Document:

neau_ex102.htm

EXHIBIT 10.2

 

NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE UNDERLYING SHARES OF COMMON STOCK UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED. THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY, HOWEVER, BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE U.S. SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

COMMON STOCK PURCHASE WARRANT

 

	
No. 2013-___

	
Issue Date: December ____, 2013

Kogeto, Inc. (formerly, Northeast Automotive Holdings, Inc.), a Nevada corporation (the “Company,”), hereby certifies that, for value received _________________________ or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date set forth above (the “Vesting Date”), ________ shares of the Company’s common stock (the “Warrant Shares”), at the Warrant Exercise Price set forth below, at any time until 5:00 p.m., E.S.T on the date five (5) years from the date hereof (the “Expiration Date”). The number and character of the shares of the Company’s common stock (“Common Stock”) issuable upon the exercise of this warrant (this “Warrant”) and the Warrant Exercise Price are subject to adjustment as provided herein. Subject to adjustment as provided herein, the term “Warrant Exercise Price” shall be equal to $0.32 price per share. The Company may reduce the Warrant Exercise Price without the consent of the Holder.

 

Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Securities Purchase Agreement dated December [ ], 2013, entered into between the Company and the Investors (the “Securities Purchase Agreement”).

 

1.           Exercise of Warrant.

 

1.1.           Number of Shares Issuable upon Exercise. From and after the Vesting Date through and including the Expiration Date, the Holder hereof shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of subsection 1.2 or upon exercise of this Warrant in part in accordance with subsection 1.3, shares of Common Stock of the Company, subject to adjustment pursuant to Section 3.

 

1.2.           Exercise Procedures.

 

(a)           Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder hereof then registered on the books of the Company, pro rata as hereinafter provided, at any time on any business day on or after the opening of business on such business day, commencing on the Vesting Date, and prior to 11:59 P.M. Eastern Time on the Expiration Date, by (i) delivery, in the manner provided in Section 9 hereof, of (a) a written notice, in the form attached as Exhibit A hereto (the “Exercise Form”), of such Holder’s election to exercise this Warrant, which notice shall specify the number of Warrant Shares to be purchased, and (b) this Warrant (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction, and (ii) payment by wire transfer of immediately available funds or by certified or official bank check payable to the order of the Company of an amount equal to the Warrant Exercise Price(s) applicable to the Warrant Shares being purchased, multiplied by the number of Warrant Shares (at the applicable Warrant Exercise Price) as to which this Warrant is being exercised (plus any applicable issue or transfer taxes) (the “Aggregate Exercise Price”) . In the event of any exercise of the rights represented by this Warrant in compliance with this Section 1.2 or in compliance with Section 1.3 below, the Company shall on the third (3rd) business day following the date of receipt by it of each of the Exercise Form, this Warrant (or an indemnification undertaking with respect to this Warrant in the case of its loss, theft or destruction) and the Aggregate Exercise Price (together, the “Exercise Delivery Documents”) either:

 

  

1

  

 

	
·  

	
 if the Common Stock is DTC eligible, credit such aggregate number of shares of Common Stock to which the Holder shall be entitled to the Holder’s or its designee’s balance account with The Depository Trust Company; or

 

	
·  

	
if the Holder who submitted the Exercise Form requested physical delivery of any or all of the Warrant Shares, or, if the Common Stock is not DTC eligible, issue and surrender to a common carrier for overnight delivery to the address specified in the Exercise Form, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled pursuant to such request.

 

Upon delivery of the Exercise Delivery Documents, the Holder of this Warrant shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised. In the case of a dispute as to the determination of the Warrant Exercise Price or the arithmetic calculation of the number of Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that is not disputed and shall submit the disputed determinations or arithmetic calculations to the Holder via facsimile within three (3) business day of receipt of the Holder’s Exercise Form. If the Holder and the Company are unable to agree upon the determination of the Warrant Exercise Price or arithmetic calculation of the number of Warrant Shares within three (3) business day of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall immediately submit via facsimile (i) the disputed determination of the Warrant Exercise Price to an independent, reputable investment banking firm or (ii) the disputed arithmetic calculation of the number of Warrant Shares to its independent, outside accountant. The Company shall cause such investment banking firm or the accountant, as the case may be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than forty-eight (48) hours from the time it receives the disputed determinations or calculations. Such investment banking firm’s or accountant’s determination or calculation, as the case may be, shall be deemed conclusive absent manifest error.

 

(b)           If within five (5) business days after the Company's receipt of the Exercise Delivery Documents the Company shall fail to issue and deliver a certificate to the Holder and register such shares of Common Stock on the Company's share register or credit the Holder's balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder's exercise hereunder, and if on or after such fifth (5th) business day the Holder purchases (in an open market transaction or otherwise) the number of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a "Buy-In"), then the Company shall, within five (5) business days after the Holder's request and in the Holder's discretion, either (i) pay cash to the Holder in an amount equal to the Holder's total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the "Buy-In Price"), at which point the Company's obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares.

 

1.3.           Partial Exercise. This Warrant may be exercised in part (but not for a fractional share) by surrender of this Warrant in the manner and at the place provided in subsection 1.2 except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Exercise Form by (b) the Warrant Exercise Price then in effect. On any such partial exercise, the Company, at its expense, will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of shares of Common Stock for which such Warrant may still be exercised.

 

1.4.           Company Acknowledgment. The Company will, at the time of the exercise of this Warrant, upon the request of the Holder, acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

 

  

2

  

 

2.           Adjustment for Reorganization, Consolidation, Merger, etc.

 

2.1.           Reorganization, Consolidation, Merger, etc. In case at any time or from time to time, the Company shall effect any merger, reorganization, restructuring, reverse stock split, consolidation, sale of all or substantially all of the Company’s assets or any similar transaction or related transactions (each such transaction, a “Fundamental Change”), then, in each such case, as a condition to the consummation of such a Fundamental Change, proper and adequate provision shall be made by the Company whereby the Holder of this Warrant, on the exercise hereof as provided in Section 1, at any time after the consummation of such Fundamental Change, shall receive, in lieu of the Common Stock issuable on such exercise prior to such consummation or such effective date, the stock and other securities and property (including cash) to which the Holder would have been entitled upon such consummation of a Fundamental Change if the Holder had so exercised this Warrant, immediately prior thereto, all subject to further adjustment thereafter as provided in Section 2.

 

If the Company at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes that may be issued or outstanding, this Warrant, as to the unexercised portion thereof, shall thereafter be deemed to evidence the right to purchase an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock had such Warrant been exercised immediately prior to such reclassification or other change.

 

2.2.           Dissolution. In the event of any dissolution of the Company following the transfer of all or substantially all of its properties or assets, the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and property (including cash, where applicable) receivable by the holders of the Warrants after the effective date of such dissolution pursuant to this Section 2 to a bank or trust company (a “Trustee”) having its principal office in New York, NY, as trustee for the holders of the Warrants.

 

2.3.           Continuation of Terms. Upon any Fundamental Change (and any dissolution following any transfer of all or substantially all of the Company’s properties or assets) referred to in this Section 2, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to any other securities and property receivable on the exercise of this Warrant after the consummation of such Fundamental Change or the effective date of dissolution following any such transfer of all or substantially all of the Company’s properties or assets, as the case may be, and shall be binding upon the issuer of any other securities, including, in the case of any such transfer, the person acquiring all or substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant. In the event this Warrant does not continue in full force and effect after the consummation of the Fundamental Change or the effective date of the dissolution following any such transfer of all or substantially all of the Company’s properties or assets described in this Section 2, then only in such event will the Company's securities and property (including cash, where applicable) receivable by the holders of the Warrants be delivered to the Trustee as contemplated by Section 2.2.

 

3.           Extraordinary Events Regarding Common Stock. In the event that the Company shall (a) issue additional shares of the Common Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of the Common Stock, then, in each such event, the Warrant Exercise Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Warrant Exercise Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Warrant Exercise Price then in effect. The Warrant Exercise Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described herein in this Section 3. The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof as provided in Section 1, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 3) be issuable on such exercise by a fraction of which (a) the numerator is the Warrant Exercise Price that would otherwise (but for the provisions of this Section 3) be in effect, and (b) the denominator is the Warrant Exercise Price in effect on the date of such exercise.

 

  

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4.           Certificate as to Adjustments. In each case of any adjustment or readjustment in the shares of Common Stock issuable on the exercise of this Warrant, the Company will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company will forthwith mail a copy of each such certificate to the Holder of this Warrant.

 

5.           Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements. The Company will at all times reserve and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock from time to time issuable on the exercise of the Warrants.

 

6.           Assignment; Exchange of Warrant. Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”). On the surrender for exchange of this Warrant, with the Transferor's endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company at its expense, but with payment by the Transferor of any applicable transfer taxes, will issue and deliver to, or according to the instructions of, the Transferor thereof, a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor. No such transfers shall result in a public distribution of this Warrant.

 

7.           Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any mutilation of this Warrant, on surrender and cancellation of this Warrant, the Company at its expense, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

8.           Transfer on the Company's Books. Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

9.           Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company: _____________, Attn: ________, and (ii) if to the Holder, to the address and telecopier number listed on the signature page of the Securities Purchase Agreement.

10.         Amendment. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought.

11.         Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of New York. Any action brought concerning the transactions contemplated by this Warrant shall be brought only in the state courts of New York or in the federal courts located in the state of New York. By execution of this Warrant, each of the Company and the Holder agrees to submit to the jurisdiction of such courts, and waives their respective rights to a trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.

 

  

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IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.

 

 

	 	Kogeto, Inc.	 
	 	 	 	 
	
   

	
By: 

	   	 
	 	Name:	    	 
	 	Title:	President	 
	 	 	 	 
	Witness:	 	 	 
	 	 	 	 
	__________________________________	 	 	 

 

  

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Exhibit A

EXERCISE NOTICE

(to be signed only on exercise of Warrant)

TO:

 

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.____), hereby notifies the Company that it is exercising this warrant:

 

	
·  

	
I am exercising my right to purchase all of the Shares which I am entitled to purchase under this warrant. The number of shares of Common Stock is __________.

	
·  

	
I am exercising my right to purchase ________ shares of Common Stock, and request that the Company deliver to me or as I shall designate below a new Warrant representing the right to purchase _______ shares of Common Stock.

The undersigned herewith makes payment of the full exercise price for such shares at an Exercise Price per share of $_______ as provided for in such Warrant. The total exercise price payable is $___________. Such payment takes the form of (check applicable box or boxes):

	
___ 

	
$__________ in certified or official bank check payable to the order of the Company; or

	
___ 

	
$_________ by wire transfer of immediately available fund

 

The undersigned requests that the certificates for such shares be issued in the name of, and delivered to _____________________________________________________ whose address is ____________________________________________________________________________________________________________________________________________________________.

The undersigned requests that the new Warrant required to be delivered to the Holder (if any) be issued in the name of, and delivered to _____________________________________________________ whose address is _________________________________________________________________________________________________________________________________

Number of Shares of Common Stock Beneficially Owned on the date of exercise: _________________.

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “U.S. Securities Act”), or pursuant to an exemption from registration under the Securities Act.

	
Dated:___________________

	
_____________________________________________________

(Signature must conform to name of Holder as specified on the face of the Warrant)

 

_____________________________________________________

_____________________________________________________

(Address)

 

  

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Exhibit B

 

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the undersigned hereby sells, assigns, and transfers to the person(s) named below under the heading “Transferees” the right represented by the within Warrant to purchase the number of shares of Common Stock of Northeast Automotive Holdings, Inc. specified under the heading “Number Transferred” opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of the Company with full power of substitution in the premises.

Number of total shares represented by this Warrant ­­­­­­­­­­­­­­­­___________________

	
Transferee

	
Rights to purchase shares transferred (total)

	  	  
	  	  
	  	  

	
Dated: ______________, ___________

 

 

Signed in the presence of:

______________________________________________________________

(Name)

 

 

ACCEPTED AND AGREED:

[TRANSFEREE]

 

 

______________________________________________________________

(Name)

 

	
______________________________________________________________

(Signature must conform to name of Holder as specified on the face of the warrant)

 

 

______________________________________________________________

______________________________________________________________

(address)

 

______________________________________________________________

______________________________________________________________

(address)

 

 

 

7EXHIBIT 4.1

 

SUBSCRIPTION
AGREEMENT

 

THIS
SUBSCRIPTION AGREEMENT (this “Agreement”), dated as of ____________________, by and between JD INTERNATIONAL
LIMITED, a Nevada corporation (the “Company”), and the subscriber identified on the signature page hereof (the
“Subscriber”).

 

WHEREAS,
the Company and Subscriber are executing and delivering this Agreement in reliance upon an exemption from securities registration
afforded by the provisions of Section 4(2) and/or Regulation D (“Regulation D”) promulgated by the United States
Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities
Act”); and

 

WHEREAS,
the Company shall issue and sell to one or more Subscribers up to 50,000,000 shares of Series A Convertible Preferred Stock of
the Company (the “Preferred Stock”) at purchase price of US$______ per share, for a total purchase price of
$_______________.

 

NOW,
THEREFORE, in consideration of the mutual covenants and other agreements contained in this Agreement, the Company and Subscriber
hereby agree as follows:

 

1.Purchase
and Sale. Upon the terms and subject to the conditions set forth in this Agreement, the Company hereby agrees to sell, assign,
transfer and deliver to Subscriber, and Subscriber hereby agrees to purchase and accept delivery from the Company, the number
of shares of Preferred Stock set forth on the signature page hereof (the “Shares”) free of all liens, pledges,
mortgages, security interests, charges, restrictions, adverse claims or other encumbrances of any kind or nature whatsoever (“Encumbrances”),
for the aggregate purchase price set forth on the signature page hereof (the “Purchase Price”).

 

2.Subscriber
Representations and Warranties. Subscriber hereby represents and warrants to and agrees with the Company that:

 

(a)Standing
of Subscriber. If Subscriber is an entity, such Subscriber is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation. If Subscriber is a natural person, such Subscriber is not a minor and has the legal
capacity to enter into this Agreement;

 

(b)Authorization
and Power. Subscriber has the requisite power and authority to enter into and perform this Agreement and to purchase the Shares.
The execution, delivery and performance of this Agreement by Subscriber and, if Subscriber is an entity, the consummation by Subscriber
of the transactions contemplated hereby have been duly authorized by all necessary company action, and no further consent or authorization
of Subscriber, its board of directors or similar governing body, or stockholders is required, as applicable. This Agreement has
been duly authorized, executed and delivered by Subscriber and constitutes, or shall constitute when executed and delivered, a
valid and binding obligation of Subscriber, enforceable against Subscriber in accordance with the terms thereof;

 

    	 

    	 

    

  

(c)No
Conflicts. If Subscriber is an entity, the execution, delivery and performance of this Agreement and the consummation by Subscriber
of the transactions contemplated hereby do not and will not result in a violation of Subscriber’s charter documents, bylaws
or other organizational documents, as applicable;

 

(d)Information
on Subscriber. Such Subscriber is an “accredited investor,” as such term is defined in Rule 501(a) of Regulation
D promulgated by the Commission under the Securities Act and affirmed by Subscriber in the completed Purchaser Questionnaire attached
hereto as Exhibit A, is experienced in investments and business matters, has made investments of a speculative nature and
has purchased securities of United States publicly-owned companies in private placements in the past and, with its representatives,
has such knowledge and experience in financial, tax and other business matters as to enable Subscriber to utilize the information
made available by the Company to evaluate the merits and risks of and to make an informed investment decision with respect to
the proposed purchase, which represents a speculative investment. Subscriber is able to bear the risk of such investment for an
indefinite period and to afford a complete loss thereof. Subscriber is not required to be registered as a broker-dealer under
Section 15 of the Securities Exchange Act of 1934, as amended;

 

(e)Purchase
of Shares. Subscriber will purchase the Shares for its own account for investment and not with a view toward, or for resale
in connection with, the public sale or any distribution thereof in violation of the Securities Act or any applicable state securities
law, and has no direct or indirect arrangement or understandings with any other person or entity to distribute or regarding the
distribution of such Shares;

 

(f)Compliance
with Securities Act. Subscriber understands and agrees that the Shares are “restricted securities” and have not
been registered under the Securities Act or any applicable state securities laws by reason of their issuance in a transaction
that does not require registration under the Securities Act, and that such Shares must be held indefinitely unless a subsequent
disposition is registered under the Securities Act or any applicable state securities laws or is exempt from such registration;

 

(g)Legend.
The Shares shall bear the following or similar legend:

 

“THE
ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, NOR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
(B) AN OPINION OF COUNSEL (REASONABLY ACCEPTABLE TO THE COMPANY), IN AN ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

(h)Communication
of Offer. Subscriber has a preexisting personal or business relationship with the Company or one or more of its directors,
officers or control persons, and the offer to sell the Shares was directly communicated to Subscriber by the Company. At no time
was Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or
any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and
concurrently with such communicated offer;

 

    	 

    	 

    

  

(i)No
Governmental Endorsement. Subscriber understands that no United States federal or state agency or any other governmental or
state agency has passed on or made recommendations or endorsement of the Shares or the suitability of the investment in the Shares,
nor have such authorities passed upon or endorsed the merits of the offering of the Shares; and

 

(j)Receipt
of Information. Subscriber believes it has received all the information it considers necessary or appropriate for deciding
whether to purchase the Shares. Subscriber further represents that through its representatives it has had an opportunity to ask
questions and receive answers from the Company regarding the terms and conditions of the offering of the Shares and the business,
properties and financial condition of the Company and to obtain additional information (to the extent the Company possessed such
information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished
to it or to which it had access. Without limiting the foregoing, Subscriber acknowledges that it has received and reviewed the
Certificate of Designation of the Preferred Stock.

 

3.Company
Representations and Warranties. The Company represents and warrants to, and agrees with, Subscriber that:

 

(a)Due
Incorporation. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of Nevada;

 

(b)Authority;
Enforceability. This Agreement has been duly authorized, executed and delivered by the Company and is the valid and binding
agreement of the Company, enforceable in accordance with their terms, except as may be limited by bankruptcy, insolvency, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally, or principles of equity. The Company has
full corporate power and authority necessary to enter into and deliver this Agreement and to perform its obligations thereunder;

 

(c)Capitalization
and Additional Issuances. The Company has an 100,000,000 shares of common stock, par value $0.0001, and 50,000,000 shares
of preferred stock, par value $0.0001,of which all have been designated as Series A Preferred Stock, authorized for issuance under
Nevada law. As of the date hereof, there are approximately 450,820 shares of common stock outstanding and no shares of Preferred
Stock issued or outstanding. All of the outstanding shares of the Preferred Stock are duly authorized and validly issued, fully
paid and non-assessable and are not (and will not be) subject to preemptive or similar rights;

 

    	 

    	 

    

  

(d)SEC
Filings; Financial Statements; Absence of Undisclosed Liabilities.

 

(i)SEC
Filings. The Company has filed with the SEC all registration statements, prospectuses, reports, schedules, forms, statements and
other documents (including exhibits and all other information incorporated by reference) required to be filed or furnished by
it with the SEC since its inception (the “Company SEC Documents”) and such Company SEC Documents when filed
were true, correct and complete in all material respects. As of their respective filing dates (or, if amended or superseded by
a subsequent filing, as of the date of the last such amendment or superseding filing prior to the date hereof), each of the Company
SEC Documents complied in all material respects with the applicable requirements of the Sarbanes-Oxley Act of 2002 (including
the rules and regulations promulgated thereunder) and the Exchange Act, and the rules and regulations of the SEC thereunder applicable
to such Company SEC Documents and did not, at the time it was filed (or, if amended, at the time (and taking into account the
content) of such amendment), contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements made therein, in light of the circumstances under which they were made, not
misleading. As of the date hereof, none of the Company SEC Documents is the subject of ongoing SEC review, outstanding SEC comment
or outstanding SEC investigation;

 

(ii)Financial
Statements. Each of the consolidated financial statements (including, in each case, any related notes thereto) contained in
the Company SEC Documents: (i) complied as to form in all material respects with the published rules and regulations of the SEC
with respect thereto as of their respective dates; (ii) was prepared in accordance with United States generally accepted accounting
principles (“GAAP”) applied on a consistent basis throughout the periods involved (except as may be indicated in the
notes thereto and, in the case of unaudited interim financial statements, as may be permitted by the SEC for Quarterly Reports
on Form 10-Q); and (iii) fairly presented in all material respects the consolidated financial position of the Company at the respective
dates thereof and the consolidated results of the Company’s operations and cash flows for the periods indicated therein,
subject, in the case of unaudited interim financial statements, to normal and year-end audit adjustments as permitted by GAAP
and the applicable rules and regulations of the SEC;

 

(iii)No
Undisclosed Liabilities. Neither the Company nor any of its subsidiaries has any liability, indebtedness or obligation of
any kind (whether accrued, absolute, contingent, matured, unmatured or otherwise, and whether or not required to be recorded or
reflected on a balance sheet under GAAP) (“Liability”) except for Liabilities that (a) are reflected or recorded
on the Company’s most recent balance sheet included in the Company SEC Documents (including in the notes thereto but only
to the extent it is reasonably apparent that the disclosure in such notes is of a Liability required to be reflected on a balance
sheet prepared in accordance with GAAP) contained in the Company SEC Documents or (b) are current Liabilities (within the meaning
of GAAP) which were incurred since the date of such balance sheet in the ordinary course of business consistent with past practice;

 

(e)Related
Party Transactions.All contracts, transactions, arrangements and understandings with any executive officer or director
of the Company or any of its subsidiaries, any other person that directly or indirectly controls, is controlled by or is under
common control with ( “Affiliate”), the Company, or any person owning 5% or more of the shares of the common
stock (or any of such person’s immediate family members or Affiliates or associates), which is required to be disclosed
under Item 404 of Regulation S-K promulgated under the Securities Act, have been fully and properly disclosed in the appropriate
Company SEC Documents. There are no such contracts, transactions, arrangements or understandings which have not been so disclosed;

 

(f)Consents.
No consent, approval, authorization or order of any court, governmental agency or body having jurisdiction over the Company or
of any other person is required for the execution by the Company of this Agreement and compliance and performance by the Company
of its obligations hereunder, including, without limitation, the issuance and sale of the Shares;

 

    	 

    	 

    

  

(g)No
Violation or Conflict. Neither the issuance and sale of the Shares nor the performance of the Company’s obligations
under this Agreement will:

 

(i)violate,
conflict with, result in a breach of, or constitute a default (or an event which with the giving of notice or the lapse of time
or both would be reasonably likely to constitute a default) under (a) the charter or bylaws of the Company or (b) any decree,
judgment, order or determination applicable to the Company of any court, governmental agency or body having jurisdiction over
the Company or over the properties or assets of the Company or (c) any contract, agreement, instrument or undertaking to which
the Company or any subsidiary is a party; or

 

(ii)result
in the creation or imposition of any lien, charge or encumbrance upon the Shares except in favor of Subscriber as described herein;

 

(h)The
Shares. Upon issuance, the Shares:

 

(i)shall
be free and clear of any security interests, liens, claims or other Encumbrances, subject only to restrictions upon transfer under
the Securities Act and any applicable state securities laws;

 

(ii)shall
have been duly and validly issued, fully paid and non-assessable; and

 

(iii)will
not subject the holders thereof to personal liability by reason of being such holders;

 

(i)Litigation.
There is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or investigation before or by any
court, governmental agency or body having jurisdiction over the Company including, without limitation, any such that would affect
the execution by the Company or the complete and timely performance by the Company of its obligations under this Agreement;

 

(j)No
General Solicitation. Neither the Company, nor any of its affiliates, nor any person or entity acting on its or their behalf,
has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of the Shares;

 

(k)Investment
Company. The Company is not an “investment company” within the meaning of the Investment Company Act of 1940,
as amended;

 

(l)Listing
and Maintenance Requirements. The Company is, and has no reason to believe that it will not in the foreseeable future continue
to be, in compliance with the listing and maintenance requirements for continued listing or quotation of the Company common stock
on the trading market on which the Company common stock is currently listed or quoted. The issuance and sale of the Shares under
this Agreement does not contravene the rules and regulations of the trading market on which the Company’s common stock is
currently listed or quoted, and no approval of the stockholders of the Company is required for the Company to issue and deliver
to the Subscriber the Shares contemplated by this Agreement; and

 

    	 

    	 

    

  

(m)Full
Disclosure. No representation or warranty or other statement made by the Company in this Agreement in connection with the
contemplated transactions contains any untrue statement of material fact or omits to state a material fact necessary to make the
representations and warranties set forth herein, in light of the circumstances in which they were made, not misleading.

 

4.Broker’s
Commission/Finder’s Fee. Each party hereto represents to the other that there are no parties entitled to receive fees,
commissions, finder’s fees, due diligence fees or similar payments in connection with the consummation of the transactions
contemplated hereby. Each party hereto agrees to indemnify the other against and hold the other harmless from any and all liabilities
to any persons claiming brokerage commissions or similar fees on account of services purported to have been rendered on behalf
of the indemnifying party in connection with this Agreement or the transactions contemplated hereby and arising out of the indemnifying
party’s actions.

 

5.Covenants
Regarding Indemnification. Each party hereto agrees to indemnify, hold harmless, reimburse and defend the other party and
the other party’s officers, directors, agents, counsel, affiliates, members, managers, control persons, and principal shareholders,
as applicable, against any claim, cost, expense, liability, obligation, loss or damage (including reasonable legal fees) of any
nature, incurred by or imposed upon the indemnified party or any such person which results, arises out of or is based upon (i)
any breach of any representation or warranty by the indemnifying party in this Agreement or (ii) any breach or default in performance
by the indemnifying party of any covenant or undertaking to be performed by the indemnifying party.

 

6.Miscellaneous.

 

(a)Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery or facsimile, addressed as set forth on the signature pages hereto or to such other address as such party shall
have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder
shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting
facsimile machine, at the address or number designated on the signature page hereto (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day following such delivery (if delivered other than
on a business day during normal business hours where such notice is to be received) or (b) on the second business day following
the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur.

 

(b)Entire
Agreement; Assignment. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject
matter hereof and may be amended only by a writing executed by both parties hereto. Neither the Company nor Subscriber has relied
on any representations not contained or referred to in this Agreement and the documents delivered herewith.

 

    	 

    	 

    

  

(c)Counterparts/Execution.
This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts,
each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same
instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means
with the same force and effect as if such signature page were an original thereof.

 

(d)Law
Governing this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada
without regard to principles of conflicts of laws. Any action brought by either party hereto against the other concerning the
transactions contemplated by this Agreement shall be brought only in the state courts of Nevada or in the federal courts located
in the state of Nevada. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any
action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non
conveniens. The parties hereto agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive
trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees
and costs.

 

(e)Severability.
In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid
or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party
hereto hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any
way any right to serve process in any other manner permitted by law.

 

(f)Captions.
The captions of the various sections and paragraphs of this Agreement have been inserted only for the purposes of convenience;
such captions are not a part of this Agreement and shall not be deemed in any manner to modify, explain, enlarge or restrict any
of the provisions of this Agreement.

 

    	 

    	 

    

 

SIGNATURE
PAGE TO SUBSCRIPTION AGREEMENT

 

Please
acknowledge your acceptance of the foregoing Subscription Agreement by signing and returning a copy to the undersigned whereupon
it shall become a binding agreement between us.

 

	 	JD International Limited
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title: 	 

   

	SUBSCRIBER	 
	 	 
	Name
    of Subscriber: 	 
	 	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	 	 

	Fax No.:	 	
	 	 	 

	Taxpayer
    ID# (if applicable):		 
	 	 	 
	 	 	 
	 	 	 

(Signature)

 

	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 
	 	 	 
	Dated:	 	 
	 	 	 

	Number
    of Shares:	 	 
	 	 	 

	Aggregate
    Purchase Price:	 	 

 

[Signature
Page to JD International Limited]

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