Document:

Exhibit 4.1

    

    EXHIBIT
      4.1

    

    SPECIMEN
      OF COMMON STOCK CERTIFICATE

    

    VALLEY
      FORGE COMPOSITE TECHNOLOGIES, INC.

    

    100,000,000
      SHARES COMMON STOCK $0.001 PAR VALUE

    

    This
      certifies that _________________________________________________ is hereby
      issued ____________________________________________________ fully paid and
      non-assessable Shares of Common Stock of Valley Forge Composite Technologies,
      Inc., transferable on the books of the Corporation by the holder hereof, in
      person or by duly authorized Attorney upon surrender of this Certificate
      properly endorsed.

    

    In
      Witness Whereof, Valley Forge Composite Technologies, Inc. has caused this
      Certificate to be signed by its duly authorized officers and its Corporate
      Seal
      to be hereunto affixed as of this ___ day of 20__.

    

    

    ___________________  __________________

    President    SecretaryExhibit 10.4

    Exhibit
      10.4

    

    

    SECURITIES
      PURCHASE
      AGREEMENT

    

    THIS
      SECURITIES PURCHASE
      AGREEMENT (this
      "Agreement") is dated as of __________________, 2006,
      by and
      among VALLEY FORGE COMPOSITE TECHNOLOGIES, INC., a Florida corporation (the
      "Company"), and ____________________________ ("Purchaser").

    

    WHEREAS,
      the Company wishes to sell to the Purchaser, and the Purchaser wishes to
      purchase, on the terms and subject to the conditions set forth in this
      Agreement, an aggregate of up to ___________________ units of the Company's
      securities, with each unit being comprised of one Warrant to purchase one share
      of the Company’s Common Stock, par value $0.001 (the “Warrant”), and one share
      of the Company’s Common Stock, par value $0.001 (“Common Stock”) (collectively
      the "Units"), at a price of $1.00 per unit; and

    

    WHEREAS,
      the Warrants shall be exercisable at a strike price of $1.50 per share and
      shall
      expire six (6) months from the date the Registration Statement filed with SEC
      registering the Units becomes effective; and

    

    WHEREAS,
      during the one year period following the effective date of the Registration
      Statement, as it pertains to the Company’s Common Stock, and, during the six
      month period following the effective date of the Registration Statement, as
      it
      pertains to the Company’s Warrants, the Units purchased hereby will be protected
      from price decrease caused by the Company’s capital raising activities so long
      as such Common Stock or Warrants are held during such time respective time
      periods by the Purchaser; and 

    

    WHEREAS,
      the Company will be required to obtain a trading symbol from the NASD within
      three (3) months from the date the Registration Statement filed with SEC
      registering the Units (or any component thereof) becomes effective or the
      Company will be required to merge with a company that has its common stock
      quoted in the Pink Sheets, the Over the Counter Bulletin Board or on NASDAQ;
      and

    

    WHEREAS,
      if a change of control occurs within the times specified below where the price
      per share in the transaction is valued at less than $1.50, then the Company
      shall pay to each Purchaser $1.50 for each share of Common Stock Purchased
      in
      this Agreement; 

    

    WHEREAS,
      the sale of the Units by the Company to the Purchasers will be effected in
      reliance upon the exemption from securities registration afforded by the
      provisions of Regulation D ("Regulation D"), as promulgated by the SEC under
      the
      Securities Act of 1933, as amended (the “Securities Act”); and

    

    WHEREAS,
      the Company has agreed to effect the registration under the Securities Act
      of
      the Units purchased by the Purchaser.

    

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the Company and each Purchaser hereby agree
      as
      follows:

    

    I. DEFINED
      TERMS. 

    

    When
      used
      herein, the following terms shall have the respective meanings
      indicated:

    

    “Change
      of
      control
      of the
      Company means:

    

    i) any
      person (meaning individual, corporation, general partnership, limited
      partnership, syndicate or other group of persons) or two or more persons acting
      in concert shall have acquired after the date hereof beneficial ownership
      (within the meaning of SEC Rule 13d-3 promulgated under the Securities Exchange
      Act of 1934, as amended), directly or indirectly of securities of the Company
      (or other securities convertible into such securities) representing 20% or
      more
      of the combined voting power of securities of the company entitled to vote
      in
      the election of directors; or

    

    ii) any
      person or two or more persons acting in concert shall have acquired after the
      date hereof by contract or otherwise, or shall have entered into a contract
      or
      otherwise, or shall have entered into a contract or arrangement that, upon
      consummation, will result in its or their acquisition of control over securities
      of the Company (or other securities convertible into such securities)
      representing 20% or more of the combined voting power of all securities of
      the
      Company entitled to vote in the election of directors; or

    

    iii) consummation
      of any merger or consolidation with respect to which the Company or it
      subsidiary is a constituent corporation (other than a transaction for the
      purpose of changing the Company’s corporate domicile) any liquidation or
      dissolution of the Company or any sale of substantially all of the assets of
      Company to another corporation.

    

    “Exchange
      Act" means the Securities Exchange Act of 1934, as amended (or any successor
      act), and the rules and regulations promulgated thereunder (or respective
      successors thereto).

    

    "Material
      Adverse Effect" means an effect that has material and adverse consequences
      on
      (i) the consolidated business, operations, properties, financial condition,
      or
      results of operations of the Company and its Subsidiaries taken as a whole
      or
      (ii) the ability of the Company to perform its obligations under this Agreement.
      

    

    "Register",
      "registered" and "securities registration" shall refer to a registration of
      the
      offering and sale or resale of the Units effected by preparing and filing a
      Registration Statement in compliance with the Securities Act, and the
      declaration or ordering of the effectiveness of such Registration Statement
      by
      the SEC.

    

    "Registration
      Statement” shall mean a registration statement (including, without limitation,
      the related prospectus contained in such registration statement) of the Company
      under the Securities Act on Form SB-2 (or any successor form thereto) or, in
      the
      event that the Company is not then eligible to use Form SB-2, on any other
      Securities Act registration form selected by the Company for which it then
      qualifies. The term "Registration Statement" shall also include all exhibits,
      financial statements, schedules and documents incorporated by reference in
      such
      Registration Statement when it becomes effective under the Securities Act,
      and
      in the case of the references to the Registration Statement as of a date
      subsequent to its effective date, all amendments or supplements to such
      Registration Statement as of such subsequent date.

    

    "SEC"
      means the U.S. Securities and Exchange Commission.

    

    “Subsidiary”
      shall mean Valley Forge Composite Technologies, Inc., a Pennsylvania
      corporation.

    

    "Third-Party
      Demand Stockholder” means any person (the “First Person”) having the right to
      require that the Company effect a registration under the Securities Act of
      the
      Company securities owned by such First Person, other than pursuant to this
      Agreement, and includes any other person exercising incidental rights of
      registration pursuant to the agreement under which such First Person has the
      right to require registration by the Company.

    

    II.
      SALE
      AND PURCHASE OF UNITS; PURCHASE PRICE.

    

    A. Sale
      and
      Purchase of Units. Upon the terms and subject to the conditions set forth
      herein, the Company agrees to sell and each Purchaser agrees to purchase an
      aggregate of up to _______________ Units for a Purchase Price of
      $_________________ (“Purchase Price”) which Purchase Price shall be paid by
      check or wire transfer.

    

    B. Closing;
      Closing Date. The date on which the closing of the sale and purchase of the
      Units occurs (the "Closing") is hereinafter referred to as the "Closing Date".
      Subject to the satisfaction or waiver of the conditions set forth herein, the
      Closing will be deemed to occur when (a) this Agreement has been executed and
      delivered by, respectively, the Company and each Purchaser (which delivery
      may
      be effected by facsimile transmission), and (b) full payment of each Purchaser's
      Purchase Price has been made by such Purchaser by wire transfer or check. The
      Company reserves the right to reject any offer to purchase the
      Units.

    

    III. REPRESENTATIONS
      AND WARRANTIES OF EACH PURCHASER

    

    Each
      Purchaser hereby makes the following representations and warranties to the
      Company and agrees with the Company that, as of the date of this Agreement
      and
      as of the date of each Closing:

    

    A. Authorization;
      Enforceability. Such Purchaser is duly and validly organized, validly existing
      and in good standing under the laws of the jurisdiction of its incorporation
      or
      organization as set forth below such Purchaser's name on the signature page
      hereof with full power and authority to purchase the Units and to execute and
      deliver this Agreement. This Agreement constitutes such Purchaser's valid and
      legally binding obligation, enforceable in accordance with its terms, except
      as
      such enforcement may be limited by (i) applicable bankruptcy, insolvency,
      reorganization or other laws of general application relating to or affecting
      the
      enforcement of creditors' rights generally and (ii) general principles of
      equity. Purchaser further certifies that it was not organized for the specific
      purpose of acquiring the Units.

     

    B. Investment
      Intent. Such Purchaser represents and warrants that it is acquiring the Units
      solely for its own account as a principal and not with a present view to the
      public resale or distribution of all or any part thereof, except pursuant to
      sales that are exempt from the registration requirements of the Securities
      Act
      and/or sales registered under the Securities Act; provided; however, that in
      making such representation, such Purchaser does not agree to hold the Units
      for
      any minimum or specific term and reserves the right to sell, transfer or
      otherwise dispose of the Units at any time in accordance with the provisions
      of
      this Agreement and with Federal and state securities laws applicable to such
      sale, transfer or disposition.

     

    C. Information.
      The Company has made available at www.sec.gov (by following the link to “Filing
      and Forms (EDGAR),” then “Search for Company Filings”, then “Companies &
Other Filers” and then entering the words “Valley Forge Composite”), information
      to such Purchaser regarding the business, operations and financial condition
      of
      the Company and its Subsidiary and has granted to such Purchaser the opportunity
      to ask questions of and receive answers from representatives of the Company,
      its
      officers, directors, employees and agents concerning the Company and its
      Subsidiary and materials relating to the terms and conditions of the sale and
      purchase of the Units hereunder. 

    

    D. Limitations
      on Disposition. Such Purchaser acknowledges that, except as provided in the
      Registration Rights section below, the Units have not been and may not be
      registered under the Securities Act and therefore may not be transferred or
      resold without registration under the Securities Act unless pursuant to an
      exemption therefrom.

    

    E. Legend.
      Such Purchaser understands that the certificates representing the Common Stock
      may bear at issuance a restrictive legend in substantially the following
      form:

    

    "The
      Shares represented by this certificate have not been registered under the
      Securities Act of 1933, as amended, or the securities laws of any state, and
      may
      not be offered or sold unless a registration statement under the Securities
      Act
      and applicable state securities laws shall have become effective with regard
      thereto, or an exemption from registration under said Securities Act and
      applicable state securities laws is available in connection with such offer
      or
      sale."

    

    F. Reliance
      on Exemptions. Such Purchaser understands that the Units are being offered
      and
      sold to it in reliance upon specific exemptions from the registration
      requirements of United States federal and state securities laws and that the
      Company is relying upon the truth and accuracy of the representations and
      warranties of such Purchaser set forth in this Section III in order to determine
      the availability of such exemptions and the eligibility of such Purchaser to
      acquire the Units.

    

    G. Non-Affiliate
      Status; Common Stock Ownership. Such Purchaser is neither an affiliate nor
      an
      associate (as such terms are defined in Rule 12b-2 promulgated under the
      Exchange Act) of the Company or of any other Purchaser and is not acting in
      association or concert with any other Purchaser in regard to its purchase of
      Units or otherwise in regard to the Company. Such Purchaser's investment in
      Units is not for the purpose of acquiring, directly or indirectly, control
      of,
      and it has no intent to acquire or exercise control of, the Company or to
      influence the decisions or policies of the Company's Board of Directors.

    

    H. Accredited
      Investor Status. Such Purchaser represents and warrants that it is an
“accredited investor,” as that term is defined in Rule 501 of Regulation D,
      because Purchaser:

     

    (CHECK
      ALL BOXES BELOW THAT APPLY TO YOUR CIRCUMSTANCES)

     

    INDIVIDUALS

     

    ____ (a) is
      an
      individual with a net worth, or a joint net worth together with his or her
      spouse, in excess of $1,000,000. (In calculating net worth, you may include
      equity in personal property and real estate, including your principal residence,
      cash, short-term investments, stock and securities. Equity in personal property
      and real estate should be based on the fair market value of such property minus
      debt secured by such property.)

    

    ____ (b) is
      an
      individual that had an individual income in excess of $200,000 in each of the
      prior two years and reasonably expects an income in excess of $200,000 in the
      current year; or

    

    ____ (c) is
      an
      individual that had with his/her spouse joint income in excess of $300,000
      in
      each of the prior two years and reasonably expects joint income in excess of
      $300,000 in the current year.

    

    ____ (d) is
      a
      director or executive officer of Valley Forge Composite Technologies, Inc.
      or
      its subsidiaries.

     

    ENTITIES

     

    

    ____ (e) is
      an
      entity all of whose equity owners meet one of the tests set forth in (a) through
      (d) above.

    

    ____ (f) is
      an
      entity, and one or more of the following statements is applicable (check the
      applicable boxes):

    

    ____ (i) The
      undersigned (or, in the case of a trust, the undersigned trustee) is a bank
      or
      savings and loan association as defined in Sections 3(a)(2) and 3(a)(5)(A),
      respectively, of the Securities Act acting either in its individual or fiduciary
      capacity.

    

    ____ (ii) The
      undersigned is an insurance company as defined in Section 2(13) of the
      Securities Act.

    

    ____ (iii) The
      undersigned is an investment company registered under the Investment Company
      Act
      of 1940 or a business development company as defined in Section 2(a)(48) of
      that
      Act.

    

    ____ (iv) The
      undersigned is a Small Business Investment Company licensed by the U.S. Small
      Business Administration under Section 301(c) or (d) of the Small Business
      Investment Act of 1958.

    

    ____ (v) The
      undersigned is an employee benefit plan within the meaning of Title I of the
      Employee Retirement Income Security Act of 1974 and
      either
      (check one or more, as applicable):

    

    ____ (a) the
      investment decision is made by a plan fiduciary, as defined in Section 3(21)
      of
      such Act, which is either a bank, savings and loan association, insurance
      company, or registered investment adviser; or

    

    ____ (b) the
      employee benefit plan has total assets in excess of $5,000,000; or

    

    ____
      (c) the
      plan
      is a self-directed plan with investment decisions made solely by persons who
      are
“Accredited Investors” as defined under the 1933 Act.

    

    ____ (vi) The
      undersigned is a private business development company as defined in Section
      202(a)(22) of the Investment Advisers Act of 1940.

    

    ____ (vii) The
      undersigned has total assets in excess of $5,000,000, was not formed for the
      specific purpose of purchasing the Units and
      is one
      or more of the following (check one or more, as appropriate):

    

    ____ (a) an
      organization described in Section 501(c)(3) of the Internal Revenue Code;
      or

    

    ____ (b) a
      corporation; or

    

    ____ (c) a
      Massachusetts or similar business trust; or

    

    ____ (d) a
      partnership; or

    

    ____ (e) a
      plan
      established by a state, its political subdivisions, or any agency or
      instrumentality of a state or its political subdivisions, for the benefit of
      its
      employees.

    

    ____ (viii) The
      undersigned is a trust with total assets exceeding $5,000,000, which was not
      formed for the specific purpose of purchasing the Units and whose purchase
      is
      directed by a person who has such knowledge and experience in financial and
      business matters that he is capable of evaluating the merits and risks of the
      investment in the Units. 

    

    I. Hold
      Harmless. Purchaser agrees that the registered broker dealer, its officers,
      directors, shareholders, affiliates, agents, and associated persons (“Broker
      Dealer”), from whom or through whom Purchaser acquires the Units, shall be held
      harmless and indemnified for any loss, claim or expense incurred in carrying
      out
      Broker Dealer’s duties and responsibilities in accordance with the provisions of
      this Agreement, or in any manner whatsoever directly or indirectly related
      to
      this Agreement, except for Broker Dealer’s own bad faith, gross negligence,
      willful misconduct or breach of fiduciary duty based upon grossly negligent
      acts.

    

    IV. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY

    

    The
      Company hereby makes the following representations and warranties to each
      Purchaser and agrees with each Purchaser that, as of the date of this Agreement
      and as of the date of the Closing:

    

    A. Organization,
      Good Standing and Qualification. The Company and its Subsidiary are duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its respective incorporation and each has all requisite power
      and authority to carry on its business as now conducted. 

    

    B. Authorization;
      Consents. The Company has the requisite corporate power and authority to enter
      into and perform its obligations under the Agreement, to issue and sell the
      Units to the Purchasers in accordance with the terms hereof. All corporate
      action on the part of the Company necessary for the authorization, execution
      and
      delivery of, and the performance by the Company of its obligations under, the
      Agreement has been taken, and no further consent or authorization of the
      Company, its Board of Directors, its stockholders, any governmental agency
      or
      organization, or any other person or entity is required. 

    

    C. Enforcement.
      The Agreement constitutes the valid and legally binding obligation of the
      Company, enforceable in accordance with its terms, except as such enforcement
      may be limited by (i) applicable bankruptcy, insolvency, reorganization or
      other
      laws of general application relating to or affecting the enforcement of
      creditors' rights generally and (ii) general principles of equity. 

    

    D. Disclosure
      Documents. The Company has filed with the SEC on reports on Form 8-K on July
      11,
      2006 (the
      "Disclosure Document"). As of the date of such filing, the Disclosure Document
      did not contain an untrue statement of material fact or omit to state a material
      fact required to be stated therein or necessary to make the statements therein,
      in light of the circumstances under which they were made, not misleading. As
      of
      their respective dates, the financial statements of the Company included in
      the
      Disclosure Document have been prepared in accordance with generally accepted
      accounting principles consistently applied at the times and during the periods
      involved. 

    

    E. Due
      Authorization; Valid Issuance. The Units are duly authorized and, when issued,
      sold and delivered in accordance with the terms hereof, (i) will be duly and
      validly issued, fully paid and non-assessable, and (ii) based in part upon
      the
      representations of each Purchaser in this Agreement, will be issued, sold and
      delivered in compliance with all applicable federal and state securities
      laws.

    

    F. No
      Conflict with Other Instruments. Neither the Company nor its Subsidiary is
      in
      violation of any provisions of its charter, bylaws or any other governing
      document or in default (and no event has occurred which, with notice or lapse
      of
      time or both, would constitute a default) under any provision of any instrument
      or contract to which it is a party or by which it is bound, which has had or
      would reasonably be expected to have a Material Adverse Effect. The (i)
      execution, delivery and performance of the Agreement and (ii) consummation
      of
      the transactions contemplated hereby and thereby (including without limitation,
      the issuance of the Units) will not result in any such violation or be in
      conflict with or constitute, with or without the passage of time and giving
      of
      notice, either a default under any such provision, instrument or contract or
      an
      event which results in the creation of any encumbrance upon any assets of the
      Company or of its Subsidiary or the triggering of any preemptive or
      anti-dilution rights or rights of first refusal or first offer, or any other
      rights that would allow or permit the holders of the Company's shares to
      purchase shares of Common Stock or other shares of the Company. 

    

    G. Financial
      Condition. The Company and its Subsidiary's financial condition on a
      consolidated basis is, in all material respects, as described in the Disclosure
      Document, except for changes in the ordinary course of business and changes
      that
      are not, in the aggregate, materially adverse to the consolidated business
      or
      financial condition of the Company and its Subsidiary taken as whole. Except
      as
      otherwise described in the Disclosure Document, there has been no material
      adverse change to the Company's and Subsidiary’s business, operations,
      properties, financial condition, prospects or results of operations since the
      date of the financial statements contained in the Disclosure Document.

    

    H. Disclosure.
      No written statement, information, report, representation or warranty made
      by
      the Company in this Agreement or furnished to such Purchaser by or on behalf
      of
      the Company in connection with (i) the Agreement, (ii) any transaction
      contemplated hereby or thereby, or (iii) such Purchaser's due diligence
      investigation of the Company contains any untrue statement of a material fact
      or
      omits to state any material fact necessary to make the statements herein or
      therein, in light of the circumstances in which made, not
      misleading.

    

    I. The
      Company’s current business plan involves the acquisition of the rights to
      manufacture and distribute the THOR LVX photonuclear detection system (“THOR”)
      in the United States and to certain other countries and to develop THOR.
      However, the Company does not have a patent on THOR nor on any of its components
      or proposed uses.

    

    V. COVENANTS
      OF THE COMPANY

    

    A. Use
      of
      Proceeds. 

    

    The
      Company shall use the net proceeds from the sale of the Units for general
      corporate purposes. The Company expects to use the majority of the net proceeds
      for development and manufacture of the THOR LVX photonuclear detection system.
      However, the Company shall be allowed to use up to twenty (20) percent of the
      net proceeds for payment of officers’, directors’, and employees’ compensation.
      The balance will be used for general working capital, including but not limited
      to raw materials, market development and sales. 

    

    B. Reservation
      of Securities.

    

    (a) The
      Company shall at all times reserve and keep available out of its authorized
      shares of Common Stock, solely for the purpose of issuance upon the exercise
      of
      the Warrants, such number of shares of Common Stock or other securities
      properties or rights as shall be issuable upon the exercise
      thereof.

    

    (b) The
      Company covenants and agrees that, upon exercise of the Warrants and payment
      of
      the Exercise Price therefor, all shares of Common Stock and other securities
      issuable upon such exercise shall be duly and validly issued, fully paid,
      non-assessable and not subject to the preemptive rights of any
      stockholder.

    

    (c) The
      Company covenants and agrees that all shares of Common Stock issued as
      Liquidated Damages (see Section C(e) below) or as Price Protection (see Section
      D below) shall be duly and validly issued, fully paid, non-assessable and not
      subject to the preemptive rights of any stockholder.

    

    C. Registration
      of Units.

    (a) Registration
      Required

     

    As
      promptly as practicable but in no event later than thirty (30) days after the
      Company obtains a shareholder base of 35 shareholders, the Company agrees to
      file a Registration Statement to register the resale of all of the Units. The
      Company shall have made its best efforts to cause the SEC to declare the
      Registration Statement effective no later than the one hundred-eightieth (180th)
      day following the date the Registration Statement is filed with the SEC (the
      "Registration Deadline").

     

    (b) Assignment
      of Registration Rights. 

    

    Each
      Purchaser may assign and delegate its rights and obligations pursuant to this
      Agreement to any person, party or parties to which it may from time to time
      transfer some or all of the Units held by such Purchaser in accordance with
      the
      terms of this Agreement. During the time each Purchaser, and each subsequent
      transferee who so agrees to be bound, continues to hold Units, it shall be
      referred to as a "Holder."

     

    (c) Required
      Registration Procedures.

    

    i)
      Using
      the procedure set forth in Section V(C)(d), the Company shall advise the Holders
      as to the initiation of the registration process contemplated by Section V(C)(a)
      and as to the completion thereof. In addition, subject to Section V(C)(a),
      the
      Company shall, to the extent applicable to any Registration Statement filed
      pursuant thereto:

    

    a)
      prepare and file with the SEC such amendments and supplements to the
      Registration Statement as may be necessary to keep such Registration Statement
      continuously effective and free from any material misstatement or omission
      of
      facts necessary to make the statements made therein, in light of the
      circumstances in which they were made, not misleading and comply with provisions
      of the Securities Act with respect to the disposition of all Units covered
      thereby during the periods referred to in Section V(C)(a) and Section
      V(C)(c);

    

    b)
      notify
      the Holders promptly when the Registration Statement is declared effective
      by
      the SEC and furnish to each Holder such number of prospectuses, including
      preliminary prospectuses, and other documents incident thereto as the Holders
      may reasonably request from time to time;

    

    c)
      use
      its best efforts to register or qualify such Units under such other securities
      or blue sky laws of such jurisdictions of the United States where an exemption
      is not available and as the Holders may reasonably request to enable such Holder
      or Holders to consummate the disposition in such jurisdiction of such Units;
      provided, however, that in no event will the Company be required to: (a) qualify
      generally to do business in any jurisdiction where it would not otherwise be
      required to be so qualified; (b) consent to general service of process in any
      such jurisdiction; or (c) subject itself to taxation in any jurisdiction where
      it is not already subject to taxation; 

    

    d)
      use
      its best efforts to cause all Common Stock to be quoted on the Over The Counter
      Bulletin Board; 

    

    e)
      with a
      view to making available to the Holders the benefits of certain rules and
      regulations of the SEC that at any time permit the sale of the Units to the
      public without registration, so long as any Units are outstanding, use its
      best
      efforts for a period of two (2) years from the date of this Agreement to make
      and keep public information regarding the Company available, as those terms
      are
      understood and defined in SEC Rule 144(c), and to file with the SEC in a timely
      manner all reports and other documents required of the Company under the
      Exchange Act.

    

    f)
      advise
      the Holders promptly after receiving notice or obtaining knowledge of the
      existence of any stop order by the SEC delaying or suspending the effectiveness
      of the Registration Statement or of the initiation or threat of any proceeding
      for that purpose, use its best efforts to obtain the withdrawal of any such
      order suspending the effectiveness of the Registration Statement at the earliest
      possible time, and promptly notify the Holders of the lifting or withdrawal
      of
      any such order.

    

    ii)
      Notwithstanding anything stated or implied to the contrary in this Section
      V(C),
      the Company shall not be required to consent to, participate or cooperate in
      connection with any underwritten offering of the Units or to any specific
      underwriter participating in any underwritten public offering of the
      Units.

    

    iii)
      From
      and after the date the Registration Statement is declared effective, the Company
      shall, as promptly as practicable: (i) if required by applicable law, file
      with
      the SEC a post-effective amendment to the Registration Statement or prepare
      and,
      if required by applicable law, file a supplement to the related prospectus
      or an
      amendment or supplement to any document incorporated therein by reference or
      file any other required document so that each Holder, including Holders who
      became Holders after the filing of the Registration Statement or any amendments,
      is named as a selling stockholder in the Registration Statement and so that
      such
      Holder is permitted to deliver such prospectus to purchasers of the Units in
      accordance with applicable law and, if the Company shall file a post-effective
      amendment to the Registration Statement, use its best efforts to cause such
      post-effective amendment to be declared effective under the Securities Act
      as
      promptly as practicable; (ii) provide such Holder copies of any documents filed
      pursuant to this Section; and (iii) notify such Holder as promptly as
      practicable after the effectiveness under the Securities Act of any
      post-effective amendment filed pursuant to this Section.

    

    (d) Notice
      Procedure. 

    

    The
      Company will give written notice to each Holder of its intention to do so not
      later than ten (10) days prior to the anticipated filing date of the applicable
      Registration Statement. Any Holder may elect to participate in such registration
      on the same basis as the planned method of distribution contemplated by the
      proposed Registration Statement by delivering to the Company written notice
      of
      its election, in the form of the Notice and Questionnaire attached hereto,
      within five (5) days after its receipt of the Company's notice pursuant to
      this
      Section V(C)(d). A Holder's election pursuant to this Section V(C)(d) must:
      (i)
      specify the amount of Units desired to be included in such Registration
      Statement by such Holder; and (ii) include any other information that the
      Company reasonably requests to be included in such Registration Statement.
      Upon
      its receipt of a Holder's election pursuant to this Section V(C)(d), the Company
      will use its best efforts to include in such Registration Statement all Units
      requested to be included. 

    

    (e)
      Liquidated Damages for Failure to File Registration Statement. 

     

    In
      the
      event that the Registration Statement has not been filed on or prior to the
      Registration Deadline, then in addition to any other rights the Holders may
      have
      hereunder or under applicable law, for each thirty (30) day period (each,
      "Liquidated Damages Period") following such Registration Deadline until the
      date
      on which the Registration Statement is first filed or is no longer required
      to
      be filed pursuant to this Agreement, the Company shall pay a quantity of its
      Common Stock to each Holder at the rate of 5% monthly of the quantity of shares
      in the Company’s common stock held by the Holder, with the accretions each
      having the same registration rights as the Units, as liquidated damages and
      not
      as a penalty. Any partial Liquidated Damages Period shall be computed as if
      the
      period were a full 30-Day period.

     

    All
      shares issued pursuant to this subparagraph shall have all of the Registration
      Rights (this Section C and its subparagraphs) applicable to the
      Units.

     

    Once
      the
      Registration Statement has been declared effective, the Company shall thereafter
      maintain the effectiveness of the Registration Statement until the earlier
      of:
      (i) the date on which all of the Units held by the Holders have been sold
      pursuant to the Registration Statement or SEC Rule 144; or (ii) such time as
      the
      Company reasonably determines, based on the advice of counsel, that each Holder,
      acting independently of all other Holders, will be eligible to sell under SEC
      Rule 144 all of the Units then owned by such Holder within the volume
      limitations imposed by SEC Rule 144(e) in the three (3) month period immediately
      following the termination of the effectiveness of the Registration Statement.
      Notwithstanding the foregoing, the Company's obligations contained in this
      Section V(C) shall terminate on the second anniversary of the effective date
      of
      this Agreement.

    

    (f)
      Incidental Registration Rights

    

    i)
      Incidental Registration. 

    

    Subject
      to Section V(C)(f)(ii), if at any time prior to the filing of a Registration
      Statement in connection with a Required Registration, the Company may register
      under the Securities Act any shares of the same class as any of the Units
      (whether in an underwritten public offering or otherwise and whether or not
      for
      the account of the Company or for any stockholder of the Company), in a manner
      that would permit the registration under the Securities Act of Units and for
      their sale to the public, the Company will give written notice to each Holder
      of
      its intention to do so not later than ten (10) days prior to the anticipated
      filing date of the applicable Registration Statement. Any Holder may elect
      to
      participate in such registration on the same basis as the planned method of
      distribution contemplated by the proposed Registration Statement shall use
      the
      procedure in Section V(C)(d) above. Any registration of Units pursuant to this
      Section V(C)(f)(i)
      is referred to as an "Incidental Registration," and any Holder whose Units
      are
      included at the request of such Holder in an Incidental Registration pursuant
      to
      this Section V(C)(f)(i)is referred to as a "Selling Stockholder."

    

    ii) Incidental
      Registration Procedures.

    

    Whenever
      the Company is obligated to effect the Incidental Registration of any Units,
      the
      Company shall, to the extent applicable, follow the procedures in Section
      V(C)(d) above.

    

    (g) Expenses.

    

    Except
      as
      required by law, all expenses incurred by the Company in complying with its
      obligations to effect any Required Registration and any Incidental Registration
      pursuant to this Agreement, including, without limitation, all: (i)
      registration, application, qualification, filing, listing, transfer and
      registrar fees; (ii) printing expenses; (iii) fees and disbursements of counsel
      and accountants for the Company; and (iv) blue sky fees and expenses (including,
      without limitation, fees and disbursements of counsel related to all blue sky
      matters) incurred in connection with any registration, qualification or
      compliance pursuant to Section V(C) shall
      be
      borne by the Company. All underwriting or brokerage discounts and selling
      commissions applicable to a sale incurred in connection with any registration
      of
      Units and the legal fees and other expenses of a Holder or Selling Stockholder
      shall be borne by such Holder or Selling Stockholder.

    

    
      	 	
              (h)

            	
              Further
                Information.

            

    

    

    Each
      Holder, in the case of a Required Registration, and each Selling Stockholder,
      in
      the case of an Incidental Registration, shall cooperate with the Company in
      connection with the preparation of the Registration Statement, and for so long
      as the Company is obligated to keep the Registration Statement effective, such
      Holder or Selling Stockholder shall provide to the Company, in writing, for
      use
      in the Registration Statement, all information regarding such Holder or Selling
      Stockholder, its intended method of disposition of the applicable Units and
      such
      other information as the Company may reasonably request to prepare the
      Registration Statement and to maintain the currency and effectiveness thereof.
      Each Holder and each Selling Stockholder shall indemnify the Company with
      respect to such information in accordance with Section VII(I).

     

    D. Price
      Protection.

    

    The
      Company agrees that it will issue additional Common Stock and/or Warrants to
      the
      Purchaser, if at any time during the periods specified in subsections a) and
      b)
      below, following the effective date of the Registration Statement, the Company
      sells its Common Stock or Warrants to a purchaser for less than $1.00 per share
      of Common Stock or less than $1.50 per Warrant, provided that the Purchaser
      has
      not sold, transferred or assigned its interest in the Common Stock or Warrants
      on or before the triggering transactional event, then the Company shall
      automatically and immediately issue to the Purchaser herein such additional
      Common Stock and/or Warrants without demand being first made by the Purchaser
      to
      equal the difference in value between the reduced price paid by the new
      purchaser multiplied by the quantity of the Purchaser’s Common Stock or Warrants
      acquired pursuant to this Agreement (with each event requiring a share
      adjustment calculation being referred to as a “Re-set”), computed according to
      the following formula:

    

    Where
      X =
      (Y
      *
      $Z) - (Y * $A)

    A

    

    X
      = the
      number of additional shares of Common Stock or Warrants to be issued to the
      Purchaser

    

    Y
      = the
      quantity of shares of Common Stock or Warrants purchased pursuant to this
      Agreement

    

    Z
      = the
      price per share of Common Stock/Warrants purchased pursuant to this
      Agreement

    

    A
      = the
      reduced price per share paid by the new purchaser

    

    As
      an
      example, if the Purchaser purchased 100,000 shares of Common Stock at $1.00
      per
      share pursuant to the Agreement, but then the Company sold 5,000 shares at
      $0.75
      per share to a different purchaser at a later date, then the initial Purchaser
      would be entitled to 33,333 additional shares of Common Stock:

    

    (100,000
      * $1.00) - (100,000 * $0.75)/$0.75 = 33,333 (rounded) shares.

    

    a) Common
      Stock. The price protection period for the Purchaser’s Common Stock shall be one
      (1) year from the effective date of the Registration Statement.

    

    b) Warrants.
      The price protection period for the Purchaser’s Warrants shall be six (6) months
      from the effective date of the Registration Statement.

    

    c) Registration.
      All shares issued pursuant to this subparagraph shall have all of the
      Registration Rights provided in Section C and its subparagraphs.

     

    

    d) Automatic
      Re-set of Purchase Price. Each time that the Company causes a Re-Set where
      the
      newly reduced price of securities sold is lower than any prior Re-set, the
      value
      of “Z” in the above formula shall be substituted with the next lowest Re-Set
      value for “A” used in a prior calculation, so that Purchaser’s recovery will be
      scaled, and Purchaser will not receive a windfall from each Re-Set. The value
      of
“Y” will be changed to the quantity of additional shares issued in the prior
      re-set.

    

    As
      an
      example, and continuing from the example above where the next lowest issue
      price
      per share was $0.75, if the Company sold 10,000 shares of Common Stock for
      $0.50
      per share to a new purchaser, the initial Purchaser would be entitled to 16,667
      additional shares:

    

    (33,333.33
      * $0.75) - (33,333.33 * $0. 50)/$0.50 = 16,667 (rounded) shares.

    

    However,
      if in a third or later transaction, the Company sold Common Stock to a purchaser
      for an amount less than the Purchase Price but for a price per share higher
      than
      the lowest priced sale per share of Common Stock, then the Purchaser would
      not
      be entitled to additional shares for that transaction or for any transaction
      meeting this criterion.

    

    E. Agreement
      to Remedy Failure to Obtain Trading Symbol.

    

    If
      the
      Company fails to obtain a trading symbol from the NASD within three (3) months
      after the effective date of the Company’s Registration Statement registering the
      Purchaser’s Units or any component thereof, the Company agrees that it will
      undertake all steps necessary to locate a suitable merger partner with a company
      that has its common stock quoted in the Pink Sheets, the Over the Counter
      Bulletin Board or on NASDAQ. The Company will cause a merger with such company
      within the seven (7) month period following the effective date of the Company’s
      Registration Statement registering the Purchaser’s Units or any component
      thereof. If the Company fails to merge with another suitable company within
      the
      seven (7) month period, the Company will rescind the Purchaser’s investment, in
      addition to any other damages that the Purchaser may be entitled to pursuant
      to
      the Agreement.

    

    F. Guaranteed
      Return on Investment

    

    In
      the
      event that a change of control occurs within one (1) year after the effective
      date of the Registration Statement, or if no Registration Statement has been
      filed then within eighteen (18) months of the Purchaser’s Purchase of Units,
      whichever time period comes first, and where in the change of control
      transaction the price per share of Company Common Stock that will be paid to
      the
      Purchaser, or the per share value of the Purchaser’s Common Stock assigned by
      the Company’s Board of Directors in any share exchange transaction is less than
      $1.50, then the Company shall pay to the Purchaser with fourteen (14) days
      of
      the effective date of such change of control event the amount in cash equal
      to
      1.5 times the dollar amount of the Purchaser’s Purchase(s) of Units from the
      Company. 

    

    VI. PROCEDURES
      FOR WARRANTS

    

    A. Warrant
      Certificates.

    

    The
      warrant certificates (the “Warrant Certificates”) delivered and to be delivered
      pursuant to this Agreement shall be in the form set forth in Exhibit A attached
      hereto and made a part hereof, with such appropriate insertions, omissions,
      substitutions, and other variations as required or permitted by this
      Agreement.

    

    B. Exercise
      of Warrant.

    

    (a) Method
      of
      Exercise.

    

    The
      Warrants initially are exercisable at $1.50 per share of Common Stock payable
      by
      check or wire transfer, subject to adjustment as provided in this Agreement.
      

    

    Upon
      surrender of a Warrant Certificate with the annexed NOTICE OF EXERCISE OF
      WARRANT form to purchase duly executed, together with payment of the exercise
      price for the shares of Common Stock purchased at the Company’s principal
      offices, as reflected in the records of the SEC maintained on its EDGAR Internet
      site, the Purchaser shall be entitled to receive a certificate or certificates
      for the shares of Common Stock so purchased.

    

    The
      purchase rights represented by each Warrant Certificate are exercisable at
      the
      option of the Purchaser thereof, in whole or in part (but not as to fractional
      shares of the Common Stock underlying the Warrants). Warrants may be exercised
      to purchase all or part of the shares of Common Stock represented thereby.
      In
      the case of the purchase of less than all the shares of Common Stock purchasable
      under any Warrant Certificate, the Company shall cancel said Warrant Certificate
      upon the surrender thereof and shall execute and deliver a new Warrant
      Certificate of like tenor for the balance of the shares of Common
      Stock.

    

    (b) Issuance
      of Certificates.

    

    i) Upon
      the
      exercise of the Warrant, the issuance of certificates for shares of Common
      Stock
      shall be made forthwith (and in any event such issuance shall be made within
      fifteen (15) business days thereafter) without charge to the Purchaser thereof
      including, without limitations any tax which may be payable in respect of the
      issuance thereof and such certificates shall be issued in the name of, or in
      such names as may be directed by, the Purchaser thereof; provided, however,
      that
      the Company shall not be required to pay any tax which may be payable in respect
      of any transfer involved in the issuance and delivery of any such certificates
      in a name other than that of the Purchaser and the Company shall not be required
      to issue or deliver such certificates unless or until the person or persons
      requesting the issuance thereof shall have paid to the Company the amount of
      such tax or shall have established to the satisfaction of the Company that
      such
      tax has been paid.

    

    The
      Company shall not be required to issue certificates representing fractions
      of
      shares of Common Stock upon the exercise of the Warrants, nor shall it be
      required to issue scrip or pay cash in lieu of fractional interests, it being
      the intent of the parties that all fractional interests shall be eliminated
      by
      rounding any fraction up to the nearest whole number of shares of Common
      Stock.

    

    ii) The
      Warrant Certificates and the certificates representing the shares of Common
      Stock shall be executed on behalf of the Company by the manual or facsimile
      signature of the then present Chairman of the Board of Directors or President
      or
      Vice President of the Company under its corporate seal reproduced thereon,
      attested to by the manual or facsimile signature of the then present Secretary
      or Assistant Secretary of the Issuer.

    

    iii) Warrant
      Certificates shall be dated the date of execution by the Company upon initial
      issuance, division, exchange, substitution or transfer.

    

    VII. MISCELLANEOUS

    

    A. This
      Agreement constitutes and embodies the entire understanding and agreement of
      the
      Parties and supersedes and replaces all prior understandings, agreements and
      negotiations between the Parties. 

    

    B. Amendment;
      Waiver. Any provision of this Agreement may be amended or waived only pursuant
      to a written instrument executed by the Company and each Purchaser. Any
      amendment or waiver affected in accordance with this paragraph shall be binding
      upon each Purchaser and the Company. The failure of any party to exercise any
      right or remedy under this Agreement or otherwise, or the delay by any party
      in
      exercising such right or remedy, shall not operate as a waiver
      thereof.

    

    C. Counterparts.
      This Agreement may be executed in counterparts, each of which shall be deemed
      an
      original, and all of which together shall be deemed one and the same instrument.
      This Agreement, once executed by a party, may be delivered to any other party
      hereto by facsimile transmission.

    

    D. Governing
      Law. This Agreement shall be governed by and construed in accordance with the
      laws of the State of Florida applicable to contracts made and to be performed
      entirely within the State of Florida.

    

    E. Binding
      Effect; Assignment. This Agreement shall be binding upon and inure to the
      benefit of the parties and their respective successors and assigns. This
      Agreement is not assignable by either party without the prior written consent
      of
      the other party.

    

    F. Section
      and Subsection Headings. All references herein to Section or Subsection headings
      shall be deemed references to such parts of this Agreement, unless the context
      shall otherwise require. The Section and Subsection headings in this Agreement
      are for reference only and shall not affect the interpretation of this
      Agreement.

    

    G. Interpretation.
      The parties acknowledge and agree that (a) each party and its counsel reviewed
      and negotiated the terms and provisions of this Agreement and have contributed
      to its revision, (b) the rule of construction to the effect that any ambiguities
      are resolved against the drafting party shall not be employed in the
      interpretation of this Agreement, and (c) the terms and provisions of this
      Agreement shall be construed fairly as to all parties, regardless of which
      party
      was generally responsible for the preparation of this Agreement. Any Law defined
      or referred to herein (or in any agreement or instrument that is referred to
      herein) means such Law as, from time to time, may be amended, modified or
      supplemented, including (in the case of statutes) by succession of comparable
      successor statutes. References to a Person also refer to its predecessors and
      permitted successors and assigns.

    

    H. Severability
      of Provisions. If any provision or any portion of any provision of this
      Agreement shall be held invalid or unenforceable, the remaining portion of
      such
      provision and the remaining provisions of this Agreement shall not be affected
      thereby. If the application of any provision or any portion of any provision
      of
      this Agreement to any Person or circumstance shall be held invalid or
      unenforceable, the application of such provision or portion of such provision
      to
      Persons or circumstances other than those as to which it is held invalid or
      unenforceable shall not be affected thereby. 

    

    I. Notices.

     

    (a) All
      notices, consents, waivers, or other communications which are required or
      permitted hereunder shall be in writing and deemed to have been duly given
      if
      delivered personally or by messenger, transmitted by telex or telegram, by
      express courier, or sent by registered or certified mail, return receipt
      requested, postage prepaid. All communications shall be addressed to the
      appropriate address of each party as follows:

     

    

    If
      to
      Valley Forge Composite Technologies, Inc.:

    

    Attention:
      Louis J. Brothers

    River
      Center I

    50
      East
      River Center Boulevard

    Suite
      820

    Covington,
      KY 41011

    

    If
      to
      Purchaser:

    

    Attention:
      _____________________________

    

    Address:
      ______________________________

    

    _______________________________
      

    

    ________________________________

    

    (b) For
      purposes of notice, the address of each Party will be the address first set
      forth above; provided, however, that each Party will have the right to change
      its respective address for notices hereunder to another location by giving
      ten
      (10) days advance written notice to the other Party in the manner set forth
      above.

    

    (c) All
      such
      notices shall be deemed to have been given on the date delivered, transmitted,
      or mailed in the manner provided above.

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first-above written.

    

    VALLEY
      FORGE COMPOSITE TECHNOLOGIES, INC.

    

    

    By:_________________________________

    Louis
      J.
      Brothers

    President

    

    

    PURCHASER

    

    

    By:
      __________________________________

    

    Name:________________________________

    

    Title:_________________________________

    

    Address:
      _____________________________

    

    _____________________________________

    

    _____________________________________

    

    Tax
      ID_____________________________

    

    Tel:
      _____________________________

    

    Fax:
      _____________________________

    

    Email:
      ____________________________

    

    Number
      of
      Units:_____________________

    

    Purchase
      Price:_____________________

     

    

    EXHIBIT
      A

    

    

    

    

    NOTICE
      OF
      EXERCISE OF WARRANT

    

    TO: VALLEY
      FORGE COMPOSITE TECHNOLOGIES, INC. 

    River
      Center I

    50
      East
      River Center Boulevard

    Suite
      820

    Covington,
      KY 41011

    

    
      	 	
              ·

            	
              The
                undersigned hereby elects to purchase _______________ shares of the
                Common
                Stock of Valley Forge Composite Technologies, Inc. (the “Common Stock”)
                pursuant to the terms of the attached Warrant, and tenders herewith
                payment of the exercise price in full, together with all applicable
                transfer taxes, if any.

            

    

    

    Please
      issue a certificate or certificates representing said shares of Common Stock
      in
      the name of the undersigned or in such other name as is specified
      below:

    

    Name:_________________________________

    

    Address:_______________________________

    

    _______________________________

    

    _______________________________

    

    Signature:
      ______________________________

    

    Tax
      I.D.
      Number: ________________________

    

    Date:
      __________________________________

    

    Tel.
      Number:____________________________

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