Document:

Exhibit 4.9

 

SHARE PURCHASE AGREEMENT

 

To:          The Person listed on the Counterpart

Signature Page hereof (the “Seller”)

 

Re:          Purchase of shares post-dividend common stock that
are “free-trading” (the “Common Stock”) of Two Moons Kachinas Corp., a Nevada
corporation (“Two Moons”), pursuant to this Share Purchase Agreement (the “Agreement”)

 

To Whom it May Concern:

 

The undersigned (the “Buyer”) offers to purchase
Common Stock of Two Moons from you (the “Seller”) as follows, to-wit:

 

RECITALS:

 

WHEREAS, the Buyer (as defined herein), along with
certain other persons, is acquiring Common Stock of Two Moons from certain
current stockholders of Two Moons (respectively, the “Change in Control Buyers”
and the “Change in Control Transaction”); and

 

WHEREAS, the list of Change in Control Buyers is
attached hereto as Exhibit A and incorporated herein by reference; and

 

WHEREAS, the Buyers that are participating in the
Change in Control Transaction have identified a potential reorganization,
merger or acquisition for Two Moons with Advanced Cell Technology, Inc., a
Delaware corporation (“ACT”), that is intended to be completed at or about the
same time as the Change in Control Transaction, which may or may not be
beneficial to Two Moons and its stockholders (the “Reorganization Transaction”);
and

 

WHEREAS, a dividend of 8.3 shares of Common Stock of
Two Moons has been effected prior to the completion of this Agreement (the “Dividend”),
and it is contemplated that the Seller will sell and the Buyer will purchase
post-dividend Common Stock of Two Moons; and

 

WHEREAS, the Seller and the Buyers agree that the
closing of this Agreement shall be subject to the closing of the Reorganization
Transaction on or before January 18, 2005, or this Agreement will be void;

 

NOW, THEREFORE, the parties hereto do hereby agree
as follows:

 

A.            The Seller is the
owner of the shares of Common Stock of Two Moons indicated on the Counterpart
Signature Page that the Seller wishes to sell to the Buyer at an aggregate
purchase price as indicated on the Counterpart Signature Page, and that the
Buyer wishes to purchase from the Seller at an aggregate purchase price as
indicated on the Counterpart Signature Page.

 

 

B.            Two Moons is a
publicly-held company, having previously and lawfully offered and sold a portion
of its securities in accordance with applicable federal and state securities
laws, rules and regulations. Two Moons files reports with the Securities
and Exchange Commission under Section 13 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and the Seller and the Buyer have been
provided with access to all reports of Two Moons via the EDGAR system of the
Securities and Exchange Commission that have been filed by or with respect to
Two Moons during the past 12 months and longer.

 

C.            The Seller and the
Buyer are aware of all material information respecting the past, present and
proposed business operations of Two Moons, its management, financial position
or otherwise; that there is no current “established trading market” for the Common
Stock of Two Moons which Common Stock is quoted on the OTC Bulletin Board of
the National Association of Securities Dealers, Inc. (the “NASD”) under
the symbol “TWMK,” and that it is uncertain at this time whether there will be
any future market for the Common Stock of Two Moons; and that the purchase
price being paid for the Two Moons Common Stock bears no relationship to
assets, book value or other established criteria of value.

 

D.            The Seller and the
Buyer are also aware of the potential reorganization, merger or acquisition by
Two Moons of ACT, as referenced in these Recitals above and as more particularly
described in the Disclosure Letter that is attached hereto as Exhibit B
and incorporated herein by reference;

 

E.             The Buyer
represents and warrants the following as an additional inducement for the offer
outlined in this Agreement to purchase the Common Stock of the Seller covered
by this Agreement, to-wit:

 

(i)         The Buyer is not relying on any
representation or warranty of the Seller whatsoever, except those
representations and warranties contained in this Agreement;

 

(ii)        The Buyer has conducted the Buyer’s own
investigation of the risks and merits of an investment in Two Moons, and to the
extent desired, including, but not limited to a review of Two Moons’ books and
records, financial and otherwise, its annual, quarterly and current reports and
any registration statements contained in the Edgar Archives of the Securities
and Exchange Commission, and has had the opportunity, to the extent that the
Buyer deemed reasonable or necessary, to discuss this documentation with the
directors and executive officers of Two Moons; to ask questions of these
directors and executive officers; and that to the extent requested, all such
questions have been answered satisfactorily;

 

(iii)       The Buyer is an “accredited investor” as that
term is known or defined under applicable United States securities laws,
rules and regulations, and/or is fully capable of evaluating the risks and
merits associated with

 

2

 

the execution of this Agreement and the purchase of
this Common Stock hereunder, without qualification;

 

(iv)       The Buyer has full power and authority to
execute and deliver this Agreement, without qualification;

 

(v)        The Buyer is purchasing the Common Stock for
Buyer’s account only, and not for the account of or in concert with any other
person or entity, and except as otherwise set forth immediately below, there
are no affiliations, arrangements, understandings or agreements, written or
oral, respecting the subsequent resale of any of the Common Stock with any
person or any of the other Change in Control Buyers

	
  except:

  	
   

  	
   

  

 

(vi)       The Buyer will fully comply with all
provisions of United States and state securities laws, rules and
regulations in the resale of any of the Common Stock acquired hereunder, and
will timely make all required filings regarding beneficial ownership of the
Common Stock with the Securities and Exchange Commission, as may be applicable;

 

(vii)      The Buyer is aware of the so-called “ Wulff
Letter” that is attached hereto as Exhibit C and incorporated herein by
reference, and understands that if the Securities and Exchange Commission takes
the position in the future that the Common Stock being purchased hereunder is
subject to resale under the Wulff Letter, that the Buyer may be required to
have the resale of such Common Stock registered with the Securities and
Exchange Commission prior to resale.

 

(viii)     Buyer is not an “affiliate” or an “associate”
as those terms are defined under applicable United States securities laws,
rules and regulations of Two Moons or ACT

	
  except:

  	
   

  	
   

  

 

(ix)       Buyer (and its principals, if an entity) has
not: (a) been party to any adverse proceeding brought by the Securities
and Exchange Commission or any similar state agency; (b) any material
criminal proceeding regarding the purchase or sale of securities or other
crimes, excluding only misdemeanor crimes; or (c) filed bankruptcy
proceedings within the past five years, except:

	
   

  
	
   

  
	
   

  

 

3

 

(x)        The Buyer understands that the resale of the
Common Stock being purchased hereunder is subject to the Lock-Up/Leak-Out
Agreement that is attached hereto as Exhibit D and incorporated herein by
reference, and that the Buyer must execute and deliver such Lock-Up/Leak-Out
Agreement as a condition to the closing of this Agreement;

 

(xi)       The Buyer is able to pay Buyer’s debts as
they become due, and the Buyer (a) is not currently insolvent;
(b) has made no general or other assignment for the benefit of creditors;
and (c) is not party to any material proceeding that would have an adverse
effect on Buyer’s assets;

 

(xii)      The funds that the Buyer is utilizing to
purchase the Common Stock being acquired hereunder are lawful funds of the
Buyer that were earned or acquired by or paid to the Buyer for lawful purposes;

 

(xiii)     The Buyer agrees and understands that the
amount being paid by the Buyer as outlined in Exhibit A may be more or
less than other Change in Control Buyers as indicated in Exhibit A and
that a portion of such amount may directly or indirectly benefit other Change
in Control Buyers and/or will be utilized to pay expenses that are outlined in
Exhibit B.

 

Accordingly, the parties hereto (subject to the
Seller’s acceptance hereof) agree as follows:

 

A.            The Buyer hereby
offers to purchase from the Seller the shares of Common Stock of Two Moons as
indicated on the Counterpart Signature Page, free and clear of any liens, encumbrances
and/or other restrictions whatsoever, other than those outlined herein or in
any attachment hereto, and the Seller agrees to sell to the Buyer the shares of
Common Stock of Two Moons owned by the Seller as indicated on the Counterpart
Signature Page, free and clear of any such liens, encumbrances and/or
restrictions whatsoever, other than those outlined herein or in any attachment
hereto.

 

B.            The purchase price
of the Common Stock shall be as indicated on the Counterpart Signature Page,
payable on payment and delivery of the Common Stock by the Seller to the Buyer
for purchase and sale under this Agreement.

 

1.             Certificates
representing the Common Stock shall be delivered to the Buyer in exchange for
payment by the Buyer to the Seller of the amounts required herein, by check
drawn on the Trust Account of Branden T. Burningham, Esq. from funds to be
deposited by the Buyer for the purchase and sale of the Common Stock, which
payment shall be subject to the transfer of the Common Stock into the Buyer’s
name and delivery of the stock certificate or

 

4

 

certificates
representing the Common Stock to the Buyer by Federal Express, priority
delivery, which stock certificate shall bear no restriction or notation except
those resale conditions of the Lock-Up/Leak-Out Agreement.

 

2.             By acceptance of
this offer, the Seller hereby covenants and warrants:

 

(i)            That the Seller has the right to sell, transfer,
convey and assign the Common Stock, without qualification; and

 

(ii)           That the Seller has done no act to encumber the
Common Stock;

 

C.            The Seller and the
Buyer agree that any action based upon this Agreement or any of the matters
covered hereby shall be brought only in the federal and state courts situated
in the State of Utah, and that the non-defaulting party in any such action
shall be entitled to recover reasonable attorney’s fees and costs.

 

D.            The Buyer and the
Seller agree that the Escrow Agent shall not be liable to either for any
actions taken in good faith, based upon this Agreement and the respective
instructions of the Buyer and the Seller; and that in the event of any actual
or perceived dispute regarding the duties of the Escrow Agent hereunder of the
instructions of the Buyer and the Seller respecting this Agreement or the
purchase of the Common Stock hereunder, that the Escrow Agent may interplead
the Common Stock into a civil action brought in the federal and state courts
situated in the State of Utah, and that the Escrow Agent shall be entitled to
recover reasonable attorney’s fees and costs incurred in any such action, from
the Buyer and the Seller, jointly and severally, which such fees and costs
shall be a first lien on the Common Stock, in such event.

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:
  

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

5

 

ADDENDUM TO

SHARE PURCHASE AGREEMENT

 

Re:          Purchase of shares of
post-dividend common stock that are “free-trading” (the “Common Stock”) of Two
Moons Kachinas Corp., now known as A.C.T. Holdings, Inc., a Nevada corporation
(“ACT”), pursuant to a Share Purchase Agreement (the “Agreement”)

 

To Whom it May Concern:

 

RECITALS:

 

WHEREAS, the undersigned Buyer, along with certain
other persons, is acquiring Common Stock of ACT from certain current
stockholders of ACT (respectively, the “Change in Control Buyers” and the “Change
in Control Transaction”); and

 

WHEREAS, the Buyers that are participating in the
Change in Control Transaction have identified a potential reorganization,
merger or acquisition for ACT with Advanced Cell Technology, Inc., a
Delaware corporation, that was intended to be completed at or about the same
time as the Change in Control Transaction (the “Reorganization Transaction”);
and

 

WHEREAS, the Seller and the Buyers agreed that the
closing of the Agreement would be subject to the closing of the Reorganization
Transaction and would take place on or before January 18, 2005, or this
Agreement would be void; and

 

WHEREAS, the closing date of the Reorganization
Transaction has been extended; and

 

WHEREAS, the undersigned, for their mutual benefit,
desire to extend the January 18, 2005, date now set forth in the Agreement
to January 31, 2005;

 

NOW, THEREFORE, the parties hereto do hereby agree
as follows:

 

1.             The Seller and the Buyer to this Agreement hereby
agree to extend the date on which this Agreement and the Reorganization
Transaction shall be completed to January 31, 2005; and

 

2.             All other terms and conditions of the Agreement
shall remain in full force and effect, including, but not limited to the Lock-Up/Leak-Out
Agreement(s) that comprised an integral part of the Agreement.

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
					

 

 

EXHIBIT B

 

DISCLOSURE LETTER

 

December 31, 2004

 

TO WHOM IT
MAY CONCERN:

 

Re:                          Opportunity whereby Two Moons Kachinas Corp.,
a Nevada corporation (the “Company,” now named A. C. T. Holdings, Inc.”
effective December 31, 2004), will acquire 100% of a “start-up” company
that is presently a “going concern” (the “Reorganization Transaction”) that is
conditioned upon a certain number of stockholders of the Company agreeing to
sell a substantial interest in the Company (the “Selling Stockholders”) to
certain purchasers, some of whom were responsible for providing this
opportunity to the Company (respectively, the “Change in Control Transaction”
the “Change in Control Buyers” )

 

Dear Selling Stockholder:

 

The following information is being presented for
your consideration as a potential Selling Stockholder of the Company:

 

The Change in Control Buyers have delivered a verbal
proposal to the Company through their legal counsel indicating a desire to
acquire a substantial interest in the Company as a condition to presenting the
Company with an opportunity to acquire Advanced Cell Technology, Inc., a
Delaware corporation (“ACT”). ACT is a biotechnology company in the emerging
field of regenerative medicine. ACT’s current private placement memorandum is
dated as of November 10, 2004, and was amended on December 24, 2004,
(“ACT PPM”).  A copy of the ACT PPM is
available for your prior review in considering whether to participate as a
Selling Stockholder. The closing of the Reorganization Transaction is a
condition to the closing of the Share Purchase Agreements that will be required
to be executed by all Selling Stockholders.

 

This is not a solicitation to purchase any or your
shares of common stock, which, if made, will come from the Change in Control
Buyers in the form of a Share Purchase Agreement and related attachments; and
you have no obligation to sell any of your shares to anyone. This information
is given by us to the best of our knowledge and information only.

 

You should examine the annual and current reports of
the Company on file with the Securities and Exchange Commission in its Edgar
Archives at www.sec.gov prior to making any decision to become a Selling
Stockholder as defined herein.

 

 

The proposal required the Company to effect an 8.3
for one forward split of its 660,300 outstanding shares that resulted in
4,980,490 shares being now outstanding. The Change in Control Buyers’ have
indicated that they must be able to acquire not less than about 4,980,000 of
the post-split shares, more or less, before they will present the ACT
reorganization to the Company or approximately 90% of the outstanding voting
securities of the Company.

 

The Change in Control Buyers are agreeable to pay an
aggregate of $435,000 for such shares, with some paying more than others and
some providing services. See the Change in Control Buyers list that is
Exhibit A to the Share Purchase Agreements. It is proposed that any of the
Selling Stockholders who paid $1.00 for their pre-split shares on the Company’s
initial public offering (“IPO”) be paid $0.12 for every post-split share that
they sell; and that they keep a portion of their shares that will be increased
by the 8.3 for one forward split that has already been effected. The Buyers
will get the forward split dividend of 8.3 shares on all shares that they
purchase. Owners of approximately 70,000 pre-split shares (or 581,000
post-split shares) of the common stock sold on the Company’s IPO will be
required to sell shares to the Change in Control Buyers to satisfy the
condition of acquiring the number of shares sought to be purchased by the
Change in Control Buyers. Certain principal stockholders of the Company have
tentatively agreed to sell shares of their common stock to meet this proposal
at their cost basis in their shares, even though there is a nominal bid price
of $1.00 pre-split or $0.12 post-split for the common stock of the Company on
the OTC Bulletin Board, as outlined below, as follows: David C. Merrell, our
current President and sole director and executive officer who purchased 250,000
pre-split shares for $12,500 or $0.05 per pre-split share prior to the IPO may
be willing to sell up to 232,139 pre-split shares (or 1,926,667 post-split
shares) at his purchase price of $0.05 per pre-split share (or $0.006024 per
post-split shares) or an aggregate of $11,606.24 (what shares he retains will
be subject to the Lock-Up/Leak-Out Agreement that is discussed below [he would
be retaining approximately 17,861 pre-split shares or 148,246 post-split
shares); R. Kip Paul, a founder of the Company, and his family members, who
purchased 250,000 pre-split shares for $12,500 or $0.05 per pre-split share
prior to the Company’s IPO may be willing to sell up to 246,988 pre-split
shares (or 2,050,000 post-split shares) at their purchase price of $0.05 per
pre-split share (or $0.006024 per post-split shares) for aggregate gross
proceeds of $12,350 (they would be retaining an aggregate of 3,000 pre-split
shares or approximately 25,000 post-split shares that would also be subject to
the Lock-Up/Leak-Out Agreement that is discussed below; Leonard W. Burningham, Esq.
our legal counsel, who was issued pre-split shares of our common stock for
services valued at $0.25 per pre-split share, may be willing to sell 33,089
pre-split shares (or 274,640 post-split shares) at his cost of $0.25 per
pre-split share (or $0.030127 per post-split share) for aggregate gross
proceeds of $8,274.08, and three of his employees and one of his sons to whom
he gave some of these shares will sell an aggregate of 9,537 of such pre-split
shares (or 79,155 post-split shares) for the $0.25 pre-split figure (or
$0.030127 per post-split share) for aggregate gross proceeds of $2,384.70
(these shareholders would be retaining an aggregate of approximately 4,863
pre-split shares or 40,365 post-split shares); and Mark Johnson who also
received pre-split shares for services valued at $0.25 per share may be willing
to sell

 

2

 

the entire 9,000 pre-split
shares (74,700 post-split shares) he received for $0.25 per pre-split share (or
$0.030127 per post-split share) for $2,250.49.  Assuming that all of these shareholders agree
to sell their respective shares as outlined above, that would amount to an
aggregate of $106,585.51. There is also a finder’s fee of $35,000 due to a
non-affiliated party, payable by Mr. Merrell, bringing the total of
expended funds to $141,585.50, and leaving a balance of the $435,000 of
$293,414.49. The finder will also be purchasing 25,000 of the shares of Selling
Stockholders too for nominal consideration.

 

David C. Merrell will be required to deliver to the
Buyers, the Company and ACT his agreement to pay and indemnify and hold the
Company harmless from and against all future claims and outstanding liabilities
of the Company that arose prior to closing, including all costs and expenses
incurred in connection with the closing of the Change in Control Transaction
and the filing of the Company’s most recent 10-QSB Quarterly Report. Those
costs and expenses are estimated at approximately $60,000, leaving a balance of
approximately $233,414,49. Of this sum, Mr. Merrell has agreed to pay
Mr. Burningham approximately $70,024.34 or approximately 30% of the net
amount to be paid to Mr. Merrell, which is in addition to
Mr. Burningham’s legal fees. That would leave Mr. Merrell receiving a
net fee of approximately $163,390.15 for his exposure on his agreement of
indemnification, along with the conveyance of the Company’s current inventory
of Kachina Dolls valued at approximately $50,500. Mr. Merrell has taken no
salary for managing the Company since its inception on May 19, 2000.
Mr. Merrell and Mr. Burningham may allocate these additional funds
for the sale of their respective shares of common stock or expenses, for
accounting purposes, as the Change in Control Buyers are each paying differing
prices for their respective shares of common stock, and in some cases,
services, and all of such consideration is being allocated as indicated herein,
based upon agreement of the Change in Control Buyers and Mr. Merrell.

 

Certain warrants of the Company are required to be
issued prior to closing, also; see the Change in Control Buyers list that is
Exhibit A to the Share Purchase Agreement for a description of these
warrants. None are being issued to anyone affiliated with the Company.

 

If the ACT reorganization is completed, ACT
stockholders will be issued between approximately 17,736,175 shares of the
Company’s post-split outstanding common stock, assuming the sale of all units
of ACT in the offering outlined in the ACT PPM. ACT is required to raise
certain minimum proceeds to close the Reorganization Transaction, amounting to
not less than $3,000,000; ACT presently has in excess of $4,500,000 in
subscriptions under the ACT PPM. You can review a copy of the Merger Agreement
respecting the Reorganization Transaction prior to determining whether you will
participate as a Selling Stockholder, which is available on request.

 

There is a current limited market for the common
stock of the Company on the OTC Bulletin Board under the symbol of TMOO, of
$1.00 per each pre-split share or $0.12 per each post-split shares (TWMK is the
post-split trading symbol). The price is essentially the same, regardless of
whether the computation is post or pre-split, when

 

3

 

times by the number of shares
represented. 1,000 pre-split shares at $1,000 equals $1,000; and 1,000 shares
times 8.3 equals 8,300 post-split shares times $0.12 equals $996.

 

For the nine months ended September 30, 2004,
the Company had revenues from operations of $2,500, with $2,000 in cost of
goods sold for a gross profit of $500. It had $0 revenues from operations in
the nine months ended September 30, 2003. Its general and administrative
expenses for the nine months ended September 30, 2004 and 2003, were
$18,185 and $26,777, respectively, which resulted in a loss from operations of
($17,685) and ($26,741), respectively. For the nine months ended
September 30, 2004 and 2003, it had interest income of $18 and $36 and a
net loss of ($17,667) and ($26,741), respectively.

 

Please review the Company’s filings in the Edgar
Archives, or if you do not have Internet access, copies of the reports and/or
registration statements filed during the past 12 months will be provided to you
at no cost.

 

We have conducted “due diligence” on the Change in
Control Buyers and ACT, and have had our questions satisfactorily answered;
however, we are not responsible for the accuracy of any of the ACT information.

 

The closing of the Share Purchase Agreements require
that unless the Reorganization Transaction closes by January 18, 2005, any
Share Purchase Agreements that have been executed will be void; and all
warrants issued as outlined in the Change in Control Buyers list will be
repurchased for their $10,000 purchase price.

 

The following are the terms and provisions that the
Company has agreed upon and upon which the proposal was subject as conditions
of the Change in Control Transaction and the Reorganization Transaction:

 

1.             That the Selling
Stockholders be provided with a Disclosure Letter in substantially this form.

 

2.             That David C.
Merrell and Leonard W. Burningham, Esq. execute and deliver the
Lock-Up/Leak-Out Agreement that shall cover all shares of common stock of the
Company that they retain following the Change in Control Transaction, which
Lock-Up/Leak-Out Agreement that will limit them to resales of 1/12 of their respective
shares per month for the 12 consecutive months from the closing of the Change
in Control Transaction, among other conditions;

 

3.             That the Change in
Control Buyers execute and deliver the Lock-Up/Leak-Out Agreement that shall cover
all shares of common stock purchased by them in the Change in Control
Transaction that will limit them to resales of 1/12 of their respective shares
per month for the 12 consecutive months from the filing of the 8-K12g-3 Current
Report for successor issuers from the closing of the Reorganization Transaction
(a copy of that Lock-Up/Leak-Out Agreement will be attached to the Share
Purchase

 

4

 

Agreements to cover any shares
being sold by the Selling Stockholders), among other conditions;

 

4.             That there be a “quiet
period” for at least ninety (90) days from the date of the closing of the
Reorganization Transaction that would limit public press releases to the type
of information that a company in the registration process with the United
States Securities and Exchange Commission can disseminate so that promotional
types of releases are avoided during that period; and

 

5              That the
Reorganization Transaction will have these terms in the requisite documents.

 

Copies of all of these documents are available for
your prior review on request.

 

If you have any questions or would like to review
the ACT PPM or any of these other documents or if you would like to know the
minimum funding that ACT must have to close the Reorganization Transaction,
please contact me at 801-942-0555 or Leonard W. Burningham, Esq. at
801-363-7411.

 

	
   

  	
  A.C.T.
  Holdings, Inc.,

  
	
   

  	
  Formerly,
  Two Moons Kachinas, Inc.

  
	
   

  	
   

  
	
   

  	
  David C.
  Merrell, President

  

 

5

 

EXHIBIT “C”

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

	
  

  	
   

  	
  January 21, 2000

  	
   

  

 

Mr. Ken Worm

Assistant Director

OTC Compliance Unit

NASD Regulation, Inc.

9513 Key West Avenue

Rockville, MD 20850

 

Re:    NASD
Regulation, Inc.

Incoming
letter dated November 1, 1999

 

Dear Mr. Worm:

 

You have raised a question regarding the “free
trading” status(1) of securities initially issued by so-called blank check
companies in a number of factual scenarios.

 

A blank check company is a development stage company that has no
specific business plan or purpose or has indicated its business plan is to
engage in a merger or acquisition with an unidentified company or companies, or
other entity or person.  In 1990, the U.
S. Congress found that offerings by these kinds of issuers were common vehicles
for fraud and manipulation in the market for penny stocks which undermines
investor confidence and inhibits legitimate capital formation by small issuers
and other companies.(2) The Commission has adopted several rules, as Congress
directed, to deter fraud in connection with registered offerings by blank check
companies.(3)  The Commission has also
excluded blank check companies from eligibility for several exemptions from
Securities Act registration requirements.(4)

 

Each of your scenarios suggests the availability of
Rule 144 or Section 4(1) of the Securities Act following the
lapse of some period of time following the issuance of shares in the

 

(1)           Because the Securities
Act of 1933 establishes the requirement to register securities for sale,
subject to a series of exemptions, the concept of freely tradable securities is not a
technically accurate one.  In common
parlance, the term is used to describe securities subject to the exemption
provided by section 4(1) when it is available because no issuer underwriter or
dealer is engaged in the transaction.

 

(2)           Securities Enforcement
Remedies and Penny Stock Reform Act of 1990, S. 647, Pub. L. 101-429, See H. R.
Rep. No/ 101-617; 101 Cong., 2d Sess. at 23.

 

(3)           Rule
419 under the Securities Act of 1933 and Rule 15g-8 under the Securities
Exchange Act of 1934

 

(4)           See
e.g., Rule 504 under Regulation D and Regulation A.

 

 

blank check company regardless
of whether a merger has occurred.  In a
number of cases, promoters of these issues appear to be in the business of
creating blank check companies, then gifting or selling the securities of the
companies without registration, either directly or through intermediaries.

 

Section 4(1)
exempts transactions not involving issuers, underwriters or dealers.  The availability of the exemption depends
upon the facts and circumstances of each particular situation, which the staff
generally is not in a position to determine. 
Nonetheless, transactions in blank check company securities by their
promoters or affiliates, especially where they control or controlled the “float”
of the “freely tradable” securities, are not the kind of ordinary trading
transactions between individual investors of securities already issued that
Section 4(1) was designed to exempt.(5)

 

Furthermore,
as the Commission has indicated, purchasers who are mere conducts for a wider
distribution of the securities are “underwriters.” When they do sell, these
purchasers assume the risk of possible violation of the registration
requirements of the Securities Act and consequent civil liabilities.  Persons engaged in the business of buying and
selling securities who function in this capacity are subject to careful
scrutiny.(6)

 

It is our view
that, both before and after the business combination or transaction with an
operating entity or other person, the promoters or affiliates of blank check
companies, as well as their transferees, are “underwriters” of the securities
issued. Accordingly, we are also of the view that the securities involved can
only be resold through registration under the Securities Act.(7)  Similarly, Rule 144 would not be available
for resale transactions in this situation, regardless of technical compliance
with that rule, because these resale transactions appear to be designed to
distribute or redistribute securities to the public without compliance with the
registration requirements of the Securities Act.(8)

 

(5)           SEC
v. Cavanagh. 1 F. Supp. 3d 337 (S.D.N.Y 1998).

 

(6)           Release
No. 33-4552 (Nov. 6, 1962).

 

(7)           This view is analogous
to the one the Commission has expressed with respect to business combinations
under Rule 145 where affiliates of parties to the transaction are viewed to be “underwriters.”
Further, the nature of these types of resale transactions are closely analogous
to shares from an unsold allotment held by professional underwriters.  Generally, these securities are only resaleable
through registration.  Shares purchased
by non-affiliates in a registered transaction such as one offered in compliance
with Rule 419, however, would not be subject to this restriction.

 

(8)           Release
No. 33-5223 (Jan. 11, 1972).

 

In view of the
objectives and policies underlying the Act, the rule shall not be available to
any individual or entity with respect to any transaction which, although in
technical compliance with the provisions of the rule, is part of a plan by such
individual or entity to distribute or redistribute securities to the
public.  In such case, registration is
required.

 

2

 

Each of your scenarios illustrates what we believe to be a scheme
to evade the registration requirements of the Securities Act.  Consequently, it is our view that the resale
of the shares in scenarios 1 through 7 would require registration.

 

In addition, with regard to
scenario 6, we are of the view that Rule 701 is not available for issuances to
companies or entitles, but only to individuals. 
In view of the business of a blank check company which generally has few
or no employees, it seems unlikely that reliance upon this exemption would be
appropriate.  It is our view that Rule
701 would generally not be available to blank check companies for issuing
shares to their consultants or advisors.

 

Moreover, we have been
advised by staff of the Division of Market Regulation that Rules 101 and 102 of
Regulation M(9) impose restrictions on issuers, selling shareholders and
distribution participants when they effect transactions in securities that are
part of a distribution.  Generally, a distribution exists when a sufficient
magnitude of shares is being sold and special selling efforts are employed to
sell these shares.  If a distribution
exists, the persons involved in the distribution are prohibited from bidding
for or purchasing the securities in distribution.  The rule covers persons selling securities,
their affiliates, and others participating in the distribution.  Persons selling in the manner described in
your letter should carefully analyze the facts surrounding the sales to determine
whether the security being sold is in distribution for purposes of Regulation
M.  This analysis should specifically
consider the actions taken by any persons assisting with the transactions.  In particular, selling through a market maker
into an illiquid market raises heightened concerns regarding compliance with
Regulation M.(10) 

 

Because these positions are
based upon representations made in your letter, any different facts or
conditions might require a different conclusion.

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard K. Wulff

  	
   

  
	
   

  	
  Richard K. Wulff, Chief

  
	
   

  	
  Office of Small Business

  

 

(9)           17 CFR 242.101 - 102.

 

(10)         See Release No. 34-38067 (Dec. 20. 1996).

 

3

 

 

November 1, 1999

 

Richard K. Wulff

Assistant Director

Office of Small Business

Division of Corporation Finance

450 5th
Street, N.W.

Washington, D.C. 20549

 

Re:   Tradeability
of Securities Distributed by Means Other than Public Offerings 

 

Dear Mr. Wulff:

 

The purpose of this letter is
to request the guidance of the Division of Corporation Finance (“Division”) as
to whether certain specific factual scenarios present potential violations of
Section 5 of the Securities Act of 1933 (“Securities Act”).  The Market Regulation Department’s OTC Compliance
Unit (“Unit”) reviews Form 211 filings submitted by potential market makers to
determine whether they are in compliance with SEC 15c2-11 and NASD Rule 6740
before they are cleared to initiate or resume quotation of a non-Nasdaq security
in any quotation medium.  During the
course of those reviews, the staff has been presented with certain factual
scenarios that, based on the nature of the initial security distribution of
blank check shell company issuers, either the initial distribution or the
redistribution of the shares in the aftermarket may constitute violations of
Section 5 of the Securities Act.  Set
forth below are various scenarios that the Unit has encountered, or feels that
it may encounter, while reviewing Form 211 fillings.  The staff requests that the Division provide
its opinion on the following scenarios with respect to potential violations of
the securities rules:

 

1.             As a gift the issuer
transferred a nominal amount of its shares (less than 10% of the total float)
to between 20 and 50 individuals under Section 4(2) of the Securities Act.  After the gift recipients have held their
shares for two years, a broker/dealer submits a Form 211 citing the gifted
shares as the only free-trading securities. 
The application does not disclose whether the recipients are
sophisticated investors, although the individual who controls the issuer
frequently has gifted shares of other companies to the same individuals on
other occasions.

 

2.             The issuer
transferred a significant amount of its shares to one individual under Section
4(2) of the Securities Act.  Then that
individual in turn gifts a nominal amount of the shares to between 20 and 50
individuals.  After the gift recipients
have held their shares for two years, a broker/dealer submits a Form 211 citing
the gifted shares as the only free-trading securities.  The application does not disclose whether the
recipients are sophisticated investors, although the individual who gifted the
shares frequently has gifted shares of other companies to the same individuals
on other occasions.

 

 

 

3.             The issuer
transferred a significant amount of its shares to one individual under Section
4(2) of the Securities Act.  That
individual holds the shares for two years and then in turn gifts a nominal
amount of the shares to between 20 and 50 individuals.  After the gift recipients have held their
shares a few months, a broker/dealer submits a Form 211 citing the gifted
shares as the only free-trading securities. 
The application does not disclose whether the recipients are sophisticated
investors, although the individual who gifted the shares frequently has gifted
shares of other companies to the same individuals on other occasions.

 

4.             A small number of
shareholders (less than ten) hold all of the free-trading shares.  A broker/dealer submits a Form 211 indicating
that the concentration of ownership in the hands of so few shareholders will
not result in an ongoing distribution because it expects the market for the
security to develop slowly.

 

5.             A small number of
shareholders (less than ten) control nearly all (more than 90%) of the free
trading shares in the issuer.  The
remaining nominal amount of free-trading shares (less than 10%) are widely dispersed
among a larger number of shareholders (50 or more individuals).  A broker/dealer submits a Form 211 indicating
that the concentration of ownership in the hands of so few shareholders will
not result in an ongoing distribution because it expects the market for the
security to develop slowly and considers the number of total shareholders to be
determinative.

 

6.             An issuer controlled
by one individual issued shares to another company controlled by the same
individual pursuant to SEC Rule 701.  The
issuer filed a Form 10 with the SEC that became effective by default.  The second company then sells all its shares
in the issuer through a brokerage firm. 
A second broker/dealer submits a Form 211 indicating that the shares
sold through the first broker/dealer are all free-trading securities.

 

7.             A reporting shell
company merged with a private company and the former controlling shareholder of
the reporting shell company sold his shares to numerous individuals more than
three months after he ceased to be an affiliate of the post-merger
company.  A market maker submits a Form
211 citing the post-merger shares sold by the former control person as the only
free-trading shares.

 

Thank you for your attention to
this matter.  We look forward to
receiving the Division’s guidance on whether any of these scenarios are of
regulatory concern to the Division.  If
you have any questions, please do not hesitate to contact me at (301) 978-2097.

 

	
  Sincerely,

  
	
   

  
	
  /s/ Ken Worm

  	
   

  
	
  Ken Worm

  
	
  Assistant
  Director

  
	
  OTC
  Compliance UnitExhibit 4.10

 

EXHIBIT D-l

 

LOCK-UP/LEAK-OUT AGREEMENT

 

THIS
LOCK-UP/LEAK-OUT AGREEMENT (the “Agreement”) is made and entered into as of the
       day of December, 2004, between Two Moons
Kachinas Corp., a Nevada corporation (“Two Moons”), and the individuals that
execute and deliver a Counterpart Signature Page hereof, and sometimes
collectively referred to herein as the “Shareholders” and each, a
“Shareholder.”    For all purposes of
this Agreement, “Shareholder” includes any “affiliate, controlling person of
Shareholder, agent, representative or other person with whom Shareholder is
acting in concert with.

 

WHEREAS,
the Buyers (as defined herein), along with certain other persons, are
acquiring Common Stock of Two Moons from certain current stockholders of Two
Moons (respectively, the “Change in Control Transaction” and the “Buyers”); and

 

WHEREAS,
the Buyers that are participating in the Change in Control Transaction have
identified a potential reorganization, merger or acquisition for Two Moons that
may or may not be completed or if completed, may or may not be beneficial to
Two Moons and its stockholders (the “Reorganization Transaction”); and

 

WHEREAS,
in order to facilitate the consummation of the transactions contemplated
by the Change in Control Transaction and to protect the Company, the
Shareholders have agreed to enter into this Agreement and to restrict the
public sale, assignment, transfer, conveyance, hypothecation or alienation of
the Common Stock, all on the terms set forth below.

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants
contained herein, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

 

1.                                       Except as otherwise
expressly provided herein, and except as each Shareholder may be otherwise
restricted from selling shares of Common Stock, each Shareholder may only
publicly sell Common Stock subject to the following conditions commencing on
the execution and delivery of this Agreement and for the twelve (12) month
period from the Closing of the Change in Control Transaction (the
“Lock-Up/Leak-Out Period”):

 

1.1                                 Each Shareholder
shall be allowed to sell 1/12th of such Shareholder’s shares of Common Stock
per month during the Lock-Up/Leak-Out Period, on a non-cumulative basis,
meaning that if no Common Stock was sold during one month while Common Stock
was qualified to be sold, such shares of Common Stock could not be sold in the
next successive month.

 

 

1.2                                 Except as otherwise
provided herein, all Common Stock shall be only sold in “broker’s transactions”
and each Shareholder must comply with the “manner of sale” requirements as
those terms are defined in Rule 144 of the Securities and Exchange
Commission during the Lock-Up/Leak-Out Period.

 

1.3                                 An appropriate legend
describing this Agreement shall be imprinted on each stock certificate
representing Common Stock covered hereby, and the transfer records of Two
Moons’ transfer agent shall reflect such appropriate restrictions.

 

1.4                                 The Shareholders
agree that they will not engage in any short selling of the Common Stock during
the Lock-Up/Leak-Out Period.

 

1.5                                 During the
Lock-Up/Leak/Out Period, Two Moons shall maintain its “reporting” status with
the Securities and Exchange Commission; file all reports that are required to
be filed by it during such period; and use its “best efforts” to ensure that
the Common Stock is continually quoted for public trading on a nationally
recognized medium of no less significance than the OTC Electronic Bulletin
Board of the National Association of Securities Dealers, Inc. (the “NASD”),
the NASDAQ Small Cap or a recognized national stock exchange.

 

1.6                                 During the
Lock-Up/Leak-Out Period, each Shareholder will be required to submit a legal
opinion to the Company with any requested transfer hereunder to the effect that
any monthly sale is being made in compliance with this Agreement.

 

2.                                       The delivery of a
duly executed copy of the Broker/Dealer Agreement by a selling Shareholder’s
broker and a duly executed Seller’s Resale Agreement by the selling Shareholder
in the forms attached hereto shall be satisfactory evidence for all purposes of
this Agreement that such selling Shareholder and its broker will comply with
the “broker’s transactions” and “manner of sale” requirements of this Agreement,
and no further evidence thereof will be required of any selling Shareholder; provided,
however, Two Moons may confirm such compliance with any Shareholder and any
selling Shareholder’s broker, to the extent that it deems reasonably required
or necessary to assure compliance with this Agreement.

 

3.                                       Notwithstanding
anything to the contrary set forth herein, Two Moons may, in its sole
discretion and in good faith, at any time and from time to time, waive any of
the conditions or restrictions contained herein to increase the liquidity of
the Common Stock or if such waiver would otherwise be in the best interests of
the development of the trading market for the Common Stock. Unless otherwise
agreed by the Shareholders, all such waivers shall be pro rata, as to all of
the Shareholders who

 

 

executed a Lock-Up/Leak-Out
Agreement in connection with the Change in Control Transaction whose Common
Stock can, at the time of any such waiver, be publicly sold in accordance with
the Securities Act of 1933, as amended (the “Securities Act”), or Rule 144
promulgated thereunder by the Securities and Exchange Commission or otherwise.

 

4.                                       Other than the
contemplated Reorganization Transaction or any merger with a subsidiary, in the
event of: (a) a completed tender offer to purchase all or substantially
all of Two Moons’ issued and outstanding securities; or (b) a merger, consolidation
or other reorganization of Two Moons with or into an unaffiliated entity, then
this Agreement shall terminate as of the closing of such event and the Common Stock
restricted pursuant hereto shall be released from such restrictions.

 

5.                                       Except as otherwise
provided in this Agreement or any other agreements between the parties, the
Shareholders shall be entitled to their respective beneficial rights of
ownership of the Common Stock, including the right to vote the Common Stock for
any and all purposes.

 

6.                                       The number of
shares of Common Stock included in any monthly allotment that can be sold by a
Shareholder shall be appropriately adjusted should Two Moons make a dividend or
distribution, undergo a forward split or a reverse split or otherwise
reclassify its shares of Common Stock.

 

7.                                       This Agreement may
be executed in any number of counterparts with the same force and effect as if
all parties had executed the same document.

 

8.                                       All notices,
instructions or other communications required or permitted to be given pursuant
to this Agreement shall be given in writing and delivered by certified mail,
return receipt requested, overnight delivery or hand-delivered to all parties
to this Agreement, to Two Moons, at 9005 Cobble Canyon Lane, Sandy, Utah 84093;
or, subsequent to the Closing of the Change in Control Transaction and the Reorganization
Transaction, to One Innovation Drive, Worcester, MA 01605; and to the Shareholders,
at the addresses in their Counterpart Signature Pages. All notices shall be deemed
to be given on the same day if delivered by hand or on the following business day
if sent by overnight delivery or the second business day following the date of mailing.

 

9.                                       The resale
restrictions on the Common Stock set forth in this Agreement shall be in
addition to all other restrictions on transfer imposed by applicable United
States and state securities laws, rules and regulations.

 

10.                                 Two Moons or each
Shareholder who fails to fully adhere to the terms and conditions of this
Agreement shall be liable to every other party for any damages suffered by any
party by reason of any such breach of the terms and conditions hereof. Each
Shareholder agrees that in the event of a breach of any of the terms and conditions
of this Agreement by any such Shareholder, that in addition to all other remedies
that may be available in law or in equity to the non-defaulting parties, a

 

 

preliminary and permanent injunction,
without bond or surety, and an order of a court requiring such defaulting
Shareholder to cease and desist from violating the terms and conditions of this
Agreement and specifically requiring such Shareholder to perform his/her/its
obligations hereunder is fair and reasonable by reason of the inability of the
parties to this Agreement to presently determine the type, extent or amount of
damages that Two Moons or the non-defaulting Shareholders may suffer as a
result of any breach or continuation thereof.

 

11.                                 This Agreement sets
forth the entire understanding of the parties hereto with respect to the
subject matter hereof, and may not be amended except by a written instrument
executed by the parties hereto.

 

12.                                 This Agreement
shall be governed by and construed in accordance with the laws of the State of
Utah applicable to contracts entered into and to be performed wholly within
said State; and Two Moons and the Shareholders agree that any action based upon
this Agreement may be brought in the United States and state courts of Utah only,
and each submits himself/herself/itself to the jurisdiction of such courts for
all purposes hereunder.

 

13.                                 In the event of
default hereunder, the non-defaulting parties shall be entitled to recover
reasonable attorney’s fees incurred in the enforcement of this Agreement.

 

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

 

 

	
   

  	
   

  	
  TWO MOONS
  KACHINAS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  .

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
							

 

 

LOCK-UP/LEAK-OUT AGREEMENT

COUNTERPART SIGNATURE PAGE

 

This
Counterpart Signature Page for that certain Lock-Up/Leak-Out Agreement
(the “Agreement”) dated as of the        day of
December, 2004, among Two Moons Kachinas Corp., a Nevada corporation (“Two
Moons”); and certain persons who are “Shareholders” of Two Moons, by which the
undersigned, through execution and delivery of this Counterpart Signature Page,
intends to be legally bound by the terms of the Agreement, as a Shareholder, of
the number of shares of Two Moons set forth below or hereafter acquired during
the Lock-Up/Leak-Out Period as defined in the Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Entity
  Name, if Applicable)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Printed
  Name)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Street
  Address)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (City and
  State)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Number of
  Shares Owned or Underlying Other Securities)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Date)

  

 

 

Broker/Dealer Agreement

 

Two Moons Kachinas Corp.

9005 Cobble Canyon Lane

Sandy, Utah 84093

 

Interwest Transfer Company

1981 East Murray-Holladay Blvd.

Salt Lake City, Utah 84117

 

	
  Re:

  	
   

  	
  Resale restriction of certain shares of common
  stock of Two Moons Kachinas Corp., a Nevada corporation (“Two Moons” or the
  “Company”)

  

 

Dear Ladies and Gentlemen:

 

The
undersigned broker hereby acknowledges receipt of stock certificates representing
                        shares
of common stock of the Company that are owned by                                                                                         (the
“Customer”).

 

In
consideration of transferring these securities free of any legend or other
notation respecting the resale of these securities so that the undersigned
broker can effect a sale of such shares (a “Company
Approved Sale”), the undersigned broker agrees:

 

(i)                                     That all sales of
these securities or any other securities of Two Moons on deposit in the
accounts of the Customer will be made in “broker’s transactions” only as that
term is defined in Rule 144 of the Securities and Exchange Commission
until                ,
200    (the “Resale Restriction Period”);

 

(ii)                                  That there will be
no legend removal or DTC’s of any securities of the Customer prior to a Company
Approved Sale during the “Resale Restrictions Period”;

 

(iii)                               That if any of the securities of the Company
are ordered out by the Customer for delivery prior to the expiration of the
Resale Restriction Period, that instructions will be given to the Company’s
transfer agent to re-issue the stock certificates for the Customer with the
appropriate restriction or restrictions as are outlined in the Letter Agreement
of the Customer, and to the effect that such securities can only be sold in
“broker’s transactions.”

 

 

The undersigned broker further agrees that we will
provide you with reasonable documentation on your request to verify our
compliance with this Letter Agreement.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Broker/Dealer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City, State,
  Zip

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
							

 

 

Seller’s Resale Agreement

 

Two Moons Kachinas Corp.

9005 Cobble Canyon Lane

Sandy, Utah 84093

 

Interwest Transfer Company

1981 East Murray-Holladay Blvd.

Salt Lake City, Utah 84117

 

Re:                                                                               Resale restriction
of certain shares of common stock of Two Moons Kachinas Corp,, a Nevada
corporation (“Two Moons” or the “Company”)

 

Dear Ladies and Gentlemen:

 

The undersigned agrees to effect
all sales of shares of common stock of Stock Certificate No.                  
representing                  
shares of common stock of Two Moons in accordance with the “manner of sale”
requirements of Rule 144 as outlined in Schedule 1 hereto until on or
before
                 ,
200   .

 

DATED this
                    
day of                                                  ,
200    .

 

	
   

  	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  City,
  State, Zip

  	
   

  
							

 

 

SCHEDULE 1

 

SELLER’S REQUIREMENTS IN “BROKERS’ TRANSACTIONS”

RULE 144 “MANNER OF SALE” REQUIREMENTS

 

The
securities shall be sold in “brokers’ transactions” within the meaning of
Section 4(4) of the Securities Act or in transactions directly with a
“market maker,” as that term is defined in Section 3(a)(38) of the
Securities Exchange Act of 1934, and the person selling the securities shall
not (1) solicit or arrange for the solicitation of orders to buy the
securities in anticipation of or in connection with such transaction, or
(2) make any payment in connection with the offer or sale of the
securities to any person other than the broker who executes the order to sell
the securities.

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