Document:

Exhibit 10.1

Exhibit 10.1

 

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  

PRIVATE PLACEMENT SUBSCRIPTION

FOR NON U.S. SUBSCRIBERS

AMERICAN LITHIUM MINERALS, INC.

PRIVATE PLACEMENT

INSTRUCTIONS TO SUBSCRIBER:

1.

COMPLETE the information on page 2 of this Subscription Agreement.

2.

FAX a copy of page 2 of this Subscription Agreement to Macdonald Tuskey, attention William L. Macdonald at (604) 681-4760.

3.

COURIER the originally executed copy of the entire Subscription Agreement to Macdonald Tuskey, counsel to the Company, to:

Macdonald Tuskey, Corporate and Securities Lawyers

1210 – 777 Hornby Street

Vancouver, BC, Canada  V6Z 1S4

Attention: William L. Macdonald

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AMERICAN LITHIUM MINERALS, INC.

PRIVATE PLACEMENT

The Subscriber hereby irrevocably subscribes for, and on Closing will purchase from the Company, the following securities at a price of US$0.35714 per Unit

	
	1,250,000 Units

	 

The Subscriber directs the Company to issue, register and deliver the certificates representing the Shares and the Warrants as follows:

 

 

			
	REGISTRATION INSTRUCTIONS: 	 	DELIVERY INSTRUCTIONS: 
	 		 

 
	Name to appear on certificate 		Name and account reference, if applicable 

 
	 		 
	SIN/Tax ID No./Corp. ID no. 		Contact name 

 
	 		 
	Address 		Address 

 
	 		 
	 	 	Telephone number 

 

EXECUTED by the Subscriber this _______ day of__________, _____. By executing this Agreement, the Subscriber certifies that the Subscriber and any beneficial purchaser for whom the Subscriber is acting is resident in the jurisdiction shown as the "Address of the Subscriber". The address of the Subscriber will be accepted by the Company as a representative as to the address of residency for the Subscriber.

				
	WITNESS: 	 	EXECUTION BY SUBSCRIBER: 
	 		 
	 	 	X 	 
	Signature of witness

   	 	Authorized signatory

   
	 		 
	 	 	Seaplane Ventures Inc. 
	Name of witness

   	 	Name of Subscriber (please print)

   
	 	 	 
	Address of witness

   	 	Name of authorized signatory (please print)

   
	 	 	 
	 	 
	ACCEPTED this __________day of ___________, _____.

   	 
	 	 
	AMERICAN LITHIUM MINERALS, INC. 	Address of Subscriber

   
	Per:	 
	 	 	 
	Authorized signatory

   	Telephone number and e-mail address

 

By signing this acceptance, the Company agrees to be bound by all representations, warranties, covenants and agreements on pages 3-11 hereof.

This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.

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THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE "SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"). 

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  

PRIVATE PLACEMENT SUBSCRIPTION

(Non U.S. Subscribers Only)

TO:

American Lithium Minerals, Inc. (the “Company”)

1914 Cordova Road

Suite 116, Fort Lauderdale, FL

33316

Purchase of Units

1.

SUBSCRIPTION

1.1

The undersigned (the "Subscriber") hereby irrevocably subscribes for and agrees to purchase 1,400,000 units from the Company's (the "Units") as set out on page 2 of this Subscription Agreement at a price of US$0.35714 per Unit (such subscription and agreement to purchase being the "Subscription"), for the total subscription price as set out on page 2 of this Subscription Agreement (the "Subscription Proceeds"), which Subscription Proceeds are tendered herewith, on the basis of the representations and warranties and subject to the terms and conditions set forth herein.

1.2

Each Unit will consist of one share of common stock in the capital of the Company (the "Share"); and one common share purchase warrant (each a “Warrant”) subject to adjustment.  Each Warrant shall be non-transferable and shall entitle the holder thereof to purchase one share of common stock in the capital of the Company (each, a “Warrant Share”), as presently constituted, for a period of twenty four months commencing from the Closing (as defined hereafter), at a price per Warrant Share of US$0.50.  The Shares, Warrants and Warrant Shares are referred to as the “Securities”.

1.3

The Company hereby agrees to sell, on the basis of the representations and warranties and subject to the terms and conditions set forth herein, to the Subscriber the Units.  Subject to the terms hereof, the Subscription Agreement will be effective upon its acceptance by the Company.  This offering is not subject to any minimum or maximum offering.

1.4

Unless otherwise provided, all dollar amounts referred to in this Subscription Agreement are in lawful money of the United States of America.

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2.

PAYMENT

2.1

The Subscription Proceeds must accompany this Subscription Agreement.  The Subscriber authorizes the Company's lawyers to deliver the Subscription Proceeds to the Company if the Subscription Proceeds are delivered to the Company’s lawyers, without further instructions required.

2.2

The Subscriber acknowledges and agrees that this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be held by the Company's lawyers on behalf of the Company.  In the event that this Subscription Agreement is not accepted by the Company for whatever reason within 90 days of the delivery of an executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement without interest or deduction.

2.3

Where the Subscription Proceeds are paid to the Company, the Company may treat the Subscription Proceeds as a non-interest bearing loan and may use the Subscription Proceeds prior to this Subscription Agreement being accepted by the Company.

2.4

The Subscriber shall complete, sign and return to the Company as soon as possible, on request by the Company, any documents, questionnaires, notices and undertakings as may be required by regulatory authorities, the OTC Bulletin Board, stock exchanges and applicable law.

3.

CLOSING

3.1

Closing of the purchase and sale of the Units shall occur on or before _______________, 2009, or on such other date as may be determined by the Company in its sole discretion (the "Closing Date").  The Subscriber acknowledges that Units may be issued to other subscribers under this offering (the "Offering") before or after the Closing Date.  The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares and the Warrants to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

4.

ACKNOWLEDGEMENTS OF SUBSCRIBER

4.1

The Subscriber acknowledges and agrees that:

(a)

none of the Securities have been registered under the Securities Act of 1933, as amended (the "1933 Act"), or under any state securities or "blue sky" laws of any state of the United States, and are being offered only in a transaction not involving any public offering within the meaning of the 1933 Act, and, unless so registered, may not be offered or sold in the United States or to U.S. Persons (as defined herein), except pursuant to an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act, and in each case only in accordance with applicable state and provincial securities laws;

(b)

the Company will refuse to register any transfer of any of the Securities not made in accordance with the provisions of Regulation S, pursuant to an effective registration statement under the 1933 Act or pursuant to an available exemption from, or in a transaction not subject to, the registration requirements of the 1933 Act;

(c)

the decision to execute this Subscription Agreement and purchase the Units agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of publicly available information regarding the Company available on the website of the United States Securities and Exchange Commission (the "SEC") available at www.sec.gov and on the System for Electronic Document Analysis and Retrieval website available at www.sedar.com and (the "Company Information"); 

 

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(d)

the Subscriber and the Subscriber's advisor(s) have had a reasonable opportunity to review the Company Information and to ask questions of and receive answers from the Company regarding the Offering, and to obtain additional information, to the extent possessed or obtainable without unreasonable effort or expense, necessary to verify the accuracy of the information contained in the Company Information, or any other document provided to the Subscriber;

(e)

the books and records of the Company were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the Subscriber during reasonable business hours at its principal place of business and that all documents, records and books pertaining to this Offering have been made available for inspection by the Subscriber, the Subscriber's attorney and/or advisor(s);

(f)

by execution hereof the Subscriber has waived the need for the Company to communicate its acceptance of the purchase of the Units pursuant to this Subscription Agreement;

(g)

the Company is entitled to rely on the representations and warranties and the statements and answers of the Subscriber contained in this Subscription Agreement and the Subscriber will hold harmless the Company from any loss or damage it may suffer as a result of the Subscriber's failure to correctly complete this Subscription Agreement;

(h)

the Subscriber will indemnify and hold harmless the Company and, where applicable, its respective directors, officers, employees, agents, advisors and shareholders from and against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all fees, costs and expenses whatsoever reasonably incurred in investigating, preparing or defending against any claim, lawsuit, administrative proceeding or investigation whether commenced or threatened) arising out of or based upon any acknowledgment, representation or warranty of the Subscriber contained herein, or in any other document furnished by the Subscriber to the Company in connection herewith, being untrue in any material respect or any breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber to the Company in connection therewith;

(i)

the issuance and sale of the Units to the Subscriber will not be completed if it would be unlawful or if, in the discretion of the Company acting reasonably, it is not in the best interests of the Company;

(j)

the Subscriber has been advised to consult the Subscriber’s own legal, tax and other advisors with respect to the merits and risks of an investment in the Securities and with respect to the applicable resale restrictions, and it is solely responsible (and the Company is not in any way responsible) for compliance with:

(i)

any applicable laws of the jurisdiction in which the Subscriber is resident in connection with the distribution of the Securities hereunder, and

(ii)

applicable resale restrictions;

(k)

the Subscriber has not acquired the Units as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Shares or the Warrant Shares pursuant to registration of any of the Shares or the Warrant Shares pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;

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(l)

the Subscriber is outside the United States when receiving and executing this Subscription Agreement and is acquiring the Units as principal for its own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in such Units;

(m)

none of the Securities may be offered or sold to a U.S. Person or for the account or benefit of a U.S. Person (other than a distributor) prior to the end of the expiration of a period of one year after the date of original issuance of the Securities;

(n)

the statutory and regulatory basis for the exemption claimed for the offer and sale of the Units, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the 1933 Act;

(o)

the Company has advised the Subscriber that, if the Subscriber is a Canadian resident, the Company is relying on an exemption from the requirements to provide the Subscriber with a prospectus and to sell the Units through a person registered to sell securities under the Securities Act (British Columbia) (the “BC Act”) and, as a consequence of acquiring the Units pursuant to this exemption, certain protections, rights and remedies provided by the BC Act, including statutory rights of rescission or damages, will not be available to the Subscriber;

(p)

none of the Securities are listed on any stock exchange or automated dealer quotation system and no representation has been made to the Subscriber that any of the Securities will become listed on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the shares of the Company's common stock on the OTC Bulletin Board;

(q)

neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of any of the Securities;

(r)

no documents in connection with this Offering have been reviewed by the SEC or any state securities administrators;

(s)

there is no government or other insurance covering any of the Securities; and

(t)

this Subscription Agreement is not enforceable by the Subscriber unless it has been accepted by the Company, and the Subscriber acknowledges and agrees that the Company reserves the right to reject any subscription for any reason.

5.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER

5.1

The Subscriber hereby represents and warrants to and covenants with the Company (which representations, warranties and covenants shall survive the Closing Date) that:

(a)

the Subscriber is not a U.S. Person (as defined herein);

(b)

the Subscriber is not acquiring the Units for the account or benefit of, directly or indirectly, any U.S. Person (as defined herein);

(c)

the Subscriber is resident in the jurisdiction set out on page 2 of this Subscription Agreement;

(d)

the Subscriber:

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(i)

is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the Subscriber is resident (the “International Jurisdiction”) which would apply to the acquisition of the Units, 

(ii)

is purchasing the Units pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the Subscriber is permitted to purchase the Units under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions,

(iii)

acknowledges that the applicable securities laws of the authorities in the International Jurisdiction do not require the Company to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of any of the Securities, and

(iv)

represents and warrants that the acquisition of the Units by the Subscriber does not trigger:

A.

any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction, or

B.

any continuous disclosure reporting obligation of the Company in the International Jurisdiction, and

the Subscriber will, if requested by the Company, deliver to the Company a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company, acting reasonably;

(e)

the Subscriber is acquiring the Units as principal for investment only and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and, in particular, it has no intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons (as defined herein); 

(f)

the Subscriber is outside the United States when receiving and executing this Subscription Agreement;

(g)

the Subscriber understands and agrees not to engage in any hedging transactions involving any of the Securities unless such transactions are in compliance with the provisions of the 1933 Act and in each case only in accordance with applicable state securities laws;

(h)

the Subscriber acknowledges that it has not acquired the Units as a result of, and will not itself engage in, any "directed selling efforts" (as defined in Regulation S under the 1933 Act) in the United States in respect of any of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the Securities; provided, however, that the Subscriber may sell or otherwise dispose of any of the Shares or the Warrant Shares pursuant to registration of any of the Shares or the Warrant Shares pursuant to the 1933 Act and any applicable state securities laws or under an exemption from such registration requirements and as otherwise provided herein;

(i)

the Subscriber has the legal capacity and competence to enter into and execute this Subscription Agreement and to take all actions required pursuant hereto and, if the Subscriber is a corporation, it is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation and all necessary approvals by its directors, shareholders and others have been obtained to authorize execution and performance of this Subscription Agreement on behalf of the Subscriber;

 

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(j)

the entering into of this Subscription Agreement and the transactions contemplated hereby do not result in the violation of any of the terms and provisions of any law applicable to, or, if applicable, the constating documents of, the Subscriber, or of any agreement, written or oral, to which the Subscriber may be a party or by which the Subscriber is or may be bound;

(k)

the Subscriber has duly executed and delivered this Subscription Agreement and it constitutes a valid and binding agreement of the Subscriber enforceable against the Subscriber;

(l)

the Subscriber has received and carefully read this Subscription Agreement;

(m)

the Subscriber (i) has adequate net worth and means of providing for its current financial needs and possible personal contingencies, (ii) has no need for liquidity in this investment, and (iii) is able to bear the economic risks of an investment in the Securities for an indefinite period of time, and can afford the complete loss of such investment;

(n)

the Subscriber has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Securities and the Company;

(o)

the Subscriber understands and agrees that the Company and others will rely upon the truth and accuracy of the acknowledgements, representations, warranties, covenants and agreements contained in this Subscription Agreement, and agrees that if any of such acknowledgements, representations and agreements are no longer accurate or have been breached, the Subscriber shall promptly notify the Company;

(p)

the Subscriber is aware that an investment in the Company is speculative and involves certain risks, including the possible loss of the investment;

(q)

the Subscriber is purchasing the Units for its own account for investment purposes only and not for the account of any other person and not for distribution, assignment or resale to others, and no other person has a direct or indirect beneficial interest is such Units, and the Subscriber has not subdivided his interest in the Units with any other person;

(r)

the Subscriber is not an underwriter of, or dealer in, the shares of the Company's common stock, nor is the Subscriber participating, pursuant to a contractual agreement or otherwise, in the distribution of the Units;

(s)

the Subscriber has made an independent examination and investigation of an investment in the Securities and the Company and has depended on the advice of its legal and financial advisors and agrees that the Company will not be responsible in anyway whatsoever for the Subscriber's decision to invest in the Securities and the Company;

(t)

if the Subscriber is acquiring the Units as a fiduciary or agent for one or more investor accounts, the Subscriber has sole investment discretion with respect to each such account, and the Subscriber has full power to make the foregoing acknowledgements, representations and agreements on behalf of such account;

(u)

the Subscriber is not aware of any advertisement of any of the Units and is not acquiring the Units as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 

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(v)

no person has made to the Subscriber any written or oral representations:

(i)

that any person will resell or repurchase any of the Securities,

(ii)

that any person will refund the purchase price of any of the Securities,

(iii)

as to the future price or value of any of the Securities, or

(iv)

that any of the Securities will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Securities of the Company on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the shares of the Company's common stock on the OTC Bulletin Board; and

(w)

the Subscriber acknowledges and agrees that the Company shall not consider the Subscriber's Subscription for acceptance unless the undersigned provides to the Company, along with an executed copy of this Subscription Agreement such other supporting documentation that the Company or its legal counsel may request to establish the Subscriber's qualification as a qualified investor.

5.2

In this Subscription Agreement, the term "U.S. Person" shall have the meaning ascribed thereto in Regulation S promulgated under the 1933 Act and for the purpose of the Subscription Agreement includes any person in the United States.

6.

ACKNOWLEDGEMENT AND WAIVER

6.1

The Subscriber has acknowledged that the decision to purchase the Units was solely made on the Company Information.  The Subscriber hereby waives, to the fullest extent permitted by law, any rights of withdrawal, rescission or compensation for damages to which the Subscriber might be entitled in connection with the distribution of any of the Units.

7.

REPRESENTATIONS AND WARRANTIES WILL BE RELIED UPON BY THE COMPANY

7.1

The Subscriber acknowledges that the acknowledgements, representations and warranties contained herein are made by it with the intention that they may be relied upon by the Company and its legal counsel in determining the Subscriber's eligibility to purchase the Units under applicable securities legislation, or (if applicable) the eligibility of others on whose behalf it is contracting hereunder to purchase the Units under applicable securities legislation.  The Subscriber further agrees that by accepting delivery of the certificates representing the Units, it will be representing and warranting that the acknowledgements representations and warranties contained herein are true and correct as of the date hereof and will continue in full force and effect notwithstanding any subsequent disposition by the Subscriber of such Units.

8.

RESALE RESTRICTIONS

8.1

The Subscriber acknowledges that any resale of the Securities will be subject to resale restrictions contained in the securities legislation applicable to the Subscriber or proposed transferee.  The Subscriber acknowledges that none of the Securities have been registered under the 1933 Act or the securities laws of any state of the United States.  None of the Securities may be offered or sold in the United States unless registered in accordance with federal securities laws and all applicable state securities laws or exemptions from such registration requirements are available.

 

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9.

LEGENDING AND REGISTRATION OF SUBJECT SECURITIES

9.1

The Subscriber hereby acknowledges that upon the issuance thereof, and until such time as the same is no longer required under the applicable securities laws and regulations, the certificates representing any of the Shares, the Warrants or the Warrant Shares will bear a legend in substantially the following form:

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

9.2

The Subscriber hereby acknowledges and agrees to the Company making a notation on its records or giving instructions to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described in this Subscription Agreement.

10.

COLLECTION OF PERSONAL INFORMATION

10.1

The Subscriber acknowledges and consents to the fact that the Company is collecting the Subscriber's personal information for the purpose of fulfilling this Subscription Agreement and completing the Offering.  The Subscriber's personal information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) may be disclosed by the Company to (a) stock exchanges or securities regulatory authorities, (b) the Company's registrar and transfer agent, and (c) any of the other parties involved in the Offering, including legal counsel, and may be included in record books in connection with the Offering.  By executing this Subscription Agreement, the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of the Subscriber's personal information (and, if applicable, the personal information of those on whose behalf the Subscriber is contracting hereunder) and to the retention of such personal information for as long as permitted or required by law or business practice.  Notwithstanding that the Subscriber may be purchasing Units as agent on behalf of an undisclosed principal, the Subscriber agrees to provide, on request, particulars as to the identity of such undisclosed principal as may be required by the Company in order to comply with the foregoing.

11.

COSTS

11.1

The Subscriber acknowledges and agrees that all costs and expenses incurred by the Subscriber (including any fees and disbursements of any special counsel retained by the Subscriber) relating to the purchase of the Units shall be borne by the Subscriber.

 

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12.

GOVERNING LAW

12.1

This Subscription Agreement is governed by the laws of the State of Nevada.  The Subscriber, in its personal or corporate capacity and, if applicable, on behalf of each beneficial purchaser for whom it is acting, irrevocably attorns to the exclusive jurisdiction of the Courts of the State of Nevada.

13.

SURVIVAL

13.1

This Subscription Agreement, including without limitation the representations, warranties and covenants contained herein, shall survive and continue in full force and effect and be binding upon the parties hereto notwithstanding the completion of the purchase of the Units by the Subscriber pursuant hereto.

14.

ASSIGNMENT

14.1

This Subscription Agreement is not transferable or assignable.

15.

SEVERABILITY

15.1

The invalidity or unenforceability of any particular provision of this Subscription Agreement shall not affect or limit the validity or enforceability of the remaining provisions of this Subscription Agreement.

16.

ENTIRE AGREEMENT

16.1

Except as expressly provided in this Subscription Agreement and in the agreements, instruments and other documents contemplated or provided for herein, this Subscription Agreement contains the entire agreement between the parties with respect to the sale of the Units and there are no other terms, conditions, representations or warranties, whether expressed, implied, oral or written, by statute or common law, by the Company or by anyone else.

17.

NOTICES

17.1

All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted by any standard form of telecommunication.  Notices to the Subscriber shall be directed to the address on page 2 and notices to the Company shall be directed to it at the first page of this Subscription Agreement.

18.

COUNTERPARTS AND ELECTRONIC MEANS

18.1

This Subscription Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall constitute an original and all of which together shall constitute one instrument.  Delivery of an executed copy of this Subscription Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Subscription Agreement as of the date hereinafter set forth.DC7164.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
PLEDGE AGREEMENT

     This PLEDGE AGREEMENT (“Agreement”) dated as of the 16th day of July, 2009 is made by and between Encorium Group, Inc., a Delaware corporation ("Pledgor"), and Pierrel Research USA Inc., a
Pennsylvania corporation ("Pledgee").

	
RECITALS:

     WHEREAS, Pledgor is the holder of all of the outstanding shares of capital stock of Encorium Oy, a corporation organized under the laws of Finland ("Encorium");

     WHEREAS, contemporaneously with the execution of this Agreement, Pledgor entered into that certain Asset Purchase Agreement by and between Pledgor, as seller, and Pledgee, as buyer (the "Purchase
Agreement"), pursuant to which Pledgee has acquired certain assets of Pledgor;

     WHEREAS, to secure Pledgor’s indemnification obligations (the "Obligations") to Pledgee under Section 13 of the Purchase Agreement, Pledgor is willing to pledge 649 uncertificated shares of
capital stock of Encorium (the "Pledged Shares"), which Pledgor and Pledgee agree have a value of US $200,000 for all purposes hereunder (the “Pledged Amount”).

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and intending to be legally bound hereby, the parties hereto agree as follows:

     1. Pledge of Pledged Shares. Pledgor does hereby pledge to Pledgee, as security for the payment of Pledgor’s Obligations, the Pledged
Shares. The Pledgor hereby conveys, assigns, pledges and grants a continuing and unconditional security interest to the Pledgee, its successors and assigns, in the Pledged Shares.

     2. Perfection of Security Interest. The Pledgor hereby authorizes the Pledgee to file a financing statement or financing statements
describing the Pledged Shares in any and all jurisdictions where, and with any and all governmental authorities with whom, the Pledgee reasonably deems such filing to be necessary or appropriate. 

     3. Representations and Warranties. Pledgor represents and warrants to Pledgee as follows: (i) there are no restrictions on the pledge or
transfer of any of the Pledged Shares; (ii) Pledgor is the sole and legal owner of the Pledged Shares and such Pledged Shares are registered in the name of Pledgor on the books and records of Encorium; (iii) the Pledged Shares are free and clear of
any security interests, pledges, liens, encumbrances, charges, agreements, claims or other arrangements or restrictions of any kind; (iv) the pledge of and grant of the security interest in the Pledged Shares by Pledgor is effective to vest in
Pledgee a valid first priority security interest in and to such Pledged Shares as set forth herein; (v) the Pledged Shares are uncertificated shares; and (vi) the Pledged Shares constitute the indicated percentage of the outstanding (and also the
fully diluted) equity interests of Encorium as set forth in the capitalization table of Encorium on Schedule A attached hereto.

	 	
4. Delivery Event.

DB1/63286388.5

     (a) The Pledged Shares shall be released in accordance with (i) a written agreement executed by both Pledgor and Pledgee; (ii) the settlement or final judgment of any claim, action or proceeding that
determines the amount of any Obligations; and/or (iii) in accordance with Sections 8(b), (c) or (d) of this Agreement.

     (b) Upon the settlement or final judgment of any claim, action or proceeding that determines the amount of any Obligations or a written agreement to such effect executed by both Pledgor and Pledgee
(each a “Delivery Event”), Pledgor shall transfer and deliver to Pledgee a number of Pledged Shares equal to the amount of the Obligations so determined (i) divided by $200,000 and (ii) multiplied by by the total number of Pledged
Shares (as appropriately adjusted in the event of the transfer and delivery of additional Pledged Shares pursuant to Section 7(b)) up to the Pledged Amount. Pledgor shall cause Encorium to register on the books and records of Encorium any Pledged
Shares transferred and delivered upon the occurrence of a Delivery Event in the name of Pledgee or any nominee or transferee of Pledgee.

     (c) Upon fifteen (15) calendar days’ prior written notice to Pledgor, which Pledgor hereby acknowledges to be sufficient, commercially reasonable and proper, Pledgee may sell the Pledged Shares
that have been transferred and delivered to Pledgee pursuant to Section 4(b) or any part thereof at any public or private sale, without any other notice, advertisement or demand of any kind.

     5. Voting Rights.  Until any Pledged Shares are required to be transferred and delivered to Pledgee as a result of a Delivery Event, Pledgor
shall have the right to exercise all voting rights with respect to the Pledged Shares.  At such time as any Pledged Shares are required to be transferred and delivered to Pledgee as a result of a Delivery Event, Pledgee shall have the right to vote
those shares and not any other Pledged Shares.

     6. Distributions.  Until any Pledged Shares are required to be transferred and delivered to Pledgee as a result of a Delivery Event, Pledgor
shall have the right to receive all cash distributions declared and paid with respect to the Pledged Shares. At such time as any Pledged Shares are required to be transferred and delivered to Pledgee as a result of a Delivery Event, Pledgee shall
have the right to receive all cash distributions declared and paid with respect to those Pledged Shares and not with respect to any other Pledged Shares.

	
7.      		
Substitute Collateral.	
	 
	 	
(a) From and after the date hereof, in the event of a Change of Control (as defined	
	 

herein), the Pledgor shall deliver US $200,000 in immediately available funds to an Escrow Agent to be selected by Pledgor and Pledgee ("Escrow Agent") to be held pursuant to the Escrow Agreement to be entered into by and
among the Pledgor, Pledgee and the Escrow Agent (the "Escrow Agreement"), in substantially the form attached hereto as Exhibit A (the "Escrow Funding Event"). Upon written confirmation from the Escrow Agent to Pledgee of the Escrow Funding Event,
the Pledged Shares shall automatically without any further action by any person or entity be released from the pledge made hereby. For purposes of this Agreement, a “Change of Control” shall mean (i) the sale, lease, or other disposition
of all or substantially all of the assets of Encorium or Pledgor; (ii) a merger, consolidation, or other corporate reorganization or combination, which results in Encorium’s stockholders immediately prior to such transaction

	
DB1/63286388.5

	
9

holding less than fifty percent (50%) of the voting power of the surviving, continuing or purchasing entity; or (iii) a merger, consolidation, or other corporate reorganization or combination, which results in Pledgor’s
stockholders immediately prior to such transaction holding less than fifty percent (50%) of the voting power of the surviving, continuing or purchasing entity. 

     (b) From and after the date hereof, if any new or additional shares of capital stock of Encorium are issued in respect of the Pledged Shares, whether by stock split, stock dividend, reclassification,
readjustment or otherwise, such new or additional shares shall, without any further act or deed, become Pledged Shares to be transferred and delivered and held in the same manner and on the same terms and conditions as the Pledged Shares originally
pledged pursuant to this Agreement to the extent necessary to maintain the value of the Pledged Shares at US $200,000, as mutually determined by the Pledgee and Pledgor.

     8. Termination of Agreement. This Agreement shall terminate upon the earliest of: (a) the transfer and delivery of all of the Pledged Shares
to Pledgee as a result of one or more Delivery Events; (b) the Escrow Funding Event; (c) the end of the period specified in the Purchase Agreement for making claims with respect to the Obligations (the “Claims Period”) if no such claims
have been properly made by such time; or (d) if a claim has been made by Pledgee prior to the end of the Claims Period, but such claim has not been resolved prior to the end of the Claims Period, then upon the settlement or final judgment of such
claim. Upon any such termination, Pledgor shall be authorized to file a UCC termination statement with respect to the Pledged Shares without any further action on the part of Pledgee. 

     9. Covenants. Pledgor covenants (i) that until this Agreement is terminated, Pledgor will not sell, assign, transfer, convey, or otherwise
dispose any of its rights in or to the Pledged Shares or any interest therein; nor will Pledgor create, incur or permit to exist any lien whatsoever with respect to any of the Pledged Shares and (ii) Pledgor shall at any time, and from time to time,
execute and deliver such further documents and do such further acts and things as the Pledgee may reasonably request in order to effect the purposes of this Agreement.

     10. Encorium Acknowledgement. Encorium acknowledges and agrees that the pledge of the Pledged Shares to Pledgee shall be recorded on the
books and records of Encorium, and such Pledged Shares, if transferred and delivered to Pledgee pursuant to a Delivery Event shall be transferred from Pledgor to Pledgee on the books and records of Encorium. 

	
11.      		
Miscellaneous.	
	 
	 	
(a) Notices. All notices or other communications hereunder shall be in writing	
	 

and shall be given by hand delivery, national overnight delivery service, confirmed telecopy or registered mail addressed as follows (or to such other address or person as may be given in a notice hereunder):

	 	
If to Pledgor:

Encorium Group

899 Cassatt Road

	
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9

	 	
400 Berwyn Park Suite 115

Berwyn, PA 19312

Attn: Philip L. Calamia 

With a copy to:

Duane Morris LLP

30 South 17th Street

Philadelphia, PA 19103

Attn: Darrick M. Mix, Esquire

	 	
If to Pledgee:

Pierrel Research USA Inc. 

1275 Drummers Lane

Suite 100

Wayne, PA 19087

With a copy to:

Morgan Lewis & Bockius LLP

1701 Market Street

Philadelphia, PA 19103

Attn: Fahd M.T. Riaz, Esquire

All notices given hereunder shall be deemed received on the same day as actually delivered if delivered by hand or confirmed telecopy, or on the next business day if delivered to a national overnight delivery service, or on the
fifth business day after mailing if delivered by registered mail.

     (b) Expenses.  Each party hereto shall pay its or her own expenses including, without limitation, legal and accounting fees and expenses,
incident to the negotiation and preparation of this Agreement and to the performance and compliance with the terms hereof and the consummation of the transaction contemplated hereby.

     (c) Severability. If, but only to the extent that, any provision of this Agreement is declared or found to be illegal, unenforceable or void,
then both parties shall be relieved of all obligations arising under such provision, it being the intent and agreement of the parties that this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal
and enforceable while preserving its intent.  If that is not possible, another provision that is legal and enforceable and achieves the same objective shall be substituted. If the remainder of this Agreement is not affected by such declaration or
finding and is capable of substantial performance, then the remainder shall be enforced to the extent permitted by law. The parties agree that if a court finds any provision of this Agreement to be unenforceable for any reason, such provision shall
be deemed modified to the extent required in order to make such provision enforceable.

	
DB1/63286388.5

	
9

     (d) Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of
Pennsylvania.

     (e) Entire Agreement; Amendments.  This Agreement contains the entire agreement of the parties hereto with respect to the subject matter
contained herein and supersedes any and all agreements and understandings, whether written or oral. This Agreement may be amended only by a writing signed by both parties hereto.

     (f) Binding Effect. This Agreement shall be binding on and inure to the benefit of the parties hereto and their successors, assigns, personal
representatives, administrators, heirs and estate.

     (g) Titles and Headings. Titles and headings to Sections herein are inserted for convenience of reference only and are not intended to be a
part of or to affect the meaning or interpretation of this Agreement.

	
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9

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.

PIERREL RESEARCH USA INC.

By:Luigi Visani Name: /s/ Luigi Visani Title:Treasurer and Secretary

ENCORIUM GROUP, INC.

By: /s/ Philip L. Calamia Name: Philip L. Calamia Title: Chief Financial Officer

	
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9

The undersigned has executed this Agreement solely with respect to Section 10 hereof.

ENCORIUM OY

By: 
______________________
 Name: Title:

	
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9

	
Schedule A
	
	
Capitalization of Encorium
	
	

	
	
 
	
	
Total Shares Issued and 
		
 		
Pledged Shares 
		
 		
Percentage of Outstanding 
	
	
Outstanding 
		
 		
 
		
 		
Equity Interest 
	
	

		
		

		
		

	
	
16,870 shares, no par value; 
		
 		
690 shares, no par value 
		
 		
4.09 
	
	
no outstanding options 
		
 		
 
		
 		
 
	
	

		
		

		
		

	

	
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9

Exhibit A

Form of Escrow Agreement

	
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9

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