Document:

exhibit10-1.htm

    November 2, 2005

     

     

     

    Pankit Desai
1303 Bernardo
Avenue
Escondido CA 92029

     

     

     

    Dear Pankit,

     

    It has been a pleasure talking with you about
your career opportunities at Intelligroup; you are the kind of person that we
are looking for to play a key role in helping to drive the business towards
achieving its market potential. We’re convinced that you can make an immediate
impact reaping both professional and financial rewards. In short, we want you to
join our team.

     

    The
position:

     

    Your title shall be Vice President Client
Services. Your expected start date is yet to be determined. You will report
directly to Vikram Gulati, Chief Executive Officer.

     

    Cash
Compensation

     

    The base salary for the position is $7,083.33
per semi -monthly pay period. This equates to an annual rate of $170,000. You
will also eligible to participate in the Intelligroup Management by Objectives
Incentive Plan with a 50% of base salary bonus opportunity. For the first year
of employment, this bonus will be prorated to 50% of your base salary paid from
your start date through December 31, 2005. The parameters of the MBO plan will
be reviewed with you within in the first 30 days of your employment. Please note
that Intelligroup, in its sole discretion, reserves the right to administer,
interpret, or modify any elements of the Management by Objectives
plan.

     

    Stock
Options:

     

    In addition to the cash compensation detailed
above, and subject to the Board of Directors approval, you will receive a stock
option grant of 50,000 shares of Intelligroup common stock. Vesting of stock
options will be in accordance with the Company’s standard four-year quarterly
vesting schedule. The exercise price shall be the closing price of the stock as
stated in the Wall Street Journal on one day prior to your first day of your
employment.

     

    All options granted are subject to the
Company’s stock plan and the standard stock option agreement and subject to the
execution of the enclosed non – disclosure, non-compete agreement. Please refer
to and adhere to the Intelligroup policies on insider trading before engaging in
any sales, regardless of how the options or stock may have been
acquired.

     

    

    
    

    Termination:

     

    Cause. The Company may terminate the Employee’s employment
for Cause. For purposes of the Agreement, “Cause” shall mean (A) any act of
dishonesty or knowing or willful breach of fiduciary duty by Employee ; (B)
commission of a felony involving moral turpitude or unlawful, dishonest, or
unethical conduct that a reasonable person would consider damaging to the
reputation of the Company or any conduct which is in violation of the Company’s
policies; (C) any material breach of any provision of the Agreement, or any
other agreements between the Employee and Company, by the Employee; or (D)
insubordination or refusal to perform assigned duties consistent with duties of
the Employee’s position or to comply with the reasonable directions of the Chief
Employee Officer or Company’s Board of Directors. If the Employee’s employment
is terminated for Cause, the Company shall pay the Employee his full accrued
Base Salary through the date of termination at the rate in effect at the time of
such termination, and the Company shall have no further obligation to the
Employee under the Agreement or under any other agreements or plans. All other
compensation accruing after the termination including, without limitation,
bonuses, severance and/ or stock option grants shall be forfeited if the
Employee is terminated for Cause, except to the extent vested prior to such
termination.

     

    Severance:

     

    You shall be eligible for three (3) months of
severance pay following the termination of this Agreement unless the agreement
is terminated for Cause. The payments shall commence upon the day following
termination and continue for a period of three (3) months in accordance with the
Company’s standard payroll practices. Severance pay shall include, in addition
to base salary, reimbursement of COBRA premiums to the extent that you are not
covered by the Company’s health plans during the severance
period.

     

    Benefit
Programs:

     

    As an Intelligroup employee, you will be
eligible to participate in the Company’s 401K, medical, dental, disability, and
life insurance benefit programs. Your vacation allowance will be 20 days.
Summaries of these plans will be included in your new hire
packet.

     

    Relocation:

     

    Intelligroup requires the VP client Services,
to perform services under this offer of employment in its Headquarters currently
located in Edison, NJ. Relocation expenses, including closing costs for the sale
of your existing home, will be reimbursed provided the appropriate receipt
documentation for actual expenses incurred is provided for approval by Chief
Executive Officer, however the total relocation reimbursement amount is capped
and cannot exceed $60,000.

     

    Conditions

     

    Also enclosed is a copy of our employees
agreement regarding, inventions, confidentiality and non competition. This offer
is conditional on your executing the agreement and on you being able to supply
proof of your eligibility to work in the United States (Form
I-9).

     

    

    
    

    To indicate your acceptance of this offer,
please sign and date this letter in the space provided and return it to
Intelligroup Human Resources, Attention, Shirley Spoors, VP Human Resources,
499, Thornall, Edison, NJ 08837, along with a fully executed copy of the
Employment Agreement regarding Inventions, Confidentiality, and Non
–Competition. A duplicate original is enclosed for your
records.

     

    This letter along with the above mentioned
agreement relating to the proprietary rights between you and the company and any
stock option agreements, set forth the terms of your employment with the Company
and supersede any prior representations or agreements, whether written or oral.
This letter may not be modified or amended except by written agreement signed by
you and myself.

     

    Intelligroup reserves the right to withdraw
this offer of employment if not accepted by you in seven (7) days of receipt or
if any representations by you cannot be verified. This offer becomes valid upon
Intelligroup’s acceptance of the signed offer letter.

     

    It is recognized that this offer of employment
is not intended to create a contract of employment and both Intelligroup and you
retain the right to terminate the employment relationship at any time without
cause subject to the provisions of this Agreement. This Agreement is bonding on,
and shall injure to the benefit of, the successors and assigns of the Company
(including, without limitation, the surviving party to a Change of
Control).

     

    Sincerely,

     

    /s/ Shirley Spoors
Shirley
Spoors
Vice President – Human
Resources
Intelligroup, Inc.

     

    The undersigned accepts the above employment
offer, agrees that it contains the terms of employment with Intelligroup, and
that there are no other terms, expressed or implied. By accepting this offer of
employment, the undersigned is acknowledging that no prior employment
obligations or other contractual restrictions exist which preclude employment
with Intelligroup. It is further understood that this offer is confidential and
disclosure outside of your family or financial, accounting, and/or legal
advisors, may result in termination of employment or withdrawal of this
offer.

     

    
      	Accepted:	 
	 
      
	/s/ Pankit Desai	 
	Pankit Desai 	Date : 11/23/2005
	__XXX-XX-XXXX__________	 
	Social Security Number	 

    

    

    
    

    Intelligroup,
Inc. Standard Employee Terms (“Agreement”)

     

    
      	Pankit
      Desai	  	Date:
      November 8, 2005

    

    In consideration of employment with the
Company and all the benefits conferred by such employment including, without
limitation, any stock option grants now or in the future by the Company, as well
as the future access to confidential information to which I shall be privileged
by virtue of entering this Agreement, the receipt and sufficiency of which are
acknowledged, I, the above-named Employee, hereby agree with the Company as
follows.

     

    1.0.
Definitions.

    1.1. “Company” shall refer to Intelligroup,
Inc. and/or its direct or indirect subsidiaries and
affiliates.

     

    1.2. "Confidential Information" shall mean a)
proprietary information which the Company possesses, or to which the Company has
rights, which has commercial value including without limitation, trade secrets,
product ideas, designs, configurations, processes, techniques, formulas,
software, improvements, inventions, data, know-how, copyrightable materials,
marketing plans and strategies, sales and financial reports and forecasts, lists
of present and prospective customers, lists of present or former employees, and
any information relating to research, development, programming, purchasing,
accounting, engineering, merchandising and licensing as well as any information
developed by in the course of my employment with the Company including
information relating to inventions under Section 4 below, as well as any other
information to which I may have access in connection with your employment; b)
any other information of the Company which is designated as “Confidential” or
“Proprietary” or by its nature reasonably should be considered “Confidential”;
or c) information of others including, without limitation, the customers,
partners or other companies or individuals with which the Company conducts
business, which is designated or otherwise would reasonably be designated as the
confidential or proprietary information of such companies under their policies,
procedures or agreements with the Company and, in the absence of such policies,
procedures or agreements, by applying the definition of “Confidential
Information” as described above to such information. I understand that as an
employee of Intelligroup it is my duty to understand the nature of Confidential
Information and I will request clarification as necessary.

     

    2. Intelligroup Policies.
I understand that Intelligroup has
developed certain employment practices, policies and procedures. I agree to
review and abide by all Intelligroup’s employment practices, policies and
procedures set forth in the Intelligroup Employee Handbook or otherwise
distributed by Intelligroup’s Human Resources
Department.

     

    3. Confidentiality.
I understand and agree that my employment creates a relationship of
confidence and trust between myself and the Company with respect all
Confidential Information. At all times, both during my employment with the
Company and after its termination, I will keep in confidence and trust all such
Confidential Information, and will not use or disclose any such Confidential
Information without the advance written consent of the Company, except as may be
necessary in the ordinary course of performing my duties to the Company. The
restrictions set forth in this Section 2 will not apply to information which is
generally known to the public or in the trade, unless such knowledge results
from an unauthorized disclosure by me, but this exception will not affect the
application of any other provision of this Agreement to such information in
accordance with the terms of such provision. I likewise agree to immediately
report to my supervisor any violation of the Company’s security measures or
prohibited disclosure of Confidential Information by any person or organization.
I agree to immediately report to my supervisor the names of any persons or
organizations that attempt to obtain Confidential Information from
me.

     

    

    
    

    4. Documents, records, etc.
All documents, records, apparatus,
equipment and other physical property, including but not limited to papers,
notebooks, manuals, reports, desktops, laptops, printers, mobile phones, remote
email assistants, computer files, software, vehicles, tools, keys, entry cards
or badges, credit authorizations, user identifications and passwords, whether or
not pertaining to Proprietary Information, which are furnished to me by the
Company or are produced by me in connection with my employment will be and
remain the sole property of the Company. I will return to the Company all such
materials and property as and when requested by the Company. In any event, I
will return all such materials and property immediately upon termination of my
employment for any reason. I will not take with me any such material or property
or any copies thereof upon such termination.

     

    5. Ownership of
Inventions. I agree that any and all
writings, inventions, improvements, processes, procedures, and/or techniques,
which I make, conceive, discover or develop, in whole or in part, either alone
or jointly with others, directly or indirectly related to my employment with the
Company (“Work Product”), shall be the sole property of the Company. The Company
will be the sole owner of all patents, copyrights and other proprietary rights
in and with respect to such Work Product. To the fullest extent permitted by
law, such Work Product will be deemed works made for hire. I hereby transfer and
assign to the Company any proprietary rights which I may have or acquire in any
such Work Product, and I waive any moral rights or other special rights which I
may have or accrue therein. I agree to execute any documents and take any
actions that may be required to effect and confirm such transfer and assignment
and waiver. The provisions of this Section 4 will apply to all Work Products
which are conceived or developed during the term of my employment with the
Company, whether before or after the date of this Agreement, and whether or not
further development or reduction to practice may take place after termination of
my employment, for which purpose it will be presumed that any Work Product
conceived by me which are reduced to practice within one year after termination
of my employment were conceived during the term of my employment with the
Company unless I am able to establish a later conception date by clear and
convincing written evidence. The provisions of this Section 5 will not apply,
however, to any Inventions which may be disclosed in a separate Schedule
attached to this Agreement prior to its acceptance by the Company, representing
Inventions made by me prior to my employment by the
Company.

     

    6. Disclosure of
Inventions. I agree promptly to disclose
to the Company, or any persons designated by it, in writing, all Work Products
which are or may be subject to the provisions of Section
5.

     

    7. Obtaining and Enforcing
Proprietary Rights. I agree to assist the
Company, at the Company's request from time to time and at the Company's
expense, to obtain and enforce patents, copyrights or other proprietary rights
with respect to Work Product in any and all countries. I will execute all
documents reasonably necessary or appropriate for this purpose. This obligation
will survive the termination of my employment, provided that the Company will
compensate me at a reasonable rate after such termination for time actually
spent by me at the Company's request on such assistance. In the event that the
Company is unable for any reason whatsoever to secure my signature to any
document reasonably necessary or appropriate for any of the foregoing purposes
(including renewals, extensions, continuations, divisions or continuations in
part), I hereby irrevocably designate and appoint the Company and its duly
authorized officers and agents as my agents and attorneys-in-fact to act for me
and on my behalf, but only for the purpose of executing and filing any such
document and doing all other lawfully permitted acts to accomplish the foregoing
purposes with the same legal force and effect as if executed by
me.

     

    

    
    

    8. Solicitation of
Employees. I agree that during and for
a period of twelve (12) months immediately following the termination of my
employment with the Company for any reason, whether with or without cause, I
shall not either directly or indirectly solicit, induce, recruit or encourage
any of the Company’s employees or independent contractors to leave their
employment or end their business relationship with the Company, or take away
such employees or independent contractors, or attempt to solicit, induce,
recruit, encourage, or take away any of the Company’s employees or independent
contractors, either for myself or for any other person or entity. I agree that
if I breach, or propose to breach, any portion of this Section 8, the Company
shall be entitled, in addition to all other remedies that it may have, to
damages, damages associated with recruiting costs and training costs for
replacing Company’s employee.

     

    9. Competitive Activities.
I agree that while I am employed by the Company and for a period of
twelve (12) months following the termination of my employment with the Company
for any reason, whether with or without cause, I will not, without the Company’s
express written consent, directly or indirectly, whether as owner, partner,
shareholder, director, officer, consultant, agent, employee, contractor, or
otherwise: a) engage in any business that, in a reasonable judgement of the
Company, is competitive with the Company or which may, in the reasonable
judgement of the Company , become competitive with the Company in the
foreseeable future, or assist others in any business that is competitive with
the Company; b) solicit or accept employment or similar business from, contract
with or otherwise assist any customer, partner or other company with which the
Company had a business agreement within twelve (12) months preceding the
solicitation of such services, except in the course of your employment with the
Company; or c) cause or seek to have any customer, partner or other company
which the Company has a business agreement with to end or otherwise
detrimentally alter their business relationship with the
Company.

     

    I understand that the restrictions set forth
in this Section 9 are intended to protect the Company's legitimate interest in
its Proprietary Information and established customer relationships and goodwill,
and agree that such restrictions are necessary, reasonable and appropriate for
this purpose.

     

    10. Third-Party Agreements and
Rights. I hereby confirm that I am
not bound by the terms of any agreement with any previous employer or other
party which restricts in any way my use or disclosure of information or my
engagement in any business, except as may be disclosed in a separate Schedule
attached to this Agreement prior to its acceptance by the Company. I have
delivered to the Company true and complete copies of any agreements listed on
said Schedule. I represent to the Company that my execution of this Agreement,
my employment with the Company and the performance of my proposed duties for the
Company will not violate any obligations I may have to any such previous
employer or other party. In my work for the Company, I will not disclose or make
use of any information in violation of any agreements with or rights of any such
previous employer or other party, and I will not bring to the premises of the
Company any copies or other tangible embodiments of non-public information
belonging to or obtained from any such previous employment or other
party.

     

    

    
    

    11. Other Employment.
During the term of my employment with the Company, I agree to keep the
Company informed of any outside employment rendered by me and that such
employment will not adversely affect my employment with the Company. For a
period of one (1) year after the termination of my employment with the Company,
I will inform any prospective employer, before accepting such employment, of the
terms of this Agreement.

     

    12. Equitable Remedies.
I agree that it would be difficult to measure any damages caused to the
Company which might result from any breach of the terms of this Agreement, and
that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, I agree that if I breach, or propose to breach, any portion
of this Agreement, the Company shall be entitled, in addition to all other
remedies that it may have, to an injunction or other appropriate equitable
relief to restrain any such breach without showing or proving any actual damage
to the Company. In addition, the party seeking to enforce performance of the
terms of this Agreement shall be entitled to all reasonable attorneys fees and
third party costs incurred in seeking enforcement of this Agreement, regardless
of whether suit or other legal or equitable is commenced, including attorneys
fees and costs incurred through engagement in alternative dispute resolution
procedures such as mediation or arbitration fees.

     

    13. Binding Effect.
This Agreement will be binding upon me and my heirs, executors ,
administrators and legal representatives and will inure to the benefit of the
Company, any subsidiary of the Company, and its and their respective successors
and assigns.

     

    14. Enforceability.
If any portion or provision of this Agreement is to any extent declared
illegal or unenforceable by a court of competent jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, will not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by
law. In the event that any provision of this Agreement is determined by any
court of competent jurisdiction to be unenforceable by reason of excessive scope
as to geographic, temporal or functional coverage, such provision will be deemed
to extend only over the maximum geographic, temporal and functional scope as to
which it may be enforceable.

     

    15. Entire Agreement.
This Agreement constitutes the entire agreement between the Company and
myself with respect to the subject matter hereof. This Agreement may not be
amended, modified or waived except by a written instrument duly executed by the
person against whom enforcement of such amendment, modification or waiver is
sought. The failure of any party to require the performance of any term or
obligation of this Agreement, or the waiver by any party of any breach of this
Agreement, in any particular case will not prevent any subsequent enforcement of
such term or obligation or to be deemed a waiver of any separate or subsequent
breach.

     

    16. Employment at Will: Not a
Contract or Fixed Term of Employment.
I understand that this Agreement does not create any obligation on the
part of the Company to continue my employment for any fixed term, and that my
employment may be terminated by myself or the Company at any time for any
reason, except as may be otherwise provided in a written agreement executed by a
duly authorized officer of the Company. In fact, I understand that I am
“employed at will” by the Company meaning that either the Company or myself may
terminate my employment at any time and for any or no
reason.

     

    

    
    

    17. Notices.
Any notices, requests, demands and other communications provided for by
this Agreement will be sufficient if in writing and delivered in person or sent
by registered or certified mail, postage prepaid, to me at the last address
which I have filed in writing with the Company or, in the case of any notice to
the Company, at its main offices, to the attention of its Chief Executive
Officer.

     

    18. Governing Law.
This is a New York contract and shall be construed under and be governed
in all respects by the laws of New York, without giving effect to the conflict
of laws principles of New York law. Any legal action or suit related to this
Agreement shall be brought exclusively in the courts of New York. Both parties
agree that exclusive jurisdiction lies in the state and federal courts residing
in New York City for the resolution of disputes.

     

    I UNDERSTAND THAT THIS AGREEMENT AFFECTS
IMPORTANT RIGHTS. I HAVE READ IT CAREFULLY AND AM SATISFIED THAT I UNDERSTAND IT
COMPLETELY.

     

    
      	/s/ Pankit Desai	 
	Signature of Employee
	 	 
	Date:  	11/23/2005	 
	
            	 
	Accepted and Agreed to by
	Intelligroup, Inc.
	
            	 
	By:	 	 
	
            	 
	Name:   	 	 
	
            	 
	Title:	 	 
	
            	 
	Date:	 	 

    

    

    
    

    SCHEDULE OF PRIOR INVENTIONS AND THIRD
PARTY AGREEMENTS (IF ANY)

     

     

     

     

     

     

     

    
      	Accepted by	Accepted by	 
	Intelligroup,
      Inc.	Employee	 
	 	
            
	By: Michael Mindel	By: Pankit Desai	 
	 	
            	
            
	Name: /s/ Michael Mindel	Name: /s/ Pankit
      Desai	 
	 	
            	
            
	Title : HR Manager	Date : 11/23/2005	 
	 	
            
	Date : 11/23/2005f8k043010ex10i_silveramerica.htm

 

Exhibit 10.1

 

 

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

 

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

 

PRIVATE PLACEMENT SUBSCRIPTION

FOR NON U.S. SUBSCRIBERS

SILVER AMERICA INC.

PRIVATE PLACEMENT

INSTRUCTIONS TO SUBSCRIBER:

	
1.  

	
COMPLETE the information on page 2 of this Subscription Agreement.

	
2.  

	
FAX a copy of page 2 of this Subscription Agreement to Silver America Inc., attention Board of Directors at (775) 996.8200.

	
3.  

	
COURIER the originally executed copy of the entire Subscription Agreement to SILVER AMERICA INC, c/o counsel to the Company, to

Bullivant Houser Bailey PC

1415 L Street, Suite 1000

Sacramento, CA 95814

  

  

  

SILVER AMERICA INC.

PRIVATE PLACEMENT

 

The Subscriber hereby irrevocably subscribes for, and on Closing will purchase from the Company, the following securities at a price of US$0.60 per Share:

	
 

 333,333 Shares

	  

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

	
REGISTRATION INSTRUCTIONS:

	
DELIVERY INSTRUCTIONS:

	
 

                                                                                                   

Name to appear on certificate

 

                                                                                                   

Tax i.d./corporate i.d. #

 

                                                                                                   

Address

 

 

	
 

                                                                                                    

Name and account reference, if applicable

 

                                                                                                    

Contact name

 

                                                                                                    

Address

 

                                                                                                   

Telephone number

 

	
 

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

 

	
WITNESS:

	
EXECUTION BY SUBSCRIBER:

	
 

                                                                                                   

Signature of witness

 

                                                                                                   

Name of witness

 

                                                                                                   

Address of witness

 

 

	
 

X                                                                                                

Signature of individual (if Subscriber is an individual)

 

X                                                                                                 

Authorized signatory (if Subscriber is not an individual)

 

                                                                                                    

Name of Subscriber (please print)

 

                                                                                                    

Name of authorized signatory (please print)

	
ACCEPTED this _______ day of ___________, _____.

SILVER AMERICA INC.

Per:

 

                                                                                                     

Authorized signatory

	
 

                                                                                                    

Address of Subscriber (residence)

 

                                                                                                    

Telephone number and e-mail address

 

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

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

 

  

-2-

  

 

 

 

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

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

 

PRIVATE PLACEMENT SUBSCRIPTION

(Non U.S. Subscribers Only)

 

	
TO:

	
SILVER AMERICA INC. (the “Company”)

 

 

Purchase of Shares

 

	
1.  

	
SUBSCRIPTION

 

1.1             The above signed (the "Subscriber") hereby irrevocably subscribes for and agrees to purchase the number of common shares of the Company's common stock (the "Shares") as set out on page 2 of this Subscription Agreement at a price of US$0.60 per Share (such subscription and agreement to purchase being the "Subscription"), for the total subscription price as set out on page 2 of this Subscription Agreement (the "Subscription Proceeds"), which Subscription Proceeds are tendered herewith, on the basis of the representations and warranties and subject to the terms and conditions set forth herein.

 

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

 

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

 

	
2.  

	
PAYMENT

 

2.1             The Subscription Proceeds must accompany this Subscription Agreement. If the funds are delivered to the Company's lawyers, those lawyers are authorized to immediately deliver the funds to the Company without further authorization from the Subscriber

 

2.2             In the event that this Subscription Agreement is not accepted by the Company for whatever reason within 60 days of the delivery of an executed Subscription Agreement by the Subscriber, this Subscription Agreement, the Subscription Proceeds and any other documents delivered in connection herewith will be returned to the Subscriber at the address of the Subscriber as set forth in this Subscription Agreement without interest or deduction.

 

  

-3-

  

 

 

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

 

2.4             The Subscriber must complete, sign and return to the Company an executed copy of this Subscription Agreement.

 

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

 

	
3.  

	
CLOSING

 

3.1             Closing of the purchase and sale of the Shares shall occur on or before April 30, 2010, or on such other date as may be determined by the Company in its sole discretion (the "Closing Date").  The Subscriber acknowledges that Shares may be issued to other subscribers under this offering (the "Offering") before or after the Closing Date.  The Company, may, at its discretion, elect to close the Offering in one or more closings, in which event the Company may agree with one or more subscribers (including the Subscriber hereunder) to complete delivery of the Shares to such subscriber(s) against payment therefore at any time on or prior to the Closing Date.

 

	
4.  

	
ACKNOWLEDGEMENTS OF SUBSCRIBER

 

4.1 The Subscriber acknowledges and agrees that:

 

	
(a)  

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

 

	
(b)  

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

 

	
(c)  

	
the decision to execute this Subscription Agreement and purchase the Shares agreed to be purchased hereunder has not been based upon any oral or written representation as to fact or otherwise made by or on behalf of the Company and such decision is based solely upon a review of information regarding the Company provided by the Company to the Subscriber (the "Company Information");

 

	
(d)  

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

 

	
(e)  

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

 

 

  

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(f)  

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

 

	
(g)  

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

 

	
(h)  

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

 

	
(i)  

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

 

	
(j)  

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

 

	
(i)  

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

 

	
(ii)  

	
applicable resale restrictions;

 

	
(k)  

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

 

	
(l)  

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

 

	
(m)  

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

 

	
(n)  

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

 

 

  

-5-

  

 

 

	
(o)  

	
none of the Shares are listed on any stock exchange or automated dealer quotation system and no representation has been made to the Subscriber that any of the Shares will become listed on any stock exchange or automated dealer quotation system;

 

	
(p)  

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

 

	
(q)  

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

 

	
(r)  

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

 

	
(s)  

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

 

	
5.  

	
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER

 

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

 

	
(a)  

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

 

	
(b)  

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

 

	
(c)  

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

 

	
(d)  

	
the Subscriber:

 

	
(i)  

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

 

	
(ii)  

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

 

	
(iii)  

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

 

	
(iv)  

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

 

	
A.  

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

 

	
B.  

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

 

 

  

-6-

  

 

 

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

 

	
(e)  

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

 

	
(f)  

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

 

	
(g)  

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

 

	
(h)  

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

 

	
(i)  

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

 

	
(j)  

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

 

	
(k)  

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

 

	
(l)  

	
the Subscriber has received and carefully read this Subscription Agreement;

 

	
(m)  

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

 

	
(n)  

	
the Subscriber has the requisite knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment in the Shares and the Company, and the Subscriber is providing evidence of knowledge and experience in these matters through the information requested herein;

 

	
(o)  

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

 

 

  

-7-

  

 

 

	
(p)  

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

 

	
(q)  

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

 

	
(r)  

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

 

	
(s)  

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

 

	
(t)  

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

 

	
(u)  

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

 

	
(v)  

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

 

	
(i)  

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

 

	
(ii)  

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

 

	
(iii)  

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

 

	
(iv)  

	
that any of the Shares will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the Shares of the Company on any stock exchange or automated dealer quotation system; and

 

	
(w)  

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

 

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

 

 

  

-8-

  

 

 

	
6.  

	
ACKNOWLEDGEMENT AND WAIVER

 

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

 

	
7.  

	
REPRESENTATIONS AND WARRANTIES WILL BE RELIED UPON BY THE COMPANY

 

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

 

	
8.  

	
RESALE RESTRICTIONS

 

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

 

	
9.  

	
LEGENDING AND REGISTRATION OF SUBJECT SECURITIES

 

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

 

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

 

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

 

 

  

-9-

  

 

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

 

	
10.  

	
COLLECTION OF PERSONAL INFORMATION

 

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

 

	
11.  

	
COSTS

 

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

 

	
12.  

	
GOVERNING LAW

 

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

 

	
13.  

	
SURVIVAL

 

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

 

	
14.  

	
ASSIGNMENT

 

14.1          This Subscription Agreement is not transferable or assignable.

 

	
15.  

	
SEVERABILITY

 

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

 

	
16.  

	
ENTIRE AGREEMENT

 

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

 

  

-10-

  

 

 

 

	
17.  

	
NOTICES

 

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

 

	
18.  

	
COUNTERPARTS AND ELECTRONIC MEANS

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

 

 

 

 -11-

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