Document:

Exhibit
4.7

 

THE SECURITIES REPRESENTED BY THIS AGREEMENT ARE OFFERED FOR INVESTMENT ONLY AND HAVE NOT BEEN
REGISTERED PURSUANT TO THE PROVISIONS OF THE SECURITIES ACT OF 1933 FROM
REGISTRATION AS AMENDED (“SECURITIES ACT”), AND HAVE BEEN
OFFERED
AND SOLD IN RELIANCE UPON THE EXEMPTION, SPECIFIED IN SECTION 4(2) OF
THE SECURITIES ACT AND RULE 506 OF REGULATION D PROMULGATED PURSUANT THERETO.
WITHOUT SUCH REGISTRATION, SUCH SECURITIES MAY NOT BE SOLD, TRANSFERRED,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF, EXCEPT UPON DELIVERY
TO THE COMPANY AND ITS TRANSFER AGENT
OF AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT THAT SUCH REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER; OR THE
SUBMISSION TO THE COMPANY OR ITS TRANSFER AGENT OF SUCH OTHER EVIDENCE AS
MAY BE SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN
VIOLATION OF THE SECURITIES ACT, APPLICABLE STATE SECURITIES LAWS OR ANY RULE
OR REGULATION PROMULGATED PURSUANT THERETO.

 

	
  No. WC-1-2004

  	
   

  	
                       Warrants

  

 

WARRANTS TO PURCHASE

             SHARES
OF

A.C.T. HOLDINGS, INC.

COMMON STOCK

WARRANT CERTIFICATE

 

Date of Issuance: December 30, 2004

 

WARRANT AGREEMENT

 

This
Warrant Certificate certifies that                                                   or
registered assigns, in consideration of                     
received, is the registered
holder of Warrants (the “Warrants”) to purchase initially, at any time from
December 30, 2005 (the “Effective Date”) until 5:30 p.m. Los Angeles
time, on December 30, 2014 (“Expiration Date”), up to the number of fully
paid and nonassessable shares of common stock (“Common Stock”) of A.C.T.
Holdings, Inc., a Nevada corporation (the “Company”) set forth above, at
the initial exercise price, subject to adjustment in certain events, of $2.00
per share (the “Exercise Price”) of Common Stock upon
surrender of this Warrant Certificate and payment of the Exercise Price at an
office or agency of the Company, but subject to the conditions set forth
herein.

 

The Warrants are subject to the following
provisions, terms and conditions:

 

1

 

1. EXERCISE OF WARRANTS

 

Exercise of Warrants. The Warrants may be exercised by the Holder, in whole or in part (but
not as to a fractional share of Common Stock), by surrender of this Warrant
Agreement at the principal office of the Company located at 38 Plantation
Street, Worcester, MA 01605 (or such other office or agency of the Company as
may be designated by notice in writing to the Holder at the address of such
Holder appearing on the books and records of the Company), with the appropriate
form attached hereto duly exercised, at any time within the period beginning on
the date of this Warrant Agreement, which is specified above and ending on that
date exactly ten (10) years from the Effective Date (the “Exercise
Period”) and (i) by certified or official bank check. The Company agrees
that the shares of Common Stock so purchased shall be deemed to be issued to
the Holder as the record owner of such shares of Common Stock as of the close
of business on the date on which the Warrant Agreement shall have been
surrendered and payment made for such shares of Common Stock. Certificates
representing the shares of Common Stock so purchased shall be delivered to the
Holder promptly and in no event later than thirty (30) days after the Warrants
shall have been so exercised.

 

2. ADJUSTMENTS
AND NOTICES

 

A.    Adjustments. The Exercise Price and the number of shares
of Common Stock issuable upon exercise of each Warrant shall be subject to
adjustment from time to time, as follows:

 

(1)         Stock Dividends; Stock Splits; Reverse Stock Splits; and
Reclassifications. In the
event that the Company shall (a) pay a dividend with respect to its
capital stock in shares of Common Stock, (b) subdivide its issued and
outstanding shares of Common Stock, (c) combine its issued and outstanding
shares of common stock into a smaller number of shares of any class of Common
Stock or (d) issue any shares of its capital stock in a reclassification
of the Common Stock (including any such reclassification in connection with a
merger, consolidation or other business combination in which the Company is the
continuing corporation) (any one of which actions is herein referred to as an
“Adjustment Event”), the number of shares of Common Stock purchasable upon
exercise of each Warrant immediately prior to the record date for such
Adjustment Event shall be adjusted so that the Holder shall thereafter be
entitled to receive the number of shares of Common Stock or other securities of
the Company (such other securities thereafter enjoying the rights of shares of
Common Stock pursuant to this Warrant Agreement) that such Holder would have
owned or have been entitled to receive after the happening of such Adjustment
Event, had such Warrant been exercised immediately prior to the happening of
such Adjustment Event or any record date with respect thereto. An adjustment
made pursuant to this Section 2A(1) shall become effective
immediately after the effective date

 

2

 

of
such Adjustment Event retroactive to the record date, if any, for such
Adjustment Event.

 

(2)         Adjustment of Exercise Price. Whenever the number of shares of Common Stock purchasable upon the
exercise of each Warrant is adjusted pursuant to Section 2A(1) of
this Warrant Agreement, the Exercise Price for each share of Common Stock
payable upon exercise of each Warrant shall be adjusted by multiplying such
Exercise Price immediately prior to such adjustment by a fraction, the
numerator of which shall be the number of shares of Common Stock purchasable
upon the exercise of each Warrant immediately prior to such adjustment, and the
denominator of which shall be the number of shares of Common Stock so
purchasable immediately thereafter.

 

(3)         De Minimis Adjustments.
No adjustment in the number of shares of Common Stock purchasable pursuant to
this Warrant Agreement shall be required, unless such adjustment would require
an increase or decease of at least one percent (1%) in the number of shares of
Common Stock purchasable upon an exercise of each Warrant; provided, however,
that any adjustments which by reason of this Section 2A(3) are not
required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations shall be made to the nearest full
share.

 

B.    Notice of Adjustment. Whenever the number of shares of Common
Stock purchasable upon the exercise of each Warrant or the Exercise Price is
adjusted, as herein provided, the Company shall promptly notify the Holder in
writing (such writing referred to as an “Adjustment Notice”) of such adjustment
or adjustments and shall deliver to the Holder a certificate of a firm of independent
public accountants selected by the Board of Directors of the Company (who may
be the regular accountants employed by the Company) or of the Independent
Financial Expert, if any, which makes a determination of Current Market Value
with respect to any such adjustment setting forth the number of shares of
Common Stock purchasable upon the exercise of each Warrant and the Exercise
Price after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such
adjustment was made.

 

C.    Amendment of Warrant
Agreement. This
Warrant Agreement may not be changed because of any change in the Exercise
Price or in the number of shares of Common Stock purchasable upon the exercise
of a Warrant. The Company may at the time in the Company’s sole discretion make
any change in the form of a warrant agreement that the Company may deem
appropriate and that does not affect the substance thereof and any warrant
agreement thereafter issued, whether in exchange or substitution for any
outstanding warrant agreement or otherwise, may be in the form so changed.

 

D.    Notice to Holder of Record
Date, Dissolution, Liquidation or Winding Up. The Company shall cause to be mailed (by
first class mail, postage prepaid) to the Holder notice of the record date for
any dividend, distribution or payment, in cash or in kind

 

3

 

(including, without
limitation, evidence of indebtedness and assets), with respect to shares of Common
Stock at least twenty (20) calendar days before any such date. In the event
that at any time after the date hereof, there shall be a voluntary or
involuntary dissolution, liquidation or winding up of the Company, then the
Company shall cause to be mailed (by first class mail, postage prepaid) to the
Holder at the Holder’s address as shown on the books of the Company, at the
earliest practicable time (and, in any event, not less than twenty (20)
calendar days before any date set for definitive action), notice of the date on
which such dissolution, liquidation or winding up shall take place, as the case
may be. The notices referred to above shall also specify the date as of which
the holders of the shares of Common Stock of record or other securities underlying
the Warrants shall be entitled to receive such dividend, money or the property
deliverable upon such dissolution, liquidation or winding up, as the case may
be (the “Entitlement Date”). In the case of a distribution of evidence of
indebtedness or assets (other than in dissolution, liquidation or winding up),
if the Holder elects to exercise the Warrants in accordance with Section 1
of this Warrant Agreement and become a holder of the Common Stock on the
Entitlement Date, the Holder shall thereafter receive the evidence of
indebtedness or assets distributed in respect of shares of Common Stock.

 

E.     Fractional Interest. The Company shall not be required to issue
fractional shares of Common Stock on the exercise of the Warrants. If more than
one Warrant shall be presented for exercise in full at the same time by the
same holder, the number of full shares of Common Stock which shall be issuable
upon such exercise shall be computed on the basis of the aggregate number of
whole shares of Common Stock purchasable on exercise of the Warrants so
presented. If any fraction of a share of Common Stock would, except for the
provisions of this Section 2E be issuable on the exercise of the Warrants
(or specified proportion thereof), the Company shall pay an amount in cash
calculated by it to be equal to the then fair value of one share of Common
Stock, as determined by the Board of Directors of the Company in good faith,
multiplied by such fraction computed to the nearest whole cent.

 

3.
RESERVATION AND AUTHORIZATION OF COMMON STOCK

 

The Company covenants and
agrees (a) that all shares of Common Stock which may be issued upon the
exercise of the Warrants will, upon issuance, be validly issued, fully paid and
nonassessable and free of all insurance or transfer taxes, liens and charges
with respect to the issue thereof; (b) that during the Exercise Period,
the Company will at all times have authorized, and reserved for the purpose of
issue or transfer upon exercise of the Warrants, sufficient shares of Common
Stock to provide for the exercise of the Warrants, and (c) that the
Company will take all such action as may be necessary to ensure that the shares
of Common Stock issuable upon the exercise of the Warrants may be so issued
without violation of any applicable law or regulation, or any requirements of
any domestic securities exchange upon which any capital stock of the Company
may be listed; provided, however, that nothing contained herein shall impose
upon the Company any obligation to register the Warrants or the Common Stock
pursuant to applicable securities laws. In the event that any securities of the
Company, other than the Common Stock, are issuable upon exercise of the
Warrants, the Company will take or refrain from

 

4

 

taking any action referred
to in clauses (a) through (c) of this Section 3 as though such
clauses applied, mutatis mutandis, to such other securities then issuable upon
the exercise the Warrants.

 

4. NO VOTING RIGHTS

 

This Warrant Agreement shall
not entitle the Holder to any voting rights or other rights as a stockholder of
the Company.

 

5. CALL OF WARRANTS BY THE COMPANY.

 

The Company shall have the
right to force the purchase, at the Exercise Price, of any or all Warrants on
or after the date (the “Call Date”) on which: (i) the price (“price” shall
be determined by taking the average between the bid and ask prices over the
preceding five (5) day period) of the Company’s common stock as reported
on the Over the Counter Bulletin Board, or other nationally recognized
exchange, as the case may be, equals or exceeds 150% of the Exercise Price; and
(ii) the average trading volume of the Company’s common stock on the Over
the Counter Bulletin Board or other nationally recognized exchange, as the case
may be, equals or exceeds 20,000 shares per day over the previous thirty (30)
day period (collectively, the “Conditions to Call”). Should the Company
determine that the Conditions to Call have been satisfied, the Company shall
provide the Holder with written notice of its intent to call the Warrants. The
Holder shall have ten (10) days from the date appearing on such notice to
exercise the Warrants as specified herein and tender the Exercise Price to the
Company. If the Holder fails to exercise the warrants within the specified
period, all Warrants issued in the name of Holder shall, without any other
action by the Company, terminate.

 

6. EXERCISE OR TRANSFER OF WARRANTS OR COMMON STOCK

 

The Holder agrees to be
obligated by any and all provisions with respect to any and all limitations,
including limitations imposed by the Securities Act of 1933, as amended,
regarding the Warrants and the shares of Common Stock or other securities
issuable upon exercise of the Warrants. The Holder acknowledges and agrees that
he or she is aware that there are substantial restrictions on the
transferability of the Warrants and the shares of Common Stock or other
securities issuable upon exercise of the Warrants. The undersigned also
acknowledges and agrees that he or she shall be responsible for compliance with
all conditions on transfer imposed by a Securities Administrator of any state,
province or territory and for any expenses incurred by the Company for legal
and accounting services in connection with reviewing such a proposed transfer
and issuing opinions in connection therewith.

 

7. LOCK-UP PROVISION

 

In the event that the Board
of Directors of the Company determines, in its sole and absolute discretion,
that it is in the best interests of the Company and its shareholders to cause
Holder to execute a lockup/leak-out agreement related to the common stock

 

5

 

underlying the Warrants
(whether such underlying common stock is registered or not), Holder
specifically agrees to execute such an agreement as presented by the Company.
The terms and conditions of such lockup/leak-out agreement, if necessary, shall
be set by the Company, in its sole and absolute discretion, and will include,
but not be limited to, at least a twelve (12) month lockup/leak-out provision.
In the event that Holder refuses to execute the lockup/leak-out agreement
(which may be a condition precedent to the issuance of the stock underlying the
Warrants), the Holder herewith specifically agrees that the Company may refuse
to issue the common stock issuable upon exercise of the Warrants.

 

8. PIGGY-BACK REGISTRATION RIGHTS

 

Subject to the exceptions
specified in this Section 8, in the event that the Company decides to file
a registration statement with the Securities and Exchange Commission pursuant
to the Securities Act, the Company shall provide Holder with written notice of
its intent to file a registration statement. Holder will then have fifteen (15)
days from the date appearing on the notice to request, in writing, that the
Company use its best efforts to include in that registration statement, for
registration, all or any portion of the common stock issuable upon exercise of
these Warrants. If Holder does not provide the Company with written notice
within fifteen (15) days, Holder loses Holder’s right to request registration
of the shares issuable upon the exercise of these Warrants. If proper notice is
given, the Company agrees to use its best efforts to prepare and file with the
Securities and Exchange Commission such amendments and supplements to the
registration statement and the prospectus used in connection with such
registration statement necessary to comply with the provisions of the
Securities Act and to cause such registration statement to become effective.
The Company shall pay all expenses and fees incurred by Holder in registering
all or any portion of the shares issuable upon exercise of these Warrants. The
exceptions to the piggy-back registration rights granted herein (i.e., Holder
will not have the right to request that the Company register the common stock
underlying the Warrants) are as follows: (i) the registration statement
filed by the Company is related or a condition to a secondary offering
conducted by the Company; or (ii) the registration statement filed by the
Company seeks to register stock whose aggregate value (exclusive of the common
stock issuable upon exercise of the Warrants) is less than Ten Million Dollars
($10,000,000).

 

9. MERGERS, CONSOLIDATIONS, ETC.

 

A. Except as may otherwise
be provided, if the Company shall merge or consolidate with another
corporation, the Holder shall thereafter have the right, upon exercise of the
rights specified in this Warrant Agreement and payment of the Exercise Price,
to receive solely the kind and amount of shares of stock (including, if
applicable, Common Stock), other securities, property or cash or any
combination thereof receivable by a holder of the number of shares of Common
Stock for which this Warrant Agreement might have been exercised immediately prior
to such merger or consolidation (assuming, if applicable, that the holder of
such Common Stock failed to exercise its rights of election, if any, as to the

 

6

 

kind or amount of shares of
stock, other securities, property or cash or combination thereof receivable
upon such merger or consolidation).

 

B. In case of any
reclassification or change of the shares of Common Stock issuable upon exercise
of (other than elimination or par value, a change in par value, or from par
value to no par value, or as the result of a subdivision or combination of
shares (which is provided for elsewhere herein), but including any
reclassification of the shares of Common stock into two (2) or more
classes or series of shares) or in case of any merger or consolidation of
another corporation into the Company in which the Company is the surviving
corporation and in which there is a reclassification or change of the shares of
Common Stock (other than a change in par value, or from par value to no par
value, or as a result of a subdivision or combination (which is provided for
elsewhere herein), but including any reclassification of the shares of Common
Stock, the Holder shall thereafter have the right, upon exercise hereof and
payment of the Exercise Price, to receive solely the kind and amount of shares
of stock (including, if applicable, Common Stock), other securities, property
or cash or any combination thereof receivable upon such reclassification,
change, merger or consolidation by a holder of the number of shares of Common
Stock for which the rights specified in this Warrant Agreement might have been
exercised immediately prior to such reclassification, change, merger or
consolidation (assuming, if applicable, that the holder of such Common Stock
failed to exercise its rights of election, if any, as to the kind or amount of
shares of stock, other securities, property or cash or combination thereof
receivable upon such reclassification, change, merger or consolidation).

 

10.
RIGHTS AND OBLIGATIONS SURVIVE EXERCISE OF WARRANTS

 

The rights and obligations
of the Company, of the Holder, and of the holders of shares of Common Stock or
other securities issued upon exercise of the Warrants, specified in this
Warrant Agreement shall survive the exercise of the Warrants.

 

Dated: December 30,
2004

 

	
  COMPANY

  
	
   

  
	
  A.C.T. HOLDINGS, INC.,

  A Nevada corporation

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  David C. Merrell

  	
   

  
	
  Its:

  	
  President

  	
   

  
	
   

  
	
  HOLDER

  
	
   

  
	
   

  	
   

  
	
  (Signature of Holder)

  	
   

  
				

 

7

 

	
   

  	
   

  
	
  (Print Name of Holder)

  	
   

  

 

8Exhibit
4.8

 

SUBSCRIPTION
AGREEMENT

 

Advanced
Cell Technology, Inc.

a Delaware corporation

One Innovation Drive

Worcester, MA 01605

Telephone (508) 756-1212

 

The undersigned has received and read the Confidential Private
Placement Memorandum dated November 10, 2004 (“Memorandum”), pursuant to
which Advanced Cell Technology, Inc., a Delaware corporation (“Company”),
is offering for sale to the undersigned Units (“Offered Units”) at the price of
$1.70 per Offered Unit, each Unit consisting of (i) two (2) shares of
our $.001 par value Series A Convertible Preferred Stock and (ii) one
(1) warrant to purchase a share of our Common Stock at $1.27 per share. Each
share of Series A Convertible Preferred Stock is convertible in one (1) share
of our $.001 par value common stock. Each share of Series A Convertible
Preferred Stock carries a coupon of 6% cumulative dividend payable in cash or
in-kind at our discretion.  Each callable
warrant is exercisable on a for-cash basis with a two-year expiration date and
may be subject to certain lockup/leak-out provisions.  The rights, privileges and restrictions on
our Series A Convertible Preferred Stock will be described in our Restated
Certificate of Incorporation, to be filed upon the close of this Offering.  There is a minimum investment of $50,000;
therefore, the minimum number of Offered Units which each purchaser must
purchase is 29,412 Units.  The Company
will place the proceeds of this Offering into an escrow account until such time
as it has raised a minimum offering amount of $1,000,000.  Therefore, the minimum number of Offered
Units which must be sold prior to the Company’s utilization of the proceeds
from the sale of the Offered Units is $588,235. 
Once the Company receives the minimum offering amount of $1,000,000, funds
raised will be released to the Company from the escrow account, and any
additional funds received from a purchaser subsequent to that point will
immediately be available to the Company. 
The terms used and not defined in this Subscription Agreement have the
meanings specified for such terms in the Memorandum.  The Units are being offered solely to
Accredited Investors as that term is defined in the Memorandum.

 

1. 
Subscription.   On the terms and
subject to the conditions of this Subscription Agreement and the Memorandum,
the undersigned hereby subscribes for the number of Offered Units of the
Company, specified below.  The
undersigned hereby agrees that this subscription shall be irrevocable and shall
survive the death or disability of the undersigned.  Payment of the purchase price for the Offered
Units is due upon subscription.

 

2. 
Acceptance of Subscription.   The
undersigned acknowledges that (i) the Company has the right to accept or
reject this subscription in whole or in part, and (ii) this subscription
shall be deemed to be accepted by the Company only when this Subscription
Agreement is signed by the Company.  The
undersigned agrees that subscriptions need not be accepted by the Company in
the order in which subscriptions are received.

 

3.  Representations,
Warranties, and Covenants of the Undersigned.  The undersigned hereby represents and
warrants to and covenants with the Company, the Company’s officers, directors,
employees, attorneys, agents and any person who has solicited this subscription
as follows:

 

(a)           The
undersigned has adequate means of providing for his or her current needs and
possible personal contingencies, and he or she has no need in the foreseeable
future to sell the Offered Units or shares of the Company’s common stock underlying
such Units.  The undersigned is able to
accommodate the economic risks of the undersigned’s purchase of Offered Units,
and the undersigned has a sufficient net worth to sustain a loss of his or her
investment in the Company, or a portion thereof, in the event such loss should
occur.

 

(b)           The
undersigned has such knowledge and experience in financial and business manners
that he or she is capable of evaluating the merits and risks of an investment
in the Company.

 

(c)           The
undersigned confirms that all documents, records and books, pertaining to his
or her proposed investment in the Company have been made available to the
undersigned.

 

 

(d)           The undersigned has had an opportunity to ask
questions of and receive satisfactory answers from the Company, or any person
or persons acting on the Company’s behalf, concerning the terms and conditions of his
or her proposed investment in the Company, and all such questions have been
answered to the complete satisfaction of the undersigned.

 

(e)           The Offered Units and the shares of this Company’s common stock
underlying such Units will be acquired by the undersigned for his or her own
account for investment in a manner which would not require registration or
qualification pursuant to the provisions of the Securities Act of 1933, as
amended (“Act”), or any state Blue Sky law.

 

(f)            The undersigned
understands that the offer and sale of the Offered Units and the shares of the
Company’s common stock underlying such Units in the individual states in
transactions which satisfy the requirements of Rule 506 of Regulation D
promulgated pursuant to Section 4(2) of the Securities Act of 1933
are not required to be registered or qualified in the individual states because
of adoption of the National Securities Markets Improvement Act of 1995 (“NSMIA”).  NSMIA preempts state registration and similar
qualification provisions for transactions exempt pursuant to that Rule 506.

 

(g)           The
undersigned represents that it has been called to his or her attention by those
provisions of the Memorandum and by those persons with whom the undersigned has
dealt in connection with his or her proposed investment in the Company that the
Company has significant debt, and the undersigned’s proposed investment in the
Company involves significant risks which may result in the loss of that
investment, or a portion thereof.

 

(h)           The
undersigned has received no representations or warranties in making his or her
investment decision.

 

(i)            The
undersigned acknowledges and agrees that the Company has made available to the
undersigned or his or her personal advisors the opportunity to obtain
appropriate information to evaluate the merits and risks of an investment in
the Company.

 

(j)            The
undersigned understands that neither the Securities and Exchange Commission nor
any Securities Administrator or similar person of any state or province has
made any finding or determination relating to the fairness of any purchase of
the Offered Units or the shares of the Company’s common stock underlying such
Units and that neither the Securities and Exchange Commission nor any
Securities Administrator or similar person of any state or province has or will
recommend or endorse a purchase of the Offered Units.

 

(k)           The
undersigned is now a bona fide citizen of the United States of America and a
bona fide resident of the state set forth below and the address and Social
Security number or federal tax identification number set forth below are his or
her true and correct residence and Social Security number or federal tax
identification number.  The undersigned
has no current intention of becoming a resident of any other state or
jurisdiction.  If the undersigned is a
corporation, partnership, trust or other form of business organization, the
undersigned represents and warrants that the undersigned was formed pursuant to
the laws of                  
and the undersigned’s principal place of business is within such state, and
that the undersigned was not organized for the purpose of acquiring Offered
Units.

 

(l)            The
undersigned hereby represents and warrants that the undersigned’s total
purchase of Offered Units shall not exceed 10% of the undersigned’s net worth.

 

(m)          By
initialing where indicated and appropriate below, the undersigned hereby
represents and warrants that the undersigned is an “Accredited Investor”, as
defined by the provisions of Rule 501 of Regulation D promulgated pursuant
to the Act, and falls within one of the following categories:

 

	
   

  	
   

  	
  (1)

  	
   

  	
  The undersigned is a director or executive
  officer of the Company, or any director, executive officer, or general
  partner of a general partner of the Company; or

  
	
  initials

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
  (2)

  	
   

  	
  The undersigned is a natural person whose
  individual net worth, or joint net worth with the undersigned’s spouse, at
  the time of his or her purchase exceeds $1,000,000.00; or

  
	
  initials

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (3)

  	
   

  	
  The undersigned is a natural person who had
  an individual income in excess of $200.000.00 in each of the 2 most recent
  years of joint income with the undersigned’s spouse in excess of $300.000.00
  in each of those years and has a reasonable expectation of having the same
  income level in the current year; or

  
	
  initials

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (4)

  	
   

  	
  The undersigned is a trust, with total
  assets in excess of $5,000,000.00. not formed for the specific purpose of
  acquiring the securities offered, whose purchase is directed by a
  sophisticated person as described in Regulation
  230.506(b) (2) (ii) promulgated pursuant to the Act; or

  
	
  initials

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (5)

  	
   

  	
  The undersigned is an entity in which all
  of the equity owners are Accredited Investors.

  
	
  initials

  	
   

  	
   

  	
   

  	
   

  

 

 

4. 
Indemnification.   The
undersigned acknowledges that he or she understands the meaning and legal
consequences of the representations, warranties, and covenants specified in
Paragraph 3 of this Subscription Agreement and that the Company has relied on
such representations, warranties and covenants, and the undersigned hereby
agrees to indemnify and hold harmless the Company, and its officers, directors,
controlling persons, agents, attorneys, accountants, and employees, from any and
all loss, damage or liability due to, or occurring because of, a breach of any
such representation, warranty, or covenant.

 

5. 
Subsequent Registration of Offered Units.    The
undersigned has no right to require that the Offered Units or the shares of the
Company’s common stock underlying such Units be registered pursuant to the
provisions of the Act, or otherwise.  The
undersigned further acknowledges and agrees that the Company has no obligation
to assist the undersigned in obtaining any exemption from any registration
requirements imposed by applicable law. 
The undersigned also acknowledges and agrees that he or she shall be
responsible for compliance with all conditions on transfer imposed by a
Securities Administrator or similar person of any state, province or territory.

 

6. 
Limitation on Transfer of Offered Units.     The
undersigned acknowledges and agrees that he or she is aware that there are
substantial restrictions on the transferability of the Offered Units, including
the shares of the Company’s common stock underlying such Units.  Because the Offered Units and the shares of
the Company’s common stock underlying such Units will not be registered
pursuant to the provisions of the Act and approved by the Company, the undersigned
agrees not to sell, transfer, assign, pledge, hypothecate or otherwise dispose
of any Offered Units or the shares of the Company’s common stock underlying
such Units unless such sale is exempt from such registration pursuant to the
provisions of the Act or unless the Offered Units and the shares of the Company’s
common stock underlying such Units are registered pursuant to the Act.  The undersigned further acknowledges and
agrees that the Company has no obligation to assist the undersigned in obtaining
any exemption from any registration requirements imposed by applicable
law.  The undersigned also acknowledges
and agrees that he or she shall be responsible for compliance with all
conditions on transfer imposed by a Securities Administrator of any state,
province or territory and for any expenses incurred by the Company for legal
and accounting services in connection with reviewing such a proposed transfer
and issuing opinions in connection therewith.

 

7. 
Compliance with Act.   The
undersigned understands and agrees that the following restrictions and limitations
are applicable to his or her purchase and any sale, transfer, assignment,
pledge, hypothecation or other disposition of Offered Units and any of the
underlying shares pursuant to Section 4(2) of the Act and Rule 506
of Regulation D promulgated pursuant thereto:

 

(a)           The
undersigned agrees that the Offered Units and the shares of the Company’s
common stock underlying such Units shall not be sold, pledged, hypothecated or
otherwise disposed of unless the Offered Units and the shares of the Company’s
common stock underlying such Units are registered pursuant to the Act and
applicable state or other applicable securities laws or are exempt therefrom.

 

(b)           A
legend in substantially the following form has been or will be placed on any
certificate(s) or other documents evidencing the Offered Units and the shares
of the Company’s common stock underlying such Units:

 

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT OR DOCUMENT HAVE BEEN
ACQUIRED FOR INVESTMENT ONLY AND HAVE NOT BEEN REGISTERED PURSUANT TO THE
PROVISIONS OF THE SECURITIES ACT OF 1933 AS AMENDED (“ACT”),  AND HAVE BEEN OFFERED AND SOLD IN RELIANCE
UPON THE EXEMPTIONS SPECIFIED IN SECTION 4(2) OF THE ACT AND RULE 506
OF REGULATION D PROMULGATED PURSUANT THERETO. 
WITHOUT SUCH REGISTRATION, SUCH SECURITIES MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF.  EXCEPT UPON DELIVERY TO THE COMPANY AND ITS
TRANSFER AGENT OF AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY AND ITS
TRANSFER AGENT THAT REGISTRATION IS NOT REQUIRED FOR SUCH TRANSFER OR THE
SUBMISSION TO THE COMPANY AND ITS TRANSFER AGENT OF SUCH OTHER EVIDENCE AS MAY BE
SATISFACTORY TO THE COMPANY AND ITS TRANSFER AGENT TO THE EFFECT THAT ANY SUCH TRANSFER
SHALL NOT BE IN VIOLATION OF THE ACT, APPLICABLE STATE SECURITIES LAWS OR ANY
RULE OR REGULATION PROMULGATED PURSUANT THERETO.

 

(c)           Stop
transfer instructions to the transfer agent of the Company have been or will be
placed with respect to the Offered Units and the shares of the Company’s common
stock underlying such Units so as to restrict the sale, transfer, pledge,
hypothecation or other disposition thereof, subject to the further terms
hereof, including the provisions of the legend set forth in subparagraph (b) above.

 

(d)           The
legend and stop transfer instructions described in subparagraphs (b) and (c) above
will be placed on any new

certificate(s) or other documents for transfer.

 

8. 
Financial Information.   The
undersigned has previously been furnished an Offeree Questionnaire which has
been completed and executed by the undersigned and the information contained
therein remains true and correct in material aspects.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]