bid prices are averaged daily, is greater than 130% of the Breakout Minimum Bid Price metric, as described in Section II.5 Figure 3, the Average Bid Price will adjust the Breakout Common Share volume metric requirement as follows:

Breakout (Workout) Cash Amount ÷ Avg. Bid Price = Breakout Common Shares

This Breakout Common Share metric adjustment does not impact the actual shares purchased by the Investor(s) for that Breakout, which will remain at their original amount as described in Section II.4 Figure 2.

Price Workout for pricing less than Breakout minimum Bid price

A pool of additional shares would be deposited with the Intermediary to be held for use as the Pricing Workout Pool, (the "PWP"). The PWP would provide additional shares to make up additional shares necessary in the event pricing does not meet the expected levels. The existence of the PWP will allow the offering to go ahead in a smooth and timely manner.

(Section II.7 Continued)

PWP Draw Steps

1. Company determines pricing for the Breakout

2. Advisor redrafts Breakout structure utilizing the new Breakout Bid Price

3. Amendment to the Original USA and AMA signed by all parties

4. Amendment delivered to Intermediary to adjust current instructions

 

 

  

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PWP Caveats

1. No Investor shall control more than 9.9% of the company common shares at any given time

2. PWP Shares to be held in the Intermediaries name in Certificate form until drawn

3. Neither Investors nor Intermediary shall vote PWP shares until drawn

4. PWP shall in no event be larger than 30% of the total offering share amount

5. PWP shares are added to the end of the offering timeline, current Breakout shares will be drawn first from:

a. Registered Shares

b. 144 Eligible Shares

6. Should the PWP be drawn in the last 6 Breakouts, a registration must be completed to provide free trading shares

The PWP will be funded for the amount of shares described in Figure 5:

Figure 5. (Pricing Workout Pool)

8. Cash Flow Waterfall During Workout:

Capital to Company during the Workout period must be spent in the following order:

i. Expenses, Fees and cash holdback payable

ii. Public and Investor Relations as described in the Use of Proceeds

iii. Debt Service

iv. Use of Proceeds

9. Closing Documents:

Prior to funds deposit, the Due Diligence and Closing Agenda items will be completed ("Closing Agenda" shall be completed following full commitment of this Memorandum of Terms.). The Closing Agenda may include the following items, but may include additional items as Investor(s) or Company counsel calls for:

Offering Documents (USA, AMA and any other necessary documents)

Account Documentation

Official Corporate Resolutions

Corporate Undertaking

Compliance Attorney Undertaking

Attorney Opinion on Corporate Acceptance and Undertaking

Copies of Share Certificates and Opinion Letters

 

10. Additional Terms:

The company will be in compliance with the following terms prior to and during all Breakouts and through the period of warrant exercise. If such terms are out of compliance, the company agrees it will not have access to the funds in their account until the compliance issue is remedied or a workaround is mutually agreed to with the Investor(s).

i. Anti share consolidation provision whereby the company agrees not to consolidate its issued preferred or common shares without the agreement of the Investor(s) in this offering for a period of 48 months or 12 months following the exercise of the warrants whichever is the shorter time period.

 

 

  

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ii. Corporate compliance with applicable jurisdictional regulations.

iii. The Company agrees to provide and maintain full corporate authority evidenced by:

a. Certificate of Good Standing or Proof of Corporate Compliance with State authority.

b. Corporate Undertaking secured by a Corporate Resolution authorizing the issuanceof the shares and acceptance of the offering documents. Such resolution must besuitable to the Intermediary for purposes of share deposit.

c. Proper filings of Corporate Capital Structure alterations such as 14C securitiesfilings, state filings and shareholder votes if required by state regulations orcorporate bylaws.

iv. Company will file and maintain fully reported financials to the proper regulatory agency so as to maintain fully reporting status with the exchange or regulatory authority they are subject to during all Breakout periods and until all Warrants are exercised or expired.

v. Company will at all times be publicly traded on an exchange acceptable to the investor(s), or will upgrade to such exchange as required. Minimum exchange requirements are the US Over the Counter Market by the 13th Breakout.

vi. The Company agrees not to perform any sale, merger or spin-off of more than 5% of the underlying assets (Including Intellectual Property) or revenue base for a period of 1 year following completion of full capital delivery by the Intermediary unless prior written approval has been obtained from the investors.

vii. The Company will be restricted from performing any equity offerings which have, or would have, a negative effect on the valuation of the underlying shares without the approval of the Investor(s). Any offering will be cleared with Investor(s) prior to acceptance. Catwalk Capital, LLC (the Investor(s) "Advisor") will be the arbiter of the impact of any equity offering. As such, the Company must inform and communicate with the Advisor the terms, conditions and covenants of any such offering and await acceptance of terms individually by the Investor(s). Acceptance will not be unreasonably withheld, but the offering must operate in the best interests of value creation.

viii. The management team of the Company will exchange a portion of their Common stock as detailed in Section II.11.B.iii and be issued a Value Added Model (“VAM”) as shown in Figure 6. The VAM will bonus shares on a quarterly basis for performance of corporate valuation. Each series of VAM must be preceded by the fulfillment (Delivery or exercise) of either the completed Breakout or Warrant Series exercise for that VAM disbursement period as detailed in Figure 6. Such bonus pool will be divided as the Company sees fit, but a complete plan will be approved by the Investor(s), and reported to the market. Bonus amounts will be paid quarterly as follows:

(Section II.10.viii Continued)

Figure 6. (Value Added Model)

 

 

  

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Underlying Shares and warrants of this Unit Offering will be accompanied by the following in order for Breakouts to start:

ix. The Company understands that Breakouts of capital may only occur if an accepted Registration statement or Attorney opinion letter, suitable to the Intermediaries depository and transfer groups, evidencing the free trading ability of the shares is presented to the Intermediary by the Company, and such registration proxy accompanies the Common Shares converted from the Preferred and underlying Common Shares of the Warrants. Unless an effective Registration or an attorney opinion letter, suitable to the Intermediary and their depositories, is/are available and such status provides sufficient free trading shares to cover the complete offering, a Registration or additional Registrations of the underlying common shares shall commence immediately and must be effective prior to the start of the Breakout the underlying shares are attached to.

x. Company agrees to adhere to the Use of Proceeds schedule as set forth in Section IV.1 during the term of this investment (Full Cash Delivery from the account and full warrant exercise). Quarterly and annual reviews of the use of proceeds, by the corporate accountant and signed by the CFO, would be delivered to the Investor(s) through the Advisor. Any deviance from this UOP schedule would be cleared with the Investor(s), through the Advisor, prior to such deviation. Any such acceptance would be in writing and signed individually by the Investor(s).

Company agrees not use funds from this offering for any of the following items unless previously agreed to and included in the Use of Proceeds in Section IV.1 of this Terms Notification:

i. Leasing vehicles, aircraft or boats for senior management's or consultant's personal use

ii. Legal or G&A not related to corporate operations or public company listing

iii. Management or shareholder loan repayments

iv. Past due salaries or payroll

v. Settlement of legal liabilities

vi. Severance packages

vii. Payment of license fee's or royalties to the Senior Management or Directors

(Section II.10 Continued)

 

 

  

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xi. The management team of the Company will be issued 50,000 shares of super voting Series C  Preferred shares. The Attributes of these shares may be found in Exhibit D. These shares will be deposited with the conversion attorney for use in the event the Company defaults on its obligations in this Agreement (See Section IV.8).

11. Business Milestones:

A. These items must be accomplished prior to closing:

	
i.  

	
MVP Holdings Corp. Acquisition of MVP Partners, Inc.

	
ii.  

	
MVP Partners Inc. Acquisition of MVP Financial LLC.

	
iii.  

	
Currensys Acquisition

B. These items would be accomplished prior to Breakout:

	
i.  

	
Effective S-1 Registration

	
ii.  

	
15C-211 Public Listing

	
iii.  

	
Management exchange:

	
iv.  

	
Louise Perlstein to Exchange 100,000 of her post VAM Common Shares for a Promissory Note with the Company to repay her initial investment into MVP Financial, LLC of $200,000 over 24 months bearing interest at 12% per annum and payable quarterly.

12. Restrictions on Capital Use:

The Company may not use capital of the Company for any of the following purposes during the term of the investment (36 months):

i. Pornography or Prostitution

ii. Human Embryo Abortion or Abortive Support

iii. Child Labor (Those under 14)

iv. Support for Terrorist or Hate Groups either monetarily or by gift of resources

v. Human Trafficking

vi. Slavery

vii. Supplying of Weapons in contravention of International law

viii. To suppress, prohibit or elevate any person or group due to ethnic, religious, racial, sexual or political viewpoints or to support persons or groups in their pursuit of such suppression of other groups

13. Preferred Share Attributes:

Figure 7. (Short Form Preferred Share Attributes, See Exhibit C-D for full Attributes)

14. Registration Expenses:

 

 

  

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All expenses incurred in connection with a registration required pursuant to Section II.3, including (without limitation) all registration, filing, qualification, legal, accounting and any other expenses necessary to complete the Registration shall be borne by the Company. The Company shall not be required to pay any underwriters' or brokers' fees, discounts or commissions relating to the Registrable Securities, or the fees or expenses of separate counsel to the Investor(s), unless such expenses were incurred as a result of requests for data or documents by Company counsel or auditors.

Section III. Warrant Funding

Warrants will provide the holder the right to purchase registered free trading Common Shares at the prices and amounts set forth in Figure 6.

Figure 8. (Offering Warrant Rights)

 

  

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Figure 9. (Offering Warrant Cash)

 

Individual Investor(s) Warrant Rights will be detailed in the USA. Underlying Common Shares of the Warrants must be free trading prior to release of capital to the Company. The Company will include the Underlying Common Shares in a registration prior to Month 24 following closing. Warrant exercise is at the discretion of the Investor(s). The warrant exercise shall take place through the Intermediary. Upon delivery of both the underlying free trading Common Shares of the Warrants and the Investor(s) cash, the Intermediary will administer closing. Closing shall be the exchange of the cash payable to the Company, for that series of Warrant,  and the Common Shares of the Warrant Series deliverable to the Investor(s). The full exercise instructions will be detailed in the AMA. Warrants would be available for exercise for 48 months following registration or 24 months following finalization of the equity offering whichever is longer.

All Invested Amounts are subject to deductions of expenses and fees (Including legal, accounting, account management, wire, transfer and bank fees) and payments prior to transfer from the Cash Account to the Working Account.

Section IV. Management

 

 

  

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1. Use of Proceeds (UOP):

The Company would adhere to the Use of Proceeds set forth in the accompanying file titled "MVP UOP (TM 08.27.10)". The Company has agreed not to use funds from this offering for any purpose not listed in the Use of Proceeds ("UOP") without previous approval from the Investor(s). The Company understands that any such deviation from the UOP may alter the valuation metrics used to evaluate the risk of this offer. Company further agrees that any deviance from this UOP is approved in writing by the Investor(s), through the Advisor, prior to such deviation. Nothing in this document would restrict the Company from utilizing funds not included in the UOP, or received from a separate offering previously approved by the Investor(s), for purposes as the Company sees fit. The UOP may be found in Exhibit E to this document.

2. Communications & Control:

The Securities Sections this offering will utilize for its registration exemption, have certain requirements for offering origination, offering management, document preparation, material notices and Blue Sky administration. The Company wishes to maintain its exemption under these Sections. In order to do so, the Company and its officers, directors and employees agree not to communicate directly with the Investor(s) at any time. Any verbal communications to the Investor(s) may entail unintentional or material representations or disclosures and would therefore be avoided.

The Company understands that the Investor(s) have retained Catwalk Capital, LLC, (the "Advisor") as their Purchase Advisor to perform Due Diligence, opine on the investment opportunity and manage and monitor the investment process. All communications with Intermediary and Investor(s) shall be conducted through the Advisor. The Company may utilize the Advisors online portal in written form as representations to both the Intermediary and the Investor(s). Any discussion of items needed, document delivery or general questions would be directed to Advisor. Advisor would consult to the Investor(s) on the worth of the investment. Any additions, changes or representations which Advisor may request or suggest to Company, if acted upon by Company, would be provided in writing. Company counsel shall opine on any and all agreements. The Company requests that neither the Company nor the Investor(s) communicate verbally to the Intermediary. Any offers, alterations or communications would be presented in writing and any agreements signed by all parties before such offer, alteration or communication is considered accepted or finalized. All communications would be in writing.

3. Expenses and Fees:

The Company understands that:

1.           Advisor will incur expenses for the placement and management of this Investment.

2.           Advisor receives no compensation for expenses incurred to place and manage thisInvestment from the Investors. Any Expenses incurred will be paid by the Companyeither through billings or through the Monthly Service Retainer.

3.           Prior to signing of a Terms Memorandum, Advisor will seek authorization and pre-payment of expenses from the Company for any expenses to be incurred. Customaryexpenses are described in the Expense Guidance delivered with the Application andfurther in Section IV.5 below.

4.           Following Terms Memorandum execution, Advisor will be authorized by Company toincur whatever expenses are customary to complete the Investment. Advisor will relyon the payment of the Monthly Service Retainer to recover any expenses related to theInvestment.

(Section IV.3 Continued)

 

 

  

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5.           The Company would represent through its Execution of a Terms Notification that itwould provide Advisor with such Monthly Expense Retainer as described in SectionIV.4 below.

6.           Advisor will include such expense billing amounts within the Monthly Service Retainer.Any amounts over and above the Monthly Service Retainer will be moved to anyupcoming retainer payments. Should the expenses incurred be in excess of the retainerspaid, the excess amount will be repaid by the Company out of their first Breakout of cash.

7.           Company may pay the Monthly Expense Retainer by either: wire, credit card, paypal orcashiers check.Any Personal Checks will be automatically charged a 10% fee forinterest due to the waiting period incurred by Advisors bank. Any credit, wire or othercharges will be paid by the Company and will be added to future Invoices if not already included in the current invoice.

8.           Following execution of this Terms Memorandum and payment of the initial MonthlyService Retainer, Company represents to Advisor that it will continue to provide suchMonthly Service Retainer as described in Section IV.4 below.

4. Post Memorandum of Terms Expenses:

Following Memorandum of Terms execution, and during any time that no cash is being released from the Cash Account up to final cash release for the equity portion of the Investment, the Company will begin providing a Monthly Service Retainer to Advisor as follows:

a.           Month 1                                                      $5,000.00

b.           Additional Months                                   $3,500.00

This retainer will cover the following:

a.           Preparation of the Unit Subscription Agreement

b.           Preparation of the Account Management Agreement

The retainer will not cover the following:

a.           Intermediary Account Setup

b.           Breakup Fee

c.           Breakup Fee Escrow Setup

d.           Compliance Attorney Setup

e.           Portal IT after Closing Document setup

5. Post-Close Expenses:

(These Expenses shall be paid from cash transfers to the Company)

	
Cash Withholding per Breakout:

	
$5,000.00

	
Cash Withholding per Workout:

	
$1,000.00

	
Annual Account Fee (Annual):

	
$3,000.00

	
Account Service Fee (Annual):

	
$3,000.00

	
Price Workout Pool Adjustment:

	
$1,500.00

Cash withholding of $5,000.00 per month will be withheld from each Workout for ongoing expenses of legal, accounting and bank/wire fees. Should a Breakout have more than 1 Workout, subsequent Workouts will each have $1,000.00 deducted. Should Workout 1 not deliver sufficient capital to cover the $5,000.00 withholding, the Withholding will be extended to subsequent Workouts.

  

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(Section IV.5 Continued)

Additional Standard Expense Rates:

	
1.

	
Application Programming hourly:

	
$   150.00

	
2.

	
Terms Notification Initial Draft:

	
$   500.00

	
3.

	
Catwalk Staff Time hourly:

	
$   150.00

	
4.

	
Due Diligence Portal IT hourly:

	
$     75.00

	
5.

	
Memorandum of Terms Initial Draft:

	
$   500.00

	
6.

	
Intermediary Account Opening:

	
$1,500.00

	
7.

	
Breakup Fee Escrow Setup:

	
$   750.00

	
8.

	
Compliance Attorney Setup:

	
$   750.00

	
9.

	
Legal Document Alteration (hourly):

	
$   250.00

	
10.

	
Accounting (hourly):

	
$   150.00

Travel Expenses: (If Company Requests Advisor to Travel)

	
1.

	
Daily Retainer:

	
$1,500.00

	
2.

	
Daily Expense Monies:

	
$   300.00

	
3.

	
Business Class Air tickets

	  
	  	
a.

	
Bellingham, WA to destination and back

	  	
b.

	
No more than 2 stops

	  
	
4.

	
Rental car at destination of SUV or luxury class car or

	
5.

	
Town car to take to destination or pick up at airport

	
6.

	
4 star or better hotel

	  
	  	
a.

	
No smoking room

	  
	  	
b.

	
Queen or better bed

	  

6. Memorandum of Terms Break Up:

The Company understands that following Memorandum of Terms signing, that it will:

1.           Cause an Insider or Shareholder (the “Depositing Shareholder”) to deposit (i.) 33,334 Common Shares (the "Breakup Shares") in certificate form with a stock power to allow transfer to Elco Securities, Ltd. (the "Intermediary"), or, (ii.) $50,000 in cash, with the Breakup Attorney in Escrow, either payable in the events stated in 6.4 below.

2.           Should the total shares be in excess of 999,999 shares, multiple Certificates will be issued, no certificate shall be comprised of more than 999,999 shares. The certificate orcertificates will be comprised of restricted securities and will be accompanied by the proper documents required to have the certificate deposited in trust.

3.           The certificate or certificates, will be deposited with an attorney of Advisors choosing under a Breakup Escrow Agreement.

4.           The Shares will be deliverable to Intermediary in the following events:

a.           Company cancels the investment prior to Close, or

b.           Company breaks the exclusivity covenant of the Memorandum of Terms, or

c.           Material discoveries are uncovered in due diligence that were not disclosed by the Company in its Portal upload, and which discoveries adversely affect theInvestor(s) belief that the Company will attain its projected Financial UOP, or

d.           The Company becomes insolvent during the period prior to closing, or

e.           The Company becomes subject to an investigation or suit by a securities agency of a recognized government prior to the close.

5.           Should the Investor(s) cancel the investment for any reason other than those specified in #4 above, the shares will be returned to the Depositing Shareholder (See IV.6.1).

6.           Following close, the Breakup will be returned to the Depositing Shareholder (See IV.6.1).

  

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7. Breakup Following Close:

The Company understands that:

1.           Following Close, there shall be no ability for either the Company or the Investor(s) torescind or cancel the transaction without mutual written agreement of all parties.

2.           Any Breakup following Close will require a negotiated Breakup settlement between theparties. The Company understands that the Investors are not operating jointly, and assuch, each Investor may agree or disagree with such settlement proposal. There will beno pre-agreed Breakup Agreement once Close occurs.

3.           Should a negotiated Breakup of the transaction occur following closing, any suchagreement must provide an allotment to cover costs and expenses of the Advisor.

4.           The Investor(s) are under no obligation to agree to any such Breakup offer unlesssatisfied with the terms of such Breakup settlement.

5.           The Company may not cancel or Breakup the investment by delay or refusal to providedocumentation.

6.           Any public dissemination or filing of documents stating that the transaction has beenbroken up or cancelled without a mutually agreed Breakup must be considered as amaterial untrue statement and would subject the Company to potential regulatory actions.

7.           Any Breakup Settlement Agreement will not be considered as complete until all itemsnecessary to complete such Agreement have been accomplished including shareissuance, registration, delivery of shares to Intermediary and any other items called forin the Settlement Agreement.

8. Compliance by Company:

At close, the Company shall deposit the 50,000 super voting Series C Preferred Shares the management owns with an attorney of the Investor(s) choosing (the "Compliance Attorney") under an escrow. The escrow will be accompanied by stock powers for transfer of the super voting shares to the Compliance Attorney in the event the Compliance Attorney is forced to compel the Company to act should the following circumstances described in 8.1-2 below not be resolved and the Compliance Attorney is forced to take those actions described in 8.3 below:

The Company understands that:

1.           Should the Company be out of compliance with the following:

a.           Failure to file a Registration with the US Securities Exchange Commission("SEC") within the given time period covering the shares described in SectionII.3, or any registration that may be necessary to continue the offeringcontemplated herein, or;

b.           Failure to provide proper documents to deposit certificates attached to thisoffering, or;

c.           Failure to provide legal opinions for shares attached to this offering, or;

d.           Failure of the Company to communicate with the Advisor to resolve issues andmaintain communications, or;

e.           Failure to maintain compliance with requirements set in the USA or AMA, or;

f.           Failure to be a going concern by the filing of a petition for bankruptcy, eithervoluntary or involuntary, or the ceasing of business activity, or;

  

Page 17 of 31

  

(Section IV.8 Continued)

2.           Should the Company Institute any of the following:

a.           Attempted cancellation of certificates attached to this offering to force Breakup,or;

b.           Institution of any suits to force a Breakup, or;

c.           Filing of any documents stating that the transaction is canceled or Broken upwhen in fact it is not, or,

d.           Filing of any disclosure notifications or dissemination of any press releasestating that there is a negotiated settlement unless and until all deliveriesnecessary to make such settlement effective have been made, then;

3.           The Compliance Attorney shall Demand the Company come into compliance within 30days. The Company may communicate a plan to the Investor(s) to rectify such situationduring this initial timeline. If the Investors have not agreed to such plan, or issued anextension to the Company, during the 30 day period, with notice to the Compliance Attorney of same, the Compliance Attorney shall:

a.           Take over the super voting privilege, and;

b.           Institute a shareholder vote to:

i.           Force compliance through shareholder directives, or:

ii.           Call for a Shareholder vote to replace the board should the board beobstructionist or if the actions of the board continue to leave theCompany out of compliance, or:

iii.           Bring additional management or replace management as necessary to puta plan in place to force compliance.

c.           Once compliance is reestablished, the super voting power will be passed back toeither, (i.) the original shareholder(s) if such management are still engaged in theirpositions, or (ii.) the board of directors if the management has been replaced.

d.           Any legal expenses in addition to the original Compliance Attorney setup will bepaid by the Company.

9. Exclusivity:

Full execution of this Memorandum of Terms by the Company signifies to the Investor(s) as inducement to enter into such agreement:

1.           The Company will not accept or enter into any other offers of investment which wouldhave an adverse effect on the valuation of the underlying common shares withoutapproval of the Investor(s) to the offering contemplated herein.

2.           The Company will keep this and other investment documents confidential in theirentirety and will not disclose either the documents or the terms thereof to any partywhich is not a party to this investment until such time as the offering is completed. Atwhich time, the Company will limit its disclosure to any public filings which must be made to maintain compliance with applicable Securities regulations.

  

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10. Requested Closing Timeframe:

	
Day

	
Item

	
Prerequisite

	
1-7

	
Memorandum of Terms (MT) signing

	
Due diligence completion

	  	
Initial Monthly Service Retainer

	
MT signing

	  	
Deposit of Breakup Fee

	
Memorandum of Terms signing

	
7-15

	
Offering document creation (USA)

	
Breakup Fee Deposit

	
15-21

	
Account Management Agreement (AMA)

	
Offering document preparation

	  	
Account opening

	
to Final Versions

	
22-30

	
Closing

	
Signed Documents, Share Deposit, Breakup Fee Deposit and legal opinions

	
45-60

	
Registration Filing

	
Close and Conversion of Breakout 1-6

11. Controls:

Funds Management

Investor(s) shall deposit capital with Intermediary and Company shall deliver the Unit securities to Intermediary. At close, funds would be deposited to the Company's Cash Account with the Intermediary. Preferred Shares and Warrants would be transferred to Investor(s) accounts thus closing the transaction. An Account Management Agreement (AMA) would be established to administer the Breakout Cash Amount releases and provide Use of Proceeds oversight. All invested funds would remain in the Cash Account until such time as the instructions contained in the AMA may be carried out. The Investor(s) may not request capital return following close without the agreement of the Company and a Breakup Agreement is enacted. The Company may not request to unwind or alter the transaction, following close, without a Breakup or Alteration Agreement signed by both the Company and the Investor(s). The account would be administered by the Intermediary according to the AMA.

Share Management

A securities attorney of the Investor(s) choosing will be issued power of attorney by the company to manage conversion notifications issued by the Intermediary. The attorney will make any requests to the Transfer Agent for conversion of Preferred Shares to Common Shares directly. The attorney will have full right and authority to order the issue of such shares as are outlined in the final AMA. This right will be in full force and effect unless the attorney is presented with a Amendment or Breakup Agreement signed by both the Investor(s) and the Company altering the original purchase or the account management agreement. The attorney will disregard any communications from the Company or the Investor(s) unless it is a legal agreement signed by all parties. In no event will either the Company or the Investor(s), acting alone, have the right to cancel or force a Breakup of the transaction outside of the instructions provided in the AMA and USA.

  

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Section V. Acceptance of Terms

By issuing this Memorandum of Terms, the Company signifies that it will enter into such offer with the Investor(s). This is an offer to sell securities under these terms by the Company to the Investor(s).

This Memorandum of Terms is good for acceptance for 7 business days after the Issuance Date located on the title page of this document. If at that time, there are not enough committed funds to purchase all the Units being offered, this Memorandum of Terms will become invalid. Upon full commitment of capital, these terms will be implemented into the offering documents (The Unit Subscription Agreement ("USA") and the corresponding Account Management Agreement ("AMA")).

This Securities Offer is made by:

Mr. Steven Perlstein

CEO

MVP Holdings Corp

/s/ Steven Perlstein                                                                                       August 31, 2010

_____________________________________Signed this day of  ____________________

A corporate resolution and any authorization documents necessary for full authorization for signing will be included with this offer.

  

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Exhibit A

Investor Signatures

By signature below, the given Investor signifies their intent to subscribe that number of Units for such amount as is detailed in the name block. Nothing in this document or in the location of signatures signifies any pooling of interest or common share sales agreement among the Investors. Each Investor represents that they are purchasing for their own account and not for the account of others and not with a view to sell or distribute such securities although such Investor will still retain any rights to sell as provided by applicable securities regulation. Further, each Investor(s) certify and herby represent that they are an "Accredited Investor" as defined in the US Securities Act of 1933 under Regulation D, Rule 501 (a copy of which is included in Exhibit F.).

(Each Investor Will Sign a Separate Document)

  

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Exhibit B

Capital Structure

  

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Exhibit C

 

  

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Exhibit D

 

  

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Exhibit E

Use of Proceeds

 

  

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Exhibit F

US Securities Act of 1933, Regulation D, Rule 501

Rule 501 -- Definitions and Terms Used in Regulation D

As used in Regulation D, the following terms shall have the meaning indicated:

A. Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

1. Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any 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; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is 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, with investment decisions made solely by persons that are accredited investors;

2. Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

3. Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

5. Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000;

6. Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

7. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) and

8. Any entity in which all of the equity owners are accredited investors

 

 

  

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Exhibit G

Corporate Resolution for this Offer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Page 31 of 31ex106.htm

 

UNIT SUBSCRIPTION AGREEMENT

For Purchase of Units of Convertible Preferred Shares

And

Warrants to Purchase Common Shares in:

MVP Holdings, Corp.

99 John St. #223

New York, NY 10038

1-212-962-2100

A Company

www.mvpfinancial.com

  

Page 1 of 25

  

This is an offer to sell securities of MVP Holdings, Corp. ("Company") to the Investor(s). This Unit Subscription Agreement is conditional on completed Due Diligence meeting the satisfaction of the Investor(s), obtaining appropriate legal opinions and signing of the completed Transaction Documents.

THE OFFER AND SALE OF THE CONVERTIBLE PREFERRED SHARES AND WARRANTS ("UNITS") DESCRIBED HEREIN ARE NOT BEING ISSUED UNDER A REGISTRATION THROUGH THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR THROUGH REGISTRATION WITH ANY STATE'S SECURITIES ACTS, BUT ARE BEING ISSUED IN RELIANCE UPON AVAILABLE EXEMPTIONS FROM SUCH ACTS' REGISTRATION REQUIREMENTS. UNITS PURCHASED HEREUNDER MAY BE SUBJECT TO CERTAIN RESTRICTIONS ON SALE, TRANSFER, HYPOTHECATION OR OTHERWISE. THESE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, AND NO SUCH COMMISSION HAS PASSED UPON OR ENDORSED THE MERITS OF THESE UNITS OR THE ACCURACY OR ADEQUACY OF THE MEMORANDUM. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THIS MEMORANDUM DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION IS NOT AUTHORIZED. CHANGES IN INFORMATION OCCURRING AFTER THE DATE OF THIS MEMORANDUM ARE NOT NECESSARILY REFLECTED HEREIN. PURCHASE OF THESE UNITS INVOLVES A HIGH DEGREE OF RISK.

US NOTICE: Any dissemination of these possible terms to the general public, distribution within the borders of the United States of America, distribution to United States citizens abroad, or to other funding or investment sources could void any exemptions for Private Placement status under US Securities Law. The Company and Investor(s) agree that no public announcements or dissemination of any information to any source other than the Company, the Advisor, the Intermediary or the Investor(s) without an opinion from legal counsel attesting that such announcement or dissemination will not void the private placement exemption or violate Regulation D, Section 4(2) or Section 5 of the Securities Acts of the U.S.. This offer would be an "All or None" offering. Should the full offering not be committed to, this offer would be rescinded and any terms become null and void.

  

Page 2 of 25

  

INTRODUCTION

This Unit Subscription Agreement (the “Agreement”), dated as of (Signing Date) is made and entered into by and among MVP Holdings, Corp., a corporation (the “Company”), and each of those persons and entities, severally and not jointly, whose name(s) are set forth on the Signature Page hereto (which persons and entities are herein referred to as the “Investor(s)”).

RECITALS

WHEREAS: the Company has authorized the sale and issuance of an aggregate number of shares of Convertible Preferred Stock of the company for an amount of equity investment in a unit placement consisting of Convertible Preferred Shares and Warrants (to acquire additional Common Shares) set at prices to be specified in this agreement;

WHEREAS: each Investor(s) desires to purchase from the Company, and the Company desires to issue and sell to each Investor(s), certain Units consisting of shares of the Convertible Preferred Stock plus a specified number of Warrants as described in, and on the terms and conditions of this Agreement;

NOW, THEREFORE: in consideration of the promises and the mutual agreements, covenants, representations and warranties contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, hereby agree as follows:

	
1.

	
Definitions and Construction

	
1.1.

	
Definitions.  As used in this Agreement, the following terms shall have the indicated meanings:

"Account Management Agreement" ("AMA") is that agreement to enlist a third party Intermediary to administer the Use of Proceeds disbursements. This Agreement will be add ended to that AMA.

"Advisor" means Catwalk Capital, LLC who has been retained by the Investor(s) as their purchasing representative.

“Board” shall mean the Board of Directors of the Company.

“Closing” is the transfer of the cash payment to the Company against the delivery of the certificates representing the Convertible Preferred Shares and the Warrants to the Investor(s) as specified in Section 2.2 of this Agreement.

“Closing Date” shall be that date which Closing has occurred as specified in Section 2.2 of this Agreement. Closing shall be evidenced by a letter from Intermediary detailing the closing and the availability of funds (the "Closing Notification").

“Common Stock” shall mean the Company's common stock, par value $0.001 per share.

“Common Stockholders” shall mean any holder of common shares.

 

 

  

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“Company” has the meaning specified in the Preamble to this Agreement.

"Conversion" shall mean the exchange of Preferred Stock for Common Stock under the conversion rate specified in Section 2.1. Said conversion shall occur as follows: The Intermediary shall deliver a notification of conversion (the "Conversion Notice") to the Company prior to the Breakout start requesting the exchange of the Preferred to Common. The Intermediary shall deliver the Preferred Shares, the Conversion Notice and an Instruction Letter to the Transfer Agent. The Company will deliver a letter authorizing the conversion, an attorney opinion letter stating the free trading nature of the shares, or a copy of an effective registration statement, the registration prospectus thereunder and any additional documents required by the Transfer Agent. The Transfer Agent will then deliver back to the Intermediary, either electronic or certificated (Non-Legended) Common Shares according to the instructions provided by the Intermediary. All conversions will use the following metric: That number of Preferred Shares being converted, multiplied by the Conversion Rate (as specified in Figure 1 of Section 2.1.1) will equal that amount of Common Shares.

(Preferred Shares X Conversion Rate = Converted Common Shares)

Conversion Notice: is that notification by the Intermediary to the Company and the Transfer Agent of its intent to convert the Preferred shares to Common in preparation to delivering against a specific Breakout.

Convertible Preferred Stock: shall mean that series of the Preferred Class Shares labeled as convertible to Common Shares of the company and fully described in Exhibit C of the Memorandum of Terms (the "MOT") previously signed between the Company and the Investor(s). All Preferred Stock of this series will have a conversion feature to common stock.

Financial Statement(s): are those financial reporting documents of the Company produced according to GAAP and US securities regulations.

GAAP: shall mean Generally Accepted Accounting Principles as defined by the Financial Accounting Standards Board ("FASB").

Investor Stock: shall mean: (i.) the shares of Convertible Preferred Stock issued to an Investor(s) hereunder or otherwise owned by such Investor(s), (ii.) any shares of Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution on or with respect to, or in replacement of, any shares of Preferred or Converted Shares referred to in (i.) and (ii.) above and (iii.) the Warrants to buy common shares which are attached to the Units.

Legend, Legended: is that stamp applied or affixed to a securities instrument by the issuer or the issuers Transfer Agent which states any and all restrictions on the shares.

Material Adverse Effect: shall mean, with respect to any Person, a material adverse effect on the business, prospects, assets, financial condition or results of operations of such Person and its subsidiaries, if any, taken as a whole.

Transfer Agent: is that company retained by the Company to manage the transfer of its shares of stock.

 

 

  

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Person: shall mean an individual, corporation, partnership, limited liability company or partnership, association, trust, joint venture or other entity.

Purchase Price: is that price paid per Unit purchased a specified in Section 2.1.2 of this Agreement.

Restated Certificate: shall mean the Company's Restated Certificate of Incorporation available for inspection upon request.

SEC: shall mean the United States Securities and Exchange Commission.

Transaction Documents: are the Memorandum of Terms (the "MOT"), this Unit Subscription Agreement (the "USA") and the Account Management Agreement (the "AMA").

Unit: shall mean those shares of Convertible Preferred Stock which converts into Common Stock and Warrants to purchase additional shares of the Company's Common Stock which are combined for sale as per Section 2.1.1.

Warrants: are those instruments which can be exchanged along with a set dollar amount for common shares of stock as specified in Section 2.1.1. Warrants will be registered with the Preferred Shares so that upon exercise, they will be unrestricted.

1.2           Construction

In construing this Agreement, the following principles shall be followed:

(a)           the terms "herein," "hereof," "hereby," and "hereunder," or other similar terms refer to this Agreement as a whole and not only to the particular Article or other subdivision in which any such terms may be employed;

(b)           a reference to any Person shall include such Person's predecessors and successors;

(c)           all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with U.S. GAAP;

(d)           no consideration shall be given to the captions of the articles, sections, subsections, or clauses, which are inserted for convenience in locating the provisions of this Agreement and not as an aid in its construction;

(e)           examples shall not be construed to limit, expressly or by implication, the matter they illustrate;

(f)           the word "includes" and its syntactical variants mean "includes, but is not limited to" and corresponding syntactical variant expressions;

(g)           a defined term has its defined meaning throughout this Agreement, regardless of whether it appears before or after the place in this Agreement where it is defined;

(h)           the plural shall be deemed to include the singular, and vice versa;

(i)           each exhibit, attachment, and schedule to this Agreement is a part of this Agreement, but if there is any conflict or inconsistency between the main body of this Agreement and any exhibit, attachment, or schedule, the provisions of the main body of this Agreement shall prevail; and

(j)           a reference to the Company shall mean MVP Holdings, Corp.; and

(k)           references to Section or Sections contained in this Agreement are inserted for convenience of reference only and will not affect the meaning or interpretation of this Agreement; and

(l)           for purposes of clarity, the term Section used alone to refer to a location in a document shall, unless modified by the Title of a specific document which is separate from this Agreement, be taken as identifying a location within this Agreement.

 

 

  

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2.

	
Purchase and Sale of Units.

	
2.1

	
Issuance and Sale of Units Consisting of Convertible Preferred Stock and Warrants; Purchase Price.

	
2.1.1

	
Structure:

	
  

	
Subject to and upon the terms and conditions set forth in this Agreement, at the Closing the Company will issue and sell individually and not jointly, to the Investor(s), and the Investor(s), severally and not jointly, shall purchase from the Company that number of Units consisting of (i.) shares of Convertible Preferred Stock (the "Shares"), and, (ii) (Warrants to purchase additional Common Shares (the "Warrant") at such prices and in such amounts as are set forth opposite their respective Warrant Series name in Figure 1 hereto, and an expiration date of forty eight (48) months following registration or 24 months following final disbursement of capital from this offering whichever is longer.

 

Figure 1. Unit Subscription Structure

 

	
2.1.2

	
Payment:

	
  

	
The Investor(s), severally and not jointly, shall individually purchase that number of Units as is set next to their names on the Signature Page and such cost per Unit as specified in Figure 1. In consideration of the sale of these Units, and in reliance on the representations and warranties herein provided by the Company for the benefit of the Investor(s), the Investor(s) shall deliver their portion of the agreed to Total Unit Purchase (the "Purchase Price") as is set forth in Figure 1 above. Payment of the Purchase Price, of both the Unit Subscription Agreement and the Warrant exercise, shall be made to the Company's Cash Account with the Intermediary as specified in the AMA which will monitor the capital disbursement.

  

Page 6 of 25

  

	
2.1.3

	
All or None:

	
  

	
This is an "All or None" offering. Should the requisite number of Units to fulfill the entire offering not be subscribed to, the offering will not close.

	
2.2

	
Closing; Deliveries.

	
(a)

	
The closing of the sale and purchase of the Units hereunder (the “Closing”) shall take place at the offices of the Intermediary, Elco Securities, Ltd. in Abaco, Bahamas.  The date of the Closing is hereinafter referred to as the “Closing Date”. Such Closing shall be evidenced by a letter from the Intermediary attesting to the Closing and stating the available capital to the Company in their account (the "Closing Notification").

	
(b)

	
At the Closing, the Company shall deliver, or cause to be delivered, to each of the Investor(s), (i.) certificates evidencing the Convertible Preferred Shares being purchased by such Investor(s) as called for in the AMA, registered in the name of such Investor(s), against payment to the Company of the Purchase price by such Investor(s), (ii.) the Warrants being purchased by such Investor(s) against payment to the Company of the Purchase Price by such Investor(s), (iii.) a corporate resolution authorizing the offering, closing and submission to the Account Management Agreement and (iv.) an opinion letter stating that the offering is an obligation of the company and that the offering has been completed according to applicable securities regulations.

  

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3.

	
Representations and Warranties of the Company.  The company hereby represents and warrants to the Investor(s) that the statements contained in this Section 3 are true and correct representations and warranties of the Company which the Investor(s) may rely on.

	
3.1

	
Incorporation, Good Standing and Qualification.  The Company is a corporation duly organized, validly existing and in good standing under, and by virtue of, the laws of the State of Delaware.  The Company has full corporate power and all lawful authority to own, lease and operate its properties and assets and to carry on its business as presently conducted or as proposed to be conducted.  The Company is duly qualified or licensed to do business as a foreign corporation and is in good standing in each jurisdiction where the character of its properties or the nature of its business makes such qualification or licensing necessary, except where the failure to be so qualified or licensed would not reasonably be expected to have a Material Adverse Effect.

	
3.2

	
Capitalization.  The Capitalization Table in Section 3.2.1 and 3.2.2, sets forth a true and complete model of the Common and Preferred Stock of the Company authorized and outstanding as of the date hereof. There are no shares of Common Stock or Preferred Stock held in the Company's treasury which are not included herein. The Capitalization Table of the Company (immediately prior to the Closing) consists of:

	
3.2.1

	
Common Shares.

	
  

	
As of the date of this representation, and inclusive only of those instruments already authorized or issued, the capital structure of Common Shares is as follows:

Figure 2. Common Share Structure Pre-Investment

 

	
3.2.2

	
Preferred Shares.

	
  

	
As of the date of this representation, and inclusive only of those instruments already authorized or issued, the capital structure of Preferred Shares is as follows:

 

  

Page 8 of 25

  

 

Figure 3. Preferred Share Structure Pre-Investment

 

 

	
3.2.3

	
Authorization of Present Capitalization. All of the issued, issuable and outstanding shares of Common have been duly authorized and validly issued and issuable and are fully paid and non-assessable with no liability attached to the ownership thereof.  All shares of Common Stock, Preferred Stock and all other outstanding securities of the Company have been issued in compliance with all applicable federal and state securities laws.

	
3.2.4

	
Outstanding Items. Except as provided for herein: (i.) there are no outstanding subscriptions, options, warrants, calls, contracts, demands, commitments or other agreements or arrangements of any character or nature whatsoever under or pursuant to which the Company is or may become obligated to issue any shares of its capital stock, (ii.) the Company has no obligation (contingent or otherwise) to purchase, redeem or otherwise acquire any shares of its capital stock or any interest therein or to pay any dividend or make any distribution in respect thereof, (iii.) there are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to the Company and (iv.) the Company has no obligation (contingent or otherwise) to issue any subscription, option, warrant, convertible security or other such right or to issue or distribute to holders of any shares of its capital stock any evidence of indebtedness or assets of the Company.

  

Page 9 of 25

  

	
3.2.5

	
Capitalization Table Alteration.  The company does plan to increase its total authorized or issue additional shares and warrants as detailed in the Value Added Model payable to Insiders under the Value Added Model below:

 

Figure 4. Value Added Model

 

 

	
3.3

	
Subsidiaries.  The Company does currently own or control, directly or indirectly, the Subsidiaries MVP Partners, Inc. which in turn owns MVP Financial LLC.

	
3.4

	
Authority; Due Authorization.  The Company has the full right, power and authority to execute and deliver this Agreement and the Transaction Documents, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder.  The execution and delivery by the Company of this Agreement and the Transaction Documents, the performance by the Company of its obligations hereunder and thereunder, including the authorization, issuance and delivery of the Shares, and the consummation by the Company of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary director and stockholder action in respect thereof.  No other proceedings on the part of the Company, its officers, directors or stockholders, are necessary to authorize the execution and delivery of this Agreement or the Transaction Documents and the performance by the Company of its obligations hereunder or thereunder.  This Agreement is and each of the Transaction Documents has been, or, when executed will be, duly executed and delivered by the Company.  This Agreement constitutes, and each of the Transaction Documents when executed will constitute, a valid and binding obligation of the Company, enforceable against it in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditor's rights generally and to general equitable principles.

  

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3.5

	
Valid Issuance of Securities.

	
(a)

	
The Units, when issued, sold and delivered in accordance with the terms of this Agreement shall be duly and validly issued, fully paid and non-assessable and free of restrictions on transfer, other than restrictions on transfer under this Agreement, the Stockholders' Agreement and applicable state and federal securities laws. The underlying shares will be issued under rule 144 and shall be restricted from sale for a period of six (6) months or until such date as a registration statement filed with the US Securities and Exchange Commission is filed and accepted.

	
(b)

	
The Shares, when issued, will have been duly and validly reserved for issuance and, upon issuance in accordance with the terms of the Shares, this Agreement and the Restated Certificate, shall be duly and validly issued, fully paid and non-assessable and free of restrictions on transfer, other than restrictions on transfer under this Agreement, the Stockholders' Agreement and applicable federal and state securities laws.

	
3.6

	
Stockholder Agreements.  Except as provided in this Agreement and the other Transaction Documents, there are no agreements, written or oral, between the Company and any current holder of its securities, or to the Company's knowledge, among any holders of its securities, relating to the acquisition (including, without limitation, rights of first refusal, anti-dilution or preemptive rights), disposition, registration under the Securities Act, or voting of the Common Stock or Preferred Stock.

	
3.7

	
Governmental Consents.  All consents, approvals, orders, authorizations or registrations, qualifications, designations, declarations or filings with any federal, state or local governmental authority on the part of the Company required in connection with the consummation of the transactions contemplated herein have been obtained and are effective, except for such filings required to be made after the Closing under applicable federal and state securities laws, which shall be timely made within the applicable periods therefore.

 

 

  

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3.8

	
Compliance with Other Instruments.

	
(a)

	
The Company is not in, nor shall the conduct of its business as proposed to be conducted, result in, any violation, breach or default of any term of its Certificate of Incorporation, By-Laws or any judgment, decree, order, statute, rule or regulation applicable to or binding upon the Company its business or operations or any of its assets or properties.

	
(b)

	
The execution and delivery by the Company of this Agreement and the Transaction Documents, the performance by the Company of its obligations hereunder and thereunder and the consummation by the Company of the transactions contemplated hereby and thereby shall not: (i.) conflict with or violate any provision of its Certificate of Incorporation or By-Laws, (ii.) conflict with, result in a breach of, or constitute (with or without due notice or lapse of time or both) a default under, create in any party the right to terminate, modify or cancel, or require any notice, consent or waiver under, any contract to which the party is a contract or (iii.) constitute an event which results in the creation of any lien, claim, encumbrance, security interest or charge upon any asset of the Company, the suspension, revocation, impairment, forfeiture or non-renewal of any permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties.

	
3.9

	
Financial Statements; Liabilities. The Company has made available to the Investor(s) the balance sheet of the Company and the income statement of the Company for the last 2 years (collectively, the “Financial Statements”).  Any and all public financials as listed on Edgar are also at the disposal of the investor. Such Financial Statements (i.) were prepared from the books and records of the Company; (ii.) are true, correct and complete; and (iii.) present fairly, in all material respects, the financial condition and results of operations of the Company as of the date or dates and for the period or periods therein specified.  The books of account and other financial records of the Company are in good order and have been properly maintained in all material respects.

	
3.10

	
Full Disclosure.  The Company has provided the Investor(s) with all information required by the Securities Regulations, which the Company is subject to, in connection with the Investor(s) decision to purchase the Shares.

	
3.11

	
Compliance. The Company represents that they understand that this document may or may not satisfy their requirements of compliance with state or federal law, corporate, securities or other, and they are representing that they have obtained sufficient legal counsel to instruct them on what additional items, if any, that will be required of them to properly complete this Agreement. The Company further represents that initial drafting  of this and the accompanying AMA, in no way obfuscates their responsibilities to complete and file the appropriate forms and notifications with the appropriate reporting entities to be in compliance with those laws and regulations.

 

 

	
4.

	
Representations and Warranties of each Investor(s).  The Investor(s) hereby represents and warrants, severally and not jointly, to the Company that:

 

 

  

Page 12 of 25

  

	
4.1

	
Organization, Good Standing and Qualification.  The Investor(s) has been duly formed and/or incorporated and is validly existing and in good standing under, and by virtue of, the laws of the jurisdiction of its organization or incorporation, as the case may be, and has all requisite power and authority to own its properties and assets and to carry on its business as now conducted and as presently proposed to be conducted.

	
4.2

	
Accreditation.  The Investor(s) is an "Accredited Investor(s)" as defined in Rule 501(a) of the United States Securities Act of 1933(See Exhibit A) and has sought investment advice on this transaction from a registered securities advisor or legal advisor who has opined that the investment is suitable for the Investor, and is acquiring the Shares for their own account.

	
4.3

	
Investigation; Consideration of Risks.  The Investor(s) acknowledges that it has had an opportunity to examine the business, affairs and current prospects of the Company  and has had access to information about the Company that it has requested as represented by the Company in their uploads to the Due Diligence Portal provided by the Advisor. The Investor(s) further acknowledges that it is able to fend for itself in the transactions contemplated by this Agreement and has the ability to bear the economic risks of its investment pursuant hereto.  The Investor(s) has such knowledge or experience in financial and business matters that it is capable, either alone or together with its financial and/or legal advisor(s), if any, of evaluating the merits and risks of investing in the Company.  The Investor(s) realizes that this investment involves a high degree of risk, including the risk of loss of all investment in the Company. The Investor(s) is able to bear the economic risk of the investment, including the total loss of such investment. The Investor(s) is experienced and knowledgeable in financial and business matters to the extent that the Investor(s) is capable of evaluating the merits and risks of the prospective investment in the Shares.

	
4.4

	
Registration; Restricted Securities. The Investor(s) represents that they are acquiring such securities for investment purposes only. Each Investor(s) understands that the Shares are restricted securities within the meaning of Rule 144 under the Securities Act and that the Shares could be held for a period of six months or until such time as those shares are registered for sale under the Securities Act or an exemption from such registration is available. The Investor(s) further understands that among the conditions for use of Rule 144 may be the availability of current public information about the Company and that such information is not now available.

 

 

  

Page 13 of 25

  

	
  

	
The Investor(s) understands that the company shall at its earliest convenience, but not later than 3 months following the purchase of these securities, use its best efforts to perform a registration of these securities to remove the restrictive legends and allow for sale of such securities unless such securities have become by way of Rule 144, free trading. The Investor(s) shall be registered as selling shareholders.

	
  

	
Nothing herein will prohibit the Investor(s) from holding their securities for any period of time as they reasonably see fit. The Investor(s) hereby represents that they will be making investment decisions separate from any other investor and nothing in this Agreement or the AMA has the effect of comingling the individual Investor(s) shareholdings or decision making processes. The location or proximity of signatures on this document are not a representation of the pooling of interests and have been obtained individually from any signing Investor(s).

	
4.5

	
Restrictive Legends.  It is understood that the certificates representing the Shares shall be stamped or otherwise imprinted with a legend substantially in the following form or other form as required by law:

	
  

	
THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF ANY STATE.  THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL SUCH SECURITIES ARE REGISTERED UNDER SUCH ACT OR AN OPINION OF COUNSEL IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.

	
4.6

	
Authority.  The Investor(s) has the full right, power and authority to execute and deliver this Agreement and the Transaction Documents, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder.  The execution and delivery by the Investor(s) of this Agreement and the Transaction Documents, the performance by the Investor(s) of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary limited liability company action in respect thereof on the part of the Investor(s).  No other proceedings on the part of the Investor(s) are necessary to authorize the execution and delivery of this Agreement or the Transaction Documents and the performance by the Investor(s) of their obligations hereunder or thereunder.  This Agreement is, and the Transaction Documents have been, or, when executed will be, duly executed and delivered by the Investor(s).  This Agreement constitutes, and each of the Transaction Documents when executed will constitute, valid and binding obligations of each of the Investor(s), enforceable against each Investor(s) in accordance with their respective terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditor's rights generally and to general equitable principles.

 

 

  

Page 14 of 25

  

 

	
4.7

	
No Public Market.  The Investor(s) understands that limited or no public market now exists for any of the Shares, and that the Company has made no assurances that a public market will ever exist for the Shares.

	
5.

	
Affirmative Covenants of the Company.  The Company covenants to the Investor(s) as follows:

	
5.1

	
Removal of Restrictive Legend.  The legend set forth in Section 4.5 above shall be removed by the Company and its transfer agent from any certificate evidencing the Shares upon delivery to the Company of an opinion of counsel "Legal Opinion" that a registration statement under the Securities Act is at that time in effect with respect to the Shares or that the Shares can be freely transferred in a public sale without such a registration statement being in effect and that such transfer shall not jeopardize the exemption or exemptions from registration pursuant to which the Company issued the Shares. The Company shall bear the costs of obtaining any legal opinions or other documents necessary to enact such legend removal. Should the Investor(s) be forced to obtain such Legal Opinion independently, such costs shall be reimbursed to them by the Company.

 

 

  

Page 15 of 25

  

 

	
5.2

	
Basic Financial Information and Reporting.

	
(a)

	
The Company will maintain true books and records in which full and correct entries will be made of all its business transactions pursuant to a system of accounting established and administered in accordance with GAAP consistently applied, and will set aside on its books all such proper accruals and reserves as shall be required under GAAP consistently applied.

	
(b)

	
As soon as practicable, and within ninety (90) days thereafter, the Company will furnish the Investor(s) with an audited balance sheet of the Company, as at the end of such fiscal year, and audited statements of income and cash flows of the Company, for such year, all prepared in accordance with GAAP consistently applied. The provision of these statements may be in direct mailings or public filings with the US Securities and Exchange Commission.

	
5.3

	
Inspection Rights.  For so long as any Investor of this offering and its affiliates collectively hold at least 10% of the outstanding shares of Stock (as adjusted pursuant to Section 8.14 hereof), that Investor shall have the right to participate as a non-voting observer during all meetings of the Company's Board, visit and inspect any of the properties of the Company or any of its subsidiaries, and to discuss the affairs, finances and accounts of the Company or any of its subsidiaries with its officers, and to review such information as is reasonably requested all at such reasonable times during business hours and as often as may be reasonably requested.  The rights granted hereby shall be in addition to, and not in limitation of, any rights afforded stockholders under the General Corporation Law of the State of Delaware. The Investor understand that any such action could put them in an insider position of information and as such, if such rights are executed upon by the investor that they may be restricted from sales of securities until such time as the information they are in possession of has become public. In no way does this right in and of itself put the investors in an insider position and election to execute on this right is at the sole discretion of the investor. The Investor shall notify the Company in writing 90 days in advance of such election to participate or to inspect.

	
5.4

	
Securities Filings.  The Company shall timely make, within the applicable periods therefore, all filings required to be made after the Closing under applicable federal and state securities laws in connection with the offer and sale of the Shares.

	
5.5

	
Conversion. The Company shall timely deliver all necessary items to effect any conversion of Preferred Shares to Common Shares following Conversion Notice by the Intermediary. Should the Company refuse to convert or provide the necessary items to the Transfer Agent to effect conversion, and the Investor(s) are forced to institute a suit to force such conversion, the Investor(s) may bill the costs of such suit to the Intermediary against the Cash Account of the Company.

  

Page 16 of 25

  

	
6.

	
Obligations of the Company at Closing.  At the Closing, the Company shall deliver to the Investor(s) the following:

	
(a)

	
A copy of the Certificate of Incorporation to demonstrate the Company's Good Standing as of the Closing Date, certified by the Secretary of the Company; and

	
(b)

	
By-Laws of the Company, certified by its Secretary or Assistant Secretary, as in effect as of the Closing Date; and

	
(c)

	
Signed copies of this Unit Subscription Agreement; and

	
(d)

	
Resolutions of the Board and stockholders, if required by corporate by laws, of the Company, authorizing and approving all matters in connection with this Agreement and the transactions contemplated hereby, certified by the Secretary or Assistant Secretary of the Company as of the Closing Date; and

	
(e)

	
An attorney opinion letter stating that the corporate action is a binding commitment on the corporation and that the offering is in compliance with applicable securities regulations; and

	
(f)

	
The Warrants; and

	
(g)

	
Certificates representing the Shares.

	
7.

	
Obligations of the Investor(s) at Closing.  At the Closing, the Investor(s) shall deliver to the Company, via the Intermediary, the following:

	
(a)

	
The aggregate purchase price required to be paid by each Investor(s) with respect to its purchase of the Shares hereunder.

	
(b)

	
A Signed Unit Subscription Agreement from each investor. (The Intermediary may gather the required signatures on one document or separate documents. The collection of signatures on one document does not indicate pooling of interest or integration of investment decision processes among the Investor(s).)

 

8.           Miscellaneous.

	
8.1

	
Survival of Representations, Warranties and Agreements.  The representations and warranties in this Agreement, including any rights arising out of any breach of such representations and warranties, shall survive the Closing for a period of two years.  All covenants in this Agreement, including any rights arising out of any breach thereof, shall survive the Closing for the periods specified in Section 5; provided that if no period is specified such covenants shall survive indefinitely.

 

 

  

Page 17 of 25

  

 

	
8.2

	
Transfer; Successors and Assigns.  The provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of the Investor(s). The Company may not assign its rights and obligations hereunder without the consent of the Investor(s). The provisions of this Section 8.2 shall not limit the Investor(s)' ability to assign their rights and obligations under any Transaction Document.

	
8.3

	
Governing Law.  This Agreement and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the Commonwealth of the Bahamas, without giving effect to principles or conflicts of law. All parties submit to the venue of Nassau Bahamas for any court actions. No party shall act to contravene such venue or rule of law.

	
8.4

	
Counterparts. This Unit Subscription Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. Counterpart numbering is included on Page 1 of this document and all subsequent pages identified by the Reference Number at the bottom of each page.

	
8.5

	
Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

	
8.6

	
Notices.  Except as may be otherwise provided herein, all notices, requests, waivers and other communications under this Agreement shall be in writing and shall be conclusively deemed delivered and effective (i.) when hand delivered to the other party, (ii.) five business days after being sent by registered or certified mail, return receipt requested, postage prepaid, (iii.) one business day after being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery or (iv.) in the case of a facsimile transmission, upon transmission thereof by the sender and the issuance by the transmitting machine of a confirmation slip confirming that the number of pages constituting the notice have been transmitted without error; provided, however, that the sender shall contemporaneously mail a copy of the notice to the addressee by the method provided for in (i.) or (ii.) above, but such mailing shall in no way alter the time at which the notice sent by facsimile transmission is deemed received, in each case to the intended recipient as set forth below:

 

 

  

Page 18 of 25

  

 

If to the Company, at

MVP Holdings, Corp.

99 John St. #223

New York, NY 10038

Attention:  Secretary

Facsimile: 1-212-962-3333

Investor(s) Notification addresses are located in Appendix A. The Investor(s) maychoose to utilize the Intermediary to receive and distribute notifications as a third partyverification of receipt of such notices. The utilization of this option does not indicate orrepresent that the Investor(s) are acting jointly or have pooled interests.

Any party may change the address to which notices, requests, consents or other communications hereunder are to be delivered by giving the other parties notice in the manner set forth in this Section.

	
8.7

	
Company Expenses.  The Company shall bear its own costs for the preparation of this Agreement.

 

	
8.8

	
 
Investor(s) Expenses. The Investor(s) shall have their expenses reimbursed monthly up to a maximum of $3,500.00 per month and any associated expenses for Breakup should the transaction not carry forward. Such expenses shall be billed through the Advisor. The Advisor shall be reimbursed $3,500.00 per month for expenses in regard to the preparation, monitoring and consulting for this offering.  

	
8.9

	
Amendments and Waivers.  Any term of this Agreement may only be amended in writing, and such written agreement is signed by the Company and the Investor(s).

 

	
8.10

	
Severability.  If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms. Any exclusion of a provision from this Agreement that has the effect of decreasing the Investor(s) protections afforded herein, will not affect the protections afforded in the AMA.

 

 

  

Page 19 of 25

  

 

	
8.11

	
Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

	
8.12

	
Entire Agreement.  This Agreement and the documents referred to herein, such as, but not limited to the AMA, including Exhibits and Appendices, constitute the entire agreement between the parties hereto, pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.

	
8.13

	
Confidentiality.  The Investor(s) agree that they will keep confidential and will not disclose, divulge or use for any purpose other than to evaluate and monitor their investment in the Company any confidential, proprietary or secret information which the Investor(s) may obtain from the Company pursuant to financial statements, reports and other materials submitted by the Company to the Investor(s) pursuant to this Agreement, or pursuant to visitation or inspection rights granted hereunder or under any Transaction Document (“Confidential Information”), unless such Confidential Information is known, or until such Confidential Information becomes known, to the public (other than as a result of a breach of this Section 8.13 by the Investor(s)); provided, however, that the Investor(s) may disclose Confidential Information (i.) to their attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with evaluating and monitoring the Investor(s)' investment in the Company, (ii.) in connection with any legal proceeding relating to this Agreement or any of the Transaction Documents or (iii.) as may otherwise be required by law, provided that the Investor(s) take reasonable steps to minimize the extent of any such required disclosure.  Subject to the provisions of this Section 8.13, the Investor(s) shall use, and shall use their best efforts to ensure that their authorized representatives use, the same degree of care as the Investor(s) use to protect their own confidential information to keep confidential any Confidential Information furnished to them, except that the Investor(s) may disclose such Confidential Information to any partner, member, subsidiary or parent of the Investor(s) so long as such partner, member, subsidiary or parent is advised of the confidentiality provisions of this Section 8.13. The Company shall notify Investor(s) prior to delivery of any information which would place the Investor(s) in an insider knowledge position and await confirmation that such information delivery is acceptable to the Investor(s). Any Confidential information shall be stamped or labeled as "Confidential".

 

 

  

Page 20 of 25

  

 

	
8.14

	
Adjustments for Stock Splits, Etc.  Where in this Agreement there is a reference to a specific number of shares of Investor(s) Stock, then, upon the occurrence of any subdivision, combination, stock dividend or stock split, the specific number of shares so referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect of such subdivision, combination, stock dividend or stock split on the outstanding shares of stock.

	
8.15

	
Legal Fees.  If any Action is necessary to enforce or interpret the terms of this Agreement or any of the Transaction Documents, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.

	
8.16

	
Bankruptcy. Should the Company be placed, either voluntarily or involuntarily, into a bankruptcy proceeding prior to full funds delivery from the Cash Account to the Companies Working Account, such proceeding will have no effect on the delivery of capital and will leave this Agreement and the AMA in full force and effect unless a negotiated alteration to such documents in established and signed by the Investor(s), Intermediary and the Company. The Courts must obtain the Intermediaries and the Investor(s) agreement to any modification of the Use of Proceeds, terms or release schedule.

  

Page 21 of 25

  

IN WITNESS HEREOF, the Company has executed this Unit Subscription Agreement as of the date listed.

	
  

	
THE COMPANY:

	
  

	
MVP Holdings, Corp.

	
  

	
99 John St. #223

	
  

	
New York, NY 10038

Signature:                      /s/ Steven Perlstein                                Date: 12.16.2010

By:                                  Steven Perlstein

Title:                              CEO

IN WITNESS HEREOF, the Investor(s) have executed this Unit SubscriptionAgreement as of the date listed.

(Investor Signature Block)

  

Page 22 of 25

  

 

EXHIBIT A

US Securities Act of 1933, Regulation D, Rule 501

Rule 501 -- Definitions and Terms Used in Regulation D

As used in Regulation D, the following terms shall have the meaning indicated:

A. Accredited investor. Accredited investor shall mean any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

1. Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any 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; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is 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, with investment decisions made solely by persons that are accredited investors;

2. Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

3. Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

4. Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

5. Any natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000;

6. Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

7. Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) and

8. Any entity in which all of the equity owners are accredited investors

  

Page 23 of 25

  

Exhibit B

Conversion Notice Form

 

(To Be Signed by Intermediary)

  

Page 24 of 25

  

	
  

	
Exhibit C

	
  

	
Warrant Exercise Notification

 

 

 

(To Be Signed by Intermediary)

  

Page 25 of 25

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